6. What are the HAMP loan modification guidelines?
Initial qualifications are as follows:
7. Why should I hire a California loan modification attorney?
Have questions about loan modifications? Below I’ve tried to address some of the most common questions and concerns about loan modifications in hopes of shedding some light on what can be a very stressful process. Hopefully this can give borrowers a general outline of what to expect from their banks and the loan modification process and some different ways of going about getting what you want out of it.
It is important to note that every bank has found their own way of interpreting the Home Affordable Modification Program (HAMP) guidelines, so experiences will vary depending on who your lender is. For specific information its important to contact your lender or attorney.
Many mortgage holders, when working a note workout, in CA think they can hop a home Modification for every state. They think, they should be able to skip a note payment just like the one they skipped when they bought their house and when they refinanced. The homeowner, thought wow, skipping a home payment would be great and really help me, so let’s do this home loan note payment. Of course it did not make to me, as there is no free lunch and the homeowner never really skips it; instead the interest is rolled into the new note. In essence, the homeowner has paid the mortgage in advance, but may not really understand that, no matter how many ways you explain it to them.
Are you a California homeowner in danger of losing your home because of financial difficulties? The federal loan modification programs Making Home Affordable (MHA) and the Home Affordable Modification Program (HAMP) are here to help! Under the programs, homeowners who have loans originating before Jan. 1, 2009 and owe less than $729,750 and who’s loans are backed by either Freddie Mac or Fannie Mae will be eligible for federal government backed loan modifications. Homeowners that are delinquent on their payments or can show that they will soon have difficulty with payments are eligible as well!
My loan is not Fannie Mae or Freddie Mac backed, can the Making Home Affordable Program help me?
The MHA and HAMP programs are designed to help homeowners with Freddie Mac and Fannie Mae backed loans only. However, there are other programs out there for homeowners who do not have loans with these institutions. Regardless of credit score or payment history, these programs are designed to help homeowners stay in their homes and avoid the foreclosure process. One of the first things a Lender will require from the borrower is a Letter of Hardship explaining the borrower’s situation and why they cannot continue with their current loan.
Many people are confused about the loan modification process. Because different banks all have their own procedures and qualifications, this is understandable. When adding in the guidelines provided by the Making Homes Affordable (MHA) program and the Home Affordable Modification Program (HAMP), figuring out how to go about negotiating a successful loan modification can be a nightmare. As a result, many homeowners turn to third party Attorneys to help them with their loan modification.
With all the misinformation floating around out there, many people are uncertain what to expect from a loan modification attorney. While it is possible to conduct a successful loan modification by yourself with your lender, many people find the delays, poor communication and lack of information frustrating and overwhelming. This article is aimed at giving others a basic outline of what a loan modification attorney can and cannot do for you.
There are several reasons to choose a loan modification attorney rather than attempting to negotiate a modification with your bank alone. Attorneys have legal pressure that they can use against the banks, ensuring that the banks respond in a timely matter to the attorney’s requests. Handling a loan modification on your own and not having the experience is very trying, difficult, and will more than likely result in a denial. Would you represent yourself in court or have an attorney who has experience and knowledge of the law? Of course, the answer is the attorney. The same goes with an IRS audit; would you represent yourself or have your CPA there to handle the situation?
There are several ways a loan modification may impact your credit report. Getting a loan modification does not automatically mean your credit score will be affected, however, many people think that it is automatically impacted negatively and that is just not correct.
Homeowners who are current on their mortgage payments and have negotiated a permanent loan modification, without first going through a trial loan modification will see no adverse affects on their credit reports. Â Remember that in order for your credit to receive a derogatory mark, you as the homeowner either have to be late on the mortgage payment or have not paid the mortgage payment in full based on the original loan agreement.
I had previously defined a Trial Loan Modification as a temporary change in loan terms, and in general the temporary period is usually for three months before your loan is permanently modified. I also wrote that the permanent loan modification is usually not the same terms as the modified terms of the trial period. Also don’t forget that you as the homeowner must make all payments on time during the trial period. No payments can be missed; else you default on the trial terms and will thus negate your ability to qualify for a permanent restructure, meaning you will be denied! So, it is very important to make those payments.
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