Making Home Affordable, HAMP, Successful with Home Loan Mortgage Modication?
Posted on | December 13, 2009 | 1 Comment
The Making Home Affordable, HAMP, program has definitely gotten off to a slow start but the data suggests that this home loan mortgage modification program could be picking up steam. There are several lenders that have no gotten over 40% of the qualifying mortgages into the trial period of modification. The problem comes when these mortgages are attempted to become permanent.
Bank of America has reported that only 98 qualifying mortgages out of over 1 million have been put into permanent modification status. For anyone who is currently trying to get their home loan modified you know just how ridiculous this number is. You are at a time in your life when you need to take the necessary steps to save your home and sometimes these lenders are not willing to do their part and help you out.
With this in mind, I ask you, especially home owners in need, is the Making Home Affordable Plan a success? At this time many homeowners, analysts and brokers feel that it has been a huge failure. What is it going to take to increase the number of home loans being modified? Is it the fault of the home owners or is it the fault of the greedy mortgage lenders?
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Author: Jesse Wojdylo
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One Response to “Making Home Affordable, HAMP, Successful with Home Loan Mortgage Modication?”
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December 14th, 2009 @ 9:37 am
No. Making home affordable is NOT a success, but this is the fault of the banks, not the concept. It’s a classic example of the fox guarding the henhouse.
I am now disabled and cannot work full time. My mortgage is a conventional fixed rate at 6.25, and I am not underwater. In fact, I have about 100,000 in equity in my house. I have never missed or been late on a mortgage payment. Because my income is so seriously reduced, I contacted my bank last January and as soon as the HAMP option became available, applied for it. My probationary period ended in August, but I have continued to make the “trial period” payments. I have provided all paperwork, with delivery confirmation, and some of the materials have been sent more than once. I have documented more than a dozen telephone calls with Wells Fargo. I have had to re-call my counselor at the HOPE hotline.
My last phone conversation was with a “manager” at Wells Fargo, whom I now believe to be in the collections department. He told me that my application had been “kicked out” of the HAMP program (I have never recieved any document or information rejecting me, and I remain eligible). Shortly after, I received a “a modification” offer with ten business days to reply (over the thanksgiving holiday). It included an increase in my principal of more than $6,000 with no explanation and a note saying that if they didn’t hear from me they would assume I no longer wished to modify.
I believe this was a “bait and switch.” With the help of the HOPE hotline people, my status for a HAMP modification is being investigated.
But I do believe that had I fallen for the “modification” Wells Fargo offered, the bank would then have been able to say it “completed a modification” when, in fact, my interest rate was barely touched and my principal increased–and included hidden fees including one that was a “drive by to make sure your house is occupied…”
The banks are dragging their feet on these, deliberately.
I have a call in to my loan’s investor (Fannie Mae) and my next contact may be my legislators.