hamp – Finance & Career

Difference Between HARP and HAMP

Finance&Career — Tue, 02 Apr 2013 14:31:04 +0000

There are two government programs that homeowners qualify for; HAMP and HARP (Home Affordability Modification Program and Home Affordability Refinance Program). But many people are confused which program they qualify for. This article will hopefully clear up some things for you so you can get a better understanding as to which program you qualify for. The following details the difference between the HAMP and the HARP programs.

HARP (Home Affordability Refinance Program)

Deadline is June 30, 2011 for HARP 1.0 and December 31, 2013 for HARP 2.0
If your loan is owned by Fannie Mae or Freddie Mac, you qualify. Check to see if your home is owned by Freddie Mac or Fannie Mae by typing in your address in the link.
Allows a loan-to-value ratio of up to 125% of your new home loan
People who have ARMs that just re-adjusted or will re-adjust shortly can apply
If you get to refinance, there will be no mortgage insurance
You need to be current on your payments to be able to be eligible
Do not need a documented hardship

HAMP (Home Affordability Modification Program)

It must be for your primary residence
HAMP is a program that modifies your existing mortgage instead of refinancing (what HARP does)
Your mortgage must be equal to or less than $729,750
Your mortgage was signed before January 1, 2009
Deadline to apply is December 31, 2013
Your current payments (including taxes, interest, insurance, and homeowner dues) exceed 31% of your total gross income.
Have a hardship that can be documented by paperwork (a list of acceptable documented hardships for loan modification)
Your must have verifiable income that is enough to pay for the new payments (and cannot exceed 31% of your gross income)

Home Loan Modification: How to Modify Your Mortgage

Finance&Career — Tue, 02 Apr 2013 13:02:26 +0000

This is a home loan modification guide that I put together after my successful loan modification for my parents. Although many banks may vary in their processes, they have to follow a general guideline set out by the federal government. Here are the steps that you need to take in order to increase your chances of a home loan modification.

1) See if you qualify for a HAMP (Home Affordability Modification Program) by going here. Basically, HAMP is for mortgages originated on or prior to January 1, 2009. The program is set to expire on December 31. 2013. Here is a list of reasons why a bank might consider modifying your loan:

Illness
Loss of Job
Failed Business
Job Relocation
Death of Spouse or C0-BorrowerDeath
Incarceration
Divorce
Marital Separation
Military Duty
Reduced Income
Medical Bills
Natural or Unnatural Disasters

I am not saying they will modify your loan if you are in one of the situations above. All I’m saying is that they will consider it.

2) Escalate your claim to the highest level possible. For a list of who to contact, go to this page for home modification contacts. Although it might be fruitful in the end, you are wasting a lot of time calling customer service. You will be bounced back and forth between different customer service representatives to no avail.

3) If you do not fit within HAMP guidelines because of income, get someone in your household or a next of kin to write a letter of support for you, stating that they will contribute X amount to your monthly mortgage payment. It might work with some banks, other banks it might not. Banks under the HAMP program can only reduce the interest rate down to 2% and spread out your payments to 40 years. If you do the quick math and find that even with a 2% 40 year mortgage, you still cannot meet the 31% gross income threshold set out by HAMP, then it means you need financial help from people close to you.

Gather all financial documents. This includes recent pay stubs, tax returns from last two years, 1099s, and any other pertinent information that you want to share with the bank or that the bank might ask for. If you are sick, get a note from the doctor. If you lost your job, get a letter from your former employer.

4) Write a letter of hardship. All banks will ask you to describe your circumstance. Don’t be melodramatic but write to be concise and use rhetoric that induces sympathy. The people modifying your loans are human after all, with human emotion. If your hardship letter can induce sympathy, you are more likely to get your loan modified.

5) Try to negotiate with the modifier. I know you are angry, frustrated, and sad. But when you are engaging in a conversation with the bank, try not to take it out on the loan modifier. If you are nice, they are more likely to champion for you. They are there to help you. So help them help you.

6) Wait. Even taking all these steps is not a guarantee in getting your loan modified. However, this is a good guideline for your to start. I wish you the best of luck!

Loan Modification Contacts

Finance&Career — Thu, 02 Jun 2011 05:35:36 +0000

These are the contacts I have gathered around the internet if you want to contact someone at your bank about a home loan modification. I’ve tried to filter and verify all these but if the contact doesn’t work, go ahead and shoot me an e-mail at admin@financeandcareer.com and I will try to find a better number.

More will come soon as I dig up more.

Bank of America e-mail CEO Brian Moynihan at brian.t.moynihan@bankofamerica.com or call 1-800-846-2222

BB&T Mortgage 1-800-827-3722

AmTrust Bank 1-888-696-4444

Beneficial 1-888-333-5848

Central Pacific Bank 1-800-342-8422

Charter One 1-888-234-6002

Chase Home Modification 1-866-550-5705

Citi Financial Mortgage 1-800-915-9417 Opt. 4 or email homeownerhelp@citi.com

Ditech 1-800-852-0656

Everbank 1-800-669-7724 ext. 4730

Equity One (Debt collection) 1-800-61-3460

First Horizon Home Loans 1-800-489-2966*

Fifth Third Bank 1-800-375-1745 Option 3

First Merit Bank 1-888-728-9931

Flagstar Bank 1-800-968-7700, ext. 9780

Fremont Investment & Loan 1-866-484-0291

GMAC Mortgage 1-800-850-4622

GreenPoint Mortgage Funding 1-800-784-5566, ext.
5383*

Green Tree 1-877-816-9125

Household Finance (A HSBC Co.) 1-800-333-5848

Option 1 Mortgage (American Home Mortgage) Jim Davis (Exec VP) e-mail jim.davis@ahmsi3.com