Mortgage servicers have been complaining about processing hurdles in the government’s Home Affordable Modification Program, or HAMP, and now a new waiver effective today could be the first step to streamline the foreclosure-rescue plan.
U.S. officials today said the “critical HAMP waiver” would eliminate the protracted process of re-starting a trial mortgage modification if the borrower’s income “exceeds by 25 percent” the income information used initially to start the trial period. Borrowers are subject to re-evaluations of their income status after a certain trial period.
“With the issuance of this waiver, borrowers are no longer required to restart the trial period,” said a statement by administrators of the HAMP program today. “The trial period payments would not be adjusted, but the permanent modification terms would be based on the borrower’s higher verified income.”
Officials said the waiver can be applied retroactively to all borrowers whose trial periods have been restarted based on the original rule.
“Therefore, a borrower who is currently in a restarted trial period can be immediately converted to a permanent modification if they have made at least three (or four, if required) trial period payments under their combined original and restarted trial periods,” the new guidelines read.
The rule that the waiver eliminates represents the kind of red-tape that lenders have been complaining about for months.
“We continue to work very hard to convert customers from a trial modification to a permanent modification that lowers their monthly payment, but it has been a struggle,” conceded Charlie Scharf, head of Retail Financial Services at Chase, part of JPMorgan Chase & Co., in a statement last week.
Chase had announced that it had offered 568,000 modifications on more than $100 billion of mortgages in 2009, with more than 83,000 already permanent.
The government’s handling of HAMP has come under fire by the program’s Congressional Oversight Panel and by mortgage industry experts testifying before Congress. Their main assertion: HAMP doesn’t go far enough to reduce mortgage balances and address the issue of negative equities.
I have been reading recently that homeowners have given up hope
I received three different offer s from chase through Naca.com
with HARP It was hard for me to consider accepting the trial period
Offers are averaging at $550 lesser of the Modification , I read this and believed it to be a good offer , I did not accept immediately had some issues of it not being a permanent structure , I spoke with Naca and the Chase lender that could not advise me as I have naca representing me . I wanted them clear i wasnt trying to be hard to deal with or difficult I just wasnt familiar with such methods and i understood I had one shot at a modification and was hoping for something concrete .
I read that there is no way from the trials and if offers of such under $500 or more lessor than the original mortgage you may not have a second offer nor have a chance to save your home as this is a law to try to save your home if it is determined you are going to pay anymore , i would be surely to lose my home ‘
After more than a year without a mortgage payment and the offering actually being moved to a lessor amount twice in a week , and finding some confidence in this program , Today I accepted the trial Modification
And do want to say that Chase Jp Morgan has been very patient with my situation and I beleive has allowed to ge in a better situation to afford my home permanently
This is an attempt to help someone make a tuff decision or understand when and when not to accept a proposal
My very first proposed offer was offered at the same terms but with no late fees and no back payments
My accepted offer came in at $650 less that
$1400.00
3 month trial
the trials were looked into by a florida consumer attorney that feels highly that Harp is the best way to go and once you missed out on the trial process you are at the mercy of the lenders to modify
I did not deny the offers I just didnt accept the offers and they just keot going down from that point .
It seems from December and early January you may have a littel better loop hole of opportunity with much pressure for more modification to be a success
I guess I’m one of the 98, as my modification has been approved, and my credit is not exactly stellar right now. I would have to believe there is a lot of work being done by banks to facilitate this, based upon the time it takes on hold to speak with someone. Work with these http://bit.ly/849fAi to make the process faster!
[...] http://ecreditdaily.com/2009/12/new-rule-waiver-should-speed-up-mortgage-redos-article442/ [...]
Loan Modification via Loan Modification Firm VS Total Mortgage Reset With Homeowner Protection Group
Loan Modification With Loan Modification Firm
•Lenders have mastered the Pretend and Extend game prolonging the outcome for months and months for seemingly no reason
•Any loan modification will almost always be done according to the lenders best interest
•Principal reductions are extremely rare with loan modifications
•Lender will require homeowner to defend and disclose every aspect of their financial life
•Even with a successful modification a majority of homeowners will still be upside down (owe more than properties value)
•The proof of financial hardship is an absolute necessity with any loan modification
•In most cases a loan modification will lower your mortgage payment for the agreed upon fee and nothing more
•If the lender’s workout offer does not truly help the homeowner, the loan modification is all but dead
•Throughout the process to obtain a loan modification the homeowner is at the lender’s mercy
•Modifications typically take 6-8 months or more
•Arrearages may or may not be eliminated (in most cases they are moved to the back of the loan)
Total Mortgage Reset With Homeowner Protection Group
•By law, lenders must respond and work on a resolution within 60-90 days
•The threat of litigation will result in much more favorable outcomes for the homeowner
•HPG guarantees a minimum 10% principal reduction on accepted cases or 100% of fees will be returned
•Lenders are required to defend their business practices; giving the homeowner the upper hand
•HPG negotiates principal balance in such a way so that the overwhelming majority of clients who are currently upside down will have a new loan balance that is equal to or below appraised value
•Financial hardship does not necessarily need to exist
•HPG will negotiate rate, term, and principal balance of the homeowner’s mortgage and in addition (through business partnerships) will address and repair homeowner’s credit, negotiate unsecured debt, help increase the homeowners chances of finding work through career training (if needed), (this is called The Full Circle Package) and much more (including the possibility of claim damage awards paid to the homeowner!) for one flat fee
•If a stale mate is reached HPG’s investors will make a cash offer to the lender to buy out the note, or a qualified member of the attorney network will take the lender to court to prosecute found violations at no additional cost to the homeowner beyond filing fees
•When violations are found, the homeowner is in the position of power
•A majority of HPG’s cases will be resolved in as little as 60-90 days
•Arrearages are completely eliminated in addition to a guaranteed minimum 10% principal reduction
If you would like more info
Please contact Mary D
Email moc.evilnull@gphdyram
1-570-992-6630