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Imminent Default becomes more Defined for HAMP Mortgage Modifications

by admin on October 28, 2011

in 1- Mortgage Modification

The Federal Housing Administration announced this past Friday that distressed homeowners did not need to be behind in their mortgage payments to apply and be eligible for a mortgage modification under the Home Affordable Mortgage Plan, or HAMP. One more piece of proof that the federal government gets it. It may take months or a year or so to get it, but here is one step closer.

For almost a year now the banks have been getting away with telling distressed homeowners that they had to miss a few monthly mortgage payments to demonstrate ‘imminent default’ in qualifying for a mortgage modification. This was a mistake in the Home Affordable Mortgage Plan (HAMP) when it initially was enacted.

This has given lenders free reign to then have their foreclosure departments not communicate with their loss mitigation departments and foreclose on distressed homeowners while inĀ mortgage modification negotiations. Miss a few payments, demonstrate imminent default as specified by HAMP, and the Foreclosure Dept. goes to work confiscating your home.

Those of us in the mortgage modification business sincerely hope this new FHA development brings a halt to this heart-breaking and all-too-often occurence. In fact, it has not. The Foreclosure Dept. and Loss Mitigation Depts. in the banks have yet to be held accountable for not communicating in a mortgage modification negotiation.

The nebulous ‘imminent default’ standard in qualifying for a mortgage modification in HAMP has been a huge sticking point since the passage and implementation of the Home Affordable Mortgage Plan, or HAMP, since last March.

The federal mortgage modification plan has always been designed to assist distressed mortgage holders to lower their monthly mortgage payments to 31 percent of their new monthly income. But banks have been allowed to use their own definition of ‘imminent default’ to lure these distressed homeowners into ‘imminent foreclosure.’

FHA Commissioner David Stevens specifically identifies mortgage loan servicers, who, as we all know, are the specific entities that benefit the most from foreclosures over mortgage modification and short sales.

The article quotes a housing counselor who is obviously well aquainted with the resistance on the part of banks to modify mortgages in a good faith manner. This free HUD counselor cites the ever-prevalent lack of transparency, read: obfuscation, of the lenders in processing mortgage modification applications. The combination of this ‘lack of transparency’ and lack of success of HUD counselors in getting mortgage modifications negotiated is a telling comment on the lenders’ reluctance and resistance in granting permanent mortgage modifications with a performance rate above the published dismal one percent accomplishment.

It is only the banks that see HAMP as a ‘last resort.’ Congress and the U. S. Dept. of the Treasury certainly did not see HAMP that way.

Debt-to-income ratios seem to be a significant problem in qualifying distressed homeowners for a mortgage modification. The REST Report, among other calculations, figures debt-to-income, as well as the uber-crucial Net Present Value for a distressed property.

The internet being what it is, certain search terms need to be empahasized so that you can find the best information. The REST Report is best classified as loan modification software, or mortgage modification software. It’s claim to fame is that you use it to calculate Net Present Value exactly the way the banks do, using the same software. It is best used as a do it yourself loan modification or do it yourself mortgage modification. For some reason, loan modification 2010 and mortgage relief 2010 are popular search terms.

This YouTube video says it all. Go here: How to Get A Beneficial Mortgage Modification Now Please ‘Like’ the video, will you? That makes it easier for others to find.

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online money April 4, 2011 at 9:22 pm

….Consumer Guide To Home Mortgage Loan Modification Programs and Mortgage Refinance…………… …………Mortgage modification Ohio is a leading example of how the housing market has turned upside down. Ohio alone reports over 6 000 families in crisis over the recent downturn in the economy. In many cases layoffs for both parents are common. The amount of impending foreclosures is alarming..Ohio leads the nation in the number of foreclosures. As a result several private and government agencies received funding from the federal government to aid this catastrophe. Most of the modification in Ohio is geared towards the homeowner with a subprime mortgage..Subprime mortgages come with extremely high interest rates. Many of these rates were on an ARM and once the economy went into recession payments were missed rates were adjusted to phenomenally higher rates than before and the borrower was stuck with payments they couldnt afford..Most of these loans end up going into default and then foreclosure. This is no surprise since at the peak of the mortgage heyday around 2003 loans went from stated income to NINA no income no assets just to push through a . At one time mortgage securities were a sound investment on a global level until the recent collapse..Ohio is the standing example of just how desperate the mortgage meltdown can get. As a result government backed agencies developed programs such as the Opportunity Loan Refinancing Program from Ohio Housing Finance Agency OHFA . Borrowers of subprime mortgages may refinance into affordable 30-year fixed rate mortgages..Mortgage Ohio opportunities are endless. Trying to get your accepted on your own is like a sink or swim situation. Its no wonder that programs receive a bad rap because people are ill advised on how to go about it. Even worse they pay a specialist or attorney to negotiate the loan for them only to pay out 4 000 to someone that knows just about as much as they do concerning the whole process.. doesnt have to be a tumultuous journey through your financial institution. There are methods that have a high rate of return in getting your mortgage crisis handled..If you feel the pending doom of a foreclosure happening you need to keep in touch with your lender. Never ignore any letters or phone calls. Your lender will have up to date information on foreclosure assistance in Ohio. Your lender doesnt want you to foreclose either. On average lenders lose close to 50 000- 60 000 on each foreclosure. Early intervention is the best option to preventing a foreclosure..To find the right program for you you dont have to come up with thousands of dollars to get help getting the process going. Its possible to DIY do it yourself . DIY loan modification doesnt have to be difficult. For a small fraction of the cost to hire a consultant you can pick up a program to guide you through every step..The steps to in Ohio need to be meticulously followed so that it doesnt end up sitting on the desk of an overworked loan mitigation specialist. To make sure your loan modification is smooth and seamless a DIY loan modification kit is the best way to go..Do you want to know the hardcore facts concerning loan modification before you lose your house?

Carabini April 6, 2011 at 4:16 am

whoever thought that governments would offer you money to scrap your car desperate times indeed.But on a more personal level many people are facing foreclosure on houses that are no longer worth the mortgages taken out on them and the home loan mortgage lenders could soon own as much property as the Roman Catholic Church maybe even more.So enter the Make Home Affordable program introduced under the approval of the new president Barack Obama as part of the stimulus package for 2009. Option Number 1 – Mortgage RefinancingFor this one you need to be up to date on your mortgage repayments and it is only available until June 2010Option Number 2 – Loan ModificationThis is for people who have got into hardship and are struggling to meet their mortgage payments or may have already fallen behind on their payments and are under threat of foreclosure.This scheme ends on the 31st December 2012 To be even considered for a mortgage refinance under the Make home affordable program you need to meet the following criteria – This is the starting point for consideration you still need to make the application and it is possible that ultimatley you may not be accepted onto the program.

admin April 6, 2011 at 6:31 pm

The only consideration for acceptance into HAMP is knowing if you have a gov’t approved loan. The REST Report goes online to establish that.
However, there is incredible pressure on conventional lenders to follow HAMP guidelines, to the point of not paying off on mortgage insurance claims for foreclosures.

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