Loans, Debt & Credit - View Single Post - 125% Underwater will disqualify you for HAMP modification?

Hard Times · 09-11-2009, 05:43 PM

Question: Under the HAMP modification guidelines, it appears that initially only homeowners were not more than 105% underwater with their loans would even qualify. Now I read in this forum that that was raised to 125%.

So, should any of us who are more than 125% underwater in our loans not even try applying under the HAMP program? Has anyone received a trial mod who were more than 125% underwater?

My opinion is that the banks can pull numbers out of their hat to get almost anyone past this 125% mark, and use it as a reason to "reject" our applications. For example, Chase has an extremely low current value on my home which puts it about 150% underwater.....but I know that the current market will bring a price which is only about 110% underwater.

Are any HAMP applicants getting rejected by Chase (or other banks) because they "claim" you are more than 125% underwater?

Thanks for all replies.

09-11-2009, 05:43 PM	#1 (permalink)
Hard Times Senior Member Join Date: Aug 2009 Posts: 163 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	125% Underwater will disqualify you for HAMP modification? Question: Under the HAMP modification guidelines, it appears that initially only homeowners were not more than 105% underwater with their loans would even qualify. Now I read in this forum that that was raised to 125%. So, should any of us who are more than 125% underwater in our loans not even try applying under the HAMP program? Has anyone received a trial mod who were more than 125% underwater? My opinion is that the banks can pull numbers out of their hat to get almost anyone past this 125% mark, and use it as a reason to "reject" our applications. For example, Chase has an extremely low current value on my home which puts it about 150% underwater.....but I know that the current market will bring a price which is only about 110% underwater. Are any HAMP applicants getting rejected by Chase (or other banks) because they "claim" you are more than 125% underwater? Thanks for all replies.