Clarification

[NormanScooth]

I was just turned down for a HAMP modification. The reason that I was given is that I am not currently in default. My loan is not a Fannie or Freddie and is owned by Wells. The balance is $500,000. Is there a requirement that I be in default to be able to get a modification? If this is the case, why didn't they tell me this during my initial conversation with Bank of America?

Thanks in advance.

[Evan Bedard]

Welcome and thanks for joining the community.

No it is not required that you are delinquent on your payments to receive assistance under HAMP. However, you must be able to prove a financial hardship that is making the payments unaffordable or in other words be in "imminent default."

Here is some information according to HAMP guidelines in regards to being in imminent default:

A borrower that is current or has only one payment due and unpaid by the end of the month in which it is due and who contacts the servicer to request HAMP consideration must be evaluated to determine if he or she is at risk of imminent default. Each servicer must have written standards for determining imminent default that are consistent with applicable contractual agreements and accounting standards and must apply the standards equally to all borrowers. When making an imminent default determination, the servicer must evaluate the borrower’s hardship as well as the condition of and circumstances affecting the property securing the mortgage loan. The servicer must consider the borrower’s financial condition, liquid assets, liabilities, combined monthly income from wages and all other identified sources of income, monthly obligations (including personal debts, revolving accounts, and installment loans), and a reasonable allowance for living expenses such as food, utilities, etc. The hardship and financial condition of the borrower must be verified through documentation.

[NormanScooth]

Thanks Evan. Does the fact that my loan is with Bank of America but owned by Wells Fargo have any effect on the situation. As I mentioned in my original post, I was just turned down. What do you think my next step should be? Should I ask for the copy of their definition of "eminent default"? What should I do now?

[Evan Bedard]

You can try contacting the executive's office and let them know that you were turned down for HAMP due to being current. HAMP guidelines clearly state that you do not have to be delinquent to qualify for assistance.

This is also straight from HAMP guidelines:

You may be eligible for HAMP if you meet all of the following criteria:

You have a financial hardship and are either delinquent or in danger of falling behind on your mortgage payments (non-owner occupants must be delinquent in order to qualify).

brian.t.moynihan@bankofamerica.com

Direct: 1-704-386-5687

[NormanScooth]

One last question, and thanks for your help!

I know that I am repeating myself, Wells Fargo owns my loan that is being serviced by Bank of America. The loan is for $500,000. If I fit the guidelines, are they required to give me a modification?

Also, my work situation has recently changed. This was not the reason for the turn down. Is there a website that allows me to plug in numbers to see if I qualify or not for a modification based on my income? I will resubmit an request and even email Moynihan but want to know that I qualify before I call.

Thanks again.

Norman

[NormanScooth]

I fit the guidelines that are listed but want to see more specific information about income requirements. Do you know of a site that will allow me to fill in the blanks (income-wise) to see if I am in the range of qualification?

Norm

[Evan Bedard]

Hey Norm,

Unfortunately, there are no laws that pertain to loan modifications so even if you meet all eligibility requirements your servicer is not forced to offer a loan mod. You can plug in your numbers in the thread below and the loan mod help center specialists will help you determine whether or not your may qualify for assistance based off your income.

Find out Now If you even QUALIFY for a Loan Workout Solution. Post Your Situation