Need help to get approval in HAMP

[ISmyhouseISmine]

I applied for loan midification to chase on 03/09.
Everytime I called them to find the status they said my application is under review. It took them five months, in 08/09 they came with a reason over the phone (no letter in the mail) to deny. Reason was I have more than enough liquidity. So, I asked them to send me in writing.

It took them another two months, in 10/09 they worte me a letter, Now the reson for denial was completely different than they told me over the phone. and it was my income is exceeding the limit to qualify.

Both of the above reson for denial is not true in my case.

Net Income: 3,750.00/MO.
Mortgage with escrow: 2528.94/ MO., 30 year loan with 5.75% rate.
Amount owed toward house: 277,500.00

Major Financial Hardship is: Increase in family(birth of a child in Jan. 10),
wife is on complete bed rest due to complications, My business is lacking work due to slower economy.

I showed them current mo. expense 1,450.00. which was on 03/09 before my wife was pregnant.

If anyone can guide me to reapply for HAMP to chase.

[MyHAMP]

What is your GROSS income?
Are you the only borrower?

[Moe Bedard]

This is pretty typical with any mortgage servicer right now and especially Chase. It looks like you are definitely needing relief, but they are hell bent on foreclosing based on their computer models.

Make back up plans to rent at something you can afford for you and your growing family. It looks like if they modify, you will still be very tight on money my friend and that would not be good for your health.

You may consider writing a Qualified Written Request:

Qualified Written Request | LoanSafe.org

If you believe you’ve been charged BS late fees or are having other issues with the servicing of your mortgage, use this letter to fight back.
When you contact your servicer in writing, make sure to document and include your account number. You’ll want to clearly explain why you feel your account is incorrect. Make sure that you send this separate from your payment and don’t send it to where you send your monthly mortgage payments. You’ll want to send it certified mail or fed ex to your mortgage servicers customer service address.

Within 20 business days of receiving your letter, your mortgage servicer must send you a written response acknowledging it. Your servicer the has 60 business days, to correct your account or determine that it is accurate. Your servicer must then send you a written response of the action it took and why, along with the name and telephone number of someone you can contact for additional assistance.

[heidi79]

Go over your numbers once again and try again if you really want to keep your house. Are you self-employed (so meaning the $3,750 is it gross and net?)

[heidi79]

The escrow part of your loan looks like it's inflated, how much are taxes and insurance for the year?? What is your principal and interest payment now?

[ISmyhouseISmine]

sorry I could not get back to my computer earlier.
I am the only borrower, my net income is 3,750.00
my mortgage is 1600 and rest is escrow including taxes & insurance.
thanks for helping me

[MyHAMP]

Originally Posted by ISmyhouseISmine

sorry I could not get back to my computer earlier.
I am the only borrower, my net income is 3,750.00
my mortgage is 1600 and rest is escrow including taxes & insurance.
thanks for helping me

To calculate your potential HAMP-payment, we would need your GROSS income, not net..

[ISmyhouseISmine]

Originally Posted by MyHAMP

To calculate your potential HAMP-payment, we would need your GROSS income, not net..

Hi,
my gross is 5,000.00/Mo

[MyHAMP]

Originally Posted by ISmyhouseISmine

Hi,
my gross is 5,000.00/Mo

Hi,

So your HAMP-payment would be $1,550/month.
Your income is certainly NOT exceeding any limit - especially since it's far below your current mortgage.

Do you have any assets? Do you have equity (how much is your home approax. worth?)?

[ISmyhouseISmine]

Originally Posted by MyHAMP

Hi,

So your HAMP-payment would be $1,550/month.
Your income is certainly NOT exceeding any limit - especially since it's far below your current mortgage.

Do you have any assets? Do you have equity (how much is your home approax. worth?)?

My house is worth around 410,000.00
my asset is 7,500.00 balance on checking
savings is 14,000.00 (I consider it as emergency fund)
retirement account holds around 50,000.00
I have two cars worth around 9,000.00

[MyHAMP]

Originally Posted by ISmyhouseISmine

My house is worth around 410,000.00
my asset is 7,500.00 balance on checking
savings is 14,000.00 (I consider it as emergency fund)
retirement account holds around 50,000.00
I have two cars worth around 9,000.00

Car and retirement shouldn't be an issue - but the remaining $21,500 could and probably are.

Your equity of about $130K is also a problem to get a HAMP-approval as well (NPV-test).

You have to keep in mind that HAMP was created to avoid imminent foreclosure. Savings of $21K certainly isn't much these these, but much more than the majority of applicants for HAMP have. Here's the the argument the lender (or treasury) might have:

"Before you need help, you can use your savings to pay for your mortgage."

Your HAMP would be $1,550/month. Your current payment is $2,530/month. Assuming you would make the claim that you could only pay $1,550/month based on your current income, your lender can say "OK, so right now, you are about $1K/month short. You have liquid assets of 21K. Please use these assets to fill the gap and re-apply in 21 months."

Not being able to pay your mortgage is an emergency in your lender's eyes. So it's very unlikely they will approve any government help unless you tap into these funds.

[davephx]

MyHAMP I very good analysis.

Especially the point that HAMP is designed to prevent imminent foreclosures not to protect savings. Lots of folks have no savings or used it all up and have no equity. Those are the folks HAMP is designed for.

[heidi79]

be careful in disclosing assets or sending them copies of those bank statements, there on many on the forum that have been denied for having savings and $ in checking.

[ISmyhouseISmine]

thank you all for quick responses,
what is considered as "Immergency Fund" in HAMP?

[exhausted girlfriend]

i would guess. any extra cash outside of your retirement.

[ISmyhouseISmine]

Does HAMP consider my "immergency fund" as my liquid assets?

[MyHAMP]

I think I heard that anything in excess of 3 monthly mortgage-payments will be considered "too much cash". But I'm not 100% sure on that one.

[MyHAMP]

Originally Posted by ISmyhouseISmine

Does HAMP consider my "immergency fund" as my liquid assets?

Yes, these funds will be considered.

[davephx]

As I recall the 3 months cash is in the immeint default directives. But its more vague for in default situation no specific number.

[MyHAMP]

Originally Posted by davephx

As I recall the 3 months cash is in the immeint default directives. But its more vague for in default situation no specific number.

That's quite possible...

[shade]

Yes they will deny you in a heartbeat if you show liquid assets.
I dont know maybe I'm a jerk but people shouldnt have to drain their bank accounts when they get reduced income or a hardship to get a mod.

[MyHAMP]

Originally Posted by shade

Yes they will deny you in a heartbeat if you show liquid assets.
I dont know maybe I'm a jerk but people shouldnt have to drain their bank accounts when they get reduced income or a hardship to get a mod.

That's why I said I, personally, wouldn't consider $21K to be much.

However, when setting priorities on how to distribute the funds of HAMP, it would be difficult to understand why people who don't have any funds and are one step from foreclosure are denied while others with savings are approved. Would be great if both would get help though..

There are also huge differences in describing "a hard time".

While some would like to get a mod to save their savings, others are seeking a mod just to keep the roof over their head. Others are calling it a "sacrifice" to take a vacation by car instead of flying to Hawaii while others can hardly recall their last vacation and are facing a challenge every day when trying to find the cheapest groceries around.

I can tell for myself that my own understanding and definition of what's "necessary" and what not has drastically changed.

Your main concern when dealing with a mod is your credit-score? That perfect record is a luxurious amenity we had to let go years ago. Savings? What savings? They were used before we sponsored our local pawn-shop.

And now, we are waiting for our HAMP-approval....

[shade]

I believe there have been members who have pulled their liquid assets show Chase couldnt deny based on this...

[exhausted girlfriend]

MyHamp,

I am with you on that.