Bankrupty after HAMP Modification

[jfmiller]

I will be brief, we got the HAMP in August of 2010 was paying on time till my lay off this past November, we are 2 months behind and Ocwen is the servicer, we are trying really hard not to lose the HAMP, but we are stuggling since im on unemployment, my wife is working full time but other bills are falling behind as well. We are seriously considering Bankrupty either 7 or 13, we want to keep home, and strip the 2nd mortgage, 1st mortgages is 480K 2nd is 30K but the current market value in our subdivision is 310K. If we dont make a payment by Feb 19th (80 days late) Ocwen says they will then want all that is in arrerage in full which will be approximately 5900.00.

My question is if we file for 7 or 13 will Ocwen take us out of the HAMP program? If we cant make this payment and file for bankrupty and the payments are 90 days late then will Ocwen have us pay the original loan amount after filing bankrupty?

Sorry if i may not be making sense, just trying to find the best solution.

[indeep1959]

I will be brief, we got the HAMP in August of 2010 was paying on time till my lay off this past November, we are 2 months behind and Ocwen is the servicer, we are trying really hard not to lose the HAMP, but we are stuggling since im on unemployment, my wife is working full time but other bills are falling behind as well. We are seriously considering Bankrupty either 7 or 13, we want to keep home, and strip the 2nd mortgage, 1st mortgages is 480K 2nd is 30K but the current market value in our subdivision is 310K. If we dont make a payment by Feb 19th (80 days late) Ocwen says they will then want all that is in arrerage in full which will be approximately 5900.00.

My question is if we file for 7 or 13 will Ocwen take us out of the HAMP program? If we cant make this payment and file for bankrupty and the payments are 90 days late then will Ocwen have us pay the original loan amount after filing bankrupty?

Sorry if i may not be making sense, just trying to find the best solution.

They won't take you out of the HAMP program.
I filed Ch 7 and was discharged 6 months after getting my HAMP.

You will however lose your "incentives" from the HAMP program if you're more than 90 days late I believe.

I think if you "catch up" later on you'll just keep paying the modified amount. Don't take my word for it though. I'm going through the same thing. HAMP modified, bk 7, then made payments till I redefaulted again, now looking to reinstate my loan.

I don't see how or why they would send you back to your old loan. Hell, if they did that for me,I'd be saving money! :-)

[Evan Bedard]

Hey guys,

Here is some information about defaulting after receiving a permanent HAMP modification,,

Re-default and Loss of Good Standing:

If a borrower defaults on a loan modification executed under HAMP (delinquent by the equivalent of three full monthly payments at the end of the month in which the last of the three delinquent payments was due), the loan is no longer considered to be in “good standing.” Once lost, good standing cannot be restored even if the borrower subsequently cures the default. A loan that is not in good standing is not eligible to receive borrower, servicer or investor incentives and reimbursements and these payments will no longer accrue for that loan. Furthermore, the mortgage is not eligible for another HAMP modification.

In the event a borrower defaults on the modified loan, the servicer should work with the borrower to cure the modified loan. If this is not possible the servicer should evaluate the borrower for any other loss mitigation alternative prior to commencing foreclosure proceedings. In any event, a servicer cannot refer a HAMP-modified first lien to foreclosure until the loan loses good standing under HAMP.

[jfmiller]

Not sure if im in the right thread but cutting to the chase I have the HAMP had been paying on time for 1 yr and laid off again. Now behind 2 months. I have the HAMP on 1st mortgage and inhouse mod on 2nd mortgage. Here the other issue, my wife and i realized while the apprasial value in my area is approximately 310K, the 1st mortgage on the HAMP is 480K and 30K on the 2nd, way over the current market value. Payments will step up over the next 5 years from 2700 a month to 3200 a month (600.00 more). We went and consulted with a Bankrupty attorney who told us it was insane to keep paying into a home thats approximately 150K upside down. So we have decided to do bankrupty chapter 7. Our attorney feels there may be a slight chance that the bank will try to negotiage another mod, not the HAMP im sure, but an inhouse mod forgiving some principle. So our next journey begins but in the meantime we will bide our time save money monthly and if we have to move so be it, unless we get an offer we can live with.