2 Questions about HAMP....

[JayBet98]

1) On the forum here I notice that there seem to be a lot of cases where only one spouse was on the note, applied for HAMP, and AHMSI made them take household income into account (like spouse's unemployment, etc.), making many just under the 31%. I've read the HAMP guidelines put out by the government several times and everything says to submit information for each borrower on the loan note, not each borrower in the household? Are they taking advantage and forcing us to include that?

2) I'm currently paying interest only to AHMSI, and I budget and pay my own taxes and insurances directly. When they calculate my current front end DTI, will they also include what the principal should be if I was paying it at this time? Or will they just take the interest only payment + taxes + insurance? Everything in the HAMP guidelines says it includes principal but I'm afraid this might be another loophole for them to take advantage...

Thanks in advance for your help!

[JayBet98]

Originally Posted by JayBet98

1) On the forum here I notice that there seem to be a lot of cases where only one spouse was on the note, applied for HAMP, and AHMSI made them take household income into account (like spouse's unemployment, etc.), making many just under the 31%. I've read the HAMP guidelines put out by the government several times and everything says to submit information for each borrower on the loan note, not each PERSON in the household? Are they taking advantage and forcing us to include that?

OOPS, I meant PERSON in the household...I'm on the note, hubby is NOT, and wondering if we are REQUIRED to submit his unemployment?

[Evan Bedard]

Hi jaybet98,

2) I'm currently paying interest only to AHMSI, and I budget and pay my own taxes and insurances directly. When they calculate my current front end DTI, will they also include what the principal should be if I was paying it at this time? Or will they just take the interest only payment + taxes + insurance? Everything in the HAMP guidelines says it includes principal but I'm afraid this might be another loophole for them to take advantage...

Everything will be included interest, principle, taxes and insurance. They would also want to see any income that is contributing to the household. The 31% DTI is not all they will calculate, they will also look at you entire monthly income and expenses as well to see if you have a surplus or not each month..

[2020rob]

The response to this question was completely false. It is NOT based on household income. Only the income of the borrower...Period!

[JayBet98]

From what I read, that's what I believed too, so I only submitted MY income, because I'M the only one on the loan!

[Evan Bedard]

I don't feel for borrowers taking advantage of loan modifications so they can get a lower monthly payment and have extra spending money each month. That is not what loan mods were made for. Loan modifications were made to help homeowners avoid foreclosure and save their home for themselves and their family...Period!

[langlang]

Originally Posted by Evan Bedard

I don't feel for borrowers taking advantage of loan modifications so they can get a lower monthly payment and have extra spending money each month. That is not what loan mods were made for. Loan modifications were made to help homeowners avoid foreclosure and save their home for themselves and their family...Period!

That is a very salient point. There are only so many dollars to go around to help all these troubled homeowners.

If you decline to report a significant income by say a spouse who is not on the loan, yes that's a gain for you but still...

OTOH I wonder why HAMP is set up this way, they could have just required total income from all household members.

[JayBet98]

I'm sorry, let me clarify...my husband's supposed "income" is part of my hardship. He's been laid off since the end of June, and because he has not worked 300 hours this quarter we are now going to lose our health benefits. I am part time faculty at a local community college, so I get NO benefits. We will have to pay out of pocket for a family of 6, and I'm estimating even the COBRA to be $1000-1200/month. I will also not be working the entire month of January because the California state budget is so jacked up that my campus cancelled winter intersession. I've managed to stay current on my loan thus far, but only squeaking by, clipping coupons, having an unlicensed child care provider, and being a budget mastermind...I have gotten slapped with 2 separate $92 late fees because I don't get paid until the 9th of the month and all of a suddent AHMSI cannot process my payments fast enough (never had a problem before). My hubby's unemployment will not last forever, let alone make a huge difference in our calculations, so I elected to NOT include it. I'm very aware that I'm not in the most dire of situations as some here are, but I'm in no way trying to screw the system either. I hope I didn't give off that impression. The possibility of losing my home is very real and very scary to me. I hope that clears some stuff up...

[Evan Bedard]

My hubby's unemployment will not last forever, let alone make a huge difference in our calculations, so I elected to NOT include it. I'm very aware that I'm not in the most dire of situations as some here are, but I'm in no way trying to screw the system either. I hope I didn't give off that impression. The possibility of losing my home is very real and very scary to me. I hope that clears some stuff up...

Oh wow I am very sorry to hear that Jaybet. You do indeed have a financial hardship and are in great need of a modification. Sorry I was not aware your spouse was unemployed, his income would probably not count in the modification anyways because unemployment has to be extended for 9 months to qualify for the HAMP program. I hope all turns out well for you.

Good luck and please keep us posted!

[Hank123]

Originally Posted by 2020rob

The response to this question was completely false. It is NOT based on household income. Only the income of the borrower...Period!

No, this is completely false.

The 31% for HAMP is based on household income.

[lostnworried]

JayBet, I am in a similar situation except that both my husband & I are on the loan. My husband has been unemployed since March 2009 and he got an extension to March 2010 for unemployment benefits. When I submitted my documents in October, I did not think they would include the unemployment because his runs out in less than 6 months. I got declined for a HAMP because of of the 31% income requirement. When I asked my negotiator why she included my husband's unemployment, she stated that they need to include that even if it is less than 9 months. This is because the benefits are being extended due to the economy so they automatically assume your husband's benefits will extend beyond 9 months. I know that sucks. We also tried for a traditional modification but were told our investors are not allowing any modifications. So, all we can do is wait. Luckily, I was able to get on a Forebearance repayment plan for the next 6 months and my mortgage went down $1,300 for the next 6 months. I will have to hope for the best and see what happens in 6 months. Good Luck to you!