Home Loans and Support

How Many Modifications Can One Have

Discussion in 'Making Home Affordable' started by motorcitymadness, Oct 5, 2011.

  1. motorcitymadness

    motorcitymadness LoanSafe Member

    Hello,
    I completed a HAMP mod back in 2009. I am now having difficulty again due to curtailment in income. Can I apply for another HAMP or is there any other options? Thanks in advance of the response.

    Motor
  2. Cat Damiano

    Cat Damiano Mortgage Wars

    Hi motor,


    According to HAMP guidelines;


    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.
  3. I did it

    I did it LoanSafe Member

    Reply to Motor

    You can only get one HAMP, however, you can get an in-house. There is no limit on those, but some banks require 24 months between them. I can tell you from experience, I had a HAMP, then income change, received an in-house. The in-house was $110 more than the HAMP. The HAMP supposedly followed the governments guidelines - in truth it didn't. It was more than 31% of my pay. The bank adheres to their own guidelines (which aren't posted & are done on a case-by-case basis) when doing an in-house. that being said, if you are havign a decrease in income, an in-house may not b feasible since it will, most likely, wind up caosing more unless you're lucky. I have seen some people on this site seruce amazing reductions in a loan mod. One other thing, if Freddie Mac is your investor, they are rolling out a new standard modification which will cover people who have defaulted on a HAMP previously. TI am sure the services will be up to their tricks again & making any move not to do it. They have already given out the guidelines to the servicers & asked them to use it, but they aren't required to use the new standard modification until Jan, 2012. Check out Freddie Mac Guide Bulletins - (I think the numbers are) Bulletin 2011-15 7 Bulletin 2011-16 for more details.

    I spoke to an attorney recently who asked me why I would want to even bother trying to hold on to my house because it is grossly underwater. Funny, I still don't have a feasible answer to his question. Now, I am wondering, is my home even worth it. Ask yourself that question too. Try to be honest with yourself & react accordingly.

    Good luck!
  4. motorcitymadness

    motorcitymadness LoanSafe Member

    Cat, Thank you so much for the information. As I am 2 months behind now, I plan on making a payment before the end of the month which will keep me from being 3 months behind.

    Am I to understand that under HAMP the lender cannot foreclose unless you are 3 months behind? Or is this just stating you cannot apply for another HAMP? I'm hoping that perhaps this gives us a little protection for a lender getting trigger happy if we are 2 months behind.

    Again, Thank you very much for the great info. I will start to research the HAMP guidelines again myself. It's been awhile.


    I did it,
    Who is your lender? Were you behind when you did your in house mod? If so, how many months?

    I understand your question of do I really want to stay in my home. For me the answer is yes. I've been to hell and back fighting for it and I have just left my previous job of 15 years to start a new job that is a better opportunity. If I can somehow get through the next couple of months I know I can get back on track and current. We have all been victims of this economic roller coaster and I hope everybody lands where they are happy in the long run. For me it is staying in my home.

    Thanks in advance for your insight and time,

    Motor
  5. I did it

    I did it LoanSafe Member

    Response to Motor

    You are right, you hae to be 3 complete months behind for them to kick you out of HAMP, so make that payment & you'll be fine.

    I experienced a 2nd job loss once I had secured my HAMP. So, I was 3 months behind when I sought out an in-house mod. MY loan is owned by Freddie Mac.

    Good luck, Motor.
  6. motorcitymadness

    motorcitymadness LoanSafe Member

    I checked out the guidelines and I've copy section 9.4 below. I think others will find this good info if needed.

    9.4 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.



    Thank you I did it & Cat for your quick response.
  7. Cat Damiano

    Cat Damiano Mortgage Wars

    Ummmmm, that is exactly what I had posted to you above. lol.
  8. I did it

    I did it LoanSafe Member

    Cat

    I noticed that you had already stated that. Not sure why Motor thinks they found some new info to share.:eek:h: Perhaps Motor never read all of your response?

    Nonetheless, I had to acknowledge what you said.
  9. Cat Damiano

    Cat Damiano Mortgage Wars

    Haha, thanks "I did it", perhaps that was the case.
  10. motorcitymadness

    motorcitymadness LoanSafe Member

    Cat, Sorry about that. I was reading and doing 3 things at once and had another 10 things going through my head. You in fact did supply all the info that was needed and I thank you for your quick response. Thanks and have a great weekend.

    Motor
  11. Cat Damiano

    Cat Damiano Mortgage Wars

    No worries, I often find myself doing the same, lol.

    You enjoy your weekend as well!!
  12. TomEason

    TomEason LoanSafe Guide Staff Member

    motorcitymadness

    Thanks for your post. Yes you can. Good luck.
  13. bewilderedone

    bewilderedone LoanSafe Member

    Hi I Did It, I want to thank you for sharing this info about the new Freddie Mac bulletin I followed up on this with a former HUD counselor, and I fit the criteria. We have lost good standing on Hamp......etc. Husband called our mortgage servicer today, and got silence on the phone because they didn't know what the hell he was asking about! They did some digging and said they do not have this new system in place yet, and to call back in a month. Keeping my fingers crossed on this. Anyway I am a firm believer in paying it forward.....so I hope that the best of luck is with you to be able to resolve your issues in the manner you desire!!

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