Questions & Answers


Are there different mortgage modifications options available through the HAMP program?

Answer


Yes, the HAMP program includes a few possible workout options that may be available to you. Possible mortgage loan modifications available under HAMP for borrowers in foreclosure or at imminent risk of foreclosure include, but are not limited to the following:

FHA-HAMP
The Federal Housing Administration (FHA) is one of the biggest networks in the country that supports the HAMP loan modification programs. It has its own flagship HAMP program available for qualifying homeowners in or at imminent risk of foreclosure. The FHA-HAMP program gives qualifying borrowers with FHA insured loans to avoid foreclosure by entering into a modified mortgage loan with lower monthly payments. The FHA-HAMP program is notable in that allows for the inclusion of what is referred to as a partial claim. This partial claim is an interest free loan that can effectively make otherwise non-qualifying mortgage notes qualify for a modification. This partial claim note can be used to cover as much as thirty percent (30%) of a borrower’s delinquency, and it need not be repaid until the first mortgage note is paid off or if the borrower ceases to be the owner of the property.

VA-HAMP
The Department of Veterans’ Affairs (VA) offers its own modification program through HAMP. This program can provide veterans a great way to avoid losing their homes to foreclosure. VA-HAMP is a program that all VA home loans in foreclosure or at imminent risk of ending up in foreclosure will be considered for provided that the appropriate documentation is submitted in accordance with the plan. However, note that the VA requires that VA notes first be reviewed and denied for other traditional loss mitigation options before the borrower is considered for VA-HAMP.

FHA Short Refinance
Although it is not technically a HAMP affiliated program, the FHA Short Refinance is a great program for a distressed homeowner who is in foreclosure or at imminent risk of foreclosure. If your home is under water, meaning it is worth less then what is owed on your mortgage, you could potentially qualify for this option which may eliminate the difference between the worth and what is owed and lower your mortgage to a more controllable amount. This is very similar to the bailouts that allowed large companies to continue to conduct business without having to declare bankruptcy. In short, if it allows you to keep you in your home, it only positively affects you as well.

Home Affordable Unemployment Program (UP)
There are special programs set up for people who are unemployed, such as, the Home Affordable Unemployment Program or UP. You will still be able to obtain help to keep your home even if you do not have a steady income. In order to qualify for this program, you simply must qualify for unemployment benefits in your state. This is one way to obtain immediate help when you are unable to obtain it elsewhere. An attorney can better assist you and inform you more about this, including any special circumstances or possible restrictions that may exist.

If you are interested in learning more about mortgage modifications, or if you have any related questions call us today at (973) 500-8024 or (212) 960-8308, or submit your contact information below and we can contact you directly.