Any use the HAMP program.

[simple_gifts]

Home Affordable Modification Program

Short story is I'm trying to help out someone I know get a modification on her current mortgage; a refi is not an option.

Not underwater, no missed payments, principal is probably 60K on a house worth 100K. Mortgage is 6.5%; not a person swept up in the mortgage crisis; situation has nothing to do with that.

I would appreciate some feedback as to the pitfalls; things to focus in on other than what is on the website. Mortgage company is CitiMortgage. I realize the process maybe extremely lender dependant, but I'm sure there are some "must do" guidelines driving this.

I understand some people may not want to answer publicly; i would appreciate a PM; confidentially assured.

Thanks.

-Thomas.

 

[DB_Cooper]

Over the past few years I know of several families that applied for the HAMP program....they got nowhere..it was a program to stall the foreclosures, justify the big 26 billion settlement monies the FEDs took from the banks..the homeowners in the end got very little relief.

Give it a shot..but don't get your hopes up.

 

[Dohc98vteC]

I am in a similar boat, and can't find much relief however the home values are rising at least in the Columbus OH area...

 

[Donald]

I was offered the loan modification and went through it in an attempt to lower a 7.5% interest rate down to something reasonable. It was BoA.

It got lowered but only down to 7.25% as my salary with too high.

I finally refinanced.

I would suggest the person talk to a consumer credit counseling service, non-profit and a member of the NFCC.

In CT it looks like http://www.moneymanagement.org/

They are a member of NFCC (National Federation for Credit Counseling).

 

[KenO]

Originally Posted By: Donald

I would suggest the person talk to a consumer credit counseling service, non-profit and a member of the NFCC.



Do NOT do this! Thats as good as filing bankruptcy re: your credit score, without actually filing bankruptcy. I've been thru bankruptcy, it's not that bad really.


OP - just re-fi the loan. Is that not an option? The mortgage mod programs were for people underwater and behind on their mortgage and are at risk to lose their homes, not for people who've kept up with their payments.

 

[simple_gifts]

Quote:

The mortgage mod programs were for people underwater and behind on their mortgage and are at risk to lose their homes, not for people who've kept up with their payments.


Yup, that is the unfortunate fact; refi is not an option due to condition of the house; already been turned down once @ a cost of $400. There is no unsecured consumer debt here, the issue is totally with the monthly payments. Maybe someone else has some different approaches?

 

[KenO]

Originally Posted By: simple_gifts
Quote:

The mortgage mod programs were for people underwater and behind on their mortgage and are at risk to lose their homes, not for people who've kept up with their payments.


Yup, that is the unfortunate fact; refi is not an option due to condition of the house; already been turned down once @ a cost of $400. There is no unsecured consumer debt here, the issue is totally with the monthly payments. Maybe someone else has some different approaches?



Stop paying. Save up enough cash so that if things go downhill, you can hand the mortgage company however much cash it asks for. otherwise - stop paying. Default. They'll either deal, or they won't. Thats the only way you'll find out though.

 

[bladecutter]

Originally Posted By: simple_gifts
Yup, that is the unfortunate fact; refi is not an option due to condition of the house; already been turned down once @ a cost of $400. There is no unsecured consumer debt here, the issue is totally with the monthly payments. Maybe someone else has some different approaches?


Exactly what is wrong with the house?
Can't the homeowner repair the house?
Have they tried asking a different mortgage company to refinance the house?
Unless it's a major issue with the foundation of the house, that is.

Sounds odd that the homeowner can't get a different company to refinance the house, regardless if something needs repair.

BC.

 

[simple_gifts]

Originally Posted By: Bladecutter
Originally Posted By: simple_gifts
Yup, that is the unfortunate fact; refi is not an option due to condition of the house; already been turned down once @ a cost of $400. There is no unsecured consumer debt here, the issue is totally with the monthly payments. Maybe someone else has some different approaches?


Exactly what is wrong with the house?
Can't the homeowner repair the house?
Have they tried asking a different mortgage company to refinance the house?
Unless it's a major issue with the foundation of the house, that is.

Sounds odd that the homeowner can't get a different company to refinance the house, regardless if something needs repair.

BC.


The town claims there is no CO for the house; it was once a trailer and then a house was built around it; it is not clear how the mortgage was obtained in the first place or what the timeline was.

I am no house inspector, but portions of the foundation aren't going to cut any reasonable scrutiny. Home owner can't fix the situation since there is no $$ available; she or I wouldn't even know where to begin.

Talked with a forensic architect and he indicated "doing anything" @ the town level might be a giant pandora's box; they seem to have no problem taxing it like it was a real home. I did stop by the T.H. and when I mentioned I wanted to see the records on xxx main street, the town engineer replied with "The one with no CO?" Pretty clear how they perceive the situation.

I tend to downplay the "you're screwed" aspect of the situation to the homeowner; I said I'd research some options and HAMP appears like the only choice. Fifty years ago, I'd think the mortgage company would do something to keep the person in the house, some how I'd like to believe the situation today is the same. Hey if she gets foreclosed on, they get something with little market value except as a tear down. Not sure I'd use that nuclear option.

-T

 

[Jarlaxle]

Check your PM's, please.

 

[PandaBear]

If you can refi, it is usually a better choice.

What's the reason this home owner friend of yours couldn't refi?