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Reapply for Second HAMP Modification

Posted in HAMP 2

If you have obtained a HAMP modification and you have redefaulted, you may be eligible for a new modification under HAMP Tier 2. HAMP 2 allows a second HAMP modification if there is a new hardship. HAMP 2 also applies to rental properties, whereas HAMP 1 only applies to owner-occupied properties. With HAMP 1 the interest rate can be as low as 2.0% and the amortization as long as 40 years. With HAMP 2 the rate will be the Freddie Mac rate, which hovers around 4.0%, but you may still get a 40-year amortization. So your payment can drop significantly under HAMP 2. The Making Home Affordable Program was introduced in February, 2009. The HAMP Tier 2 program became effective June 1, 2012. Changes to the program have now been implemented in an effort to increase participation and the number...

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One Third of HAMP Modifications Redefault

Posted in HAMP 2

Three Years Later, One Third of HAMP Loan-Mods are Redefaulting Supposedly permanent loan modifications are defaulting at what the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) calls an “alarming rate”. The government’s Home Affordable Modification Program claimed that it would help between 3 and 4 million homeowners to avoid foreclosure via loan modifications. However, according to the SIGTARP quarterly report released last week, after four years of HAMP, only 862,279 homeowners are currently in an active permanent mortgage modification. The low number of total modifications is not the only bad news about HAMP. As of the end of last month, over 312,000 homeowners have redefaulted on their HAMP modification. As SIGTARP notes, “For these homeowners, the HAMP permanent mortgage modification they received was not sustainable.” The earliest HAMP permanent modifications, those negotiated in the third and fourth...

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Mandelman Again on HAMP 2

Posted in HAMP 2

Things I think homeowners should know about loan modifications & HAMP-2 If you already know who I am… great.  If you don’t, you can find out after you read this, but for the moment suffice it to say that I’ve had a front row seat for the foreclosure crisis.  Over the last four years, I’ve watched literally thousands of homeowners go through the loan modification process.  And not only have I watched… I’ve watched closely.  I’ve taken calls from homeowners residing all over the country at all hours of the day and night, and I’ve written over 700 articles, many specifically having to do with loan modifications… how they work when they do, and why they don’t, when they don’t.  I think it’s safe to say that when it comes to the topic of loan modifications, there is very...

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