Denied HAMP Loan Modification After Trial Period Due to Overtime Worked During 3-Month Trial Period.

by Chris
(Maryland)

My employer, after hearing of my struggles, granted me additional overtime while on my 3-month HAMP loan modification trial period, which led to the denial of my loan modification request. Do I have any recourse to try and save my "one time" application into the HAMP program?

The lender has demanded I repay the deferred portion of my payments in ridiculous monthly payments.

What seemed like a blessing has turned into a much worse situation than what I was in before applying for the HAMP program. I just don't want to lose my one and only attempt at saving my home and would like to know if there is any way to salvage the initial application?


Mortgage Loan Modification Answer:

I'm sorry to hear your lender denied your loan modification application from going permanent after your trial period.

By accepting your employer's offer to help by increasing your hours, you've changed your financial position from when you initially applied and got approved.

Of course, as you now know, you should not do anything to change the financial information you submitted to your lender until after your loan modification has been made permanent and the agreement has been executed, finalized, and firmly in place.

The only thing you can do now is to cut back on your work hours to the same amount you put down on your initial HAMP loan modification application.

Call your lender and inform them of the reduction in your hours and see if they would allow you to re-apply for HAMP. If your lender tells you that you're no longer eligible for HAMP, then ask if you can apply for a traditional loan modification.

Almost all lenders have an in-house loan modification program, which is better known as a traditional loan modification program. You will have to start the application process over again, but it is the only way to try to salvage your eligibility to get your loan modified to a more affordable monthly payment after being denied for HAMP.

You may or may not receive the same rate and terms you received from your HAMP approval because lenders use their own discretionary formulas to qualify you for their in-house or traditional loan modification programs.

It is worth a try. Many people have been able to obtain a loan modification this way after being denied under the HAMP program.

All the best to you. Please come back and let us know how everything goes for you.