Do I Qualify for a HAMP Modification If I already have a Traditional Modification?

by Jennie
(Bergen County, New Jersey)

I purchased my home in 2007. At the time I purchased my home my interest was at a fixed rate of 6% for 30 years. Also at that time both my husband and I were making more money him with guaranteed over time and myself with extra incentives at work accumulating about an extra $1000.00 a month. He became very sick in end of 2008. In 2009 I applied for hardship assistance where my lender approved us for a 4% interest for the first year and 5% for the following year and 6% for the third year and for the life of the loan. My mortgage payment was reduced about $500.00 a month. I now find that I still find it hard to make the monthly payment I would like to know if once I am on a Traditional Modification can I still be approved for a HAMP Modification? My husband has recovered since and is currently employed and I am still hanging on at work. Thanks for your help!

Mortgage Loan Modification Answer:

The answer is yes, you very well could qualify for a HAMP loan modification even if you have already been approved for a traditional loan modification program.

You must first check if the investor who owns your loan (it could be your bank/lender if it's a portfolio loan, or it could be a different lending institution and your bank is just servicing the loan for them)participates in HAMP. The best way to do this is to call and ask your lender who the investor is and if they participate in HAMP. If so, you are in luck. Study the HAMP guidelines carefully and apply them to your situation to see if you qualify. The guidelines are very specific and must be followed carefully. If you feel you need help on this, contact me and I will refer you to a very experienced and reputable company who charges nothing just to go over your situation with you and let you know whether you qualify or not.

If you do not qualify for HAMP, don't despair, because you can re-apply for a new traditional loan mod, citing that you are still struggling and need lower payments than what you have now. Many people have re-applied and have been approved. Some re-apply multiple times.

In your situation, since your husband is working again, you must balance your income and expenses on the financial worksheet that you will submit to the bank carefully. Keep in mind that the bank wants to see that you are indeed suffering a hardship, but that you would be able to afford a modified payment if they were to approve another one. Banks actually have specific amounts that your income and expenses can be above or below, so make sure you find out what that number is for your bank. If you decide to hire someone to help you package your application, make sure they are familiar with your bank's specific guidelines.

Hope the above helps. We would encourage that you keep us posted on this site so that future readers may benefit from the information and outcome you share. If you have further questions or comments, please feel free to post again.