For the HAMP Loan Modification - How Long Must Your Loan Be With the Current Lender?

by Dean
(NJ)

Under the HAMP loan modification program, how long must your loan be with the current lender? I purchased my home 3 years ago in August. I have refinanced with Citibank in June 2009 and have made all payments on time. In July of 2009 I filed for HAMP or traditional modification. They told me I was denied for both, but would offer short sale or deed in lieu of foreclosure. The reason is because my loan with them is only 1 year.


Mortgage Loan Modification Answer:

Sorry to hear your HAMP application is being declined by your lender.

One of the qualifying events for the HAMP loan modification program is that your loan has to have been originated ON or BEFORE January 2009. According to your post above, you mentioned that you refinanced your loan in June 2009. Since your refinance origination date is AFTER January 2009, you are not eligible for HAMP.

However, if you have a financial hardship that has made your monthly mortgage loan payments unaffordable, you can apply for a traditional loan modification with your lender.

A traditional loan modification is a much better option if you would like to keep your home. A short sale or a deed in lieu of foreclosure are options for when you decide you no longer want to keep your home. Other foreclosure options are available and you can read about them further here.