I applied for a HAMP loan modification but did not accept the terms

by charlette
(santa fe, nm)

We applied for a modification in March of 2009. We were given a 3 month trial offer 9 months later, (that I am assuming was the HAMP Loan Modification program) with a new monthly payment but this payment was not reduced enough for us. The payment was based on income from the previous year which we no longer had! I was unemployed 6 months when I applied for modification so it did not help us. The new payment was reduced from $3050 to $2920-only $120, when our combined family income had been cut by more than 50%!
We disputed the way in which the payment was arrived at so did not go through the trial period because were told we'd be stuck with it if we did and then would not be eligible to retry again, which left us no option but to refuse it in hopes for a better modification program later. It has been 15 months now since that time and no other modification has been offered, yet.
So, my question to you is, can we still be eligible for this or another modification program since we refused the first one that was offered? And if so, which ones? I am currently on unemployment, and my partner on the loan still has his income.

Mortgage Loan Modification Answer:

The first thing you need to do is find out which program you are currently applying for. Typically, banks will run your application through the HAMP program and see if you fit within the guidelines.

If you are not qualified for HAMP, then they should automatically allow you to apply for one of their in-house or traditional loan modification programs.

15 months is quite long for the bank to re-submit and process your application. You didn't mention if the bank has started the foreclosure process. If they haven't yet, they may soon if you are behind on your payments.

If you refused your bank's first offer, and they do not have anything better to offer you, it is at their discretion on whether or not to re-approve you for their first offer. We've heard of banks doing so, but unfortunately, we've also heard of banks refusing to remake the offer.

Best of luck to you!

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