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What is the criteria for the HAMP/HEMP? loan mod program?

Tampa, FL |

I went into kidney failure 3yrs.ago.Had kidney transplant (2nd one). Lost income & got behind on my mortgage pmts. House went into forclosure. Hired an attorney to stop forclosure pending loan mod. Got the loan mod but my mortgage pmts. are more then my original pmts. were. Was told I could pay the higher mortgage pmts. or apply for the HAMP?HEMP? program, or short sale my house. I don't know what to do & my attorney is being vague with answers. Any advice is greatly appreciated. I am on SSID & work making the legal amt. alloted. If I pay the higher mortgage pmts. with the loan mod, I will only have $200 left over monthly for gas, food, misc.

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I am sorry to read about your unfortunate events. In short, it is impossible for anyone to let you know if you pre-qualify for HAMP. Your loan may very well have been sold to an investor who is a non-HAMP participant and thus does not have to abide by its guidelines. Generally speaking, HAMP wants to see that a borrower's mortgage payment (principal, interest, taxes and insurance) exceeds 31% of the borrower's gross monthly income. Furthermore, a borrower cannot show a deficit whereby one's expenses exceeds one's net income. There are other criteria, but these are important to know. I have seen many borrowers get their loans modified, however, who should not have, and many borrowers be denied who should have been approved. Remember, you are dealing with banks that by and large do not care about borrowers -- some of which have been ordered to return money to the U.S. Treasury Department that it accepted as an incentive to modify loans. Wells Fargo, I'm looking at you, pal.


Wow. Not a good result on the loan mod, which, ideally, should have resulted in greatly lowered mortgage payment amounts. You should either pin your attorney down or find someone who will advise you as to all your options and their potential consequences. My concern is that if you choose the wrong option you could make yourself ineligible for Medicaid assistance if you should come to need it. Seek the advice of an attorney who is familiar with foreclosure defense options (HAMP, HEMP, etc.) and who is also competent in the area of Medicaid and SSID.

Carol Johnson Law Firm, P.A. : (727) 647-6645 : : Wills, Trusts, Real Property, Probate, Special Needs: Information provided here is anecdotal and should not be relied upon or considered legal advice. Every matter is different and answers given here are general in nature and may not reflect current Florida law at the time you are reading this posting. Please contact me if you feel you need additional assistance with your matter.


Both programs have strict guidelines for qualification. If your attorney prequalified you and everything has been submitted it should take between 2 1/2 to 3 months to get the modification. I would request a copy of all the paperwork submitted and make sure all is correct and you meet the program guidelines


Pin down your attorney to get the answers you need or get a consultation with another attorney who can fully discuss your options with you. Many homeowners qualify for a HAMP modification, but the decrease in the monthly payment is often very small, usually ten (10) percent or less. Many lenders/servicers also offer their own "internal" loan modification programs, but it sounds like you have already been down that road. Good luck.

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