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James Hunter's Blog

By James Hunter | Real Estate Pro in Brooklyn, NY

Home Affordabilty Modification Program is full of crap

The federal government has trumpeted its Home Affordable Modification Program or “HAMP” solution as THE solution to runaway foreclosures – few things could be further from the truth.  Under HAMP a homeowner will be offered a “workout” that can result in the homeowner being “worked out” of his or her home.  Here’s how it works.  A participating lender or servicer will send a distressed homeowner a HAMP workout agreement.  The agreement consists of an “offer” pursuant to which the homeowner is permitted to remit partial or half of their regular monthly payments for 3 or more months.  The required payments are NOT reduced, instead the partial payments are placed into a suspense account.  In many cases once enough is gathered to pay the oldest payment due the funds are removed from the suspense account and applied to the mortgage loan.  At the end of the trial period the homeowner will be further behind than when they started the “workout” plan.   
In New York, the agreements clearly specify the acceptance of partial payments by the lender or servicer does NOT cure any default.  Further, the fact a homeowner is in the workout program does NOT require the lender or servicer to suspend or postpone any judicial foreclosure activity with the possible exception of an actual trustee’s sale.  A homeowner could complete the workout plan and be faced with a foreclosure sale.  Worse, if a homeowner performs EXACTLY as required by the workout agreement, they are NOT assured a loan modification.  Instead the agreement will include vague statements that the homeowner MAY receive an offer to modify his or her loan however there is NO duty on the part of the servicer or lender to modify a loan regardless of the homeowner’s compliance with the agreement. 
 
A homeowner who fully performs under a HAMP workout is all but guaranteed to have given away thousands of dollars with NO assurance of keeping his or her home or ever seeing anything resembling an offer to modify a mortgage loan. 
While it may well be the case the government was making an honest effort to help, the reality is the HAMP program is only guaranteed to help those who need help least – lenders and servicers.

Turn the tables on these lenders with a mortgage audit that present
far better solution than a loan modification.  Its called dispute resolution and it works like this. If you present a case to the mortgage servicer in good faith that the loan they originated or  now service  is not in compliance with federal law then the legal department for these servicers take the matter alot more seriously than some dumb loss mitigator on the phone. Under RESPA they have 60 days to resolve any you dispute in your request. Why because its found out that they gave you a loan not in compliance with federal law then the regulators could force a settlement.  So it makes sense to them to give you a settlement that alot of times result in you getting back your closing costs or a principal reduction. A buzz word being used in the regulatory circles in housing discrimination for engaged in a pattern or practice of discrimination by charging higher interest rates especially to African-American borrowers on loans.

Here at Nu York Modifications 
we review your mortgage documentation during closing for charges of excessive loan fees to borrowers, and in many cases to see if Fraudulent Abusive Deceptive Lending Practices were used. We submit on your behalf a qualified written request/report of our findings to your Lender. This report will detail all mortgage related issues found in the review process. The Lender will have 20 days per the Real Estate Settlement Procedures Act (RESPA) to respond to the written request and 60 days to settle this matter. In the event the Lender does not act within the timeframe's listed above, we will file on your behalf "Documented Mortgage Complaints" to all appropriate local, state and federal regulatory agencies.

They don't want documented mortgage complaints to these agencies why because the enforcement departments for these agencies usually intervene and it gets really nasty for your mortgage servicer. especially concerning TARP money.

To find out more information on the process and how you can get started on the audit process and receive a consultation associated with your mortgage situation please visit nyloanmodsecrets.com for a free report entitled " Insider Legal Secrets to Stop Foreclosire and Force Your Lender to Accept a Loan Modification"  or call 718-530-0738 for free phone consultation.

If you receive ANY written offer to modify your loan meet with a REAL licensed attorney and ask them to review the agreement to determine what you are REALLY agreeing to, the home you save might be your own.
 

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