Knowledge is always power, so understanding the most common eligibility issues can help you increase your chances of receiving a loan modification through the HAMP. If want to learn more about the HAMP, check out our previous article here: Know your Options to Staying in Your Home: HAMP Loan Modifications.
Here’s a list of the common eligibility issues people face under the HAMP guidelines
- Documented hardship – always have documented hardship available as proof you could not afford your mortgage payments
- Negative NPV result – make sure your NPV is calculated accurately
- Monthly Housing Expense Ratio – this ratio should be greater than 31%
- You have had a previous HAMP modification
- Excessive forbearance – this issue arises when it is not possible to create an affordable mortgage payment plan that is 31% of your monthly gross income, within the limits of the program.
- Ineligible property – the home must be your primary residence and be occupied, it must have no more than 4 dwelling units (this will change in May of 2012 according to the Administration)
- Income discrepancy – income should always be stated accurately and be verifiable
- Default during trial – when you are approved for a loan modification under the HAMP, you are actually placed into a trial period where you must prove you can make your new payments, BEFORE a obtaining a permanent modification. Always keep proof of your payments during this trial period.
If you were denied a HAMP modification or would like to try to reapply or even apply for a traditional loan modification, contact our Orange County foreclosure attorneys today for your free consultation at 949-200-8755. We have helped many people just like you, save their homes from foreclosure.