Utilizing HAMP

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Jun 12, 2014
The Miller's Story
 
Last week the Millers came to see us for the first time to discuss their 5 year battle with their mortgage servicer in their effort to save their home. Until now they had successfully staved off sale by representing themselves in the foreclosure case, following that up by filing their own bankruptcies after a judgment ordering foreclosure was rendered. Unfortunately, they are now at the eleventh hour, as there is a Sheriff’s sale of their home set for later this month. After carefully reviewing their finances, we have determined that the Millers’ qualify for HAMP mortgage relief, which we believe will pull their situation out of the fire, and allow them to save their home. 
 
To this Country’s great disgrace, the Millers’ situation, in our experience, is all too common in that they are they are what we refer to as False HAMP Denial Victims. That is to say, they qualify for HAMP mortgage relief, but their loan servicer did not reach out to them to help them qualify. In fact the Millers probably qualified for relief years ago, but weren’t offered the opportunity to do so. If the servicer had reached out, they not only could have been spared years 
of heartache and frustration, but also tens of thousands of dollars in accumulating interest and late charges accruing over that time period. In fact, over half of our clients are False HAMP Denial Victims. If one were to extrapolate that number to a national scale that means that millions of homeowners across the Country are being falsely denied HAMP. In many of those cases, receiving or not receiving HAMP relief means the difference between saving and losing 
one’s home. 
 
HAMP by its very nature is set up to allow homeowners whose monthly mortgage payments (including real estate taxes and insurance), exceed a certain percentage of their income, to obtain a reduction in their monthly payment to get it within the established guidelines. To do that, the loan servicer is required to reduce the rate of interest to as low as 2%, and extend the loan maturity date to as long as 40 years. Doing so can truly work wonders in reducing the amount of the monthly mortgage payment. In some cases, our clients’ mortgage payment has been sliced by half or even more. Even more significantly for the Millers, a HAMP modification will give them a “fresh start” on saving the home they have been desperately fighting for years to keep their children in. Once the modification is in place, the Millers will simply resume making their payments, as adjusted, to the loan servicer. In other words, no lump sum needs to be paid so that the relief is a complete loan “do-over”. The Millers’ story serves as a lesson to all homeowners struggling for relief on their mortgages that help may be right around the corner.
 
 
 
Note from the author: If you have questions or comments- regarding this or any Foreclosure Story article or should you like to have a “free mortgage analysis”, please visit www.mcgookeylaw.com, visit us on Facebook or call us at 419-502-7223.  Kate Eyster contributed to this article. 
 
Copyright 2014 Daniel L. McGookey