HAMP | HAMP Loan Modification Report Card

HAMP HAMP Loan Modification

A How To Guide

On March 4th, 2009 the Obama administration revealed its plan to help millions of distressed homeowners in danger of foreclosure. The program was proudly touted as the definitive way out of the current housing and mortgage crisis.

The year has ended and since April 2009

the program is responsible for 728,408 active modifications. 697,026 are in the trial period

and 31,382 have been made permanent.

Although there has been plenty of time for loan servicers and lenders to strengthen their efforts and start making a considerable difference in preventing home foreclosures, many servicers have repeatedly chosen to aggravate the crisis through noncompliance and excuses.

Prior to the introduction of HAMP, servicers' efforts to modify loans had picked up a considerable amount of steam. By March of 2009 loan servicers' efforts in private in house modifications were running at a pace of 120,000 per month. That means that if left to their own devices servicers and lenders had they continued at that pace would have completed modifications on more than 1.2 million loan modifications.

It is now harder than ever to get assistance from your lender due to the new heavy documentation and government bureaucracy created by HAMP. It is not however an impossible task. Even with its bureaucratic red tape many homeowners have been able to get payment reductions that helped them save their homes.

If you are looking for assistance with HAMP be sure to get up to speed and learn everything you can about the guidelines and requirements. Talk to your lender BEFORE submitting an application. With HAMP you only have one bite at the apple. You have to get it right on the first try.

Here is what you will definitely need to submit a complete file to your lender:

Last 4 paystubs for everyone in the house who earns money.If you don't have paystubs, you will need a cash letter from the wage earner defining what they take home monthly. (Yes your lender WILL accept this)(It's in their best interest).

• 2 years W2's for each wage earner in the home.


• 2 years tax returns


• 2 months bank statements - your lender will require ALL pages of your statements. If you don't have them, go to your bank and get a 2 month printout, make sure that someone in the branch stamps and signs the printout or your lender may not accept it


• If you are self employed you will need to provide a profit and loss statement that spans a minimum of 3 months, I recommend you do this for a 6 month period


• A well written concise ONE PAGE hardship letter


• An income and expense sheet that shows Monthly Numbers for Gross Income, Net Income and all household expenses

If you take the time to prepare and do it in a well organized manner you will improve your chances of getting a modification under HAMP greatly.

Get educated QUICKLY; learn everything you can about the HAMP guidelines and what your lender offers in the way of assistance. Plan your request for assistance and be organized and prepared BEFORE you submit anything to your lender.

Remember the disclaimer they read you when you call? It's the one where they tell you they are required by law to advise you they are attempting to collect a debt and anything you tell them will be used for that purpose. No matter how nice the representative sounds, they work for the lender and they are there to help collect your payments.

Homeowners looking to take advantage of HAMP should always make sure to Get Educated so they can Get Modified and Get On With Their Lives...