Have qualified for the HAMP but now Chase will only allow a forbearance program?

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This topic contains 6 replies, has 2 voices, and was last updated by  takata77 6 years, 7 months ago.

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  • #3902

    takata77
    Participant

    In short, I have been working with NACA since Feb 2012. During this time, I felt the modification was taking too long and with pressing foreclosure dates, I had to try something else. So I applied for the Keep Your Home CA Gov Program (Hardest Hits Funds) for Mortgage Reinstatement. As the processing continued, I finally got approved for the HAMP Modification. BUT, as things were processing the Hardest Hit fund went through as well and made my loan current as of Sept 6th. That unfortunately terminated my HAMP. I was told by CHASE that both the HAMP and HHF can happen… but that was not the case. The forces that be canceled my HAMP as soon as the Hardest Hit Funds were processed. If I would have known that would be the case, I would have taken the HAMP immediately.

    I have been advised to apply again through NACA with a NEW FILE… I did so in Late Sept. So in my RE-application for the HAMP through NACA, CHASE has now “disqualified” me for the HAMP but has allowed me to enter a “Forbearance Program.” The Forbearance is not a modification nor a restructuring… it is a small temporary lower monthly BUT it will ALL be due back after 6 months.

    (6 month FNMA other Forbearance approval for payments of $1781.07 due 12/01/12 with amount due after plan $5395.97)

    I have been through Forbearance programs before and to be honest, it only got me into deeper debt without a solution… It is a band-aid and once taken off the wound gets even worse. I am also not sure how or why I qualified for this, as forbearance’s are usually given to those on Unemployment or out of work… I have a full time job.

    I need a permanent solution. I have already qualified for HAMP before. I RE-applied with the same application, and even more suitable paperwork… but yet they denied me???

    Please help… I am not understanding why I did not qualify for the HAMP. A Forbearance is not a solution. I need permanent restructuring or modification… something I have already qualified for in the past.

    Please advise as I feel lost in this situation… thank you. BT

    #3911

    TTrumble
    Member

    Hello takata77,

    I’m afraid your mistake was believing the Chase rep who told you “that both the HAMP and HHF can happen”. You indicate that you have a Fannie Mae loan. Their guidelines requite that you either be past due or meet the guidelines of Imminent Default to qualify for a modification. Imminent Default requires that you must prove that you are about to go past due on the mortgage and cannot do anything about it, and one of the “Three D’s” must also be a factor: Death, Divorce or Disability. Reduced income through unemployment or business decline will not qualify.

    Like Fannie Mae, most investors do require that the mortgage be at least two months late or qualify under Imminent Default. In some cases, the lender can grant a forbearance period if you can show genuine hardship but are still current. This allows the loan to technically become delinquent and thus become eligible for modification when it would not otherwise. Since HAMP regulations only allow a HAMP modification to be offered once during the lifetime of the loan, you will not get another HAMP offer, but may be able to qualify for a “traditional” modification. However, you will have to be past due or qualify for Imminent Default to receive a permanent solution.

    At this point you have what is no doubt a very difficult decision to make. The forbearance offered may be your only path to a permanent modification, but there is no guarantee. I hope this at least helps you understand the situation better so you are able to make a better informed decision.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    #3916

    takata77
    Participant

    Tim,

    Thank you very much for the reply… it does shed some understanding. I wish I would have talked to you before I made that costly decision to listen to Chase and take the Hardest Hit fund.

    If I run the numbers… If I default (2 mo) my money owed will be roughly around $4500, which is better then $5,359, after 6. I am committed to getting a Modification and lower my monthly payment for the long run… so the sooner I do this the better. Correct me if I’m wrong, but didn’t the Administration change some of the HAMP rules? Such as of June 1st 2012…

    *Homeowners who are applying for a modification on a home that is not their primary residence, but the property is currently rented or the homeowner intends to rent it.

    *Homeowners who previously did not qualify for HAMP because their debt-to-income ratio was 31% or lower.

    *Homeowners who previously received a HAMP trial period plan, but defaulted in their trial payments.

    *Homeowners who previously received a HAMP permanent modification, but defaulted in their payments, therefore losing good standing.

    I am hoping I fall into one of the categories?

    My goal is to get into a new loan and lower my payment. The Forbearance is only for the short term… too short. And I owe it all back. Question, are there programs I can qualify for that are 5-10 year loans that will substantially lower my monthly? I know NACA has many programs… so wondering what is out there?… But hoping HAMP still is an option for me?

    Thank you for your advise and help… sincerely, BT

    #3941

    TTrumble
    Member

    Hello takata77,

    While some relaxing of HAMP regulations actually went into effect last January, I have to admit that your hope to qualify under the changes you refer to have me a bit puzzled:

    *Homeowners who are applying for a modification on a home that is not their primary residence, but the property is currently rented or the homeowner intends to rent it..”

    You qualified for Hardest Hit Funds, which means it is your primary residence, so this doesn’t apply.

    *Homeowners who previously did not qualify for HAMP because their debt-to-income ratio was 31% or lower.”

    You did previously quailfy for HAMP, so this one doesn’t apply.

    *Homeowners who previously received a HAMP trial period plan, but defaulted in their trial payments.”

    You had no HAMP trial period to default in, so this doesn’t apply.

    *Homeowners who previously received a HAMP permanent modification, but defaulted in their payments, therefore losing good standing.”

    Again, no default on a HAMP modification took place, so this isn’t relevant to your case either.

    Nor do I understand your extreme focus on specifically getting a HAMP modification. After 6 years, you would be fixed at a rate of roughly 3.5% (based on current market rates) for the life of the loan. A Fannie Mae “traditional” modification could go as low as 3% fixed and Freddie Mac could go as low as 2% fixed.

    As for your question, “are there programs I can qualify for that are 5-10 year loans that will substantially lower my monthly?”, that would be a refinance, which is the creation of a new loan, not a modification of the existing loan. You would need to consult with your lender about doing a refinance.

    There is a great deal of confusing information out there regarding what can and can not be done. Not all of that information is clear or even accurate. A deliberate, “strategic” default other than the forbearance plan offered by your lender could backfire on you as well since it could imply that you don’t intend on saving your home, but only used the HHF money to hold off the inevitable for a little while.

    In short, my previous advice and comments still stand.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    • This reply was modified 6 years, 7 months ago by  TTrumble.
    #3965

    takata77
    Participant

    I understand… I misread all the HAMP tier 2 updates.

    Does NACA have a Fannie Mae program to apply for?

    Also… I have been traveling and trying to get a hold of my Servicer… I read some disturbing information this morning… That “Called to verbally decline file” “Closing NACA referral” I am not sure why this is happening?… I have tried everyday to contact my servicer and left voicemails and NACA site information.

    Please advise, thank you BT

    #3990

    TTrumble
    Member

    Hello takata77,

    The decline from your servicer actually relates back to your very first post. You accepted the HHF money, which brought the loan current. When the loan is not past due or fails to meet Imminent Default criteria, you will almost certainly get a decline. You were instead likely offered a forbearance for the reasons I outlined in my response to that message, to allow you to become technically past due and thus qualify for a modification.

    While there is never a guarantee, looking at the numbers in your proposal, I do see the potential for a “traditonal” Fannie Mae modification. (You gave me enough clues that I was able to find your file without asking for your ID number.) You will need to re-submit a proposal to Chase, but again, you will most likely have to accept the forbearance in order to qualify for it.

    It’s a tough decision I know, but one you are going to have to make in order for ther to be any potential progress in yoru file. Please let me know how you choose to proceed.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    #3992

    takata77
    Participant

    Hello Tim,

    I really to appreciate your advise and help. Also… grateful for your little detective work. May not have been hard as I have nothing to hide… but your effort to help me and find out what is going on, truly means the world to me.

    Thank you for the explanation of the messages on the e-file as well as all the thoughts and advice you have. So much has happened since, so let me start with: I was finally was able to talk to a Servicer on my file and he explained to me in detail what has happened, what is going on and my options.

    You are right on every level and I have some real hard decisions to make. But interestingly, my Servicer added a few things specifically, that supported some of the fears I had about the FB. He said this honestly if he where “a Civilian” that there is no guarantee what will happen in 6 months, and that many things can change… new programs and qualifications and even a new president. His advise was not to automatically take the Forbearance, as if I did not accept, it would not effect judgement if/when I do re-apply for a Mod. But to weigh the options because down the line, he had mixed emotions about the future as well. He talked in detail to what was the real cause of my decline and yes, being 60 days past due was a necessity for anything to happen. The FB would get me there, but again the cost of putting myself in that hole and no guaranteed outcome after 6 mo’s weigh heavy.

    I told him: In my current state of affairs, I can only afford to pay partial payments and I cannot make the payment in full. As well as, what has happened in the last couple of days for me… With the recent East Coast “Sandy” disaster I too was effected and family in NY are in desperate need of assistance. Also, I was delivered a creditor threat of asset seizure for a credit card debt, I had to walk away from in order to keep my home. All this has made my situation and decisions even more complicated and difficult.

    I don’t mean to share this in anyway as a sob story, so I hope it is not coming off that way… I just wanted to share and explain my situation, our conversation and recent circumstances. We assessed, with eminent default in an FB, the circumstances I face today, and the 60 day past due being imperative for qualification… the FB may not be the best option… And he agreed.

    SO, all that said, I have some soul searching to do… weigh the risks, options, and possible outcomes. If you have any thoughts and/or advice?… All is welcome with an open mind, heart and sincerest appreciation.

    I thank you again for your time, help and consideration.

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