BofA states I dont qualify for HAMP...

[BKIN2010]

So I just received a letter from BofA stating that my loan is not eligible for HAMP due to the fact that current monthly housing expenses are not > 31% of income?? I have 30 days to appeal and I can probably show that I am above 31%. BofA further states that they will consider a different mod program, forbearance, short sale.....e.t.c.

My question is, should I bother even appealing the HAMP decision. I have read mixed review about HAMP. Should I just wait to see the other alternatives. I would like to stay in the house if the payments are reduced to a rasonable amount (same as renting). As a side note, the mortgage was discharged in a recent BK. I have not made a pmnt on first and second for a while.

Thanks!

[Resigned2BK]

Our experience is BofA will try to find any excuse to not approve HAMP or regular mod. We got denied simply because we didn't have a statement of homeowners association dues even though we don't belong and pay for that kind of thing. I have heard that BofA tends to play ball better for a regular mod rather than HAMP, but if you haven't been paying for months while in BK, who knows at that point. Good luck.

[BKIN2010]

Thanks Resigned2BK. I have decided to appeal it. I will send my appeal in the morning and see what happens. Only thing bugging me is bofa says no foreclosure date but when i check recontrust's website they have a today 6-1!!!
'

[Pandora]

With HAMP - the 31% criteria is mortgage only and includes nothing else, so if your actual mortgage payment is below 31% of your GROSS income, then you will not qualify for the program. If you do qualify - be prepared to wait it all out upwards of 12-18 months before final approval; there are some that have been waiting longer.

Good luck to you!

[BKIN2010]

HAMP is a hoax! The guidelines say the "monthly housing expenses including your principal and interest mortgage payment". What if you are currently making "interest only payments"? I think it is incorect to use the IO pmnt for the hamp calculation.

[Sweetpea3829]

It's not just BofA playing games with HAMP mods. Last year, my husband and I were well-qualified as far as income is concerned for a HAMP mod. We applied with Citimortgage in April and were told within a month we'd have a trial modification in place.

After four months of calling and updating and pulling my hair out...they denied us in August. Why? Two reasons. 1) We'd never been late on any payments on our discharged, not reaffirmed mortgage and therefore were not at risk of default. So because we'd never been in default, we weren't likely to go into default. 2) We had enough in liquid assets to cover three months worth of mortgage payments. Unfortunately, this was a total crock. We had 6k in the bank. The payment is 2k. 2k of the 6k was for a payment that hadn't yet cleared and was therefore added in our average balance, even though it had only been in the account for a short time. 1400k of the 6k was tenant security deposits. 1k was our 5 yr old daughter's savings account. $500 was the combined balances on our three boys' accounts.

We didn't bother to appeal. I was SO furious with them. Especially over the first denial reason. We stopped paying our mortgage that very same month. They actually denied us for HAMP and then, without us even applying for an in-house, they denied us for in-house as well.

We no longer qualify for HAMP because we no longer reside in the house. But we're seeking an in house mod with the new servicer, LBPS (the loan was transferred from Citi to LBPS in October).

[BKIN2010]

I called BofA today and they told me that the way they determined the total expenses i.e. using interest only payments in correct. Oh well. They said they will let me know within 10 days what other options are available.

[Pandora]

HAMP is a hoax! The guidelines say the "monthly housing expenses including your principal and interest mortgage payment". What if you are currently making "interest only payments"? I think it is incorect to use the IO pmnt for the hamp calculation.

Where does it state housing expenses are to be included in the calculation? I've never heard of HAMP changing it to allow expenses, its always been mortgage only. New additions to it were just done on 1 June 2011, located here: https://www.hmpadmin.com/portal/prog...andbook_32.pdf

to which it states:

The borrower’s monthly mortgage payment (including principal, interest,
taxes, insurance, and when applicable, association fees, existing escrow
shortages) prior to the modification is greater than 31 percent of the
borrower’s verified monthly gross income.

Is your mortgage Fannie / Freddie owned or is it non-GSE? There are different guidelines depending on who owns/backs it.

It is hard to get HAMP, with many servicers just doing forbearance agreements but telling people its a "trial" - this is why there should've been regulation and laws put into place when this was first done.

ETA: here is how HAMP works for those in BK or discharged from BK as well:

Borrowers in
Bankruptcy

Borrowers in active Chapter 7 or Chapter 13 bankruptcy cases are eligible for
HAMP at the servicer’s discretion in accordance with investor guidelines, but
servicers are not required to solicit these borrowers proactively for HAMP.
Notwithstanding the foregoing, such borrowers must be considered for HAMP
if the borrower, borrower’s counsel or bankruptcy trustee submits a request to
the servicer. However, if the borrower is also unemployed, the servicer must
evaluate the borrower for UP, subject to any required bankruptcy court
approvals, before evaluating the borrower for HAMP.

Borrowers
Discharged
from Chapter 7
Bankruptcy

Borrowers who have received a Chapter 7 bankruptcy discharge in a case
involving the first lien mortgage who did not reaffirm the mortgage debt under
applicable law are eligible for HAMP.

[BKIN2010]

Pandora, you are right on the 31% calculation. On page 167 of the guideline it states,

"Ineligible Borrower. We are unable to offer you a Home Affordable Modification because
your current monthly housing expense, which includes the monthly principal and interest
payment on your first lien mortgage loan plus property taxes, hazard insurance and
homeowner’s dues (if any) is less than or equal to 31% of your gross monthly income (your
income before taxes and other deductions)....."

They refer to it as monthly housing expense but it only includes mortgage, taxes and insurance and such.

My question is should the payment being used be strictly principal and interest? If so, what about those currently making interest only payments?

[Pandora]

Ahh.. okay I see - I thought you were stating all monthly expenses the way you had written it... my bad...

Good question (re: I/O) - lemme see what I cant dig out of my files (we were one of the lucky ones that got a perm. HAMP mod...) gimme a sec..

[Peeps]

Had a similar experience with my bank, except they said 1 month of liquid assets were enough to disqualify an applicant (I didn't apply, just snooped around a little because I was considering applying). If people have enough money in the bank to pay their next house payment, they're ineligible. With a 12-18 month approval turnaround and horror stories about "lost" paperwork, making people wait until there's no payment left in the bank seems like a pretty good way to make sure they fail.

Oh - the same people also said approval by the underwriter is almost impossible if you don't have cash saved up. So you can't qualify to apply if you have cash saved up and you can't be approved if you don't.

This was, btw, Chase servicing a Fannie Mae loan if that little tidbit happens to help anyone.

[Pandora]

Got it..

and I call BS on the lender... dont let them tell you what they state is allowed - SHOW THEM by directing them to the exact source! Look at page 157 https://www.hmpadmin.com/portal/prog...andbook_30.pdf and keep reading from there (like 3 more pages) it states I/O loans ARE eligible. Specifically read pg 161 & 162 (NPV Guidelines) (on 162 its number 13)

Here are other areas you can look over as well.

https://www.hmpadmin.com/portal/search.jsp

Also - first thing you need to find out is if your loan is GSE or non-GSE - that can make all the difference on how it all goes. If owned by Fannie/Freddie then they (lender) is required to participate and follow the rules - everyone else (Non-GSE) its touch and go.

[BKIN2010]

My loan is a Fannie Mae. BofA is in agreement that I/O loans are eligible. What we don't see eye to eye on is that the payment used to do the expense should be what the principal and interest payment should be and not the I/O payment.
My house has been on the selling block a few times (as per Recontrust's website) only to be postponed. This time around they have a starting bit listed so it might be for real. Whats confusing is that BofA keeps telling me "we don't show a sale date". Anyhow, that for all the information. I think we will end up in foreclosure before anything materializes on the mod front.

[Martha31]

BofA states I dont qualify for HAMP -- If your loan was through Countrywide then BOA does not qualify to foreclose.

[BKIN2010]

BofA states I dont qualify for HAMP -- If your loan was through Countrywide then BOA does not qualify to foreclose.

Can you elaborate?

The foreclosure was today. "SOLD TO BENEFICIARY". What next? How much time till they kick me out?