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TJ, Esq.
TJ, Esq., Attorney
Category: Real Estate Law
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Experience:  JD, MBA
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What does one do to get a HAMP Loan?

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What does one do to get a HAMP Loan? I mean what is a given lender wanting to make it happen?. I've looked at rules and guidlines which seem contradictory. Need good info to achieve it since people with Jumbo loans have been ignored or it's been sort of
implied--"drop dead". Paralyzed with a 7% loan and no help for the past few years is now terrifying. Not asking for any special favors but what they're stating about Hamp--whould work and a modification and reduction of mo pmt would save our home--and family!
" In a state of desparation and need a "real expert" for help." I'm a Realtor asking these questions for my daughter and son-in-law They have done everything well in life but unfortunely, loss of employment puts one in am horrendous situation. Need help.
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  TJ, Esq. replied 1 year ago.
Hello, and thank you for allowing me to assist you.
You mentioned a loss of employment. For clarification, are they working now, or still unemployed?
Customer: replied 1 year ago.
employed yes, .but not at the same great salary.
Customer: replied 1 year ago.
THE FIRST LINE OF MY QUESTION i ADDED A WORD THAT ISN'T THERE -IT WAS HOW TO GET A HAMP LOAN' CLOSED'
Expert:  TJ, Esq. replied 1 year ago.
Hi again.
Thank you for the additional information.
The first thing that you have to understand is that HAMP modifications are entirely voluntary by lenders. They have no legal obligation to grant the modification, but they are given financial incentives by the government to do so. If your daughter's lender participates, then there are various requirements:
(1) The mortgage must have been originated before Jan. 1, 2009.
(2) The house must be an owner-occupied.
(3) The mortgage balance must be equal to or less than $729,750.
(4) There must be a hardship (e.g., difficulty paying because of lost income).
(5) The monthly mortgage payment must be more than 31% of your gross monthly income.
If those qualifications are met, and the lender participates in HAMP, then a modification must be given in which the interest rate is reduced such that the monthly mortgage payment is no more than 38% of their gross income. There will then be a trial period of 3 months, and if each payment is made, then the new rate will be fixed for at least 5 years.
If your daughter has missed payments, then she should contact her lender and ask for information about their modification programs. Even if she does not qualify for HAMP (which is a government program), the lender may have other modification programs that can help.
Does that answer your question? Please let me know if you need clarification, as I am happy to continue helping you until you are satisfied. Also, your positive feedback is much appreciated. Thank you for using our service!
If you would like to direct additional legal questions to me in the future, then please type "To VAMD" in the subject line of your question.
Customer: replied 1 year ago.
Everything you've given me is already known, have in writing, etc. . My question is really how to get it closed--(making it happen.)
The hardship letter seems to be a big part of decision making, so the best way to structure is needed from some kind of inside info.. THAT IS SO IMPORTANT . Also, they were advised that if they haven't missed a payment -don't bother. Is that so?
In struggling to make the high payment ( which for 15 years was normal) they couldnt pay IRS which "demanded" tax returns and bank info. They were paying IRS a given monthly amount--but suddenly IRS changed it's mind and seized the monies from their bank account!
As an active Realtor for 36 years watching how high end buyers have been treated vs. the freddie mac and fannie mae's who have it all handed to them with credits on a silver platter blows my mind. I stilll need more help on this.
Expert:  TJ, Esq. replied 1 year ago.
Hi again.
Q: The hardship letter seems to be a big part of decision making, so the best way to structure is needed from some kind of inside info
A: The hardship letter should be written like a short story that explains exactly why there is a hardship. I would start by explaining they did for a living and the amount that they earned. I would then explain why they lost their jobs, and the new jobs that they have. This kind of letter is generally very narrative.
Q: Also, they were advised that if they haven't missed a payment -don't bother. Is that so?
A: A lot of people say that because the lender may figure that there is no need to modify the mortgage if it is being paid. In other words, if your daughter is continuing to pay the mortgage at the expense of other bills, then the lender is happy because it's still getting it's money. But with regard to HAMP, I do not believe that it helps to already be in default. The hardship letter, plus supporting documentation (i.e., pay statements, bank statements) should be enough. The lender can then see that the status quo is unlikely to continue.
I would also point out the situation with the IRS. I would put that in the letter, and provide any supporting documentation. That would be particularly helpful if the mortgage payments have always been on time but will in the near future be late and/or not full payments.
Does that help?
Customer: replied 1 year ago.
Hi,Your explanations echo what I've considered important. Although I am aware of legal remifications in my profession--I cannot give legal advice. I'd like to beg your indulgence and ask my daughter and son in-law if they have questions I'm not aware of to ask. As the participants who are filling out the HAMP forms in this horror story they just might have some.
I will not be able to reach them during the day and, hopefully, get back to you later tommorrow. I so appreciate your info and hope that is OK.
Expert:  TJ, Esq. replied 1 year ago.
Hi again.
Yes, that is fine. I will be online tomorrow as well. Feel free to ask your follow-up questions whenever you'd like, and I will get back to you as soon as I am able.
Customer: replied 1 year ago.
Hi,Many thanks.
Expert:  TJ, Esq. replied 1 year ago.
No problem. Have a good night.
Customer: replied 1 year ago.
Hello VAMD,
Sorry to be so late.I did receive a queries about the application for HAMP . -How does one calculate MPV and the waterfall method?
Also for "self employed": are the gross sales you make your gross-- after taxes and other business expenses the net?A curiosity about in the 2nd answer section #5 --it says the monthly morgage payment must be more than 31%. of your gross monthly income.
in the next paragraph starting "If those qualifications are met, and the lender participates in Hamp, then a modification must be given in which the interest rate is reduced such that the monthly mortgage payment is no more than 38% of their gross income. Is there a contradiction there?
It's so hard because the application is complex and means so much to the people participating. Thanks.
Expert:  TJ, Esq. replied 1 year ago.
Hi again. I'm glad you returned. However, I am logging off for the evening in a few minutes, so I won't be able to get to your follow-up questions until tomorrow evening. I hope that is okay with you. I will be back online tomorrow evening to respond to you. Good evening!
Customer: replied 1 year ago.
That sounds great. Good evening.
Expert:  TJ, Esq. replied 1 year ago.
Good evening.
Expert:  TJ, Esq. replied 1 year ago.
Hi again. I apologize for not being able to respond last night. I had personal matters to deal with (car accident), so I was unable to get online. I'll do my best to respond below:
Q: How does one calculate MPV and the waterfall method?
A: The waterfall method refers to the series of modifications that can be taken in order to achieve the mortgage/income ration of 31%. The lender would first lower the interest rate. If that is not enough, then it can extend the term to 40 years. And finally, if those two don't work, then it can provide forbearance of some principal. As for NPV, I'll have to refer to HERE: http://www.armdisarm.com/UnofficialHAMPCalculator/documents/npvmodeldocumentationv502.pdf
That document explains the NPV calculation (in all its complicated glory). I assume you understand the general idea of what net present value means.
Q: Also for "self employed": are the gross sales you make your gross-- after taxes and other business expenses the net?
A: Your gross would first subtract business expenses, but not taxes. The gross is the profit, and profit is determined by subtracting expenses from revenue. What remains is the gross, and that is what is taxed.
Q: A curiosity about in the 2nd answer section #5 --it says the monthly morgage payment must be more than 31%. of your gross monthly income.
in the next paragraph starting "If those qualifications are met, and the lender participates in Hamp, then a modification must be given in which the interest rate is reduced such that the monthly mortgage payment is no more than 38% of their gross income. Is there a contradiction there?
A: No, there's no contradiction, but it is confusing. In a nutshell, the goal is to get the person's payment somewhere between 31% to 38%. That is why the current monthly payment must be more than 31%. If it's not, then that person cannot be helped by HAMP. If it's more than 31% but less than 38%, then there is still the possibility that the person can be helped since 31% is theoretically possible.
I hope that helps to answer your questions, and again I apologize for not being able to respond last evening.
Customer: replied 1 year ago.
Thank you for getting back to me. I've been delayed in conveying info because a friend needed help after an automobile accident.
I surely hope the persons involved with Hamp can use your response to a good advantage..
Expert:  TJ, Esq. replied 1 year ago.
Hi again.
I hope your friend is okay. That is a coincidence because I was involved in a car accident myself last week ... my wife's car was totaled. It was a headache, but nobody was injured. I hope the same is true for your friend.
In any event, thank you for replying. Feel free to return with any follow-up questions, but please remember to rate me so that I receive credit for my work with you. Thank you.
Customer: replied 1 year ago.
Three of us waited for a friend. After a while someone arrived stating they saw three cars piled up 2 blocks away--and it looked like our friends car. A phone call to another friend verified it was. The airbag severely burned her arms and chest and she was badly shaken. She believes the car is totaled-- as the first car swerved and created the chain reaction to avoid a bicyclist. Her text says she's doing well and I'm glad she's OK. Such is life.Thanks for your patience and the fact that I can return for follow up questions. Please tell me what to do for the rating that is
important and how to get back in if necessary. I appreciate your help. The people involved were out of town to go to their daughter's college to remove her belongings to change her residence for next semester. I await their reply.
Expert:  TJ, Esq. replied 1 year ago.
Hi again.
I'll ask customer service to help if you don't see how to rate me. I believe that there is a button on my answer that you can click. But I'm not 100% what you see on your end as a customer because it's change recently.
As for coming back here, you should be able to just bookmark the page and continue posting here.
The address is: http://www.justanswer.com/real-estate-law/7u6gj-does-one-hamp-loan-mean-given.html?dologin=1
You can also open a new question if you'd prefer and then direct it to me by typing "To VAMD" in the subject line.
Expert:  TJ, Esq. replied 1 year ago.
Hi again.
I think the problem can be resolved regarding my rating. Please see if you can rate me now. Thank you so much!
TJ, Esq., Attorney
Category: Real Estate Law
Satisfied Customers: 9854
Experience: JD, MBA
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