Government Programs For Homeowners Behind On Mortgage
May 29, 2010 by admin · Leave a Comment
| If you googled, “government programs for homeowners behind on mortgage” and found information about HAMP, and you subsequently attempted to modify your mortgage loan through HAMP (Homeowner Affordability Modification Program), you might be asking yourself, “Why did I do this?”
Right Now, there are plenty of people out there that are asking that question. I know more people that waited over 12 months to get any word from their lenders about the opportunity to modify their mortgage loans, only to find out they were denied and oh by the way – you’re in default for not paying your full mortgage! |
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Why Government Programs Don’t Work?
I’m not saying they don’t work. There are plenty of people (about 300,000 or so nationwide) who were helped by the various programs out there for homeowners behind on their mortgage who’ve suffered a legitimate financial hardship.
But I’ve heard the “war stories” and seen more people tell me how miserable it was trying to deal with the systems in place, to simply lower their mortgage for a while so they could get back on their feet.
Of course, when you’re talking about money, nothing is simple but I’m not going to get into that here. For the purposes of this article, I want to stress to people, that if you begin the process of trying to work with your bank on any government program to lower your monthly payment so you can keep your home, be prepared to be frustrated or, and this is important, decide up front, to keep a positive, go-with-the-flow attitude, because you’re going to need it.
One thing you’ll be dealing with on the other end of the phone will be a person handling 100′s of cases, perhaps even thousands and they’ll be constantly fielding phone calls from people who are angry and frustrated, broke and losing their homes. These people are definitely in a unique job.
So when you call them, try and not be the person who calls them at the exact time they start their shift (when they receive 85 other phone calls). And don’t be surprised if that person never calls you back. Have you ever come to work or gone home to find 110 voice messages…from 110 unhappy people?
So bear with them and again, be positive.
Next, get everything in writing. If they tell you to pay a reduced amount while they work on your loan modification application, get it in writing. Ask nicely to have them mail it to you – an agreement, anything that says they’re giving you permission to pay a reduced amount.
Next, do not have any expectation that one department of the bank talks with the other departments. They don’t. You will be speaking with someone at a loss mitigation department of some kind. This is separate from the default services department or the company that the bank hires to handle defaults.
Next, double check all the instructions from the loss mitigation department and get it in writing. Please ask them to email you, again in writing, directions specifying exactly what they want from you. Expect them to ask repeatedly for the same items or, worse, expect the person you’re getting instructions from to give you the wrong information or expect them to get the wrong information and give it to you.
Yes, that’s right. Read it again. Expect the wrong information.
Like any other government program, they’re not organized and “decoding” the requirements of the government programs is not easy. So the bank or loan servicing company you’re dealing with, may decipher information incorrectly and thus, provide you with this information and ultimately, delay your application being approved.
Going into this process, know up front, that if you have a spouse who is gainfully employed and/or you are earning unemployment with six or more months left to receive, there is a very good chance you will be denied altogether.
That’s when your bank will send you default notices for the left over money you weren’t paying on your mortgage (that they told you was okay not to pay)!
Yes this all sounds insane and maybe even a little humorous, but it is the reality of today’s government programs. When and if you get into this, please just think of all the stuff you heard about “Cash For Clunkers” and how messed up that was for the dealerships getting their money from the government.
If you’ve been through this process and it hasn’t worked for you and you’re now wondering what to do, consider a short sale over foreclosure. Unfortunately, this problem you’re faced with is not going to go away. I can help. Should you have any questions about how I can help you sell your home via a short sale, please call me at (631)831-9048.
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By Thomas McGiveron, LSA
