Been told “No” by your home lender? You’re not the only one not getting helped by HAMP!

I can’t tell you how many clients I’ve met with who have applied for HAMP modification from their lenders, and been denied help.

Even after lenders reported that the numbers of homeowners who’ve been granted HAMP modifications increased because of better pre-screening–I still meet clients every day who report that they’ve been denied. In fact, I can count on one hand the number of clients I’ve met since the beginning of the year who have obtained a HAMP modified loan.

The US Treasury reports that over 1.2 million borrowers have been given ‘trial’ HAMP mods. But only around 400,000 have been granted permanent loan modification. You’re not the only one not getting helped by HAMP!

Here are two articles that I’ve passed along to my clients:

More Homeowners Get Help of Federal Loan Program published in USA Today on July 23, 2010.

and

‘Vultures’ Save Troubled Homeowners published in the Wall Street Journal on August 18, 2010.

What does this mean to you if you’ve been struggling on the phone with your lender to get help?

1. Make sure that your lender is considering you for non-HAMP help. It’s out there! It’s possible that even when the pre-screening done for HAMP screens you out, that you might qualify for your lender’s ‘in-house’ modification program.

2. If your lender says no, and HAMP goes nowhere, then it’s time to DYI legwork finding a ‘vulture’ as discussed in the WSJ article.

BIG WARNING MY FRIENDS:
Any company that contacts you and says they can modify your loan, buy your loan, buy your house, or makes any such offer to save your home, and wants to deal directly with your is a scam. The vultures deal with your lender, not you. Your lender sells your mortgage to the vulture–not you.

In general, reputable entities don’t send out mail solicitations to struggling homeowners.

SECOND BIG WARNING:
No matter what you do, no matter what your lender tells you, your lender has the right to proceed to foreclosure on your property even while you try to obtain modification. Don’t think for a second that the bank will suspend, stop, or delay foreclosure while it ‘works’ with you.

You need help figuring out your options. You need help understanding what will happen if your house is foreclosed and you don’t file bankruptcy. Banks are rolling out new strategies to recover the debt you owe them, and you should not go it alone.

Call me, Attorney Shannon McDuffie to arrange your consultation. (404) 418-8879.