Blog

Thursday, July 28, 2011

Which Mortgage Loans May Qualify for a Government Mortgage Loan Modification?

Which Mortgage Loans May Qualify for a Government Mortgage Loan Modification?


Does it matter if my loan is owned, securitized, or guaranteed by an agency of the Federal Government? Yes. Only certain loans qualify for possible modification under the Home Affordable Modification Program (“HAMP”).


How do I find out if my loan is owned, securitized, or guaranteed by an agency of the Federal Government? Your mortgage loan servicer is obligated to provide this information upon request.


Does the amount of the mortgage loan matter? Yes. If the loan is owned, securitized, or guaranteed by Freddie Mac, for example, the original loan amount cannot be more than $729,750.


My mortgage loan has already been modified once; may I still qualify for a government modification? If your loan has already been modified via HAMP, it is not eligible for another modification via HAMP. However, you may still be able to obtain a mortgage loan modification in other ways.


My mortgage loan was acquired after January 1, 2009; may I still qualify? No. Only loans taken out on or before January 1, 2009 are eligible for modification under HAMP. However, you may still be able to obtain a mortgage loan modification in other ways.


May secondary mortgage loans qualify for modification under HAMP? No, not via HAMP. However, if your primary loan is modified through HAMP, your secondary mortgage loan may qualify to be modified via the Federal Government’s Second Lien Modification program.


Does it matter if the loan is for my primary residence as opposed to for a property where I do not reside? Yes. HAMP only applies to mortgage loans for the borrower’s primary residence.


This is the final article in a July, 2011 series about the U.S. Government’s Home Affordable Modification Program (“HAMP”). McGrath & Spielberger, PLLC provides professional foreclosure prevention negotiation and mortgage loan modification services.