Thursday, September 22, 2011

Why Aren’t Borrowers Offered HAMP Loan Modifications?

Why Aren’t Borrowers Offered HAMP Loan Modifications?


Here are 10 fundamental reasons borrowers may not be offered a mortgage loan modification under the Federal Government’s HAMP loan modification program:

  1. the property is not the borrower’s primary residence;

  2. the unpaid principal balance (“UPB”) is much higher than the net present value of the property;

  3. the borrower is not delinquent and default is not reasonably foreseeable;

  4. the borrower cannot document a financial hardship;

  5. the borrower cannot represent that (s)he has insufficient liquid assets to make the monthly mortgage payments;

  6. the UPB is greater than $729,750 (for a single housing unit property);

  7. the property is vacant or condemned;

  8. the mortgage loan at issue was originated after January 1, 2009;

  9. the mortgage loan was previously modified under HAMP; and

  10. the property is not a 1 to 4 unit residential property.