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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.