Posted by Ali/IL on 7/20/11 10:56am
Msg #390334
Modification question
I have a friend that needs help in getting a modification. She needs the name of that agency that does it for free. I remember that the name had the word hope in it. Does anyone know the name of this agency?
Thanks
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Reply by Linda_H/FL on 7/20/11 11:09am
Msg #390337
http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing
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Reply by Ali/IL on 7/20/11 11:12am
Msg #390339
Thank you! n/m
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Reply by Larry/IL on 7/20/11 11:11am
Msg #390338
Maybe you were thinking of HAMP loans? http://www.freddiemac.com/singlefamily/service/mha_modification.html
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Reply by Sherry Miller on 7/20/11 12:11pm
Msg #390350
That is what is is called the HOPE loan, it is part of the FHA reform bill that passed ages ago... There is another loan called the Harp loan or Hamp as well. Harp is a refinance and hamp a loan modification. Not many lenders want to do the hope loan because they lose a lot of money doing one. They will entertain the harp or hamp loan. Although, I think that the extension on this was only till June of this year. Not sure if they extended it again.
Hopefully that helps,
Sherry
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Reply by Shoshana/AZ on 7/20/11 1:47pm
Msg #390374
Fuhgeddaboudit!
Very unlikely to happen. Banks make more money with foreclosures. The government is not forcing them to do the loan mods.
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Reply by Sherry Miller on 7/20/11 2:44pm
Msg #390391
Re: Fuhgeddaboudit!
Well, if the bank still has the tarp fund then yes they have to support the program for the Harp loan at least. I work for a bank in the mortgage division as a loan officer. We do have the Harp loan.
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Reply by Ali/IL on 7/20/11 3:25pm
Msg #390394
Re: Fuhgeddaboudit!
I will tell my friend about the Harp also.
She has been trying for a modification. Her husband left her she lost her job. Now, she is working.. These banks should look at everything.
I thought they would rather work with them versus foreclosing.
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Reply by Shoshana/AZ on 7/20/11 4:12pm
Msg #390405
Nope...
The banks make out like bandits.
1. Since mortgage is insured, they get paid the full amount of the loa.
2. Then they turn around and sell the property at auction.
3. In a recourse state, they try to get the borrower to pay the difference between the amount of the mortgage and how much it was sold for at auction.
Thus, there is no incentive to work with the borrower, unless they want to do the right thing!
Also, in many cases, they won't reduce principal, only interest. The borrwer may still not have the money to make the payment.
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Reply by Joan Bergstrom on 7/21/11 12:36pm
Msg #390481
Re: Nope...
I did a loan modification a few days ago and the borrower got 2.3 % loan for 5 years and it goes up to a maximum of 4.5% over a 30 year period.
The problem as I see it is, the loan amount is approx $300,000 and I don't think they could sell the house for much over $175,000.
This borrower might have to live in this house for years and years for it to be worth anywhere near $300,000.
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