How the Home Affordable Modification Program (HAMP) Saved Me From Foreclosure

I was in the market looking to buy a house and when I saw this house that was just under 1,200 square feet with 3 bedrooms, 2 baths and a one car garage with a fenced in yard, in a safe neighborhood in Lithia, Florida with great amenities and schools I realized it was just what I needed.

On June/2002 they handed me the keys to my first Florida home. The price had already been reduced from $124,900 to $119,000.00. The final price was closed at $117,000 with a five year fixed rate of 6.3% with a closing and down payment totaling $12,000.00 up front.. and a monthly mortgage of $989.00 (including principal, interest, insurance and taxes).

After four or five years of being in the home, my finances started to spin out of control. I had exhausted the little savings I had left in my 401k after working for Dow Jones. I kept dipping the hand in the candy jar and not refilling it. Before I knew it I had spent every cent I had, and was trying to live in the same salary I was making in New York when in reality my salary had decreased by almost 50%.

Unlike my imagination, Math is factual and real and I could no longer continue to afford to continue living in the same manner I was when I was up north. We would go out to eat more than three times per week, we would go shopping, and were at the movies almost every weekend. When I moved here, not only did I want to continue to shop and go out as I was doing in New York and New Jersey as an escape from my depression, but when I got here, I was also dealing with the loss of my mom, and starting over in a new state after my divorce, naturally the escape from reality continued and started to escalate, since my income had been reduced by almost 50% and the difference was a lot more dramatic.

My credit scores got so low, it’s as if they were competing for the limbo. They were almost illegal.

Against my better judgement, I bought a new car in 2006, another unexpected expense. Things got so bad, I could not even keep up with my utility bills. I started getting final notices, and shut offs. I would just tell my neighbors that there was a blackout, but it only affected my house. Having to pay $370.00 a month just for the car payment alone, put me in the same color as the car – in the red.

Before I knew it, my mortgage payments were late, and I started missing payments.

I tried budgeting, cutting expenses, renting out a room, all to no avail, it was too little too late. While the market was still good, I got a few offers on the house as I contemplated selling it. I kept fighting and trying to stay and did not want to lose my home.

I called my mortgage company and tried working with them to see if I can come up with a payment plan that was feasible for both. The attempt failed. I did not give up, I kept calling them. At that time of my second attempt the modification program started to go into effect but they were still in the very early stages of the implementation process and I needed to wait, since a lot of the staff was still in training.

In my own words, the modification program is a government implemented program that allows the home owners that are facing foreclosure to stay in their homes if they are no longer able to keep up with their mortgage payments. The mortgage lenders will work with you in trying to reduce your mortgage payment to a more workable amount.

The process was not easy for me. However, there are lawyers and/or agencies that will work with you for a set fee to help you gather the needed documents and work directly with your mortgage company to help you speed the process. I did not have the money for the lawyer fees, and attempted to do it on my own.

I applied for the program and was informed by my mortgage company exactly what I would be needing for the application process. When I first submitted the application, the modification was denied because my bills surpassed my income (obviously). That did not deter me from trying again. Months later I resubmitted my application, provided all the needed paperwork, copies of my monthly bills, utilities, credit card bills, insurance payments, bank statements and any other document that the bank needed to see if your net income will be enough to cover your mortgage loan.

I was constantly on the phone with them, checking to see if any updates were available or additional documents needed. By the time they were in the processing stage, many of the documents were expired and I had to resubmit them to lender.

I remember forwarding my documents three times, before they were able to gather all the needed information. I continually insisted on getting updates and kept a spread sheet of the people I had spoken to and the status they had given me. When someone claimed not having a record of my conversation regarding the matter at hand, I would have the name and the date and phone number handy in my log. I kept track of all the phone calls, I can recall having more than twenty phone calls logged through out the waiting period.

After many attempts on trying to get the modification (about six months), I was placed in a forbearance plan, which allows the home owner to pay a significantly lower amount of the mortgage, in my case it was reduced from almost 1,000.00 to $450.00 for six months, which helped me tremendously.

At the time the forbearance plan expires you are to continue with your regular mortgage payments. I kept working with my bank, the modification was still in progress and my forbearance plan had already expired and I was still not able to pay my mortgage.

After trying to contact the agent in charge of my modification to no avail, I searched online for additional resources and was able to find HAMP, the actual representatives, separate entity from the mortgage and lending department, that helps you with the process in the event that your bank is not cooperating in a timely and efficient manner.

After my continual efforts and determination, and many many phone calls and mailed and faxed needed documents, duplicated and sometimes sent more than three times I received the documents indicating that I was approved.
I remember being on the phone with one of the representatives from my lender’s company and having her repeat to me and ensure me that this was the real thing. After such struggles in trying to get approved, I was hesitated in believing I had finally achieved it.

It was not easy going through this process, but the significant reduction of my mortgage payment was worth every frustration I faced going through this process, because it played a major role in helping me keep the American dream alive. Persistence and determination payed off for me, and it can pay off for you too. Please do not give up, the answer to your prayers may be closer than you think.

For more information on the Home Modification Program please see the link below:

https://www.hmpadmin.com/portal/index.jsp

Wishing you the best and hoping my story can be a window of encouragement when other doors seem closed.

 

Reference:

• www.fishhawkranch.com