Don’t Get “HAMP”ED Out Of Your Home!

By Walter Hackett, Esq.
The federal government has trumpeted its Home Affordable Modification Program or “HAMP” solution as THE solution to runaway foreclosures – few things could be further from the truth.  Under HAMP a homeowner will be offered a “workout” that can result in the homeowner being “worked out” of his or her home.  Here’s how it works.  A participating lender or servicer will send a distressed homeowner a HAMP workout agreement.  The agreement consists of an “offer” pursuant to which the homeowner is permitted to remit partial or half of their regular monthly payments for 3 or more months.  The required payments are NOT reduced, instead the partial payments are placed into a suspense account.  In many cases once enough is gathered to pay the oldest payment due the funds are removed from the suspense account and applied to the mortgage loan.  At the end of the trial period the homeowner will be further behind than when they started the “workout” plan.   

In California, the agreements clearly specify the acceptance of partial payments by the lender or servicer does NOT cure any default.  Further, the fact a homeowner is in the workout program does NOT require the lender or servicer to suspend or postpone any non-judicial foreclosure activity with the possible exception of an actual trustee’s sale.  A homeowner could complete the workout plan and be faced with an imminent trustee’s sale.  Worse, if a homeowner performs EXACTLY as required by the workout agreement, they are NOT assured a loan modification.  Instead the agreement will include vague statements that the homeowner MAY receive an offer to modify his or her loan however there is NO duty on the part of the servicer or lender to modify a loan regardless of the homeowner’s compliance with the agreement. 
 
A homeowner who fully performs under a HAMP workout is all but guaranteed to have given away thousands of dollars with NO assurance of keeping his or her home or ever seeing anything resembling an offer to modify a mortgage loan. 
While it may well be the case the government was making an honest effort to help, the reality is the HAMP program is only guaranteed to help those who need help least – lenders and servicers.  If you receive ANY written offer to modify your loan meet with a REAL licensed attorney and ask them to review the agreement to determine what you are REALLY agreeing to, the home you save might be your own.
 
 
 
 
 
 

 

 

 

24 Responses

  1. […] their mortgage loans. Instead the banks deliberately lie and cheat and string people along, then swoop in and foreclose. And neither the Obama administration nor Congress nor Attorney General Eric Holder nor any of the […]

  2. What if anything do you guys have going? There are lots more at loansafe.org who would join you. this is a nighmare!

  3. HAMP HELL HERE TOO.

    Litton loans ENCOURAGED me to apply for a loan modification, I was told BACK in early August that I was NOT going for a government mod, they were offering me one, that was similar though. Suddenly, they sign on with HAMP and that changed, great, fine, who cares, not me, I JUST WANT TO KEEP MY HOME, I am a single parent with children, a couple dogs and a cat to think of. I want stability for my household.
    And I have had a big loss of income, which I did document.
    Great they reduce the payment make it manageable, then start the documentation shuffle with me. Oh no, I get letter after letter, they are missing this, when I send “this” suddenly OH DEAR, they actually are missing “that” — send them “that” again. Now they write denying they have THIS or THAT and when I call they tell me how BIG my case file is, how they can’t FIND what they are looking for– uh doh, maybe try not asking for the SAME THING TEN TIMES, then you’d only have ONE COPY OF IT, instead of TEN?
    Of course, hope is high, and soon I hear from their CRONEYS at Titanium Solutions. I look into Titanium Solutions and discover it is a big nationwide affiliation of what? REAL ESTATE AGENTS and who can join? ANY REAL ESTATE AGENT who wants to grease the palm of Titanium Solutions, in exchange for places like Litton to hand them free leads for VERY DISTRESSED HOMEOWNERS, who of course, they have ENGINEERED INTO BEING FURTHER DISTRESSED WITH BOGUS OFFERS TO MODIFY MORTGAGES THEY HAVE ZERO INTENT OF MODIFYING, but stall and delay, rather than providing a TIMELY denial, so that they can ENSURE that if you were underwater, you’re lips are now blue.

  4. I agree with this HAMP paperwork and see that there are very few permenant modifications happening.

    Since we have a “trial” HAMP mod that is due this Nov. 1st what do you suggest we do? Do we write back requesting a permenant mod and not accept the trial?

    I would love some advice from anyone here…..

    We are set to have a phone consult with NACA but I am hearing varied stories from people going to the workshops.

    Our details~
    Wells Fargo 1st – $300K, not paid for 11 months
    HAMP trial mod to start Nov 1st. Payments are $1600 (31% of our current income) but no perm. mod.

    WF HELOC – $315K, no workout made here yet and hoping it will be combined with the first.

    Heard that Wells is the worst when trying to work out a deal on our hardship.

    Help please!
    email is bridget@bridgetphoto.com

    THANKS!
    Bridget

  5. lance i am not quite sure how to understand your post
    i will restate my post there are thousands of very small business in the country that did work on houses and never got paid for their services in the new home construction and the remoldel indusrty
    Or the remodel person who thought they were going to get rich over night by buying a house and fixing it up and selling THEM
    there are to many get rich schemes on the internet and television [ i bought this house for 5 bucks put 5 bucks into it and sold it for a million
    these shows need to be investigated by congress
    not if Barry bonds took steroids or not WHO CARES the government spent 75 million on Barry bonds and steroids

    back to the housing . myself if i got paid for the service i did and the millions of small business like me would have got paid, then i could have paid my mortgage and i would not be in the situation i am in and then it would be up to the finance company and the builder and if they go under its their problem not mine
    you cannot lend to a business and then foreclose on the business and then foreclose on the bussiness that did work for the bussiness you just foreclosed on it trckles down to a banna republic
    to prove a point to congress i am ready to build a house and sucker everyone i can and build a house for free
    I KNOW HOW TO LEGALLY DO THIS ALL I NEED TO DO IS OWN THE LAND it is called predatory home owners but there is no laws against it unless you want to pay huge attorney bills to collect a small debt like i said you cant afford to be in court with leins IT DONT WORK they get wiped out by first secured party’s who are the banks believe me i understand this . i live this housing got crippled by i can get rich tomorrow more so then the sub prime lending in which everyone was led to believe or 5- 1 arms which is also a fools game BECAUSE THEY ALL THOUGHT THEY COULD GET RICH BY TOMORROW [SUCKERED IN BY PONZI SCHEMES AND BUY MY BOOK ] DID YOU KNOW THE LAST WORDS OF THE ORIGINAL BILL OF RIGHT WAS THE RIGHT TO PRIVATE PROPERTY OWNERSHIP , NOT THE PURSUIT OF HAPPINESS. AND IF CAPITALISM WAS WORKING AND BELIEVE ME I BELIEVE IN CAPITALISM WE WOULD NOT HAVE HAD THE DOT COM BUBBLE BURST THE BANK CRISIS THE AUTO CRISIS AND HEALTH CARE CRISIS ALL IN 10 YEARS WHATS NEXT NOW MY PREDICTION IS THE HOUSING WILL TRICKLE INTO THE THE COMMERCIAL MARKET AND THEN WE ARE IN BIG TROUBLE STUDY JOHN NASHES THEORY’S OF ECONOMICS WHAT HELPS YOU HELPS ME THE UNTIDED STATES FORGOT THIS thanks ROY

  6. lance i am not quite sure how to understand your post i will restate my post there are thousands of very small business in the country that did work on houses and never got paid for their services in the new home construction or the remodel person who thought they were going to get rich over night by buying a house and fixing it up and selling it there are to many get rich schemes on the internet and television [ i bought this house for 5 bucks put 5 bucks into it and sold it for a million these shows need to be investigated by congress not if barry bonds took steroids or not WHO CARES the government spent 75 million on Barry bonds and steroids back to the housing . myself if i got paid for the service i did and the millions of small business like me would have got paid then i could have paid my mortgage and then it would be up to the finance company and the builder and if they go under its their problem not mine to prove a point to congress i am ready to build a house and sucker everyone i can and build a house for free I KNOW HOW TO LEGALLY DO THIS ALL I NEED TO DO IS OWN THE LAND it is called predatory home owners but there is no laws against it unless you want to pay huge attorney bills to collect a small debt like i said

  7. […] Wachovia and HAMP modification-anyone having success? Hmm… read this: Don’t Get “HAMP”ED Out Of Your Home! Livinglies’s Weblog I think my new acronym for HAMP is "Help for Ailing Mortgage Predators" – meaning it […]

  8. I don’t agree. According to HAMP if you are a participating servicer or a GSE it clearly states that “Any foreclosure action will be temporarily suspended during the trial period, or while borrowers are considered for alternative foreclosure prevention options.”

    No where under HAMP does it elude to any sending a offer to pay a partial payment etc. The HAMP guidelines are UW guidelines and appear relatively clear. Although they is some subjectivity to the hardship letter, HAMP states terms in ‘must’ ‘shall’ etc. when referring to the program. I believe a lot of the issue results from inexperienced and dishonest people who have completely infiltrated the loan modification business. Most are ex-mortgage people who because of regulation and consolidation can’t make a living.

  9. angry you are right i was not paid by a builder who had a get rich quick scheme [ flip this house ect] and did not pay me a large sum of money which i paid my bills 805 credit score the bank foreclosed on the builder took the house sold it at auction for penny’s on the dollar because i didn’t get paid they will eventually foreclose on my house so the bank gets my labor and will get my house go figure there needs to be a law that before anyone can sell a house or buy a house [theft of proceeds or unjust enrichment ] everyone needs to be paid please don,t say leins it cost between 3 and 5 thousand dollars to adequately file and foreclose on a lien if you have 5 three thousand dollar jobs owed to you and lien them do the math it isn’t worth it stand your ground till the end i pay 60 percent of my gross to my house the hamp agreement reduced my payment by 2 dollars and 10 cents per month that sure helps be careful what you sign the funny thing is i did not sign nothing and i am on the hamp trial program [ fannie mae is a big mess
    they are looking to see if it worth it to force you out or keep you in the house for their good not yours ] my house has lost 300k in value because of comps from the foreclosure auctions MAY GOD BLESS and give those people who have layed awake many nights some peace of mind as i have i pray

  10. abby I emailed you… I can also work on the site.

    Just an idea:Perhaps one section will be devoted to application nightmares, a second to trial mod mischief, and a third to final mod fiascos, or the mods that ‘never were’.

    Then indicate what efforts were occuring and any progress on each of the 3 areas.

  11. There is more nastiness going on than just the application and trial mod hell.

    Has anyone heard the UPDATE on the CountryWide California Attorney General Modification CONTRACTS that were issued NATIONWIDE per the “CW CA AG Stipulated Settlement agreement”? FIFTY THOUSAND of them were to be sent OUT by March 31, 2009.

    But WHAT exactly has transpired SINCE? It is NOT in the media. Read on to find out WHY.

    CW employees are referring to them as all being ‘conditional’ and those sources refer to them as contracts that can be ‘denied after they are approved’. Apparently almost ALL have been canceled after the borrower returned the contract with the notarized signature. Borrowers may be told that the contract package has completed verification, yet the contract is never honored, no notice given, unless a phone call as much 7 MONTHS later qualifies in YOUR mind. Some of us have never even gotten THAT, but the contact is considered ‘CANCELED’ nevertheless.

    NO attempt is made to work with any of the borrowers to determine if the ‘reason’ for cancellation is valid. Nothing is in writing. They make NO attempt to contact you in any TIMELY manner, instead INTENTIONALLY WITHHOLDING the true status for as long as 7 months from the effective date for the contract modification to be implemented and taking payments that are reported as ‘short’ to the credit bureaus.

    They have one statement in the COVER LETTER of a condition that they must be able to verify income.

    If NO good-faith attempt is made by CW to do so, this is NOT a valid cancelation cause.

    Numerous other reasons are actually provided verbally that are not even listed in the cover letter as cause for a contract to not be honored. No clauses for cancelation are present in the actual contract.

    A footnote claims that they may validate the contents of the application. Oh boy. A VERBAL application that was NEVER transcribed for the borrower to correct and SIGN could be used to manipulate your qualification? Only in mortgage modification contract HELL does this occur.

    CW/BofA have only immplemented the ‘AG mods’ for those who SUED, settling cases to keep them out of the media.

    Take a browse at the link below for MORE details:
    http://www.loansafe.org/forum/countrywide-home-loans-tell-us-your-countrywide-story/15277-countrywide-california-attorney-general-settlement-beware-countrywide-home-loans-cancelling-loan-modifications-without-notice.html

  12. […] HAMP program? I was reading this on the living lies site and wondering how true it may be. Don’t Get “HAMP”ED Out Of Your Home! Livinglies’s Weblog If you have been modified or know someone who has after a HAMP program, please let us […]

  13. abby I emailed you… I can help in some capacity with the site

  14. Just a thought for each of you. I have seen people have a close friend or other entity/lender place a large mortgage on the property. Then, have this “independent” entity/lender or person fight the lien position on the property and who has right to the payments.

    In the court’s eyes, this “2nd holder” who can produce the note and mortgage may be in better position to argue many of the issues in the case! Must be done way before process!

  15. I said it once, and I’ll say it again! Do NOT sign a forebearance agreement or deed in lieu of foreclosure. The only reason we are still in our home is because we refused both of these offers from the lender. The “deed in lieu” tactic is to get you to sign the deed to your house over to the servicer, essentially saying “take the house and throw me out later when you want to”. Workout? No WAY! They are not working ANYTHING OUT other than working YOU OUT of your house.

  16. OK all–we do have a core coalition team going and am seeking somebody to put up a not to complicated website so we can get 1. more Homeowners who will go to DC to testify 2. accept donations to possibly fund the trip(s) to DC (I noticed from TV that the TEA PARTIES have extravagant buses they travel in) and
    3. a list of anybody who supports our fight

    Abby, Alina and Anonymous are ready to testify before Congress.

    Is there anybody who can work with us to put up a website?

    We’ll fight for you all, but we need support.

    Thanks

    carra2009@gmail.com

  17. We have helped over 1250 families start fighting for their homes, and we will keep doing so. What are you doing?

  18. I am going through my action to quiet title and one the the oposing lawyers called us to ask us if we wanted to deal, they knew they had a toxic mortgage but they wanted to see if we wanted to end it quickly. We told them once all the facts are out we would talk, meaning once we have them by the BALLS, we would cash in on the deal!!!!

  19. for more than a year I have been helping people fight for their homes and pushing lawyers to understand that there is nothing to negotiate in good faith. These banksters screwed us all and we need to fight for what is rightfully ours.

    Do not trust modifiers, lenders, servicers, foreclsosure attorneys they are all for no good.

    learn, educate yourself and become a pain in the neck. I am frustrated at lawyers that all they do is delay, delay and delay. We want to fight, our friends once they learn what was done to them they want to fight.

    If you are a lawyer and are coming to this site to drum up business for your silly delay tactics, you at the end will have nothing to show for but defeat, after defeat. You must get them in the court house with an action to quiet title and you will see how they react.

    You are not looking to do any harm just quiet that title. and once you have done your research, your mortgage audit and done a proper forensic analysis, you amend your complaint and get them for what they are frauds and thieves.

    do not make it complicated it is very simple indeed.

  20. As I have said before, loan modification can be tricky and homeowners should be very careful. Servicers are not negotiating in good faith. You may be tricked once again.
    No politician has the gut to offer real solution; they keep dancing around the pink elephant in the room.
    There is really no one to stand for the victims. We are on our own.

    Marcus @ foreclosureProSe.com

  21. Has anyone done a study re HAMP, servicers advances and TALF? Sure would be interested – I’ve just started doing that myself, but would like another opinion.

  22. its time to modify our own loans…
    hmmm… write on a piece of paper what you would be willing to pay & send it to em these dirt bags are debt collectors…nothing more.
    when you have a real lender you can talk to ..then we can talk.
    till then. our gov made it clear…your on your own
    … we need to amass our numbers and stand the patriots ground.

    http://www.youtube.com/watch?v=41bp__MeHr4

    Hey! dont laugh …its the reality of where we are at this moment.
    are you going to surrender & just walk away?
    FUCK NOOOOOO YOU STAND YOUR GROUND!!!!
    .

  23. its time to modify our own loans…
    hmmm… write on a piece of paper what you would be willing to pay & send it to em… we need to amass our numbers and stand the patriots ground.

    http://www.youtube.com/watch?v=41bp__MeHr4

    dont laugh it the reality of where we are at this moment.
    are you going to surrender & just walk away?
    FUCK NOOOOOO YOU STAND YOUR GROUND!!!!
    .

  24. i starting to smell the revolt!

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