What Are Your Chances of Getting Approved for a HAMP Loan Modification?

The Making Home Affordable Program (MHA) was launched in March 2009 with the Home Affordable Modification Program (HAMP) which provides assistance to struggling homeowners by lowering monthly first lien mortgage payments to an affordable level. Additional programs were subsequently rolled out to expand the program reach.

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According to the U.S. Treasury’s MHA Program Performance report through April 2013 for HAMP (1st lien) modifications:

  • Out of the 2,033,329 trials that have been started, 774,869 or 38% have been cancelled.
  • Out of the 1,190,605 permanent mods that have been started 306,611 or 26% have been disqualified (missed three consecutive payments).

As such, it appears that homeowners have a 53% chance of getting their HAMP loan modification cancelled or disqualified, so its like flipping a coin to qualify with the odds in favor of your bank.

According to a recent government investigation, the reason for the majority of homeowners failing is because of banks errors in their calculations and lost paperwork. To make matters worse, banks are debt collectors, so their #1 goal is to maximize profits, not give you the lowest payment.

The good news is that according to the report, the people who do get a HAMP loan modification see a median reduction to $547 a month on their first mortgage. That’s $6,546 savings in just the first year and literally hundreds of thousands of dollars over the life of the loan!

Remember that finding the right professional help — those who understand the process and know how to make the banks and lenders respond — is key to getting your loan modification to go through.

About Brett Robbins

Brett Robbins is the founder and CEO of The Homeowner Defense Network. The HDN offers systems that help homeowners discover what programs they may or may not qualify for and why in less than a week. The HDN also has a trusted network of mortgage relief service providers, and offers a proven credit education program.

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