The last few days I’ve been hearing an awful lot about the Government’s new “Making Home Affordable” program, which has been set up to help people refinance existing mortgages, or do a loan modification to help them to stay in their house. The government’s website explains what the program is meant to do:
Making Home Affordable is a plan to stabilize our housing market and help up to 7 to 9 million Americans reduce their monthly mortgage payments to more affordable levels.
The Home Affordable Refinance Program gives up to 4 to 5 million homeowners with loans owned or guaranteed by Fannie Mae or Freddie Mac an opportunity to refinance into more affordable monthly payments. The Home Affordable Modification Program commits $75 billion to keep up to 3 to 4 million Americans in their homes by preventing avoidable foreclosures.
Some of my friends have already started the process of refinancing their home through this program, when just a few months ago they were unable to refinance because their loan to value ratio on their house was below 80/20. Apparently under this plan doing those types of refinances, even up to 105% of the value of the home, should be possible.
Eligibility For Making Home Affordable Refinance and Loan Modification Program
Of primary importance in determining whether or not you are eligible for doing a refinance under this program, is who backs your particular loan. For purposes of this program only Fannie Mae and Freddie Mac backed loans are eligible for The Making Home Affordable Refinance Plan. Fannie Mae and Freddie Mac use different sets of refinancing rules, so before proceeding any further, you’ll need to figure out if your loan is backed by either.
Who Backs Your Loan?
To find out if your loan is backed by Fannie Mae or Freddie Mac, check these websites:
- Fannie Mae’s Mortgage Lookup Form: Fannie has a larger market share, so check here first. This one won’t ask for a social security number. You can also call: 1-800-7FANNIE (8am to 8pm EST).
- Freddie Mac Mortgage Lookup Form: If Fannie Mae isn’t showing your loan on their books, try out Freddie Mac to see if they back your loan. Requires SSN. You can also call: 1-800-FREDDIE (8am to 8pm EST)
Once you’ve figured out if your loan is owned by Fannie or Freddie, write it down on your mortgage statement. Next, it’s time to figure out if you’re eligible for the refinance or loan modification programs.
Are You Eligible For The Government Program?
To be eligible for the refinance you must meet these criteria:
- Loans originated on or before January 1, 2009.
- Your loan is is owned/backed by Fannie Mae or Freddie Mac (You figured this out in step one above)
- You are current on your mortgage payments, no 30 day deliquencies in the past 12 months.
- You have income to support the new mortgage payments.
- Your first mortgage will not exceed 105% of the current market value of the property.
To be eligible for the loan modification you must meet these criteria:
- Your loan must have been obtained on or before January 1, 2009.
- First-lien loans on owner-occupied properties with an unpaid principle balance up to $729,750
- Document income with signed IRS 4506-T, two most recent pay stubs, and most recent tax return.
- Sign an affidavit of financial hardship.
- Modify by December 31, 2012.
- Have a mortgage payment that is no longer affordable, examples include significant change in income or expenses.
- The mortgage loan is in danger of going into default or loan is currently in foreclusure.
- Your loan does not necessarily have to be backed by Freddie Mac or Fannie Mae
- Only the first mortgage is eligible for a modification if you have a second. (UPDATE: Second mortgage may now be eligible. Check here)
Again, to figure out if you are eligible for the Making Home Affordable program, go to the government’s website and answer their simple questionnaire. If you meet the criteria above, you should reach a page at the end of the process telling you that yes, you are eligible. Try it out at the link below:
The Next Step – Refinancing Or Modifying Your Loan
Now that you’ve determined that your loan is backed by Fannie or Freddie, and you’ve confirmed that you meet the eligibility requirements, what’s the next step?
First, you should get all of the following paperwork together so that when you call your loan servicer and ask about your options under the Making Home Affordable program, you’ll be ready to go. You’ll need:
- Information about monthly gross income, including recent pay stubs if the borrowers are salaried and receive them and documentation of any income received from other sources.
- Most recent income tax return.
- Information about assets.
- Information about any second mortgage on the house.
- Account balances and minimum monthly payments due on all credit cards.
- Account balances and monthly payments on all other debts such as student loans and car loans.
Finally, you should call your mortgage servicer or lender and ask about the Home Affordable Refinance or Loan Modification application process, and what your options are under the program. Their phone number should be on your monthly mortgage bill or coupon book. Once you enter the process, be patient as lenders are receiving a lot of applications, and it may take some time to get things moving.
For more details about the refinance and loan mod programs, check out these FAQs
- Making Home Affordable Refinance Program Frequently Asked Questions
- Making Home Affordable Loan Modification Program Frequently Asked Questions
- Update: Modification Program Updated To Cover Second Mortgages
Are you currently trying to refinance or modify your home loan under the Making Home Affordable program? What has your experience been like so far? Any tips or pointers to make it easier for others? Tell us about it in the comments!
Related Articles From Bible Money Matters- Dave Ramsey’s 7 Baby Steps: Step 6 - Pay Off The Home Early!
- My Experience With The Making Home Affordable Refinance Program: Part 2
- Having A Hard Time With Your Refinance Or Loan Modification Under The Making Homes Affordable Program? Join The Club.
- I leave for a couple of weeks and see what happens?
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As far as I know (from what Wells Fargo tells me) the mortgage companies don’t even know the details of the refinance plan yet. I called Wells to confirm my mortgage was Fannie/Freddie backed and they said they still have no details. I am hoping this changes soon.
You can find out if your loan is fannie or freddie backed through the links above – super easy. As far as Wells Fargo not knowing the details yet, there seems to be some of that going around. Some know, others don’t. Only thing I can say is keep trying!
Wells Fargo knows all about it and has known about it for 1 month. Call 1-800-572-3358 if you have a Wells Fargo Loan and you want to look into the loan modification program.
Wells Fargo does NOT want to take on refinancing of homes that are under-water in states like Florida, even though that is part of the “making Home Affordable Plan”. They will under-appraise your home, or simply refuse to continue, based on your home’s value in the local property appraiser’s site.
The plan also simply will not help most under-water Florida homeowners, because even with a fair appraisal, it allows refinancing of up to only 105% of the “market value”. The people who ARE qualifiying would likely have qualified for regular refinancing, as you still need good credit scores, good income, etc.
After April 4, 2009, you have the option of seeking out other lenders under the program.
FL HO, for HARP servicer does not need an appraisal report, just a auto valuation with a reliable confidence score. Also not sure where you got that info for the last sentence, but this is not true unless you want to do regular refi.
Thanks!
I meet all the criteria outlined to qualify for the HARP. My loan is a Freddie Mac loan however Wells Fargo (the servicer) is telling me that my loan doesn’t qualify. The loan officer couldn’t tell me why it didn’t qualify for the HARP. He just said it could be because you didn’t originate your loan with Wells Fargo. I live in AZ so I wonder if that has something to do with it since it is a declining market. Can servicers pick and choose who they want to offer the HARP to?
No where on Freddie Mac’s Bulletin 2009-5 http://www.freddiemac.com/sell/guide/bulletins/pdf/bll095.pdf does it say that you must refinance with the original lender. It states that you must originate the new mortgage (the refinance) with you current servicer.
You were incorrectly denied!! I know this personally because they said the same thing to me. I challenged them and have taken it to the Presidential offices of Wells Fargo and I am now refiancing my house via Home Affordable Refiance Program. It took a month from my initial email.
You need to make a compliant with Freddie Mac 1-800-FREDDIE and call the Presidential offices 1-800-853-8516 and email Mary.Coffin@Wells.Fargo.com. Explain in detail why you quailfy and reference Freddie Mac’s Bulletin 2009-5 and Wells Fargo own news release https://www.wellsfargo.com/press/2009/20090304_Obama_HAMPSP
I hope this helps.
BTW During that month it took me to get the ball rolling on the ReFi I was advised that it’s system was updated in regards to “not being the original lender” eligibilty requirement. Who knows if this was said to please me but I was personally advised it was updated (around July 28th) which was based on my complaint and how could they deny what Freddie Mac’s Bulletin states?
Please Note: For people that are trying to Modify you should read Freddie Mac’s Bulletin 2009-6 http://www.freddiemac.com/sell/guide/bulletins/pdf/bll096.pdf
This is by far the most thorough post on this subject I’ve read. I’ve talked to so many people who are confused by this process and are looking for more information.
Absolutely fantastic job on summarizing and getting this information out. One of the most useful posts I’ve read all week!
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thanks for your kind comments, I hope people find the post useful!
This is a fantastic post – I’m linking right now!
A few days ago, I did a refi with our existing lender (Countrywide). Our home is underwater but we always pay our bills. Therefore, we met all the qualifications and were looking to borrow 100% of the existing loan plus closing costs.
Step 1 took a whole 20 minutes and was very easy. A short credit survey showed my wife and I scored around 800. Plus, NO APPRAISAL REQUIRED! Now we’re in the process of getting out of our ARM and into a 30-year fix at a rate of 4.875%. Our monthly payment will be reduced by $243/month and the breakeven point will only take a little over 3 years.
Step 2, wait for the loan to be processed should be about two weeks). Step 3, the closing which is expected some time in June. Step 4, skip July’s payment. Step 5, begin the lower payments in August!
That’s awesome Phi, it’s good to get out of that ARM, and into a fixed rate, especially when it’s so low like it is now.
I’m working with a mortgage broker right now trying to find out if we’re able to refinance with another lender through this program, but the answer is a bit unclear at this point. Apparently the government isn’t being super helpful in giving the lenders clear information about what is happening.
If we can’t go through another lender, we may end up doing a refinance through countrywide, depending on what they want to charge on closing costs. We shall see.
I’m with Countrywide as well, in an ARM at 6.5%,backed by Fannie Mae, also with 800 credit, and have about 5% equity in my home, putting me square in the 80-105% LTV zone. I meet all the requirements of this plan, and I’m being told the best fixed rate I could get from Countrywide is 6.25%! They hem and haw and say ‘that’s the obama plan for ya’. Is anyone aware of rate add-ons specific to Countrywide or other companies, or have any thoughts as to why the rate would not be at todays <5% rate? Two different countrywide mortgage brokers told me the same thing, and they say they don’t understand it themselves.
I should’ve also said that my rate of 4.875% includes 1.875 points. But even at zero points, you should be around 5.25% to 5.625%. From what I’m being told, these are the govn’t rates that were given to Countrywide and that they don’t any say (though I take this with a grain of salt). Some of the other things to take into account are loan amount and the lock-in date. After talking to my neighbor, Pete, that’s the only thing that seems different. Again, 6.5% seems way too high. If it helps, the account representative that I spoke to seem pretty knowledgable (some of them at CW are aweful). His name is Jason at 800-960-0823 x3359; hope that helps some. Good luck!
I’ll give him a call, worth a shot, thanks for the info!
I called Chase to find out if I can Refi under Obama’s plan. The mortgage consultant said it’s not possible as they(chase) purchased my loan from the secondary market. Note, my loan is owned by Fannie………Should i call again ?….If Chase denies, can i approach some other lender and see if they Refi under “Home affordable program” ?
I would certainly try to call again, I think there’s a lot of confusion going around about what exactly the program entails, and a lot of lenders don’t even know for sure what’s going on. Calling again you may get someone on the phone who may know more about the program.
I am personally looking into whether i can refinance with another lender right now as well, and have a mortgage broker looking into it for me. I’ll update here once I know more!
I was told the same thing by Chase. Actually the person I spoke with told me they are only refinancing the loans that originated with them at this time. After May 1st they will start refinancing other loans. Mine loan was bought by them and of course I had no say in that. So it is a bit frustrating. Not sure why I have to wait when they are the one who purchased it.
Lisa, since then i called some reps, and they wanted me to go ahead and submit the “borrower’s assistance form”. Once submitted they would decide if i qualify for “refi” or “loan modification”……I already sent in my paper work…….
Well I called again and got ahold of a new person. But they told me that if your loan didn’t originate with Chase you now have to wait until the middle of June to be able to refinance. He was able to tell me what they value my home at and that basically once they get the go-ahead I would qualify. But when I asked if the June date was a Chase requirement or a Fannie May they couldn’t tell me.
Sumit/Lisa-
Were you able to refi under HARP with Chase. I am being told same things for disqualification, that I cant refi under HARP because my mortgage was bought by other lender…Can you please let me know the mortgage contact that you worked with in CHASE that helped resolve your cases. Thanks much for any help
I was told the same thing by Chase. I called there 1-800 number and I also talked to a mortgage “specialist” at my local branch. They said I was ineligable since my loan was bought by Chase. They also use their own software tool to value your house which only uses data from Chase mortages so our hous was valued $20,000 less than simliar websites like Zillow.
With Fannie Mae you should be able to fefinance with any lender if you qualify for the Home Affordable Refinance Program.
Freddie Mac properties need to be refinanced with its current servicer (mortgage company) through September 30th, then on October 1st, the refinance can be done by any lender.
Thanks so much for the informative post. Unfortunately, I don’t qualify for the program since Fannie or Freddie don’t own my loan.
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According to the FAQ at http://www.makinghomeaffordable.gov, the loan does NOT have to be backed by Fannie or Freddie in order to be eligible for a modification. The blog, while quite helpful, appears to be incorrect in this regard.
Correct, a loan modification doesn’t have to be a loan backed by Fannie Mae or Freddie Mac but a loan refinance does. I think that is what a lot of people on here are trying to do, refinance and take advantage of the low interest rates.
I think the qualification guidelines are pretty fair & reasonable, but still, not everyone who needs help with their foreclosure problem is gonna be able to get that help. People shouldn’t 100% rely on Making Home Affordable and have a backup plan at hand, because there’s still a chance they won’t qualify.
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I’m in the process of a refi under the “making home affordable plan” through Wells Fargo. So far it’s been a breeze. I’m going to get out of my 10yr I/O loan @ 6.275 and into a 30yr fixed at 5.125. My break even point will be about 14 months. I’ll be paying close to $3500 in closing costs that includes a $340 appraisal and 15 credit check np points. I should hear back from the loan processor within the week he said I’m the first loan he’s processed but everyting looks good so far. The only confusing part to me is that Freddie Mac only allows $2500 in closing costs. So why do I have to pay $1000 out of pocket to meet the $3500? Shouldn’t they only be able to charge me $2500? They currenly own the loan so escrow should be an easy switch also. I’ll keep you all posted.
Hold your breath until the appraisal comes in.
Wells Fargo is my mortgage company. They don’t want to help me with the “Making Home Affordable” program. They new I was inquiring for help since 10/08. What they did was make it look like I was delinquent on my 11/08 payment, so they said I do not qualify for any kind of help. They are lying I have everything I need to prove I have never been late. They received my paymennt on 11/04/08 but didn’t post it until 12/10/08. The check went through my bank on 11/05/08. This is a terrible mortgage company!
I’m a little worried about the appraisal but I was able to put 20% down on the original loan and get into the house with positive equity. But regardless I’ve definately got a target I’ve got to hit. My contact at Wells Fargo
Jonathan.D.Englert@wellsfargo.com
You might want to send him an email and see what he can do for you.
I have tried to refinance with Wells Fargo. I have 20% in my property and their apparaisal is an entire scam. They used the lowest sale comparables in order to lower my property value. I am currently looking into presenting their scam to the local District Attorney. I bought my property last September and it was a foreclosure. I have negotiated with the bank and got the property $30,000 less than what was appraised at. WF used for the new appraisal the value I bought it at. They want me to put more money down in order to refinance.
Miriam, for HARP servicers do not need to order an appraisal report, instead they can rely on automated value. The auto value must be within a standard deviation range in order to be considered.
If you disagree with value then you can always dispute. If you dispute then be prepared to submit 3 listing and submit 3 comps within 1 mile radius and that have closed within the past 3 months.
Thanks!
I spoke to my lender, Countrywide, about the program today. They said that I could only refinance with them and the program only covered refinancing with your current lender. Does anyone have any more news on this? They gave me a good rate, 2.875 with half a point, but I’d rather shop around if possible. Also… waiting on that appraisal to come in… keeping fingers crossed.
From what i understand if you have a freddie mac owned loan, you have to refinance with the same servicer/lender. Fannie Mae loans have different rules. I also have a countrywide loan, and am having to refinance with countrywide to get in on the program. My loan is a freddie mac owned loan.
My wife has been trying to chase this down and has been getting very little positive response. Many lenders either don’t want to participate, or haven’t heard about it.
Chase, who holds our mortgage, acts like we are inconveniencing them. Each person she spoke to gives her a different answer, one wants us to try a different loan plan or wants to throw in 1.5% extra points.
From the emails, it sounds like Countrywide and Wells Fargo are possible lenders who might help.
thanks.
Wells Fargo will help, but it not much different than a regular re-fi, except they will refinance up 105%. There is a standard application, and they are being much more picky about income, bank account balances, job history, credit, etc., than before. We were quoted an interest rate of 5.25%, almost $5000 in closing costs, not counting insurance and taxes for escrow (another $5K), meaning our break-even point would not be for 20 months. In the meantime, our principal is increased by 10K, making it that much harder to sell the house if we had to.
I recently began working for a Loan Modification Company in NJ. I have recent background in personal finance, mortgages, and counseling, so it was a perfect fit for me. I’ve been reading a LOT of negative press about companies such as mine, how they are scams, etc., etc. I’m beginning to believe that these rumors are being perpetuated by the banks (there are scam artists in every profession, look at mortgages). Here’s the truth: The stimulus program is voluntary for the banks. If you have perfect credit, and enough equity and income, your bank will be more than happy to refinance you. If you are “underwater,” low equity, low credit score or if you recently suffered a financial hardship, call a modification company that is attorney-based and get them to fight for you. Our clients are coming to us terrified of losing their homes because the bank either wouldn’t modify their loan, or dropped their payment or interest rate by some paltry amount that didn’t help at all. Once they sign an agreement with the bank, there is nothing more we can do. You DO NOT have to be behind on your mortgage to get the loan modified. You can try this on your own, but you will be very frustrated. See this CNN story for more on how the banks are “helping.” http://www.cnn.com/video/?/video/living/2009/04/16/gutierrez.foreclose.phone.cnn
Dear Live Small,
Countrywide is not telling you the truth. You can refinance with anyone, but sounds like they gave you a great rate. Here in NJ, I’ve never heard of a rate so low. Is that a 15-year? Nothing has changed about refinancing, except that the qualifications are tighter than ever before. To everyone on this board: THE BANK IS NOT YOUR FRIEND! They are looking out for their interest, not yours.
From what I understand, however, if you want to take part in the “Making Home Affordable” program with a Freddie Mac backed loan (which many countrywide loans are), you’ll need to refinance with the same lender. Otherwise you’ll be subject to things like an appraisal, PMI, etc. Correct?
Peter – yes, if you are Freddie Mac you need to stay with your original lender (Fannie Mae’s can go with other approved lenders after 4/4/09). Either way, if through the “Making Home Affordable” program, you should not need PMI if you did not have it before. But they still can require appraisals to keep it to 105% of appraised value, which eliminates almost everyone who bought a home in the last 5 years in states like Florida, California, etc., even if you put 20% down.
I am currently in default and in foreclosure. I have been trying to work with countrywide for months. My loan is still be reviewed. I dont qualify for the refi i guess so I am praying for the modification. I basically can make the payments now and and hoping they just let me put my arrears to the end of the loan and just let me move forward. If not then bk court here we come
Home Owner Affordability and Stability Plan.
Does the plan require the lender to add an additional 25% to the Gross Income of an independent contractor ?!?!
After 6 months of trying to work with Countrywide for a Loan Modification, and being told (by a countrywide modification manager) they must have STRICT adherence to Mr. Obama’s plan, countrywide offered me a new payment that is not even $100.00 less than my current unaffordable payment.
When I told them this was MUCH GREATER THAN 38% of my gross income they responded that because I am an independant contractor the plan demands they add an additional 25% to my income and then factor the 38% !!!!!! Is this correct ???
Tell me this is an error or scam by Countrywide. I can find nothing that states this on the government or any other website … and believe me I’ve looked.
Countrywide is asking me to pay a 1,600.00 a month mortgage.By my calculations 38% equates to about 1,200.00.
z, Countrywide is one of the most difficult banks to work with. They won’t even consider modification unless you have a rate of over 6.5 and/or are three months behind on your mortgage. Even so the modifications they are giving out are not enough to help most people. It’s upsetting to hear that so many people won’t get help and could possibly lose their homes. There is no one policing the program to make sure it is carried out correctly. The media keeps talking about loan modification scammers, but the biggest scammers are the banks themselves.
Thanks for your response.
You hit the nail on the head “The biggest scammers are the banks themselves”.
It IS crazy that the media has no coverage of this.All they say is “…contact your lender, blah blah blah …”
I have sent emails to the white house liason, treasury department, cnn money matters and posted a blog on loansafe.org. I have phone calls in to Hope Now and Naca.
We’ll see, thanks again and if anyone out there knows anything, please reply.
Z, servicers must gross up all tax exempt income by 1.25%. It appears you are self employed and there are several ways to calculate your gross income based on the documentation you submitted to Countrywide.
Thanks!
I currently have a 30-year fixed at 5.125%. I’ve contacted my lender on the MHA because I want to refi to a lower rate. Initially, I thought payments would be modified for 5 years so that no more than 31% of your income was applied towards the payment. Now, it appears that item is no longer considered.
When my mortgage co. ran the “numbers”, they could only save me about $17.00 a month – primarily due to my low rate already. However, I feel frustrated because of that “31%” item that was in the initial information, but apparently not followed.
Unfortunately, I live in a higher cost housing market where I’d love to reduce my loan payment a bit more.
Win some, lose some.
Hello. Thank you for the information about M.H.A. Very helpful. I’ve been looking into it myself and have gotten conflicting information. It sounds like there are very few experts on the subject just yet. Here are a couple of questions I have:
- I heard that with a MHA refi. you wouldn’t need to carry PMI even if you were well below 20% equity. Is that true? I didn’t see it mentioned on this site, though I’ll admit I didn’t read every comment in detail.
- I am one of those who did 2 mortgages at 80/20 to avoid PMI and everybody has told me that MHA will not allow you to refi. both together. Is that true? If so is it the program or just the banks or just some banks? If it’s true MHA really won’t help me much because my current rate on my 80% mortgage is not too bad and of course I already don’t have PMI. But I’ve also heard that there’s another “wave” happening in a few weeks that’s designed for people with PMI, which even though I don’t actually have PMI, I kind of fall into “in spirit”, if that makes sense, since I am financed in the neighborhood 90% . Does anyone know the particulars of that wave and whether it will allow the combination of 2 mortgages without picking up PMI?
Thanks again for your help,
Chris
If you currently have PMI, you will have to have it on the MHA refinance. If you don’t currently have it, you shouldn’t have to add it.
On your second question, about having a first and second mortgage, this is what the government has to say:
As long as the amount due on the first mortgage is less than 105% of the value of the property, borrowers with more than one mortgage may be eligible for a Home Affordable Refinance. Your eligibility will depend, in part, on agreement by the lender that has your second mortgage remain in a second position, and on your ability to meet the new payment terms on the first mortgage.
Beyond that you may need to do some further research by contacting a HUD-approved housing counselor by calling 1-888-995-HOPE (4673).
More details about modification for second mortgages have now been released. Second Mortgage Modification
My wife and I in New Jersey are in the same position as Chris,we split our mortgage to avoid the PMI and now THAT is costing us the abilty to refi through MHA. The lender on the second mortgage is being difficult because THEY look at the CLTV which is about 100% for us. So the answer is YES,we can refi the first mortgage (200k) through the MHA program,but the lender on the second loan(30k) wont subordinate because of the CLTV!The thing that bothers me is that the second mortgage was purchase money to begin with,not a home equity loan! Im afraid our opportunity to lock in historically low rates are passing us right by.
Right now, our rates are 6.25 and 8.00. Anyone have advice besides the Loan Mod?We are current on our payments and good scores.
Our current mortgage is through Wells Fargo and we meet ALL the requirements- we are not delinquent, it is our primary residence, it is backed by Freddie Mac, our LTV is below 105%, our 2nd is willing to subordinate, our debt to income is below 50%, and the list goes on….. but they have denied our loan application. They have said that we don’t qualify because they did not originate our loan. After all the research I have done on this program NOTHING says they can’t refinance under this program because they did not originate the loan, in fact having a Freddie Mac backed loan and I am limited to only my current lender for this refinance. Any ideas on how I can get through to them? This is very frustrating!
Michelle, as long as Wells Fargo is the servicer of your Freddie mortgage, you should be considered for HARP. I would continue to call Wells Fargo every week as Servicers are just beginning to implement and train their staff on the new underwriting guidelines.
Thanks!
So each time I have called Wells Fargo they give me a different answer as to why we do not qualify. This last time was because there system has a box on our current mortgage and if that is checked that we don’t qualify for the HARP then the buck stops there. I can’t get anyone to help me with this. So because there system has a boxed checked that says we don’t qualify there is nothing they will do for us EVEN THOUGH we meet all the other requirements. ANY THING we can do? This is absolutely frustrating!!!
Same for me. I get a different story every time I call Wells Fargo (4 times now). First two times, they verified that I was eligble and put on a waiting list. They never contaced me. I started buggin them 2 months later and now they say I am not eligible because my current mortgage has PMI. I contacted the folks at the government Home Affordability and Stability web site and they say they have no knowledge of such a requirement.
I am beginning to think this HARP stuff is all a scam. Has anyone actually got one of these refis?
wells fargo own my loan with 86% loan on my house when i purchansed. So, pay PMI every month..
I contacted wells fargo last week, and they said. I am not eligible for home affordable refinance because I am paying PMI on my existing loan..
Who this program is supposed ot help, un fortunate buyers that are suffering to pay the banks or the banks..the person on the phone told me, it is not eligible even though it is fannie mae backed, because there is no risk to the bank with my existing loan..
I am also with Wells Fargo and got the same answer. I am not paying the PMI, mine is lender paid PMI, but because of this, Wells Fargo is telling me I don’t qualify for the affordable refinance. There is nothing on the government’s website regarding loans with PMI not qualifying. After talking to about 4 people at Wells Fargo, someone finally told me Wells Fargo is denying the loans with PMI due to system limitations. The system limitations are not our fault. Why should we suffer because they don’t have the systems in place to handle a refinance with PMI. I was also told they are still trying to figure out how to handle the people paying PMI. In the meantime, my house value continues to drop and am afraid by the time they figure out how to handle these loans, I will be outside of the eligible 105% range.
I will try to reach them out again this week. Hopefully, we will hear a different answer from them soon. But if anyone hear anything sooner, please update the thread.
BTW, Can we reach out to another firm for refinance or do we have to stick with Wells for this refinannce program?
mneni and Trae, as your loans retain PMI then you should be considered for the the program. Obviously the PMI company must approve. I would ask Wells Fargo to provide the Cert# and phone# for PMI company and contact them directly, to get the approval process started.
Thanks!
First, this is one of the most helpful articles on refinancing and loan modification I have read so far, thank you.
I am trying to get a loan modification with Wells Fargo on my parent’s loan: 6.5% fixed for 10 years. I have heard that with a loan modification you have to basically prove that you can not make payments. They own 2 very delapitated homes outright, 1 of which is rented out with some rental income, the other is sitting vacant b/c of its condition. They can prob. sell the vacant one for about $150K, the other they need for income. Both are retired with limited income and are truthfully in need of some help. My Q: just by virtue of the fact that they own these 2 homes, will it automatically disqualify them for a loan modification? Or is this just one factor? Thanks for any help.
Hank, if your question whether your parents can modify both investment properties under HAMP, then the answer is “no” for several reasons.
First reason, the properties must be owner occupied to be eligible. Second reason, properties may not be vacant/condemned to be eligible.
Thanks!
There are 2 questions I have about this program that I cannot get information one. Can someone help??
(1) To qualify, do you have to have a certain FICO score? Our bank said we needed a 720. Unfortunately, my husband is just below that at 680.
(2) If I refinance my adjustable rate mortgage under the “making home affordable” plan, will it have an immediate or long-term impact on our credit scores?
Thank you!!
I think different lenders may have different FICO score requirements, so you’ll need to check with your servicer. For example, i found one that had this requirement:
Credit Scores: A minimum FICO score of 580 will be required for loans with greater than 80% loan-to-value ratio. A minimum FICO score of 680 will be required for all high balance adjustable rate mortgages with greater than 80% LTV. A couple of points:
This is different from Freddie Mac-backed loans where a minimum credit score will not be applicable.
This requirement will expire after the first week of May.
I don’t think a refinance under this program should have a negative impact on your credit score.
I am going through a refi of my home that is with Fannie Mae – however it appears the services has met an impass with PMI. The PMI company will not transfer the PMI to the new refid loan unless I have a 720 credit score or better? While I qualify for all us and Fannie will do it – the PMI is the problem. How many of us have a 720 these days!? I’m hoping someone might have some information that might help with this process…looking for something my servicer can send to the PMI company…reach a bit here I appreciate.
Thanks,
Darren
Darren, in order to be eligible for HARP, the loan must retain PMI. I would obtain PMI Cert# and phone# from your servicer and call them to see what is holding them up from issuing an approval to proceed.
Thanks!
Just wondering why my posts were removed….such as this one…
RE: 80/20 interest only loans
My first loan is with Countrywide for 163K, my second loan is with Citi Mortgage for 40K. This is an 80/20 loan package from 2006. The FIRST mortgage (Countrywide) is interest only and is backed by Fannie Mae.
The way Countrywide’s HARP reps are treating callers is as if it is no different than the normal refinance application. Everything that I thought I read or understood about the program was inaccurate in their view. They talked of out of pocket closing costs which I read more than once in the guidelines that minimal closing costs could be rolled into the loan. They talked of (and checked) my credit score. The first rep said they valued my property at 179K, the second and third said it was 162K. How they conclude that I have no idea but their software is surely pulling the value as low as possible. They mentioned points and an interest rate that was near 7%.
The only way the program can make sense and be beneficial with 2 mortgages is if it is as it reads. The new loan is an improvement on the first (larger) loan that is backed by fannie or freddie and calculations are only on that LTV being 105% or less. We know that the best thing would be to combine both loans into more favorable terms and that that is not going to happen. The second loan is unchanged and must agree to subordinate with it’s terms unchanged.
After getting nowhere with 3 HARP “specialists they transfered me to a modification specialist who also seemed predetermined to disagree with everything I had read. In the end I asked…so what should I do, not pay for 3 months and call you back? She said yes, at that time we could try and help
My basic unresolved question is really simple. I shouldn’t need to ask Obama directly on this one small but important technicality…is the second mortgage included in the LTV or not? The program makes no sense if it is and the program helps a lot of people if it is not:)
I called my credit union when I saw that they were gearing up to particiapte in the new programs. They said they would only help people that had mortgages with them and only the ones that they had “sold” to Fannie Mae. I mentioned that after April 4th any approved lender could do a HARP re-fi and asked if they didn’t want the extra business? They didn’t seem to care and again said we only will do loans originated here.
I would expect approved banks to want the new business even at low rates. They should be welcoming us and on top of the situation enough to guide us through step by step. But, for now I have nowhere to go except Countrywide. All in all, this whole program has created a big mess so far…..
Rich, your 2nd mtg is not included in the LTV ratio calculation. The 2nd mtg is included in either the total “TLTV” or HELOC “HTLTV.”
Since your 1st mtg is being serviced by Countrywide for Fannie/Freddie, you must apply for the HARP through Countrywide.
Thanks!
My current mortgage company is GMAC. They so suck. All I initially wanted was to use the Obama Housing plan to lower my house payment because I’m at 90% LTV. First they put me through a grueling Mortgage modification process, which I didn’t want. After being declined for that, I was then told that I wouldn’t qualify for the part of the plan that does refinances with 80-105% LTV because I already have PMI, and that the guideline state if you already have PMI that you are automatically ineligible. What kind of crock of crap is that?” I requested a copy of the guidelines that state that and they refused to provide a copy to prove what they where saying…I smell a rat.
I really need some help. I’ve went through the rigamarole with countrywide throughout. They keep putting me off putting me off…Now after all of this they are saying the only thing that keeps me from being eligible is the fact that I have PMI. However I read this is being lifted. What is the truth here? I can’t find anything..
They keep saying I need to be in default or miss a mortgage payment to qualify for anything.
I have the same issue with BOA. We meet all the requirements, but also have PMI and have been told that the PMI borrowers would be serviced in the next round of customers. This is extremely frustrating and is there a way to get more information in order to fix this silly rule?
hi Richard.
I finally figured out what they were doing to me and this could be the same for you.
They were trying to refinance my loan and not modify it. The refiance is currently the program that PMI SUPPOSEDLY holds you back. After talking with the “home retention team” You can qualify for a modification. The modification will bring your mortgage payment down to 31% of your gross income. What is strange is BOA/countrywide told me I qualified and then seemed to purposely route me to the wrong department so they could talk refinance. Must be their way of dissuading people out of the modification. I’ve been at this with them since February. Here we are and now I have to circle BACK. I just hope they don’t pull any more shennanigans on me. Good luck to you.
You know, Jeremy, you are probably correct; because the loan officer from the branch called me a few days ago to say that we could wait until the PMI problem is solved or we could refinance if we came up with more downpayment.
You might want to call 1-866-377-2941. It is the BOA help desk and I called this morning to talk about PMI; they did not answer the question directly but seemed to be ready to accomodate me with other programs.
Hi,
Anyone have any luck with a Wells Fargo loan with PMI? They keep on telling me to call back after a month to see if they are taking loans with existing PMI
Thanks
Yes, Rupesh,
See my posting above. This PMI problem has not gone away. Bank of America says that it might be a month to fix it. I think that it is a serious misleading issue for borrowers!
I had a life change in income and can not afford my mortgage payments. I meet all the criteria for a loan modification. Would I still qualify if I have too much equity in the home? And yes this is my primary address. Any info is greatly appreciated!
Hi, Maria- I can tell you right now that they answser is “NO”. We are facing the exact same situation. By the most conservative of estimates, we’re at about 79%LTV, and they are telling us that the 79% issue ALONE disqualifies us for the Loan Mod. Bottom line is that from the bank’s perspective, you could theoretically sell your house and get out from under the loan.
My investor is flagstar. I am 7 months behind on my mtg. Looking at all the requirements of mha mod, I do qualify. I was told that in order to qualify for that program I have to come up with 7k to be eligible. I did a homesavers with flagstar last year, I was told that is the reason why I dont qualify, and my investor is Fannie Mae.Does this make any sense?
I too am with Wells Fargo, 3 weeks ago I called about refinancing my loan and thier rep told me about the HARP program and that we would qualify but to call back in two weeks. I waited the two weeks and called back and have talked to three diffrent people that now say we dont qualify because we have lender paid PMI. I have read on HARP sites that you must have PMI to qualify. I am so confused!! Our loan is Fannie Mae backed and our credit is fine. I am just looking to lower my interest rate. The rep I talked to three weeks ago did the figures and said refinancing with the HARP program would save us about 300.00 a month. If anyone has any info on this PMI issue to date, it would be so helpful. I don’t know where to turn now.
Heather, call WF and ask for the PMI company name, cert#, and phone#. Then contact the PMI company and ask what their guideline is for HARP. Please let us know what they say. Thanks!
We are getting the same run-around from BofA/CountryWide since the home affordability (refi) program began in April – “the program isn’t yet set up to handle PMI – the government is negotiating with the mortgage insurers…call back/we’ll call you next month on the date they have rescheduled the roll-out of ‘Phase 2′ – we’re waiting on the Feds…” – we now have a new appointment for July.
Frankly, it’s frustrating. We’ve been talking to them since January.
I have been having the same problem with BOFA/Countrywide. I called them yesterday to see if “Phase 2″ started and was told the same thing, that my name is on the list and I will get a call next month. I have been calling them every month since March. This is very frustrating.
Has anyone heard of when this “Phase 2″ with PMI eligibility will begin?
SAME PROBLEM WITH PMI HERE… I’D BEEN CALLING BOA/COUNTRYWIDE FOR THE PAST MONTH ABOUT THE “PHASE 2″ AT FIRST THEY TOLD THAT GONNA COME OUT ON 6/12 THEN, LATER WHEN I CALL AGAIN ON 6/12/09 THEYTOLD ME THAT IT’S BEEN PUSH BACK TO NEXT MONTH. BUT, THEY DON’T KNOW THE EXACT DATE AS OF YET BECAUSE THEY ARE STILL NEGOCIATING WITH PMI COMPANY HOW THE THING GONNA WORKS RIGHT NOW.
AND MY NAME IS ALSO ON THEIR LIST TOO AND WILL CALL ME ONCE THE “PHASE 2″ OUT. THIS IS KIND OF FRUSTRATING …. DOES ANYONE KNOW OR THAT WORK FOR BOA/COUNTRYWIDE LOAN DEPT. KNOW THE EXACT DATE FOR THE “PHASE 2″ TO BEGIN ?
This list keeps growing!!
I am having the same experience with Bank of America who now has my loan through thier merger with CountryWide. I spoke with them as late as early September… I qualify under Phase II (home to loan ratio no greater than 125%), but the PMI is what is dis-qualifying me!!!
I have spoken to B of A on multiple occasions who have told me that I qualify for the re-finance in every way, except that my lender paid PMI Insurance dis-qualifies me from the program. I have been told that B of A has not recived any guidelines from the government re: lender-paid PMI.
They mentioned that my only other option is touse the standard re-finance process, but since my home is so undervalued, I would have to put down $40K to do so. Of course, my whole purpose of using the “Make Home Affordable” program is because I don’t have that kind of money in savings right now due to my financial hardship.
Does anyone know if I have any other alternatives? I REALLY cannot afford to continue paying the 7% interest right now and would like to take advantage of the low interest rates in the market.
Thanks in advance!!
- Kristin
This is exactly what is happening to us… they leave you no options. He told us just to wait. We dont know what to do.
Any help would be great!!
Misty
Hi There,
This article has been very very helpful, thanks to everyone sharing their side of inputs.
I started my refin with DNJ about 8 weeks back (Apr End 09) as they introduced me to Fannie Mae and 105% loan approval without PMI, I do not have PMI at present my rate is very high 6.4.
Towards the fague end of process, just a day prior closing they said I can not be approved because I have PMI, I even showed them that I never paid PMI and BOA (my current lender ) faxed the same even stated that neither borrower or lender paid any PMI, still they say I do not qualify as it is lender paid PMI.
I was charged 500$ for appraisal and about to expire my lock. DNJ stopped responding on phone and either email .. I find this highly un-ethical they should speak and suggest the next steps.
What can I do in this situation ?
[ I would like to warn other to be cautious of this fact and rather have first under-writer approval on all other documents prior ordering appraisal ]
do you quailify for the making home affordable program if you file bankruptcy during the qualification period for the program, or after you have already been modified? I need to file bankruptcy for my other debt. Can i do that and still have this program?
We too have tried to get help from Wells Fargo, what a farce !!! Their option was to lower our payments to half for 6 months then after the six months we have a balloon of $6000 for the interest and payments we would have missed in those 6 months, so in the long run what would happen if we were to accept this is that instead of getting help we get slapped with $2000 dollars more than if we could just continue our current payment., which we can’t.
We have 50% equity in our home, excellent scores, and have never missed a payment. We are both unemployed currently and are trying to just keep our home. I think it’s easy enough to see that these banks have no interest in helping anyone and they know they have you by the throat, and either way they still make money on you.
I think Karen may have a good solution. I am going to try it and see.
Hi, Silva- We are in the same boat as you are. However, with the 50% equity, you are dead in the water as far as the Home Affordability mod goes. They disqualified us at 20% equity! My husband was laid off at the end of April and we were trying to reduce our payment proactively (we also have never been late on a payment) They also offered us the silly half payments/then balloon payment option. You’ld have to be nuts to sign up for that one. I don’t get the impression that they actually want to “help” anyone…btw, we’re with CitiMortgage.
My wife and I in New Jersey are in the same position as many here,we split our mortgage to avoid the PMI and now THAT is costing us the abilty to refi through MHA. The lender on the second mortgage is being difficult because THEY look at the “Combined Loan To Value”which is about 100% for us three years after we bought the house. So the answer is YES,we can refi the first mortgage (200k) through the MHA program,but the lender on the second loan(30k) wont subordinate because of the CLTV!The thing that bothers me is that the second mortgage was purchase money to begin with,NOT a home equity loan! Im afraid our opportunity to lock in super low rates are passing us right by.
Right now, our rates are 6.25 and 8.00. Anyone have advice besides the Loan Mod?We are current on our payments and good scores but paying down additional principle to reach the correct LTV is not really possible.We are on a shoe string budget because of our two young children,my wife being a stay at home Mom,and cutbacks at my work.
UPDATE: After spending a considerable amount of time on the phone with Wells Fargo they are not willing give us the Making Home Affordable option at all. All they are willing to do is give us the loan reduction for six months and that’s it, and again that is far from any help with a balloon of almost $6000 at the end of six months. Of course with us having 50% equity it would be of great benefit to them for us to have to give back the house, so they have no incentive to help at all.
Is there some kind of real help number for the Fed with so people can really get help, the banks aren’t there to help, they just want to continue to rape and pillage.
Hi, Silva- See above…the banks don’t care about the borrowers, they are just looking to protect their “investment”. Therefore, if you can sell and they can get their two bucks out of it, that’s all they care about it. They are not in the least bit interested (nor do they care) that you will be forced to sell and be out of your home. We are in the same boat as you, so I can totally feel your pain…
I have been calling countrywide/bof a for at least two months, since April 17th. Faxed all the appropriate paperwork in and every time I call I get a different answer why I do not qualify. Now I am being told that because my loan is not government backed, I do not qualify for the loan modification program. I am being told that as of last week, the loan modification program will effect not only delinquent homeowners, but now will effect current homeowners. The only thing I could do would be a refi. This is a regular refi, not the one offered by Making Home Affordable Program. A refi would not effect my credit score. They could suspend my payments for a few months, but then I would have to catch up to what it was, and that action would effect my credit score, and the catch up payments would be much larger. Again, please advise, I think I am being told the opposite. Shouldn’t it be that a loan modification does not have to be backed by Freddie or Fannie, and a refi under the Obama plan does?
Hi All,
I have Wells Fargo and faxed all my paperwork at the end of April for a modification… my house dropped in value like everyone elses and I now have between 85-95% LTV so I qualify on that part. We had a baby and the daycare costs are so high that it is making us not be able to afford the mortgage. We have been paying ontime but are under by about $300 a month in our income/expenses. Anyway… here it is 2 months later and I just called Well Fargo and was told that they’re trying to get me into a plan. I told them weeks ago they were trying to fit me for the HAMP plan and they said that “failed” twice already but they keep trying. Does anyone know what this means? I told the girl, this is obviously a bad sign that I won’t qualify and she says no but I’m very discouraged. Has anyone gone through this and qualified in the end? if so, did you have to do anything different once it failed the first few times?
Thanks
Melissa
Complete rules for the HAMP-don’t give up!
https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2009/0905.pdf
Don’t let them dissuade you about the LTV it should not apply.
Complain about you bank here
http://www.occ.treas.gov/customer.htm
I was approved by Flagstar for the making home affordable, the refi was costing 8,000.00 and when the rates went up they said they could not do the interest rate they stated on the loan docs unless I paid another 3 points? This is rediculous! This is exactly how homeowners put themselves upside down on their mortgages. I was told by Countrywide today, that the only lender that can DO a Fannie Mae Home Affordable is the lender you currently have the mortgage with? I read the website and my understanding is that this only applies ot modifications not refinancing. As long as it is a Fannie Mae to Fannie Mae loan any lender can refi under that program. If this is not the case, would some one let me know exactly how this works. I also put in a modification to my current lender back on April 1, 2009 and they are saying 90 more days??
my famly have a low income. just under 1900 a month combined. they have to pay 1009 now a month. they have been late 2 payments, and owe some esscrow. do they qualify? i mean if they could they woudl easily able to afford. my dad has had medicine he needed. electricity went up, the city added a new secrity tax for the neighborhood, and they needed to buy a new car(used) last november, car will be paid off in january.
do they qualify for the making home affordable???
i forgot to mention the loan curently owed is under 70,000 interest is at 6.25 percent. they did incure some credit card debt, but if its possible for them to qualify they would easily be able to get rid of that within the next 24 months. (that was mostly due to hurricane katrina, even though they refinanced in 2008 or 7 ).
the loan payments alone are over 50% of the monthly income .
they didnt start having problems until november 2008.
On March 23rd, 2009 I sent in my loan modification package to Chase/Wamu, I received a letter from then on April requesting additional information to which I promptly complied. During the month of May I kept calling to make sure that all the required documentation was in order and they kept telling me that everything was okay and that my file had been forwarded to a loan modification officer and that I should be receiving a call from them in 4 to 6 weeks. On June 9th, 2009 I received a letter from Chase/Wamu saying that they had closed my file due to missing items. I called them and was told that my whole file had been put through the shredder and that I would have to download and fill out a brand new application and resubmit it to their offices with all of the documentation, they never gave me an explanation as to why my file was closed other than to say “missing items” – As of this date we do not know what the missing items are. No letter was sent asking for the additional missing items, no telephone call or e mail was received. I contacted Chase/Wamy and a “care manager” apologized for the inconvenience and that was the end of the story.
If I had known this I would have acquired the services of an attorney or a company which specializes in loan modifications. At the present time we are facing a very difficult financial and health situation and almost all of our income is going to the mortgage payment. Yesterday I faxed my new application in with all the necessary documentation – let’s keep our fingers crossed.
I hope and pray that it goes better for other people trying to modify their loans. To us, it’s been a very frustrating experience.
The Verdaguer Family
I have read the comments here and find them very helpful. I am TOTALLY lost as to how to proceed w/the MHA app. I have 1st serviced by IndyMac and 2nd by Citi. Gave up on Citi in April when the lines were busy, but they miraculously reduced my interest by about 4 points until January 2010 (and no one there knows why!!!). I have called Indy repeatedly, and finally the other day a refi rep told me that a) the investor for my 1st loan is Deutsch Bank (!!!) and b) that they do not have the refi under the MHA yet.
Both loans were Fannie Mae conforming. How in the world did at least one of them end up w/a German investor that I never knew got it? Thus, by the MHA guidelines I would not be eligible. To make matters worse about 75% of my income is from self-employment. If they use the “net” se income that really reduces the ratio for monthly debt/credit.
My LTV has changed and my income has as well. I find these servicers are not up to date on things, and w/Indy Mac they have not even had a number you can call b/c they said the program was being managed in a “closed room.” I think this may have changed, as I just downloaded the packet and now see a Help line. But to be honest, with working 3 jobs I am tired of all the legwork involved. But, my first is at 7.25% and the 2nd is 9.375% (mysteriously upped at closing along w/a “balloon” loan…) so it would be good to get some help.
I wanted to write this b/c no one has seemed to mention dealing w/Indy Mac or Citi…
good luck to everyone, i had no luck after three months of calling and giving financial info i was denied by metlife homeloans they said i didnt make enough to qualify for the program after making to much before if anyone can provide any help it would be greatly appriciated
Put in all my paperwork to Chase back in March, called 30 days later and was told they could not find my papers ( I sent them certified mail and they were signed for), this was all after I had faxed the papers in where they told me to, so I have now sent them 3x. I have called and called and was given the same phone numbers back and forth after being told I had the wrong dept I need to call such and such which I had just done, very frustrating. The last time I spoke to anyone was early June and was told it could take 90 days and I have yet to hear anythng from anyone since I began the process on March 30th 2009.I have never missed a payment ever but I am so strapped and since thay dont seem to care why shold I.
After waiting 3 months to hear something, we were denied for assistance because we are not 90 days delinquent. WOW, that sure is a long time to wait to have someone tell us we aren’t 90 days late on our mortgage. We wasted so much time and energy on this process it makes me sick to my stomache. I thought the whole point of this program was to help people in imminent danger of losing their home. I didn’t know you needed to be in foreclosure and losing your home before you could apply. This making home affordable program sure doesn’t seem to be working? But then again why would it if the banks are in control. After being denied by the bank we immediately received letters indicating possible solutiions would be to “short sale” or hand over the deed to our house in some other type of program. Wow, Wells Fargo, that seems swell…. instead of helping us stay in our home why don’t you just offer to kick us out faster!
Wells Fargo SUCKS but then again Bank of America sucks worse. Wells Fargo is apparently our servicer but Bank of America is our actual lender. As far as we are concerned neither company is doing what they signed up for, no one is helping the American people. Wells Fargo and Bank of America are just a bunch of greedy jerks!
I was just denied my loan mod.since starting it March 09. They told me to sell my house and get something more affordable. My reply, this is the whole reason I applied to save my house so I could live in it. I have equity in the home and have lived within my means(poorly)
and now don’t have the income to make the payments. I have lost two jobs and my daughter lives at home as a dependent. Was a bill pased in June that states you won’t be elligble if you can’t pay month mortg, want to stay in home, but have equity in it.Pls advise. Thnx
any input
Peter,
My loan is owned by Fannie Mae. I have lender paid mortgage insurance (LPMI). They told me I CANNOT refinance with them under HARP. Is that true? Thanks, and I look forward to your response.
Sincerely,
Dan Maldonado
Dan,
Same answer I got from bank of america, my loan is with them they told PMI was initially paid during closing hence I can’t qualify for this program.Now my home value dropping day by day if want to refinance my loan only option available is FHA loan which requires a reappraisal, processing etc.
-Dave
Did BofA disclose at closing that LPMI was being put on your loan? According to the Homeowners Protection Act you must be notified in writing.
I first began the MHA process in April 09 after a real slow Winter for my business and when my available work seemed to disappear one client at a time. I started using my credit card to “fill in the gaps” every month until things picked up again. That bill got pretty big so now I’m doing things like hamburger helper instead of steaks, changed to a cheaper phone plan, dropped my cell service, ect… US Bank enrolled me in this MHA modification thing after I called them and asked if I could miss a couple payments or pay half of whats due for a couple Months in order to get my head above water again and then pick it back up again.
From what I can tell, based off all the info on the government websites, I qualified. I was even told by US Bank that I did “pre” qualify. What struck me as odd is that the ONLY info I was asked to send in was to answer questions on their website (they have their customers fill in these online forms stating monthly income, expenses, information like that…) Well, The end of July, I was sent a letter stating I don’t qualify for a modification and call this 800 number at US Bank and we can help you with a pre foreclosure sale or a deed in lieu but make sure you keep paying your mortgage in the meantime! I called the MHA people the next business day and asked why I didn’t qualify and the person looked on her computer screen and couldn’t answer me. That person on the phone entered me in the program again, she asked me the same questions that were on their website questionaire and said that I will receive a letter in 45 days.
Everything appears to be a joke to me at this point. Its my opinion that US Bank is just sitting there waiting out all these applications like most of us are waiting out this bad economy. What angers me is why not just have a system…. a person either qualifies……….or doesn’t. Like anything else, I should just trust myself to move on and find another way, I will. I have read all the other comments posted earlier and I know that there is a family situation, a story behind and in each post as its written. I hope you all are able to be helped. Hope and Change? Words
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