6 Myths About HAMP Loan Modifications

Editor's note: This article was originally published June 2013, and has been updated in November 2015. Some reported facts are from 2012 and 2013, but HAMP information is current as of this date.

In May 2013, the credit reporting agency TransUnion reported that the percentage of mortgage holders with mortgages 60 days or more delinquent decreased 12% from the fourth quarter (Q4) of 2012 to 4.36% and a 21% drop from Q1 2013. Both numbers represent the biggest declines since TransUnion started tracking mortgage delinquency data.

Nonetheless, too many homeowners continue to have difficulties making their mortgage payments each month and suffer financial hardship. Due to a lack of accurate information, a large number of these borrowers do not realize that they may be eligible for financial relief under the federal government’s Making Home Affordable loan modification program.

Here are six of the most misunderstood aspects about the Making Home Affordable Program.

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For most facing foreclosure either now or in the future, something has changed in their lives that is already causing more than enough stress without any help from the looming loss of their home. Many find that their change in circumstances leaves them unable to make monthly mortgage payments, and they face foreclosure simply because they don’t know what they need to do or how to go about it. When you interview lawyers to help keep your home, you might feel lost. What should be the cost of foreclosure defense?

Troubled Florida Homeowners Deserve Foreclosure Consultations

Regardless of the opinions of cable news stations, the average homeowner knows that the real estate recovery is moving at a snail's pace. The overall slow economy and high unemployment numbers figure strongly into this equation, and states that were hit the hardest by this perfect storm are taking the longest to recover. Florida, being one of these states, is still struggling with record home foreclosure rates. If you are a homeowner trying to stay afloat in Florida, foreclosure consultation may be your life preserver.

Leave Nothing to Chance

Let's be honest for a moment: this is your home, your sanctuary, the place where you relax with your family, your real-world expression of the American dream, and you are at risk of losing it.

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If keeping your home is your goal when dealing with the New Jersey foreclosure process, you've got to be proactive. There is a sharp contrast in the length of the foreclosure timeline between those those that jump right into the fight and those that are a bit slow out of the gate. Dealing with foreclosure can be overwhelming, considering that it is often yet another crisis in a series of unfortunate events.

After all, most people facing foreclosure have been through some sort of financial, medical, or personal turmoil, and it is difficult to act when you're unsure of exactly what to do. However, in New Jersey, failing to act fast is risky; it can cost you your home.

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The state of Florida had been recognized as a leader in real estate and mortgage fraud long before the mortgage crisis took hold of U.S. real estate markets. The combination of easy profits available from inflated formulas for calculating property valuation and appreciation and the relatively lax requirements necessary to qualify for a mortgage broker's license made Florida an attractive market for unscrupulous individuals at every level of the real estate financing process. Unfortunately, many Floridians fell victims to scams which made others rich and left homeowners holding the bag. To add insult to injury, loan modification scams in Florida are taking further advantage of desperate homeowners.

Lender Refused Bailout, Gave Customers Loan Modifications Instead

Many Americans have heard their fill of stories about big banks and corporations that took hundreds of billions in funds from the Troubled Asset Relief Program or TARP, which became law in October 2008.

TARP was billed as a critical component desperately needed to stabilize the U.S. economy in the aftermath of the subprime mortgage crisis. The program allowed the U.S. government to strengthen the financial sector by purchasing assets and equity from banks and other financial companies.

Not All Institutions Took The Money

Unlike many banks and mortgage lenders, Impac Mortgage Holdings, Inc. and its founder and CEO Joe Tomkinson refused to take TARP monies or any funds from American taxpayers.

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Don't Be Scammed Into Paying For What's Yours

After surviving the ills of predatory lending and predatory foreclosure, Florida homeowners have been complaining about a new type of predator.

Florida Certified Record Retrieval Letter

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How Mortgage Fraud, Bad Loans, and Predatory Lending Caused The Great Recession

The Department of Justice and the Federal Bureau of Investigation both point to mortgage fraud as being one of the primary causes of the housing market crash and mortgage lending meltdown that tipped the United States and the world into recession. In fact, in 2004, the FBI specifically warned that the exponential increase of mortgage fraud could cause banking industry losses and failures comparable to those experienced during the S & L crisis, which cost American taxpayers $132 billion.

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Pennsylvania's Foreclosure Process, Explained

In comparison to many other states, the Pennsylvania foreclosure process is fairly straightforward. In fact, Pennsylvania is the only state in the country that has a state-funded loan program designed to help homeowners who, because of extenuating circumstances, have found themselves trapped in the foreclosure process and are worried about losing their homes. If you live in Pennsylvania and have just missed your first mortgage payment, or are already deep into the Pennsylvania foreclosure process, do not lose hope. Whether you have found yourself facing foreclosure because of sudden increased interest rates or internal hardships like a death in the family, debilitating illness, or unanticipated loss of wages, there are options to help homeowners get back on their feet. The first step on this path is the understanding of the Pennsylvania foreclosure process.

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According to online real estate marketplace Zillow, there are approximately 13 million US homes with mortgages in a negative equity situation. In addition to negative equity, hardships and rising interest rates have left many homeowners unable to afford their monthly mortgage payments. For many families, the only hope they have of keeping their homes is to secure a loan modification that reduces their payments and makes their home affordable.

The US Department of Housing and Urban Development (HUD) has attempted to ease the foreclosure crisis with programs designed to encourage lenders to modify loans and provide homeowners with tools and resources to assist them in obtaining a loan modification.

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Foreclosure and Loan Modification Blog

6 Myths About HAMP Loan Modifications

What is the Cost of Foreclosure Defense?

Troubled Florida Homeowners Deserve Foreclosure Consultations

Leave Nothing to Chance

Information Is Power, Learn About The New Jersey Foreclosure Process

Loan Modification Scams in Florida

Lender Refused Bailout, Gave Customers Loan Modifications Instead

Not All Institutions Took The Money

Homeowner Deed SCAM WARNING: Pass on Paying Public Record Predators

Don't Be Scammed Into Paying For What's Yours

Mortgage Fraud: The Inside Story

How Mortgage Fraud, Bad Loans, and Predatory Lending Caused The Great Recession

The Pennsylvania Foreclosure Process

Pennsylvania's Foreclosure Process, Explained

3 Tips for a Successful Wells Fargo Loan Modification

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