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March 30, 2009



The most common mortgage modifications are listed below:

lowering the mortgage interest rate
reducing the mortgage principal balance
fixing adjustable interest rates within the mortgage
increasing the loan term throughout the mortgage
forgiveness of payment defaults and fees
or any combination of the above

Check out this public service site: http://mortgagemodificationinfo.org

Loan Modification Zoom

Great summary of Home Affordable Modification Program. One important factor though is the NPV Analysis, this is going to play a crucial role in whether the Lender will agree to modify the mortgage or not... http://www.modificationzoom.com

Bonnie Hathaway

It would be amazing if this Govt would get back to putting the citizen's interests first rather that bowing to the ugly 'bribe contributions' of the too greedy conglomerations. This will only bring ruin, as it is, to our existence.

Glena Dee - (866) 943-5835

Great summary! However as stated above, "Servicers have the option of offering borrowers a loan modification EVEN IF the the modification is ESTIMATED TO BE LESS VALUABLE." This is the reason why attoneys (not just mere negotiators or processors, but attorneys) can help homeowners negotiate for better terms with their lenders.

Los Angeles Loan Modification

nice post

Loan Modification

The proposal hasn't seemed to work...

Bad Credit Home Loan

Good informative article. Thanks for sharing this info blog.


This is a great program. I was just approved for it and it is completely legit.


It is not news that there are hundreds of thousands of troubled homeowners in the country. It is not even news that the lenders refuse most who request help.

But, are you aware of the fraudulent practices that the lenders are using to deny loan modifications?

Here is my story:
In July 2007, we re-financed with Countrywide in order to get out of an ARM that was about to go up astronomically.

In order to get the loan through, the value of our home was appraised over what is was really worth. In addition, only my husband's name was put on the loan since the credit cards are in my name.

The loan is an interest only arm that does not include taxes and insurance. The payment is $3407 and my husband takes home $1300 per week. I am a stay at home mom with 2 young children.

In September of 2008, we were struggling to pay our bills. The value of our home was plummeting. We weren't behind yet, but were about to be. We pro-actively contacted Countrywide in October 2008 and asked for help.

Here is a time-line of events:
October 2008 - Sent Countrywide hardship letter. Husband withdraws $25K from his retirement fund to pay bills. This money must be repaid quarterly - $1000.
December 2008 - Countrywide refuses loan mod without a reason.
March 2009 - Obama plan underway. Contact Countrywide again. They say they can't help because we make too much money. Because they added husband's net income to his gross income and used that figure! Request that they re-open our case.
May 2009 - Told by Bank of America rep John McFarland that they will not help us since it is not their fault we are over-extended.
July 2009 - Contact Bank of America's Barbara Desoer to request a loan mod. Cannot pay August mortgage payment. Faxed new hardship letter and required documents.
August 2009 - Assigned Bank of America Negotiator Melissa Henderson.
August 21, 2009 - BOA Melissa Henderson calls to inform me that our request is being denied. She informed that we meet all of the requirements under President Obama's HAMP program, however, because my husband borrowed money from his retirement plan (which is depleted and we are still repaying), we do not qualify for a loan modification. She said that we are current on credit cards and car payments and therefore do not fall under the guidelines for assistance.

This is outright fraud. The HAMP stipulates that retirement accounts cannot be used to determine financial status and in addition, being behind on anything (credit cards, mortgage, etc.) is not a HAMP requirement.

Think I am only one person? Wrong, go out to www.loansafe.org and read the thousands of horror stories.

The lenders feet must be held to the fire! If we continue to let this happen, our country will be in worse shape than it is now!

Joanne in Hopewell


I was denied because :Your property equity exceeds our program guidelines.

My house is worth about $200,000 and my mortgage is $140,000. What kind of bull is that.

I can't afford to take the equity because my payment will be higher. I'm going to fight this

Debbie Carroll

Home Loan Modification

Nice article for Home Affordable Modification Program. Thanks for sharing. That information is helpful for those people who are want to invest in real estate.


Does anyone know if you receive a Loan Modification if it will affect your credit score? Most people that get them already have negative credit due to late payments, etc. but does just qualifying and receiving the Mod lower your score?

Frank Wright

Deb K

To Joanne:

Didn't you know that your interest only ARM was going to go up? Why only put your husband on the mortgage? Sounds like lying by ommission to me.

Kathy W.

If you are over the age of 18, you are responsible for thoroughly reading and signing any contract, including loan docs.
I would bet that anybody that accepted an adjustable rate loan within the past 10 years was buying more house than they really could afford. The 30 year fixed rate has been historically low for years. Not many folks with a fixed rate mortgage are having this issue.
The blame should not all be put on the lenders as the purchasers also share a large portion of responsiblity.

Donna Moreen

It can affect your credit score. I just recently finished the trial period successfully and then was called one month after the trial period to say I was denied. GMAC told me the treasury dept was unable to obtain a net present value result. Now I'm told I can reapply but in the mean time the 3 month trial payments were not the full amt of the original payment and it may be reported as late. Can you believe that. I am going to reapply but this time when they give me the trial payment I am going to struggle to make my original payment incase there is another problem(I don't want to get farther behind) Does anyone know how they can not get a NPV result? I have read that there are positive and negative but not getting one I saw nothing on. I also thought they only had to obtain a NPV is the account was delinquent 60 days, and mine wasn't. Anyone know?
Donna NJ

Donna Moreen

oh by he way my credit score was 720 when I started the trial period in June this year


I am currently on a Hamp program Trial period, and I am doing my paperwork with Saxon Mortgage. The Saxon Mortgage Rep was very understanding and drop it down from $2,100.00 to $1400.00 and we were very thankful for that. However I am trying to work on our paperwork and submit it tomorrow. We were approved and became effective on Sept. 1st but there were lots of things going on in my family and trying to get it out overnight. Can anyone help me...I dont know what is the 31% they are talking about that mortgage payment cannot exceed your gross income, since my husband is the only one that is working full time in our family.

danny k

WWW.WEFIXMORTGAGES.COM is a counseling company on loan modifications for the(HAMP)Program I dealt with a guy named Eric J he got mine done in 2 weeks. Def worth giving them a call.

Dottie Kile

Petition to Congress from homeowners at www.loansafe.org

“Tens of thousands of homeowners across this nation have spent hundreds of hours dealing with mortgage servicers who have little incentive to actually help them/us achieve permanent loan modifications; while in the process of obtaining a modification, many homeowners have been lied to, misled, foreclosed upon or threatened with foreclosure.

We propose an immediate halt to all foreclosures until new, mandatory guidelines are established and that these guidelines are overseen by a new Consumer Protection Agency, which was recently recommended by President Obama and endorsed by Sheila Bair, chair of the FDIC. We also demand that these guidelines include not only a simple 31% of the borrower’s gross monthly income, but that the Net Present Value (NPV) test: (a) be created and administered by the government, not the banks, (b) have its data, assumptions and formula published so that they may be verified by the public, and (c) be made available at www.makinghomeaffordable.gov in a calculator form so that people can learn immediately, with the other eligibility questions available there now, whether they’re eligible for HAMP. We are also strongly advocating that additional guidelines be formulated that would open the door for modifications at an even a lower rate in significant hardship conditions and for write downs of principal when homes are severely underwater.

We propose there be clear and enforceable guidelines regarding the time between the initial request for a modification and the achievement of a permanent modification, and that there be no reward to the bank for a trial modification. The rewards, if any, should be only for successful permanent modifications.”

Add your name to the petition at the URL below:

crystal waldrum

I was on the hamp trial period and made all my payments ontime and my mortgage company just notified me that I was cancelled because when she resubmitted my info, I did not make enough money to qualify. She told me I had to make up all delinquent payments and the difference of my modified payments I had been making adding up to 5,600 dollars and had one week to make the full payment or they would forclose. I sent in new paystubs showing a recent raise that I could now be within the guidelines but they said I could not reapply and they would not work with me. Is this right? is there anything I can do?


Can someone tell me if its good or bad my husband is the only one who claimed his income on HAMP. We filed separate return. Our lender asked if I want to include my income than I send in my T-4506 and copy of tax return, can anyone help me with this or any information will be helpful



The truth about Obama's HAMP..the "Hurting Any Modification Possibility" Program

Melba Solis

this is really a nice post..i love this page..

Nancy Carlson

nice post..it will help others..thanks for posting..

victoria samuels

try this site also if you want to learn about hardship letters..nice reference for business and personal letters..


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