It’s getting close to the end of government sponsored loan modification programs. If you’re looking for mortgage help, you better apply soon. If you’re haven't applied byDecember 31, 2016, mortgage relief options could be limited.
In this post, I’ll give you some insight about the end of government programs in 2016 and some pointers of what you'll need to do to plan your options.
HAMP® is designed to lower your monthly mortgage payments, making them more affordable and sustainable for the long-term.
Application Deadline: December 31, 2016
What you'll need to do???
Borrowers must apply on or before December 31, 2016 in order to be considered for a HAMP loan modification. You’ll need to be eligible for HAMP and your mortgage company must participate.
If you meet the deadline, you’re lender will need to make a decision by September 2017. This doesn't mean you're going to get approved. If you pass the deadline and find out HAMP is not an option, you're not going to be able to get reviewed for
short sale or deed in lieu programs offered under the government sponsored programs. If you miss the deadline, you may have limited options.
Participating Mortgage Companies and Loan Servicers
Some mortgage companies include
Bank of America, Citi Mortgage, JPMorgan Chase and Wells Fargo.
Some loan servicer’s many participate as well like
Ocwen Loan Servicing, Nationstar Mortgage and Seterus. Even if your loan servicer participates, you’ll need to make sure your lender participates as well.
Lenders are already starting to tighten up!
In my professional opinion, I believe it will be difficult for borrowers to get help after the deadline. Lenders are already starting to tighten up on lender specific program guidelines for not only loan modifications, but also short sale programs and
deed in lieu of foreclosure programs.
We’ve started seeing more promissory note requests with short sale programs. Recently we've had to open more disputes on lenders decisions than we've ever had to in the past.
Borrower's sometimes spend months with results that may not be favorable
It’s common for borrower’s to spend months negotiating a modification before finding out that it isn’t the best option either due to not qualifying or the lender's proposed modified mortgage payment isn't affordable.
Alternative options after modification
2016 may in fact be your last year to get mortgage help. If you don’t act fast, you could miss out on other foreclosure alternative programs.
Not Behind, You May Have Options
If you're experiencing a possible
financial hardship in the near future, there could be hope for you. Some lenders are considering borrower's for different programs when they’re not behind on their mortgage. For example, FHA and HAMP could allow you to get modified not being delinquent if you qualify for under specific imminent default guidelines.
There are many guidelines and qualifications in order to get a government program. If you think you’re going to need mortgage help, you owe more on your mortgage than your home is worth, or facing foreclosure, get help now. You should find out if there are options. At least get a clear picture of what possibilities are out there to better educate yourself for the future.
- Contact your Lender or Loan Servicer
- Consider contacting a modification consultant or specialist
- Consider an attorney, but be careful of up-front fees
- Avoid paying up-front fees if possible
- Look for loan modification guarantee that gets you an agreement from yout lender before a fee is due
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