Loan Modification After HAMP

Obama’s HAMP (Home Affordable Modification Program) expired in 2016. Yet, in 2019 loan modification and reinstatement programs are still available, and remain the solution of choice for struggling homeowners. The fact is, HAMP was created to address the mortgage crisis of 2007. It was only expected to last a few years. During that time, most banks created internal, proprietary programs that exist to this day. These programs expanded the scope of available assistance in order to cover those not eligible for HAMP. Alright, so programs are still available, but why is there still so much need for them? Well, there are quite a few reasons.

Loan Modification and Reinstatement in 2019

The fact is, many of the mortgages written in the mid-2000’s are still out there. Some of them are unchanged from their original terms, and others have been modified along the way. Some of the loan modifications have terms that will expire, and return the mortgage to higher payments. Many of those mortgages will require further changes.

Perhaps more important is the fact that so many Americans are living paycheck to paycheck. With a single crisis or hardship, many of those people would fall behind in their mortgages. “Many of the cases we see today are people that had a genuine hardship and are just looking for a fresh start”, said attorney Lee Friedman. “When a person on a tight budget gets injured or has a personal emergency, it is easy for them to fall behind a couple mortgage payments”. This trend has led to an increase in reinstatement plans, where actually modifying the loan is unnecessary.

The Loan Modification Process in 2019

The good news about the loan modification and reinstatement process in 2019, is the turnaround time. It is nothing like the days of HAMP, when a typical case could take 90 days or more. In addition, the foreclosure process was taking years in some states. These days, banks are wasting no time choosing a path forward. In most cases, they would prefer to avoid foreclosure. What banks want to see is that you had a genuine hardship, and your delinquency was only temporary. Most importantly, they want to know that you will be able to make your payments going forward. How you make that presentation is the difference between staying in your home and losing it to foreclosure. That’s why we recommend hiring a highly experienced foreclosure defense attorney.

So, how do you make sure you will get the best possible outcome? At this point, common wisdom and well established statistics are clear. They all recommend that you hire a law firm with significant experience in foreclosure defense and loss mitigation. That includes loan modification and reinstatement programs. We have worked with many law firms over the years, and I can honestly say that I am more comfortable with our current providers than I have been with any other. They are consumer friendly in every way, and true advocates right down to their fee structure. If, for any reason, you are denied all options, the case is immediately closed, and no further payments are due. Similarly with successful outcomes, you would end up paying less due to the shortened process period. In short, they deliver the possible outcome at the lowest possible cost.