HAMP Remodels Loan Modification Process, COTTONWOOD CA Homes For Sale

Real Estate Broker/Owner with Chain Real Estate Investments & Mortgage, Steve & Joel Chain

HAMP Remodels Loan Modification Process, COTTONWOOD CA Homes For Sale


Home Affordable Modification Program – Program Update and Resolution of Active Trial Modifications

Many homeowners are aware of the efforts of borrowers seeking to modify the terms of their mortgages with their lenders. You may also be aware of borrowers and servicers and their respective disappointments with the process.

The Department of the Treasury issued a Supplemental Directive dated the end of January 2010 amending key features of the program. A significant program change is a requirement for full verification of borrower eligibility prior to offering a trial period plan.

The Treasury Department/HUD changes are scheduled to be implemented in June, servicers such as Wells Fargo are suggesting they will apply the changes by March 1, 2010.


The Treasury and HUD review of the results todate are now implimenting much needed "guidance" requiring:

* Rapid response to borrower's applications

* Servicers must calculate and approve the modifications that are in the best interest of the Lender

* Automatic permanent loan modification after package approval and 3 timely payments


THE NEW DEAL: Loan Servicers collect three documents prior to granting a trial mortgage modification:

* Application, including a hardship letter

* Proof of income, 2 recent pay stubs or recent P&L statement for the self-employed;

* Authorization form granting the Servicer access to tax data from the IRS.

* Servicers must respond within 10 days of borrower's initial request.

* Servicers must respond within one month of completed package to let borrowers know whether they qualify for a trial modification.



* Make loan modifications permanent only if minor paperwork is missing.

* This discretion will help address a large backlog of incomplete modifications.



* Whether the lender or current owner of the loan will benefit from a mortgage modification, or if foreclosing on the property is in the loan owner’s best interest.

* If the loan owner will benefit from a modification, the servicer is required to grant the modification.


Buyers and Sellers Seeking Transaction Assistance With Cottonwood CA Homes For Sale Transactions Contact:

Phone 530-370-1818                                                                           Email: steve@chainrealestate.net



Posted by

Scott Marquette, REALTOR ®




Keller Williams Realty - Carmel Valley

1.858.509.7500, Ext 2  Office
1.858.755.7986             Fax
1.760.613.7693             Cell

Just to let you know, we are NEVER too busy for any of your referrals. If you know of someone who is thinking of buying or selling, feel free to give us a call with their name and number and our team will take great care of them for you!

California Department of Real Estate License #01816159

Comments (2)

Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer

Feb 14, 2010 02:46 PM
Steve, Joel & Steve A. Chain
Chain Real Estate Investments & Mortgage, Steve & Joel Chain - Cottonwood, CA


Thanks and Happy Valentine's Day to the Burrow's Home as well!


Feb 14, 2010 04:03 PM