Additional $5,000 Gift To Homeowners With A HAMP Modification Loan

By
Mortgage and Lending with George Souto NMLS #65149 FHA, CHFA, VA Mortgages NMLS #65149

Homeowners who were successful in obtaining a Home Affordable Modification Program (HAMP) have just been given an early Christmas gift.  Under HAMP homeowners who make their payments on time for five years are eligible to receive a $5,000 reduction in the principle balance of their loan.  This recent announcement by the Treasury Department and Department of Housing and Urban Development further gives homeowners with a HAMP modification an additional $5,000 if they make their payments on time for the sixth year as well.  So that is an Additional $5,000 Gift To Homeowners With A HAMP Modification Loan for simply doing what they agreed to do when they were approved for their HAMP modification loan.

HAMP homeowners are also being offered an additional option.  HAMP homeowners can choose to have the $10,000 applied to "re-amortize the reduced balance to lower their monthly payments."  By choosing this option homeowners whose HAMP modification is resetting into a higher rate (normally one additional percentage point) can offset the increase in their monthly payment and keep their monthly payments low.

HAMP was established in 2009, so this year was the fifth year of the program, and the first year homeowners with HAMP modifications were eligible for the original $5,000 incentive.  It is estimated there are about 31,000 homeowners who have HAMP modification loans that will reset this year.  Hopefully most of these homeowners have been making all of their monthly payments on time and will be able to take advantage of these incentives.

I don't know about anyone else, but I wish my Lender would send me a letter letting me know they are giving me $5,000 for simply doing what I was suppose to do to begin with, and then an additional $5,000 on top of that if I continue to do it for another year.  That is the notification homeowners with a HAMP modification will be getting.  Most of them might already be aware of the original $5,000 they were offered as an incentive when they were approved for their HAMP modification, but this Additional $5,000 Gift To Homeowners With A HAMP Modification Loan will be a nice Christmas surprise on top of that.  

 

 

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 Info about the author:

George Souto NMLS# 65149 is a Loan Originator who can assist you with all your #FHA, #CHFA, and #Conventional #mortgage needs in Connecticut. George resides in Middlesex County which includes #Middletown, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

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 Info about the author:

George Souto NMLS# 65149 is a Loan Originator who is licensed in #CT, #RI, #MA, #NH, & #FL and can assist you with all your #FHA, #Conventional, #VA, #USDA, and #State Bonded Progam #mortgage needs in #CT, #RI, #MA, #NH, & #FL. George resides in Middlesex County which includes #Middletown, #Old Saybrook, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or souto@snet.net

Comments (36)

Richard Iarossi
Coldwell Banker Residential Brokerage - Crofton, MD
Crofton MD Real Estate, Annapolis MD Real Estate

I love this...finally...a government program that rewards good behavior. 

Dec 07, 2014 04:02 AM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

George,  Sign me up for that! No modification for me but I've never missed any payments ... ever.  My reward for that is a great credit score but I'd like $10,000 better

Dec 07, 2014 04:11 AM
Ed Silva
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

George, it's nice that some people will get a break, but the total number, with 31,000 eligible speaks volumes as well for the failures of the system

Dec 07, 2014 04:18 AM
Evelyn Johnston
Friends & Neighbors Real Estate - Elkhart, IN
The People You Know, Like and Trust!

It sounds to me like the people who had trouble are getting rewarded well.  They not only recieved a lower interest rate they are also getting a principle reduction! I guess the folks who didn't loose their jobs and almost their homes are luckier to have escaped the horror and stress of an uncertain future.

Dec 07, 2014 07:30 AM
Lisa Von Domek
Lisa Von Domek Team - Dallas, TX
....Experience Isn't Expensive.... It's Priceless!

Hello George,

While these programs are helpful to the recipients, all gift programs need to be evaluated against the trillions in debt our country is in.  The answers aren't easy and no one wants cuts in their industry...but cuts must be made across the board or our future generations are doomed.  

Dec 07, 2014 10:33 AM
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

George Souto for sure this is a great Christmas gift for those families.

Dec 07, 2014 12:14 PM
Claude Labbe
Real Living | At Home - Washington, DC
Realty for Your Busy Life

I have got to believe that extra $ will be useful to those who qualify.

Dec 07, 2014 12:54 PM
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

This is great new for those who are responsible and who deserve a bit of a break.

Dec 07, 2014 01:29 PM
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

We will see where this is in six months I suppose. Good luck to everyone with all this!

Dec 07, 2014 01:50 PM
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Calabasas CA

It is better something than nothing. I know few people who successfully got HAMP, but I know many who were rejected.

Dec 07, 2014 04:09 PM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good morning George,

Congratulations on your well deserved featured post! I have to agree with Lisa Von Domek all gift programs need to be evaluated against the trillions in debt our country is in.  The answers aren't easy and no one wants cuts in their industry...but cuts must be made across the board or our future generations are doomed.  

Dec 07, 2014 07:44 PM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

George... now that's good news for a change and hopefully will encourage those receiving these benefits to continue to be responsible vis-a-vis their debt obligations.

Dec 07, 2014 08:52 PM
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

Have not seen this as the wildly successful program it was meant to be....sometimes just throwing money at something is not the best remedy.

Dec 07, 2014 09:26 PM
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

I hope that this will keep people payng on time and in the program. I will take a wait and see attitude to see if it really works.

Dec 07, 2014 10:28 PM
Ginny Gorman
RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in Southern RI and beyond

George, I have seen so few approved for this program.  I know they like to brag about it but I am not impressed in how they did so little for others...the grinch here...for the ones that got it, well this is a big help.

Dec 07, 2014 10:35 PM
Kate McQueen
Realty Associates Texas - Cypress, TX
Tailored service for your real estate needs!

I appreciate that this has helped many homeowners who are doing their best and making payments on time.  But isn't that what home buyers agreed to do when they purchased the home?  Why must we "reward" home owners for doing what they already said they would do?  Also, who's paying for this?

The bigger picture is that government meddling in the housing market has been known to cause problems.  Sorry, but I'm not in favor of this program.

Dec 08, 2014 02:28 AM
Kate McQueen
Realty Associates Texas - Cypress, TX
Tailored service for your real estate needs!

George Souto are the lenders that reduce these principles receiving an incentive in tax breaks?  Why is it worth it for the lenders to do this?  The government had to offer them something or they would never have agreed to it.

Dec 08, 2014 02:35 AM
Will Nesbitt
Nesbitt Realty at Condo Alexandria - Alexandria, VA
Nesbitt Realty is a family-run brokerage.

For a Connecticut Mortgage Expert, call George Souto at (860) 573-1308.

Dec 08, 2014 02:46 AM
Beth Atalay
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL

George, I wasn't aware of this, every bit helps. Not everyone will qualify but I'm all for those who are able to take advantage of it. Why add more foreclosures and short sales to our market?

Dec 09, 2014 02:25 AM
Barbara Altieri
Better Homes and Gardens RE Shore and Country Properties - Shelton, CT
REALTOR-Fairfield County CT Homes/Condos For Sale

George -- As I was reading this, I was thinking EXACTLY what you wrote in the last paragraph. Where's my money for paying my mortgages on time during each and every one of my property ownership years?????

Dec 09, 2014 10:00 AM

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