Over and over again there are stories in news articles and on blogs about whether HAMP is really working. Do people really get the loan modification they were expecting to give them underwater mortgage relief?
One latest statistic in the South Florida ranks fifth in loan modifications article by Kimberly Miller says that “About 13,000 South Florida homeowners have been granted permanent lower monthly mortgage payments through the Obama administration’s ambitious foreclosure prevention program.”
Florida Ranks Fifth For Loan Modifications
Well, Florida may be doing well as compared to other states, but here’s the problem. In the same article, according to Carol Asbury who is a Fort Lauderdale attorney, “You do the three-month trial period, they take your money, and then you don’t qualify.” The loan modification which was supposed to be the solution to give underwater mortgage relief is only temporary.
Many People Are Put Right Back Underwater
The people who thought that they were finally able to get mortgage relief and get their lives back on track find that they are plunged back underwater once again after the trial period. When they ask why, according to Carol Asbury, they get the answer “It’s complicated.”
Why Can’t People Get Permanent Relief Under HAMP?
The banks are reluctant to say why they turn down applicants for permanent mortgage relief. But they have a very complicated formula that they use to determine whether they’ll ultimately make money doing a loan modification or lose money. If they determine that they will lose money, well … “it’s complicated” and you get turned down.
Could It Be The NPV Test?
See the NPV Test gotcha explained in Underwater Mortgage Debt – Will HAMP Provide Mortgage Help For Your Mortgage Loan Modification? for how Alex Lam lost out on his loan modification.
Is There A Permanent Solution To Underwater Mortgage Relief?
If you’re caught by the trial of HAMP and would like a permanent solution to gain underwater mortgage relief, we have a program that can do that. We call it our Mortgage Debt Reset Program. You get to reset mortgage debt and only make monthly payments of about half your current monthly mortgage payments.
So, if you’re looking for a permanent solution, get the specific information you need to qualify for our Mortgage Debt Reset Program. Go to Find Out More About Our Mortgage Debt Reset Program and sign up to receive our free no obligation information package.
