For some people like Deb and Rick Franklin, the whole process to obtain a loan modification under the federal Home Affordable Modification Program (HAMP) did turn out to be a nightmare.
Here’s their story according to the January 26, 2010 post of MORTGAGE ‘RELIEF’ LEADS TO FORECLOSURE NOTICE by Bob Sullivan in the MSNBC Red Tape Chronicles.
No Relief From Their Underwater Mortgage
They were dealing with JPMorgan Chase making “mortgage payments on time, delivered via Western Union, after they were reduced from $1,433 to $1,233.” Deb thought that “After three payments, the mortgage relief was supposed to become permanent, but a maddening string of paperwork headaches landed her in limbo.” Deb thought that the loan modification of lower monthly mortgage payments would be permanent.
The Franklin’s Underwater Mortgage Sank Further Under Water
The Franklins said that “their 10-month odyssey through the Making Home Affordable program raised their mortgage balance from $187,000 to $207,000.” So not only did the Franklins not get any mortgage relief from their mortgage debt. They increased their mortgage debt. What kind of loan modification is that?
Mortgage Debt Grew By Almost 11% While Mortgage Payments Shrunk By Only 14%
The Franklins got stuck in a paperwork quagmire while their mortgage debt increased, and they still could lose their home to foreclosure, because “We were told the foreclosure process marches on even if you are in the modification”. That’s not mortgage relief. That’s their worst nightmare.
Will The HAMP Work For You?
There’s no way of telling. Maybe your bank is not JPMorgan Chase, or maybe JPMorgan Chase has straightened out its act. But in any case you could end up like the Franklins. Many people have similar horror stories. “Msnbc.com reviewed about two dozen such stories involving virtually every major bank. Franklin, who shared an extensive diary of events she said she kept during her attempt to modify her mortgage, is typical.”
What About Real Mortgage Relief?
If you could actually get a reduction in your mortgage debt to your current property value, how would that help? In addition, if you could reduce your mortgage payments by about 50% instead of only 14%, would that help?
Well, our Mortgage Debt Reset Program could give you that type of mortgage relief and remove your underwater mortgage.
To see how you could 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.
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