Several new proposals have made their way to the President to help you save your home from foreclosure. These are all proposals, but some of them will probably make it to law…only question is how long before they do.
And then how long will it take your lender to figure out how they’re going to implement them. And will they have already foreclosed on you by then…
As of the end of January, 116,297 troubled mortgages had been permanently modified under HAMP. About 830,000 more were in the trial phase of the program.
So all together, a little less than 1 million of the 3 to 4 million homeowners that the President’s plan was meant to help have been helped. And we’re almost a year into it.
30 Day HAMP Appeal Period
If you lender turns down your application for a HAMP mod, this proposal would give you a 30 day period to appeal the decision before they could begin foreclosure procedures to get you out of your home.
In addition, lenders would have to prove that they have made multiple attempts to contact you both by phone and written notices, and would require them to consider HAMP applications even if you have already filed for bankruptcy.
Revising Net Present Value Calculations
The administration is also considering revising HAMP’s net present value (NPV) model in order to incorporate more principal writedowns into the equation. The NPV test is applied to determine if the mortgage owner can recoup more money by restructuring the loan or by foreclosing.
Foreclosures Take 12 Months on Average
Lenders have expressed concern the proposed requirements would prolong foreclosure delays beyond the current 12 month timeline it typically takes to resolve the loans that don’t qualify for a modification.