Difference between an "in-house" modification of a home mortgage & the HAMP program
What is the name of your state (only U.S. law)? Texas
Currently, an individual requested help with their mortagage payments. They contacted the mortgage company, completed the packet & mailed it back to the mortgage company. The owner received a letter stating that he did not qualify for the HAMP (home affordable modification program) program however was eligible for an "in-house" modification through the mortgage company. The owner signed the proposed "in-house" modification which stated his payments were set at $1,131.54 with the first payment being due May 1st 2013; payments would remain at the same amount of $1,131.54 beginning June 1st 2013 and thereafter under this agreement. Owner made payment as per the agreement via phone with a customer service represenative of the mortgage company on April 19, 2013. Owner then re-verified what the agreement stated to make sure that all amounts and dates were the same. Customer service rep re-verified the information and stated that there would be no further changes to the proposed modification plan and instructed owner to continue paying the same amount of $1,131.54 beginning June 1st 2013 and thereafter. About (2) weeks later owner received a flyer from HAMP stating that he was now eligible for their program and was to begin making payments in the amount of $1,352.00 beginning May 1st 2013. Owner contacted the mortgage company about this and the mortgage company stated that since he made his 1st payment under the proposed "in-house" modification they went back and "re-figured" his amounts and stated per government law they would have to proceed under the HAMP guidelines. He was told that the prior payment was a forebearance payment. This does not make any sense, since he already had a signed agreement in place. The agreement did not state at any time that the account would be re-figured for HAMP consideration nor were the payments to be made considered forebearance. Here are my questions:
1) What is the difference between an "in-house" modification and the HAMP program?
2) Is there a government law that states mortgage companies must adhere and proceed under HAMP guidelines before offering an "in-house" modification?
3) If the owner was deemed not to be eligible for the HAMP program and the mortgage company granted an "in-house" modification for him of which he signed & returned, wouldn't this be a binding contract?
4) Since the "in-house" modification was already done, why did the mortgage company feel the need to go back and re-figure the payments and force the HAMP program?
It seems that the mortgage company is trying to wriggle out of the "in-house" modification and force the HAMP modification on the owner. I am sooo confused. Any help is appreciated.
Thank you
What is the name of your state (only U.S. law)? Texas
Currently, an individual requested help with their mortagage payments. They contacted the mortgage company, completed the packet & mailed it back to the mortgage company. The owner received a letter stating that he did not qualify for the HAMP (home affordable modification program) program however was eligible for an "in-house" modification through the mortgage company. The owner signed the proposed "in-house" modification which stated his payments were set at $1,131.54 with the first payment being due May 1st 2013; payments would remain at the same amount of $1,131.54 beginning June 1st 2013 and thereafter under this agreement. Owner made payment as per the agreement via phone with a customer service represenative of the mortgage company on April 19, 2013. Owner then re-verified what the agreement stated to make sure that all amounts and dates were the same. Customer service rep re-verified the information and stated that there would be no further changes to the proposed modification plan and instructed owner to continue paying the same amount of $1,131.54 beginning June 1st 2013 and thereafter. About (2) weeks later owner received a flyer from HAMP stating that he was now eligible for their program and was to begin making payments in the amount of $1,352.00 beginning May 1st 2013. Owner contacted the mortgage company about this and the mortgage company stated that since he made his 1st payment under the proposed "in-house" modification they went back and "re-figured" his amounts and stated per government law they would have to proceed under the HAMP guidelines. He was told that the prior payment was a forebearance payment. This does not make any sense, since he already had a signed agreement in place. The agreement did not state at any time that the account would be re-figured for HAMP consideration nor were the payments to be made considered forebearance. Here are my questions:
1) What is the difference between an "in-house" modification and the HAMP program?
2) Is there a government law that states mortgage companies must adhere and proceed under HAMP guidelines before offering an "in-house" modification?
3) If the owner was deemed not to be eligible for the HAMP program and the mortgage company granted an "in-house" modification for him of which he signed & returned, wouldn't this be a binding contract?
4) Since the "in-house" modification was already done, why did the mortgage company feel the need to go back and re-figure the payments and force the HAMP program?
It seems that the mortgage company is trying to wriggle out of the "in-house" modification and force the HAMP modification on the owner. I am sooo confused. Any help is appreciated.
Thank you
