Denied For HAMP Home Affordable Modification Program and I Don’t Know Why

By:  Anna Cuevas; The Loan Mod Guru

Hamp denials must be in writing and include the reasons why as of January 1, 2010 per the latest hamp home affordable modification program guidelines.

I have evaluated the HAMP guidelines and this is what I have found regarding what their denial must contain:

Once you are evaluated for the Home Affordable Modification Program and are not approved for the Trial Payment Plan, you must have a trial prior to being approved for the Permanent HAMP modification, your servicer is now required to advise both you and either Fannie Mae or Freddie Mac what the outcome is of your evaluation whether you are approved or not, for the trial plan or the permanent modification and if denied must provide you with the appropriate notice explaining the reason for the denial to be in compliance with the program rules.

Any notice other than of the Notice of Incomplete Information, must be mailed within10 business days after servicer’s disposition date notifying you that they are not approving you for either the Trial Plan or permanent Home Affordable Modification Program HAMP. The servicer must send you the notice via mail unless you have previously agreed to have it sent via email.

The servicer must provide you with an easy to understand format that is clearly explained to you in lay mans terms. The notice must be clear to advise you that you were considered for the Home Affordable Modification Program but you were found not to eligible for this program and it must advise you of all the primary reasons why you were not approved for the program. The servicer should also offer other alternatives to foreclosure or other modification programs that you may qualify for along with information on how you can apply for those programs.
Once you get a denial it is of utmost importance for you to call your lender immediately and very all of the information line by line.

Ask them what income they used, how they calculated it, verify all of the figures. Make sure you were not denied for required forms not being received. Once you know the reasons for your denial it will be easier for you to fix the issues and reapply for the program. You have the right to know why you were denied, and if you have changes to your circumstances you have the right to reapply if you were previously denied. Many times mistakes are made so fight for your rights.

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