Who is eligible?
April 14, 2010
HAMP will apply to all mortgages originated before January 1, 2009. No loans originated after that date will be eligible. New borrowers will be accepted until December 31, 2012. Program payments will be made for up to five years after the date of entry into the HAMP.
What is the HAMP Program?
April 13, 2010
It is the Home Affordable Modification Program offered by the federal government. If you qualify, the government will give lenders and servicers money to induce them to modify your loan
What else does the REST Report do?
April 13, 2010
The REST Report is generated by the software platform developed under the direction of the U.S. Department of Treasury, to allow major lenders and Servicers to determine the HAMP eligibility of your loan.
The REST Report determines the eligibility of your loan for HAMP based upon the loan amount, occupancy status, current payment debt-to-income ratios, and date of origination. Further, it calculates the Net Present Value or “NPV” of your loan utilizing a secret formula developed by Treasury to effectively determine the cash flow value of your loan in am modified state, versus in a foreclosure scenario. Ultimately, your lender and investor will likely do what is in their own best financial interest, and passing NPV illustrated the value of your loan to the investor in various states. The HAMP NPV is based on a complex and secret algorithm developed by the Department of Treasury and that has not been disclosed to the public, so there is no way to determine it on your own. Your bank or servicer will not disclose this value to you.
The REST report is the only way to see the actual NPV of your loan, and know with certainty whether or not you qualify or not for a HAMP loan modification. Many borrowers have entered into a HAMP Trial modification period, only to be subsequently denied for a HAMP Modification and foreclosed upon, losing the additional money they sent as Trial Payments. If the report determines you pass the NPV test, you can enter a Trial Modification with the knowledge you will likely come out the other side with a permanent modification. Should you fail NPV, you can go straight for an internal non-HAMP modification program, and save yourself the 3-10 months of limbo failing HAMP would casue should you enter a Trial Modification.
At HAMP Report we will help you complete the information required to process the report, go over the results with you so you understand your options, and use our 3 years of experience modifying loans to provide you with direction on what to do next. We spend 3-5 hours working with our Clients, preparing the report, and advising our Clients on next steps, all for a fraction of what other firms who have access to this platform will charge. Don’t pay more than you have to, and don’t pay it to inexperienced firms who don’t have the expertise or legal experience to advise you! HAMP Report is a subsidiary of CDA Law Center, and we have modified over 2,100 loans in the past three years. ( www.cdalawcenter.com ).
There's Only One R.E.S.T. Report
The R.E.S.T. Report is the only source for finding out for sure whether you qualify for a HAMP loan modification or not… before you apply. Using your information, the system generates a report you can rely on to tell you if you pass HAMP’s NPV test, as required by the U.S. Treasury.
The REST platform is a version of the same software used by major banks and servicers to determine HAMP eligibility, so its accurate and up-to-date at all times. Homeowners use the report by sending it to their bank, along with supporting documentation required when applying for a loan modification per the HAMP guidelines. The report is valid for 90 days from the date its generated, which should be enough time to receive approval from your lender or servicer.
What is a Hardship?
Lenders and servicers require a verifiable hardship before you will be eligible for a loan modification. Acceptable hardships include: job loss, reduction in pay, medical issues, death of family member, divorce, or interest rate reset. The important point is that you must be able to demonstrate to the lender how your hardship has impacted your ability to make your loan payments.
Signed Tax Returns
Lenders also require signed tax returns for the last two years, both personal and business, if applicable. Make sure the copies of returns you submit are signed and include all schedules. You will also have to sign a 4506-T form so that your lender may request copies of your tax returns from the IRS. You can find the form here: FORM 4506-T
