Loan Modification

New Formality for HAMP Trial Periods

By Nicholas Ortiz, Attorney at Law

For those seeking loan modifications through the Home Affordable Modification Program (“HAMP”) the way of getting into a trial period with a lower payment has varied among mortgage servicers.  Some have required initial documentation to start the trial period and a payment from the borrower, others have just put borrowers into trial periods based on a phone conversation.   Starting soon–for all trial periods with effective dates on or after June 1, 2010–a servicer must get the following documentation from a borrower before beginning a HAMP trial period.  This documentation is refered to as an “Initial Package” and includes:

1. A Request for Modification and Affidavit (RMA) Form,
2. IRS Form 4506-T or 4506T-EZ, and
3. Evidence of Income

The trial period will only begin after the Initial Package is received, a trial plan is sent to the borrower, and the borrower makes the initial trial payment.

For those who don’t know anything about HAMP, there are quite a few postings about it on this site, and a brief introduction to the Home Affordable Modification Program here.

Related posts:

1. TARP and HAMP Require That Foreclosure Be Suspended
2. Propping The Door Open: Treasury Orders That Trial Modifications Won’t Expire
3. HAMP Helping, But Too Few, Too Slow

Full post as published by Mortgage Law Network on January 31, 2010 (boomark / email).