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Mortgage Mod Law Done and Gone, Now What?

Mortgage Mod Law Done and Gone, Now What?
by Constance d’Angelis

ALERT: If You Need to Save Your Home (or represent someone who does) – Act Now!

Deadline: December 30, 2016. The Home Affordable Modification Program (HAMP) is
done and gone. If anyone is in need of a Mortgage Loan Modification the application
must be filed by the deadline.

Some of the homeowner benefits of the program include:
• an affordable payment at 31% of the borrowers’ disposable income (Tier 1);
• adjusting the interest rate;
• extending the term of the loan;
• applicable to primary residence or rental property;
• possible principal reduction; and
• could earn up to $10,000 to reduce principal balance.

There is more, much more!

This is a special program to help homeowners. It requires banks, investors, servicers
and lenders who own mortgage debt to review a borrower/homeowner’s request to
avoid foreclosure; and possibly to offer an affordable payment under specific guidelines.
This program has helped many homeowners who lost jobs or had their income
interrupted or reduced to stay in their homes. There are a lot of benefits to consumers
through this program. Some of the corresponding programs are listed below.
The “Making Home Affordable” is an official program of the U.S. Department of the
Treasury & the U.S. Department of Housing and Urban Development. This program is
over December 31, 2016.

Given the administration taking political office, there will not be this kind of help for
consumers, homeowners or borrowers.

Take heed! Action is now.

Programs that are dead as of the end of year are:
• Home Affordable Modification Program (HAMP) – Lower monthly payment to be
affordable and sustainable for long term.
• Home Affordable Refinance Program (HARP) – Solution to refinancing a current
mortgage, owned by Fannie Mae (FNMA) or Freddie Mac.
• Home Affordable Foreclosure Alternative Program ( HAFA) – SHORT SALE: Exit home
and be relieved of mortgage debt though short sale or deed-in-lieu. $10,000 relocation
• Home Affordable Unemployment Program (UP) – Suspends mortgage payment while
searching for another job.
• FHA (Federal Housing Administration) Short Refinance for Borrowers with Negative
Equity (FHA Short Refinance)
– If home is worth less than amount owned can change
to an affordable FHA insured mortgage.
• Hardest Hit Fund Programs (HHF) – in 18 states and DC provides assistance for
struggling homeowners through modification.

(HAMP – See

The purpose of this article to ALERT homeowners and those who represent them to act
quickly if they need to save their homes. FREE CLE course on how to prepare
documents on

It is unclear as to what the banks, lenders, and investors will be doing once the program
has ended.

As a Mortgage Mediator in the U.S. Bankruptcy Courts* and a FL Supreme Court Circuit
Civil Mediator I have intense experience in Mortgage Modification Mediations.

Here are some of the questions that I thought of:
• Are residential mortgage modifications done, over, finished?
• Will Mortgage Loan investors and banks take borrowers’ homes?
• Will bankruptcies increase?
• Will foreclosures soar?
• Who are the mortgage debt owners/investors? Is some of the mortgage debt owned
by the Chinese?
• Could the Servicers who operate businesses to review Mortgage Modification
requests and offer modifications according to government and investor guidelines
keep their workers? Or, will they lay off workers?
• Will there be investor in-house modification offers available to borrowers?
• How will the housing market be affected?
• How will the U.S. Bankruptcy Courts’ Mortgage Modification Mediation programs be
• Will Mortgage Modification Mediations continue?
• How will State Court Mediation programs be affected?

Within the last week I have had two Mortgage Mediations that have provided the
following information:
1. Investor will not provide the $10,000 relocation assistance to borrower unless the
short sale is approved by investor prior to December 30, 2016. Note: the borrower
has requested a modification under the current law and is in compliance.
2. Bank will provide proprietary (in-house) modifications based on FNMA (Fannie Mae)
guidelines on “bank-owned loans” after the expiration of the law.

What do you think?
Please post your comments below. I’d really like to get a dialogue going.


*United States Bankruptcy Court for the Middle District of Florida. Originator and co-author of Mortgage Modification Mediation (MMM) CLE (Continuing Legal Education) course ( MMM program adopted by numerous U.S. Courts including the U.S. Bankruptcy Court for the Northern District of California.

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