HAMP Alert! If you are a homeowner struggling to pay your mortgage and you want to be considered for a modification, you must submit an Initial Application Package on or before December 30, 2016.

When do the HAMP (Home Affordable Modification Program and MHA (Making Home Affordable) programs end?  You must submit the initial request before the end of 2016.

What happens if you default on a Trial Plan after December 30, 2016?  You may still qualify for a HAMP Modification if the servicer documents its decisions and the Modification Effective Date is on or before December 1, 2017.

What is the latest I can start the three-month trial period? The HAMP permanent Modification Deadline is December 1, 2017, and to meet this deadline, you should start a three-month trial period plan no later than September 1, 2017, but it would be better for you to start a trial period plan no later than August 1, 2017, to allow for servicer processing delays.

What if the servicer’s delays or failure to comply with the RESPA rules results in me losing HAMP eligibility because the modification cannot be finalized by December 1, 2017? Your damages include the difference between the HAMP modification payments you would have qualified for and any HAMP performance incentives that you would have received.

Need a modification or cancellation of a second mortgage?

  • For a 2MP Modification, you must have applied for a HAMP modification before the end of this year and notice of the HAMP modification on the first mortgage by March 17, 2017.
  • For a GSE Standard Modification, the modification must be finalized on or before December 1, 2016, and the servicer must offer you a 2MP trial plan, permanent modification, or lien extinguishment by December 30, 2016.
  • For the UP (Unemployment Program), servicers are no longer required to evaluate borrowers for the program and may offer their own forbearance plan instead. If a borrower completes the UP forbearance servicers may evaluate them for HAMP on if the borrower also submitted an initial HAMP Package by December 31, 2016.

How about the HAFA (Home Affordable Foreclosure Alternatives) program? You must have applied no later than the servicer’s HAFA application deadline and the servicer must have sent you, by December 30, 2016, the short sale preapproval notice, offer for a deed in lieu of foreclosure, or approval of an executed contract for short sale.

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