BALS’ Team ABLE attorney, Sean Belmudez, met with Todd and Mary in early January regarding their mortgage foreclosure action. He advised them how to best protect themselves in the litigation, and helped them apply for a modification and enroll in Hillsborough County’s Residential Foreclosure Mediation Program. Sean worked with them to ensure that they submitted all of the necessary documents for enrollment in the Program. After Todd and Mary received two modification packets from the opposing party, Sean helped them complete and submit the paperwork.
After submitting the documents, Todd and Mary received a mediation date from the Program Manager. Shortly thereafter, outside of and prior to mediation, they received a letter from the opposing party approving them for a Home Affordable Modification Program (HAMP) modification. Under the terms of the modification, they are required to make three modified payments per month. Once the payments are made, their modification should become permanent on the same terms, and the foreclosure action will be dismissed. The permanent modification should drop the interest rate to approximately 2% for the next five years. Sean reviewed the modification with Todd and Mary and gave them time to consider it. They accepted the HAMP modification by making the first payment. They have enough in savings to make the next two payments and sufficient income to continue making payments thereafter. With Sean’s help, Todd and Mary were able to keep their house and maintain a stable home for their three young children.
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Is this HAMP program available to everyone, or does it require “means testing.” Are there any other mortgage modification plans available to homeowners who are “underwater”?
Thanks.
HAMP does not require means testing but there are definite eligibility requirements. You can find these at http://www.makinghomeaffordable.gov, then go to the link “explore eligibility under “Homeowners Struggling with Mortgage Payments.” As to other modification plans, you can find information on the Florida Hardest Hit Program for unemployed or underemployed borrowers at http://www.flahardesthit.org. You can also contact a HUD certified foreclosure counselor in this area though the making home affordable website as well. These counselors do not charge any fee for their services and can assist with modifications.