New HAMP Rules You’ll Have to Live By
Sign up for our FREE Monthly Email Newsletter
In addition to keeping in the financial know, you may be interested in checking your credit score and report.
¹The credit scores provided under the offers described here use the Equifax Credit Score, which is a proprietary credit model developed by Equifax. The Equifax Credit Score and 3-Bureau scores are each based on the Equifax Credit Score model, but calculated using the information in your Equifax, Experian and TransUnion credit files. The Equifax Credit Score is intended for your own educational use. It is also commercially available to third parties along with numerous other credit scores and models in the marketplace. Please keep in mind third parties are likely to use a different score when evaluating your creditworthiness. Also, third parties will take into consideration items other than your credit score or information found in your credit file, such as your income.
²The Automatic Fraud Alert feature is made available to consumers by Equifax Information Services LLC and fulfilled on its behalf by Equifax Consumer Services LLC.
³Equifax Credit Report Control™ is only available while you have a current subscription to Equifax Complete Premier. Locking your credit file with Equifax Credit Report Control will prevent access to your Equifax credit file by certain third parties, such as credit grantors or other companies and agencies. Credit Report Control will not prevent access to your credit file at any other credit reporting agency, and will not prevent access to your Equifax credit file by companies like Equifax Personal Solutions which provide you with access to your credit report or credit score or monitor your credit file; Federal, state and local government agencies; companies reviewing your application for employment; companies that have a current account or relationship with you, and collection agencies acting on behalf of those whom you owe; for fraud detection and prevention purposes; and companies that wish to make pre-approved offers of credit or insurance to you. To opt out of such pre-approved offers, visit www.optoutprescreen.com/.
4We will require you to provide your payment information when you sign up and we will immediately charge your card $4.95. After that, we will charge the card $19.95 for each month you continue your subscription. You may cancel at any time; however, we do not provide partial month refunds.
Equifax® is a registered trademark and Equifax Complete™ Premier is a trademark of Equifax, Inc. © 2014, Equifax Inc., Atlanta, Georgia. All rights reserved.
Are you late in paying your mortgage? Are you about to be? Is your home worth less than the mortgage balance?
If you answered yes to any of these questions, then you may be eligible for a new program that would reduce the principal balance owed on your mortgage under the Home Affordable Modification Program (HAMP).
The new principal reduction program divides your underwater mortgage into two pieces. The first loan would be for 100 percent of the current value of your property. The second loan would be a zero-interest loan that would be forgiven over a three-year period at a rate of one-third per year.
Sounds good, right? Don’t get your hopes up just yet.
There are a number of complicated rules and regulations that you’ll have to meet just to determine if you’re even eligible for the program.
Here are some of the new HAMP rules:
The good news is that you’ll find out within thirty days whether you’re eligible for a loan modification. Up until these new rules went into effect, borrowers had been waiting months (or longer) to find out if they qualified for a trial loan modification and if that trial loan mod would be turned into a permanent loan modification. (Very few have been converted to permanent.)
The bad news is it doesn’t look like many homeowners who are applying for a principal reduction modification will qualify under the new rules.
Some lenders are creating their own principal reduction programs for homeowners who don’t qualify for the HAMP principal reduction program. Bank of America announced its own principal reduction program that offers principal balance forgiveness over five years instead of the three years required by the government program. Borrowers will be tested for both programs, bank officials said.
Ilyce Glink is a best-selling author, real estate columnist, and web series host. She is the founder and CEO of Think Glink Media and the managing editor of the Equifax Finance Blog. Follow her on Twitter: @Glink.
The Best Way To Value Investment Property
How to Find a Great Real Estate Agent
Will the Real Estate Summer Slowdown Mean Lower Prices?
No More Home Buyer Tax Credits: Is Now a Good Time to Buy a House?
Equifax maintains this interactive forum for education and information purposes in order to allow individuals to share their relevant knowledge and opinions with other members and visitors. We encourage you to participate in discussions about personal finance issues and other topics of interest to this community, but please read our commenting guidelines first. Equifax reserves the right to monitor postings to the forum and comments will be published at our discretion. Do you have questions or comments about your Equifax credit report or customer-service issues regarding an Equifax product? If so, please contact Equifax directly. All opinions and information expressed or shared in blog comments are solely those of the person submitting the comments, and don't necessarily represent the views of Equifax or its management.