Recently in Loan Modification Category

Self Employed and Denied a MHA HAMP Loan?

iStock_000015861187XSmall.jpgAs most of us know by now, while it may appear easy to apply for a loan modification under the Making Home Affordable (MHA) Home Affordable Modification Program (HAMP), it's not so easy to get approved for an MHA HAMP loan--especially if you are self-employed. From my experience, at the Law Office of Linda C. Garrett, California a HAMP mortgage, bankruptcy and family-law practice, I have spoken with many self-employed person who was denied a MHA HAMP loan modification. While tempting to blame the lender/servicer, many times, the problem lies also with the borrower for failing to submit proper documentation for his/her business. The documentation needed for self-employed individuals is not the same as the documentation needed for wage earners. Additional documents are required.

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Top 11 Most Common Mistakes Homeowners Make When Applying for a MHA HAMP Loan Modification

iStock.loandenial.jpgEven now, three years after the Obama Administration introduced the Making Home Affordable Program (MHA) in February 2009 and the first program under the MHA intended to prevent foreclosure, the Home Affordable Modification Program (MHA HAMP) still continues to be plagued with problems, resulting in lenders and loan servicers continuing to deny loan modifications to otherwise eligible borrowers. To make matters worse, the conduct of the distressed homeowner (or lack thereof) significantly increases the chances that their MHA HAMP loan application will be denied.

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"Why Won't My Lender Give Me A Principal Reduction For My Underwater House?"

imagesCAS7XN4N.jpgAt the Law Office of Linda C. Garrett, an virtual online law office, providing full-scope and limited-scope legal services in the practice areas of consumer law, mortages (HAMP), bankruptcy and family law (to include unbundled legal services), I receive many calls from frustrated homeowners sharing with me that their "lender" refused to extend a principal reduction to them at the time their lender approved their loan modification. No doubt, this is frustrating, especially for California homeowners, since a majority of California homeowner's homes are severely underwater. So what is a California homeowner to do when their lender has denied them a principal reduction?

Before I go further, let me discuss some basics about the Principal Reduction Alternative Program ("PRA"):

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Denied a MHA HAMP Loan Because of the NPV Test? The "Fat Lady" Hasn't Finished Singing!

Thumbnail image for iStock_000015861187XSmall.jpgAt the Law Office of Linda C. Garrett, an online, Solano County, California-based Consumer, Bankruptcy and Family law practice, I receive several calls per month from distressed homeowners informing me that their home is in foreclosure (or they are considering short-sale) because they do not, per their loan servicer, qualify for a loan modification through the Making Home Affordable Home Affordability Modification Program ("HAMP"). Many times, the letter they receive from their servicer does not give an explanation for the denial. If their loan servicer does give a reason, many times it is to state that their loan modification application failed the "NPV" test.

What are NPV tests; Are they Important; and, Can They be Challenged?

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