Original inbound: We were told that we could do both HARP and HAMP and then we were denied the HAMP modification because the loan origination date changed after the HARP (the also claim we fail the debt-to-income ratio). They will not give us anything in writing regarding these issues. Do we have any recourse?
A: A HARP refinance is just what it sounds like: a refinance. This means closing out your old mortgage and getting a brand new one. If you got that brand new one after January 1, 2009, your loan is no longer eligible for a HAMP modification. You would also be ineligible if your mortgage debt-to-income ratio is already below 31 percent of your monthly gross (pre-tax income). A HAMP modification seeks to get your monthly payment down to that 31 percent level; if you are already below that, there is no additional benefit available from modifying your loan through HAMP, even if you were eligible.
You can find eligibility information for both HAMP and HARP at http://www.makinghomeaffordable.gov -- just click on "programs".
A 25-year expert observer of the mortgage and consumer debt markets, Keith Gumbinger has been cited in thousands of articles covering a wide range of consumer finance and economic topics in outlets ranging from the Wall Street Journal to the Bottom Line newsletters. He has been a featured guest on national broadcasts for CNN, CNBC, ABC, CBS and NBC television networks and has been heard on NPR and other national and local radio programs. Keith is the primary researcher and writer for HSH.com's MarketTrends newsletter and has authored or co-authored a number of consumer guides on mortgages, home equity, refinancing and more.
