What to do if you're denied a permanent HAMP loan modification.
Not every homeowner who applies for the federal government's Home Affordable Modification Program (HAMP) will qualify. Whether you didn't meet the criteria for this program or just couldn't afford the payment, you still have options.
Depending on your situation, those options could include an alternative loan modification from the loan investor or a repayment plan. CitiMortgage customers can learn more about available options by calling the CitiMortgage Homeowner Assistance Team at 1-866-272-4749. The hours are Monday - Friday, 7 am to 11 pm; Saturday and Sunday from 7 am to 7 pm. All times are Central. You can also call 1-888-995-HOPE (4673) to speak with a HUD-approved counselor at no cost. If you've determined you need to transition into more affordable housing, help is available that will allow you to leave the property behind without triggering the foreclosure process.
No one wants foreclosure: It can damage your credit, and it is very costly for the lender. Both the federal government and CitiMortgage have foreclosure alternative programs that can help you 'exit gracefully' from the property.
Home Affordable Foreclosure Alternatives (HAFA) Program.
Under the federal government's HAFA program, there are solutions available to assist you with a smooth transition to more affordable housing while avoiding foreclosure. The program not only clears you of any remaining first mortgage obligation, it also provides $3,000 to help with moving expenses.
There are two HAFA options; your lender will help you decide which is better for you. If you're a CitiMortgage customer, call 1-866-272-4749 to talk it over.
1. Short Sale: Your lender allows you to list and sell your home with the understanding that the net proceeds from the sale could be less than what is owed on the mortgage loan. This option allows you to lower the listing price and potentially sell the home faster. If the short sale is approved, the amount of the loan not paid with the net proceeds from the sale may be considered income and could result in tax consequences; ask your tax advisor to be sure.
2. Deed-in-Lieu of Foreclosure: You voluntarily transfer ownership of the property to your lender, and the debt is forgiven. The amount of debt forgiven may be considered income and could result in tax consequences; again, ask your tax advisor.
If you have other loans against your house (such as a home equity credit line), talk with your lender about the best way to handle that debt. In some cases HAFA may be able to provide some funds to help pay off these loans.
You may be eligible for HAFA, if you:
· have a verifiable financial hardship
· currently live or have lived in your home in the last 12 months
· haven't purchased another home in the last 12 months
· have a first mortgage that is less than $729,750--and you obtained it on or before January 1, 2009
· do not qualify for a loan modification under the federal government's Making Home Affordable Program
· did not successfully complete your trial modification period
· missed two consecutive payments once in a permanent modification
The eligibility criteria provided is for guidance only. Your mortgage lender can provide more information and help you determine if you qualify for HAFA. You can also call the Homeowner's HOPE™ Hotline (888-995-HOPE) for more information.
If you're a CitiMortgage customer who lives in
To help you find more affordable housing, CitiMortgage will also provide relocation counseling and a minimum of $1,000 to help pay moving expenses.
Ask your lender for help.
If you're denied a permanent loan modification through HAMP, you may still have options to avoid foreclosure. Call your lender immediately for details. CitiMortgage customers should call 1-866-272-4749.