Approved for HAMP But Lost a Job

by Toni

We were approved for HAMP after making trial payments for 8 months and the bank sent the final paperwork for us to sign. My wife lost her job two days after getting the paperwork. It was a loss of $1800 and now we can't afford the new payment. Can we deny the HAMP offer and try to get another offer using our current income. The bank says no that it has already been approved and they can't go back and change it. We haven't even signed the paperwork yet.

Mortgage Loan Modification Answer:

Sorry to hear about your wife's job loss. Yes, you have the option of accepting or denying your bank's HAMP loan modification offer.

However, if you choose to deny it, there is no guarantee that the same offer will be extended by your bank if you change your mind afterwards.

If you decide to accept it for now, and re-apply again in the next couple of months, you run the risk of being denied for HAMP. I believe under the HAMP guidelines that lenders are not required to accept a re-application for a HAMP loan modification. I have heard of others successfully re-applying and being approved for better terms, but this doesn't guarantee you will have the same results.

If you feel your lender is being unfair and you would like to escalate your concerns, you can find instructions on how to do so at the Making Home Affordable website. The escalation process is detailed step by step on the site.

I also highly recommend consulting with a qualified and experienced loan modification attorney for advice on your particular situation.

Good luck and all the best to you and your family.

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