Continuation of Original Mortgage Payment While Waiting for HAMP Loan Modification Approval

by Lisa
(Monticello, FL)

Question:Do you have to continue making your original mortgage payment while your mortgage company is determining if you are approved for the HAMP program? We are 3 payments behind, I tried to send them a payment and they sent it back to me and told me that due to new Fannie Mae terms and conditions they could not accept a payment unless it brings it within only 30 days past due. I have yet to receive anything in writing regarding this change.

Mortgage Loan Modification Answer:

You may or may not receive anything in writing regarding this change. Has your lender started the foreclosure process? If they have, they are not required to accept partial payments of the total amount owed, from you. The only way to get current is to pay the entire amount that you are presently behind.

Of course, if your lender is not allowing partial payments, you will remain in delinquent status, and if they have not started the foreclosure process already, it gives them the right to do so. This is one reason that lenders will not accept partial payments. It allows them to be able to file foreclosure unless the loan is brought current.

If you are awaiting approval for a HAMP loan modification, present law states that your lender cannot proceed with a trustee/auction/sheriff's sale (which is the last stage of foreclosure)of your home (assuming they have initiated the foreclosure process) while you are in the middle of being considered for a loan modification.

If your HAMP application is denied, the lender can continue the foreclosure process. But you can re-apply, if not for HAMP, for an alternative or traditional loan modification based on your lender's in-house guidelines. Most banks will let you know if you can be considered for their other homeowner assistance programs, but be sure to ask if you are denied for HAMP.

Good luck and all the best to you. Please do not hesitate to post again in the comments section if you have further questions.