Important Things to Do When You Get a Denial for HAMP

HAMP or home affordable modification program needs a close second look. This is particularly true if you were denied on your first try.  You need to know the reasons for the denial so you can successfully submit a reapplication. 

So let’s get inside the HAMP.  As you can see, this is the home loan modification assistance program of President Barack Obama.  This is a good program but if you get a denial, there are two important things that you need to do. 

First, do not panic and stay calm.  Next, know all the details and the provided reasons why your application for HAMP has been denied. 

Ask Why and Reapply

Believe it or not, I have seen so many homeowners who never gave up on their applications.  These homeowners previously got a denial but they corrected their applications on their second try.  Once they made changes in their application, they will reapply and get an approval.

It is true that getting a denial for your HAMP application is a scary thing.  However, there is no need for you to panic and you need to stay calm.   You still have a chance to get an approval from this program.  As long as you are determined to keep your home and you know that you can make the right payments, this program will still work for your benefit. 

Again, I know several people who have been denied for HAMP for 10 times.  But they never gave up. They refused to surrender and they reapply again and again until they saved their homes from possible foreclosures. 

Possible Reasons for Denial

There are several reasons why you can get denied for the Home Affordable modification program. First, you may not have sufficient income or you have too much income.  Second, your payment could be under 31 percent of your gross income.  Third, you may have too much money in the bank.

Other reasons for getting a denial include lack of hardship, you voluntarily left your job, you may not be living in the property, you went back to school, missing documentations, and they may feel that you will not likely default on your payments because of the information you submitted. 

Be Meticulous in Preparing Your Information

You have to remember that the servicer may still see that foreclosing your home is still a lucrative option.  That is why it is very important to carefully scrutinize your information and look for possible errors.  You have to admit that you are only human and may commit some miscalculations. 

You need to check and verify your income and expenses piece by piece and line by line.  You can also change the perspective of your information or make changes to particular grouping of items.  After carefully evaluating your information, you should immediately resubmit an application.  Keep track of your submissions by creating a log file. 

You can save your home from foreclosure with HAMP.  Do not panic if you get a denial.  Just know the reasons and reapply immediately after correcting your information. 

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