New Formality for HAMP Trial Periods

For those seeking loan modifications through the Home Affordable Modification Program (“HAMP”) the way of getting into a trial period with a lower payment has varied among mortgage servicers.  Some have required initial documentation to start the trial period and a payment from the borrower, others have just put borrowers into trial periods based on a phone conversation.

Starting soon–for all trial periods with effective dates on or after June 1, 2010–a servicer must get the following documentation from a borrower before beginning a HAMP trial period.  This documentation is refered to as an “Initial Package” and includes:

1. A Request for Modification and Affidavit (RMA) Form,
2. IRS Form 4506-T or 4506T-EZ, and
3. Evidence of Income

The trial period will only begin after the Initial Package is received, a trial plan is sent to the borrower, and the borrower makes the initial trial payment.

For those who don’t know anything about HAMP, there are quite a few postings about it on this site, and a brief introduction to the Home Affordable Modification Program here.

Related posts:

1. TARP and HAMP Require That Foreclosure Be Suspended
2. Propping The Door Open: Treasury Orders That Trial Modifications Won’t Expire
3. New California Law Extends Time Periods For Foreclosures