Question

The client was laid off from her job five months ago. She is three months past due on her mortgage and is

concerned about losing her home. She is receiving unemployment payments of $1,950 per month and receives Social Security Survivor benefits of $1,400 per month. She wants to know what her options are. Her mortgage payment is $2,050 per month including property taxes and insurance. Her debt obligations total is $375. She has exhausted her reserves.

Which characteristic of this client's situation disqualifies her for the FHA-HAMP Loan Modification Program?

Answer 1

The client's total monthly income from unemployment payments and Social Security benefits is higher than the monthly mortgage payment, which generally disqualifies her from the FHA-HAMP program as there is no significant financial hardship demonstrated.

Step-by-step explanation:

The characteristic of the client's situation that disqualifies her for the FHA-HAMP Loan Modification Program is that her unemployment payments and Social Security Survivor benefits total $3,350 per month, while her mortgage payment is $2,050 per month.

FHA-HAMP typically requires clients to demonstrate a reduction in income which has caused them to be unable to afford their mortgage payment. In this case, the client's income exceeds the mortgage payment, suggesting that under FHA-HAMP criteria, she would not qualify for a loan modification due to insufficient financial hardship.

The client's situation disqualifies her for the FHA-HAMP Loan Modification Program because she has exhausted her reserves. The FHA-HAMP program requires homeowners to demonstrate financial hardship and show that they have attempted to resolve their financial issues before being considered for loan modification.

As the client has already depleted her reserves, she may not meet the program's requirements.