- December 01, 2017
- All New York State Agents, Office Counsel, and Managers
- HAMP Loans and Sales by Borrower (Home Affordable Modification Programs)
We call your attention to sales of property subject to HAMP loans and the necessity of careful review of the underlying recorded mortgage modification and its details. The modified loan is subject to a balloon payment at the time of sale of the property.
Home Affordable Modification Program loans were designed to allow financially struggling homeowners to avoid foreclosure by modifying loans to an affordable level. The loan program is now closed but owners who took advantage of it are now selling and it is important to carefully review the modification agreement. These loans were modified by the recording of Loan Modification Agreement and filing of a new second mortgage at the time of modification, which requires a balloon payment upon future sale or refinance of the property. A payoff statement or satisfaction must be provided. Do not rely on a zero balance statement from a lender.
In the event you have any questions, please call the Stewart Title Insurance Company – New York legal Department at (212) 922-0050.
THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.