Loans, Debt & Credit - View Single Post - BoA Loan Mod Help

davephx · 11-06-2009, 08:15 PM

Budget is with modified payment amount otherwise would have a deficit or if not you don't need modification.

Key factors is gross income x 31% is your "affordable" piti. If your 1st Mtg is below that already you don't qualify.

Take the affordable piti and deduct taxes and insurance (HOA if have) and that is what has to amortize your current mortgage balance + back interest due at as low as 2%/40 years.

So Income can't be too high or too low.

Than you have to pass the Net Present Value test, which is why they ask you so many questions. If you not underwater you may not pass but there are other factors. The more underwater you are the better for the NPV test.

There are no fees or "contribution amount" if a regular HAMP (I think contibution is for FHA but forget) If qualified they set you up with trial payments at income x31%.

Than the paperwork just begins as you have to verify everyting send in the stuff lmlars mentions etc. But you will get a instruction package with the Trial Mod Agreeement which lists all the documnt requirements.

Than after 3-8 trial payments you do much of it again except this time the forms have to be notarized. Then it goes to underwriting with most servicers for consideration. Than goes to investor for approval.

If they put you on a forbearance plan where you catch up with back payments you may have to compete it before they will consider for HAMP. So its best to try and get on HAMP vs forbearance.

11-06-2009, 08:15 PM	#6 (permalink)
davephx Senior Member Join Date: Jul 2009 Posts: 3,111 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: BoA Loan Mod Help - Expences to Income Budget is with modified payment amount otherwise would have a deficit or if not you don't need modification. Key factors is gross income x 31% is your "affordable" piti. If your 1st Mtg is below that already you don't qualify. Take the affordable piti and deduct taxes and insurance (HOA if have) and that is what has to amortize your current mortgage balance + back interest due at as low as 2%/40 years. So Income can't be too high or too low. Than you have to pass the Net Present Value test, which is why they ask you so many questions. If you not underwater you may not pass but there are other factors. The more underwater you are the better for the NPV test. There are no fees or "contribution amount" if a regular HAMP (I think contibution is for FHA but forget) If qualified they set you up with trial payments at income x31%. Than the paperwork just begins as you have to verify everyting send in the stuff lmlars mentions etc. But you will get a instruction package with the Trial Mod Agreeement which lists all the documnt requirements. Than after 3-8 trial payments you do much of it again except this time the forms have to be notarized. Then it goes to underwriting with most servicers for consideration. Than goes to investor for approval. If they put you on a forbearance plan where you catch up with back payments you may have to compete it before they will consider for HAMP. So its best to try and get on HAMP vs forbearance.