They were telling the truth...permanent docs are here!

[maryland7]

Hi! I received my permanent docs in the mail today with the terms we were told over the phone. We will have a 2% for 5 years with 1% increases to 5% for the remaining term of 40 years. There will be an $80K balloon payment at the end of the loan. Our payment is reduced approximately $1,100 per month. We still have to deal with our second ($80K at Chase) and they seem very difficult to work with.

Although I am happy and relieved, I still wonder if I am way over paying for the house since it is underwater by $250K. If the market appreciates at 1% over the next 20 years, I will only break even to sell the house at that time. I will be 60 years old and not have any equity in my house. Not a good financial deal. Plus, even with the new payment, it is impossible to make ends meet each month.

I am very happy to see that Chase did follow through and give us the modification that they promised. It is just a bummer that the market took such a nose dive in our area. Good luck to everyone!

[MyHAMP]

Congrats.....and another HAMP-approval!

To make a decision if it's a good financial decision to keep the house: Does rent cost more if you would move into a comparable house?

[MHAP76]

Congratulation! At least you now have firm options to choose.

[mimirayo]

That's a good question. When you get a loan the need to disclose the "true cost" of the loan ( for instance you will have paid 850,000 after you add all interest etc. for your 200,000 house) With these mods they don't need to disclose so how do you KNOW if it's a better deal than you had....or just prolonging a bad deal to years down the road?

[BobandArlyn]

What wonderful news Maryland7. Congrats to you!!!!!!

[pbharris4]

Can I get a WHOOHOO for Maryland7?!!! Congratulations.

[davephx]

maryland7 - Depends on if you view your house as a home or just as a financial investment.

In my case I do not care how far underwater I am I desperately want to keep the home. My goal isn't to have equity it is to keep the home.

But others do not have the same emotional attachment so might be better to rent something more affordable

[MyHAMP]

Originally Posted by davephx

maryland7 - Depends on if you view your house as a home or just as a financial investment.

In my case I do not care how far underwater I am I desperately want to keep the home. My goal isn't to have equity it is to keep the home.

Ha, and I thought I'm the only one with this POV. But I have to be fair: In case we are approved, we wouldn't be able to find a comparable rental property in that pricerange. Not even close.

And since a huge chunk of the loan would goe into an interest-free forbearance, it's an easy burden to carry...

[exhausted girlfriend]

Dave & MyHamp,

I have the same POV too. I think that they way things are going, we will be better off with our names on a deed than we would be renting. What if times get like there were during the depression? Some people took in boarders in their homes to make ends meet. This wouldnt be an option in a rental. Also, what if you need to grow your own vegetables? Couldnt do that in a rental. If we get approved, i think i will ride this baby out and see where it takes me. Truthfully, had we had these bad circumstances in a rental, we would have been evicted a long time ago.

[Stuart C]

Concrats Maryland. After all the real horror stories (and they are) it's good to hear your positive news.

I made my 3rd payment 10/21 for Nov 1. and sent in my info again. Today I got a Robo call and it was collections. Apparently, they are helping out. When a real person came on the line he knew nothing except that I was suppose to call Loss Mitigation. Called them. All my papers are in order and he says it's should (he doesn't know) be getting close to be finished up.

Now my expectations are up with nothing solid to really base it on. Hope I get the same kind of phone call you did!

[art4ari]

H Stuart... that is exactly was I was told today. He (teh rep) put me on hold few minutes and the said everything was in order and all I had to do is wait because its very close to be fihished up too. That "it was good" I made my 5th payment already and my docs were "ready for aproval" not sure what that means, I hope does not mean to be "ready for aproval OR denial". I send my payment to the excecutive resolution department. No BOP has been ordered and my tax property taxes are due un one month, should I pay?

What is a PVO?

[exhausted girlfriend]

art, (POV or PVO?) POV is point of view. Good luck to you.

[MyHAMP]

It looks like this will be the "hot month" for many of us. Based on what I've seen on this board, it was a good start.

We were promised a decision by the end of the month (in other words, within 30 days after the 3rd trial payment) - let's see if they stick to that.

[diana0806]

Great job maryland!!!!! I have been waiting two years for a solution. It gives me great hope!!!!!!!! We will prevail!!!!!! Relax now and enjoy life.

[AZOwner]

That is awesome. Please don't forget what you went through to get to this point, and please help those of us still fighting!

Thank you all for posting. We have a larger initiative going on to provide the American Homeowner a voice to get the system in some kind of order.

Please, Please, go to the Huffington article and post a message to the article, link above. We need to bring this fight back to the forefront. If you won't sign the petition, please leave a note at Huffington. Highlight some of your challenges with the issues.

Together we can make a BIG difference, individually we are a drop in the bucket.

Thank you.

Here are links to both.

http://www.huffingtonpost.com/richar..._b_342665.html

http://www.petition2congress.com/2/2564/petition-to-us-government-from-american-homeowners/

[maryland7]

Thanks everyone for responding! I am getting excited that everything is going to work out. Especially when you take into account the tax benefit of owning, the monthly payment is very good. Also, I have seven children and would probably find it almost impossible to rent anywhere. I will be thrilled once we get the 2nd mortgage solved!

It has been a long journey that started over two years ago when my husband was laid off and has since had a large reduction in income. We owned 3 properties that dropped $900K in value over this time period. Our other 2 properties were with Citi (they are awesome!!!) and we did shorts sales and they agreed to wipe out $520K in deficiencies!!!

I imagine that Chase agreed to work with us because our loan is in their portfolio and the property is almost $300K underwater. We also stopped paying our mortgage and had already received our NOD when we got approved for the MHA program.

I really hope that everyone who wants to stay in their home is as lucky as we are! I can't believe the weight that is lifted now that I can stop worrying about if we are going to have a place to live!