Question for those that have gotten the permanent modificaiton...

[abcxyz]

I've read a few people (maybe 2 or 3 now) on here have been permanently modified under the HAMP modification where their interest rate is lowered to around 2% for the first 5 years, and then goes up 1% per year until the cap.

What I'm wondering is, were the TERMS of the modification 30 years or extended to 40 years?

Thanks.

[m_nair]

The permanent mod I got was for the the whatever period was left on the original loan, they had added the default amount to the principal.

[Evan Bedard]

Hi abcxyz,

I've read a few people (maybe 2 or 3 now) on here have been permanently modified under the HAMP modification where their interest rate is lowered to around 2% for the first 5 years, and then goes up 1% per year until the cap.

What I'm wondering is, were the TERMS of the modification 30 years or extended to 40 years?

If I recall, I believe I saw at least one that got extended to forty years..

[davephx]

IF 2% doesn't get you down to 31% of income, than can extent maturity as far out as 40 yrs.

[abcxyz]

Originally Posted by m_nair

The permanent mod I got was for the the whatever period was left on the original loan, they had added the default amount to the principal.

Hi M-nair,
i'm not sure I understood what you meant. I gather you were already in a 30 year fixed mortgage, and then just got it modified to get your payments lower and the period of payments just remained the same for you?

In my case, I just purchased 2.5 years ago, and I was in a 5/1 Interest Only ARM, so I haven't even reduced any principle yet. So they're putting me in a fixed P+i loan and I think the terms are 40 years...

[m_nair]

Abcxyz,
Yes, that was it is. It was 30 years fixed and paid about a 2 years and so I just owe what ever that leftover period was. I think it all depends on your credit score and the underwriting rules.

[TIGERWOODSBUDDY]

Mine was for 30 years. 2% first 5 years then 1% bump 6-7-8th years to a maximum of 5% rest of the loan. I was very happy and relieved! It took a long time and many phone calls but we were completely satisfied with the result! Our rate had been 7 1/4%

[abcxyz]

Another question for you guys and informational for others that may be in the process:

HOW long did it take from the time you started (i.e., with your first phone call) til you were finalized (i.e., sent the final paperwork in signed and notarized etc)?

[TIGERWOODSBUDDY]

abcxyz, it took me from the first of February to the 25th of September to go through the whole process. Countless phone calls to follow-up, several different reps, finally a loss mitigation specialist, Donna West that put me over the goal line. Don't give up!

[abcxyz]

Originally Posted by TIGERWOODSBUDDY

abcxyz, it took me from the first of February to the 25th of September to go through the whole process. Countless phone calls to follow-up, several different reps, finally a loss mitigation specialist, Donna West that put me over the goal line. Don't give up!

Didn't the government HAMP program come out on March 4th though? So I presume you were trying a different modification option offered through citi prior to the government one commencing March 4th.

I started some bogus offering that citi had last November called CHAP (Citi Homeowners Assistance Program), nothing materialized after countless phone calls and then this HAMP thing came out which I then pursued started on 6/1/09.

[Sunbeam]

Originally Posted by abcxyz

I've read a few people (maybe 2 or 3 now) on here have been permanently modified under the HAMP modification where their interest rate is lowered to around 2% for the first 5 years, and then goes up 1% per year until the cap.

What I'm wondering is, were the TERMS of the modification 30 years or extended to 40 years?

Thanks.

I received a traditional mod from CITI, confirmed today. They extended the terms to 40 years.

[MyHAMP]

Originally Posted by m_nair

Abcxyz,
Yes, that was it is. It was 30 years fixed and paid about a 2 years and so I just owe what ever that leftover period was. I think it all depends on your credit score and the underwriting rules.

Credit score is only a factor in the NPV-test - it doesn't determine the loan terms like extension or interest-rate under HAMP - that's determined by the "waterfall".

[jhn_plsn]

My current mod looks like a HAMP but my negotiator has not called me back to confirm that fact yet. Mine was adjusted to 3% and the back payments that were interest only anyway were put in the differed interest column on the loan and the term was extended by 2 years.
The time line on mine with US Bank was 5 weeks from when I sent my info in to when I received a packet.
Now if I can just get BofA on my HELOC to get on board, or off (the tittle) would be better.

[TIGERWOODSBUDDY]

My mod was extended back to the 30 year term. I have had our mortgage with Citi for about 8-9 years. As I had mentioned before, mod was 2% first 5 years, escalating 6th-7th-8th year 1% increase and then the max at 5% for the duration. I was very happy with the way things worked out it just takes time and patience. The only problems I see are, the rules keep changing ona pretty fluid basis. That is why I think it is imperative you keep in contact with your rep and continue to ask if there are any better programs announced that you might qualify for.