Got a MHA modification, but not 31% of income?

[sweet75]

Hi, I have been reading for quite some time and thanks to this board found out about e-mailing the president and after waiting since Feb finally got an offer. The problem with it is that it is $350 short of making the 31% of income to debt ratio. We are going to accept because it is still $300 a month less, but how do we find out how they came up with the number and can we get them to change it?? It seems like there should be some safeguards with the program to make sure that they hit the 31% or do they not have to stick by that? We can come up with the three trial payments with help from family, but it seems kind of silly to take a mod when it still does not help you the way it is supposed to.

[ama125]

Originally Posted by sweet75

Hi, I have been reading for quite some time and thanks to this board found out about e-mailing the president and after waiting since Feb finally got an offer. The problem with it is that it is $350 short of making the 31% of income to debt ratio. We are going to accept because it is still $300 a month less, but how do we find out how they came up with the number and can we get them to change it?? It seems like there should be some safeguards with the program to make sure that they hit the 31% or do they not have to stick by that? We can come up with the three trial payments with help from family, but it seems kind of silly to take a mod when it still does not help you the way it is supposed to.

The servicer is to get the payment down to as close as possible to 31% of your gross monthly income. How close are they is the real question. And yes, there should be safeguards but as of right now, there really aren't any. I suspect based on testimony before the senate banking committee (see pages 3 & 4: http://banking.senate.gov/public/ind...1-886cfb902829 ) that we will likely see some kind of measures to protect borrowers put into place in the future. The payments are calculated based on the NPV test and this information is not disclosed to the borrower (I know, VERY UNFAIR!).

[alikeith]

when you applied for your mod, did you have a surplus showing after you pay all your expenses?

[sweet75]

Originally Posted by alikeith

when you applied for your mod, did you have a surplus showing after you pay all your expenses?

Unfortunatley, I can't remember. I was really sick at the beginning of Feb and my husband sent everything in. His income has actually come down even more since then because of mandatory furlough days.

[alikeith]

have you tried contacting them to re-submit income info? You dont wan't to accept the offer if you think you can't afford it. you can only get one mod under MHA. Have you tried calling your negotiator?