Help! Not sure what this all means?

[dolfanpete]

THIS is what my status shows as updated. I'm really confused as to what it all means. a few questions i have are, is the new rate 2% for the life of loan? is the new payment 1907 a month? and is that without insurance? the home owners assoc shows 0 $ a month should be 220. Am i wrong or is the monthly payment only principal and interest? man, i'm not sure about this. i dont know if i can afford it. can someone try to make sense of this for me? thank you in advance.


Proposal Received from Servicer Submitted Date: 05/06/09

Congratulations on becoming a NACA Member and participating in our Home Save Program. NACA is recognized as the largest and most effective program in achieving long-term affordable mortgage payments for many thousands of homeowners with an unaffordable mortgage. Stated below is the status of your file.

• We are pleased to provide you with a solution from your Sericer/Lender. We have not reviewed this proposal. Given the difficulties with some the Servicers the first proposals may not be acceptable. IThe proposed mortgage payment should be close to that requested through the NACA Submission which is shown below. Your solution from the Servicer should be the following:
  1. NACA Restructure - This is if you have stable income. The mortgage payment should be locked in for the existing term of the mortgage without any increase.
  
  
  Provided below is the proposal from your Servicer. Please review. You have the option to accept, reject or request a follow-up from a NACA Negotiator. If the proposal is not acceptable, we will continue to advocate for your long-term affordable solution.
  
  If there are signifcant changes with your Affordability Budget please make a phone counseling appointment with a NACA counselor to update your budget and make a revised submission to your Servicer.

  Servicer Proposal Information
  Type:	NACA Restructure	Term:	Remaining Term
  PITI:	1902	PI:	1597	Taxes:	305	Insurance:	0
  HOA:	0	PMI:	0	Term:	311	Rate:	2
  Principal:	387573	Value:
  Delinquent Interest:	27043	Late Fees:	0	Late Penalties:	0	Unpaid Escrows:	0
  Servicer Comment: **RATE REDUCTION** New Effective Date: 11/01/2009 # of Payments Capped:16New UPB: $ 387,573.55Total Fees & Escrow: $ 5,098.80Delinquent Interest: $ 27,043.43New Rate: 2.00%New P & I: $1,597.99New PITI: $1,902.52Remaining Term: 25.91Fixed for the life of the loan. Lorina McDaniel

  Decision:	Accept Reject Need Follow-up

[joanne]

According to what you posted you now have 2% for the life of the loan. The payment of $1907 includes principal, interest and taxes. Insurnace and HOA are not included.

[pdsfoley]

Originally Posted by joanne

According to what you posted you now have 2% for the life of the loan. The payment of $1907 includes principal, interest and taxes. Insurnace and HOA are not included.

2% for the rest of the term....$1907 is PITI.. Principle Interest Tax and Insurance.

[dolfanpete]

although i'm happy about the approval. (if it means i've been approved) it's just not gonna be affordable. how upsetting not sure what to do now. i mean, if i add home owners assoc and insurance it'll be close to 2500 a month....wow (actually MORE)

[pdsfoley]

Originally Posted by dolfanpete

although i'm happy about the approval. (if it means i've been approved) it's just not gonna be affordable. how upsetting not sure what to do now. i mean, if i add home owners assoc and insurance it'll be close to 2500 a month....wow (actually MORE)

Thats why we took 2% I/O (inc taxes) for 5 yrs...because they added on so much back interest and missed pymnts. So the I/O was affordable to us for now. We'll see what happens in 5 yrs. we are basically renting our home. BTW I don't have the papers yet we got the agreement on Sat. they said 24-48 hrs...so maybe today.

[dolfanpete]

do you think they'll offer me an interest only for five years also?

[joanne]

The Insurance amount indicated on the proposal is 0. I know that on my submission, NACA did some weird stuff like include my land taxes and insurance, but not include my school taxes (which are more than double the land tax).

I would request a follow up with your NACA negotiator and express your concerns.