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This is a discussion on What is this "balloon payment" in HAMP? within the Countrywide Home Loans - Tell Us Your Countrywide Story forums, part of the Stop Foreclosure and Tell Us Your Story category; What is this? Does everyone have this? I was just reading a few posts on here and saw it mentioned....
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| | #2 (permalink) | |
| Senior Member Join Date: Oct 2009 Location: Florida
Posts: 753
Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0 | Re: What is this "balloon payment" in HAMP? Quote:
That "balloon" is the amount due in case you would refinance, pay-off or sell your house under a modified HAMP in case principal forbearance was part of the deal (the interest-free part, taken out of the loan so you can get to 31% gross - the 3rd step of the "waterfall"). Otherwise, this amount would be due by the end of your modified loan term. Last edited by MyHAMP; 10-30-2009 at 03:36 PM.. | |
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| | #3 (permalink) |
| Senior Member Join Date: Jul 2009
Posts: 368
Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0 | Re: What is this "balloon payment" in HAMP? We do not have a forebearance so would this not apply to us? And when you say sell or re-fi under HAMP do you mean in the 5 year modified time? |
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| | #4 (permalink) | |
| Senior Member Join Date: Oct 2009 Location: Florida
Posts: 753
Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0 | Re: What is this "balloon payment" in HAMP? Quote:
By sell or re-fi under HAMP, I meant it is due WHEN you re-fi or sell. It doesn't matter how far you're into your mod. | |
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| | #5 (permalink) |
| Senior Member Join Date: Jul 2009
Posts: 368
Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0 | Re: What is this "balloon payment" in HAMP? I am confused...just trying to understand. When/If we modify our mortgage and say decide to sell in 5 years....would we be accessed penalties? |
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| | #6 (permalink) |
| Senior Member Join Date: Jul 2009
Posts: 368
Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0 | Re: What is this "balloon payment" in HAMP? I think I understand.. Could I end up with a balloon payment?Yes. If your servicer determines that a principal forbearance is required to get your monthly mortgage payment to an affordable level, the principal forbearance amount, say for example this was $20,000, would be subtracted from the amount used to calculate your monthly mortgage payment, but you would still owe the money. You would have a $20,000 balloon payment that accrues no interest and was not due until you paid off your loan, refinanced or sold your house. |
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| | #7 (permalink) |
| Senior Member Join Date: Jul 2009
Posts: 368
Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0 | Re: What is this "balloon payment" in HAMP? We are not in that situation where they need to "subtract" part of our loan to get it to an affordable monthly payment...I assume that is also what you meant by the refi or selling....that IF we had a forbearance we would need pay off that additional amount correct? |
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| | #8 (permalink) | |
| Senior Member Join Date: Oct 2009 Location: Florida
Posts: 753
Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0 | Re: What is this "balloon payment" in HAMP? Quote:
A HAMP with a forbearance - if you DON'T re-fi, pay off early or sell your house earlt - said "balloon" would become due after 40 years. They put that forbearance-amount on "hold", interest-free, as long as you are still making HAMP-payments. | |
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| | #9 (permalink) | |
| Senior Member Join Date: Oct 2009 Location: Florida
Posts: 753
Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0 | Re: What is this "balloon payment" in HAMP? Quote:
However, if you pay off early you have to pay the remaining balance of the $200K PLUS the $50K from forbearance. | |
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| | #10 (permalink) |
| Senior Member Join Date: Nov 2008 Location: Northern CA
Posts: 1,831
Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0 | Re: What is this "balloon payment" in HAMP? This is a petition. From the loansafe community. to the Feds. About the Banks. Please read. Sign. Send to Everyone you know. We have got to make them take notice NOW before more people lose their homes! PETITION TO THE U.S. GOVERNMENT FROM AMERICAN HOMEOWNERS | Petition2Congress | |
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| | #11 (permalink) |
| Senior Member Join Date: Jul 2009 Location: Fort Myers, FL
Posts: 226
Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0 | Re: What is this "balloon payment" in HAMP? We were offered a HAMP modification with a "forbearance" of $180,800. We are going to walk; there is no way we will ever own our house. They lowered the interest to 2%, and extended our loan to 40 years....it's just not worth us keeping the house...we will be dead before it is paid off. |
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| | #12 (permalink) | |
| Senior Member Join Date: Oct 2009 Location: Florida
Posts: 753
Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0 | Re: What is this "balloon payment" in HAMP? Quote:
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