Loan mod amount went UP! >:((( - Loan Modification Forum

AVSgirl1985 · 04-08-2009, 03:22 PM

I am SO frustrated! We qualified for a loan modification and were told over the phone that our new payment for the 3 month trial period will be $672 (went down from $1239). I was jumping up and down with EXTREME joy and shrieking. My husband even made me call back just to make sure this wasn't an april fools joke (the call was made on april 1st), and I was assured that it was not a joke. They told us to wait about 2 weeks for our paperwork and go from there. We got the paperwork today. The amount they want now is $1052.

As excited as I was about the $672 was just about how MAD I was about the new amount! I wanted to punch someone!!! Why did this happen?? I've been calling all day long and have been on hold for 2 hours total! One person I spoke to says that in their system it says $672! So what do we do?!? I can't get a hold of anyone! Has this happened to anyone? And with what outcome?

Hopefull2009 · 04-08-2009, 03:45 PM

Does the $1052 include your taxes (if they are escrowed) maybe? Although I thought the 31% goal payment was to include the entire house payment (including the taxes).

AVSgirl1985 · 04-08-2009, 03:51 PM

I was told (i asked 3 different times) that the $672 includes the taxes...

LHarveyMadman · 04-08-2009, 03:52 PM

You know, it is entirely possible that the figure in your document is a typo. There was a huge error in the preliminary loan mod papers that I received. It said that I had to make a lump-sum payment of $12,000 as part of the modification, something I had not been told over the phone. When I called back to clarify, the analyst couldn't figure out where that number came from.

It took a while to get everything squared away, but eventually it did. Remember, these analysts are underpaid and overworked cogs in the wheel. They are human, prone to error just like anyone else. Work calmly with them, run the numbers yourself, and try to figure this out. The fact that their system still shows the $672 figure is a good sign.

AVSgirl1985 · 04-08-2009, 03:56 PM

I completely understand the overworked, underpaid thing, and I know I won't get anywhere if i'm rude...so i'm not, on the phone, at all...
I really do hope its a typo! And I felt halfway better when one of the people I got through to said it was in the system. Its still frustrating not knowing whats going to happen!

oh shoot. do you think they work tomorrow? since its passover? or friday? for good friday? i know this is insensitive, but they need us to decide by the 20th, and these are precious days slipping away!

MichelleLynn · 04-08-2009, 03:58 PM

Hope it was a mistake!

AVSgirl1985 · 04-08-2009, 03:59 PM

Quote:

Originally Posted by MichelleLynn

Hope it was a mistake!

me too!! wish they had a crying smiley.

these quick responses make me feel better. thank you everyone, for any/every response!

LHarveyMadman · 04-08-2009, 04:01 PM

Holy Thursday and Good Friday are not bank holidays in the US. They'll be open.

AVSgirl1985 · 04-08-2009, 07:02 PM

has anyone been through this? successfully? unsuccessfully?

Hopefull2009 · 04-08-2009, 08:00 PM

LOL - IDK but I'll trade you my $3057 payment for your $1052 payment? Kidding

If you don't mind me asking, when is your first payment due under the new terms?

AVSgirl1985 · 04-08-2009, 08:57 PM

Quote:

Originally Posted by Hopefull2009

LOL - IDK but I'll trade you my $3057 payment for your $1052 payment? Kidding

If you don't mind me asking, when is your first payment due under the new terms?

Hopefull2009 I know, it sounds so low. My mom was reading our hardship letter and she was shaking her head at how tiny the amount seemed to her! Pennies for them, big money for us at the moment! Hopefully yours gets reduced to what you can afford!
Our first payment is due May 1st...but they want an answer of acceptance by the 20th. I'll post tomorrow the results of my calls again. They told me to call them again and ask to be transferred to an inner number...I was on hold for over 40 minutes just to get to them, and ended up hanging up! They said i'll have more luck early in the morning!

Hopefull2009 · 04-08-2009, 09:17 PM

Quote:

Originally Posted by AVSgirl1985

Our first payment is due May 1st...but they want an answer of acceptance by the 20th. I'll post tomorrow the results of my calls again. They told me to call them again and ask to be transferred to an inner number...I was on hold for over 40 minutes just to get to them, and ended up hanging up! They said i'll have more luck early in the morning!

Good luck!! I had to laugh - the on hold message at Aurora today stated "we appreciate your patient, music, then a suggestion to maybe take a moment and relax, breathe.." I thought that was kind of cute

I also find that usually calling around 4 or 4:30 gets a quick response. I'm assuming because maybe everyone is either on the road on the way home or ??

Anyway, GOOD LUCK and post back tomorrow - I'm betting it was a big 'ol typo in there.

AVSgirl1985 · 04-08-2009, 09:44 PM

Quote:

Originally Posted by Hopefull2009

Good luck!! I had to laugh - the on hold message at Aurora today stated "we appreciate your patient, music, then a suggestion to maybe take a moment and relax, breathe.." I thought that was kind of cute

I also find that usually calling around 4 or 4:30 gets a quick response. I'm assuming because maybe everyone is either on the road on the way home or ??

Anyway, GOOD LUCK and post back tomorrow - I'm betting it was a big 'ol typo in there.

oh my gosh. lol

they're trying to relax you so you don't chew their head off when you DO talk to them! 4 was when I was calling

this is some "inner section" that doesnt have its own phone number..Fannie Mae's decision line or something close to that.

dino1ny · 04-08-2009, 11:04 PM

It is possible the $672 payment was a Forebearance / Trial payment. In reality your payment may have gone up from the 4672, but it actually went down from the $1239... Just a thought

AVSgirl1985 · 04-09-2009, 07:31 AM

here's our "exciting" update.

hubby called them. this is what they say...
the difference between the $672 (it still says that in their system) and our current loan mortgage amount will be tacked on to our mortgage for 3 months. as well as a late fee for 3 months. and for those 3 months trial period we will be reported to the credit bureau. and after our 3 months are up, if we don't show that we have more income, then we wont get the loan modification.

.
my hubby isn't excited about the prospect of having almost $2000 added to our loan amount. and his solution is to either live going backwards, but paying the full amount. or not paying at all and let them take the house.
i completely disagree. i've recently started babysitting in our home for an extra $125 a week...so that would probably count as extra income. And i tell my husband that if he's willing to completely shoot our perfect credit history ANYWAYS, why not try it their way, let them tack on the $2k (we'd pay about the same for a refinance, right?), and maybe get the $672 in the end after all. If not, THEN we can stop paying what we dont have.
he tells me I have until the end of the day to make up MY decision. (one of his choices). He won't listen to mine, which makes perfect sense to me.
What do you guys think from another persons perspective?
The only thing I am NOT willing to do is live like we used to! Have nothing with the prospect of having even more nothing and fall behind.

CW California · 04-09-2009, 09:01 AM

What is the interest rate and balance on your loan? Maybe you could back into the payment?

AVSgirl1985 · 04-09-2009, 09:04 AM

Quote:

Originally Posted by CW California

What is the interest rate and balance on your loan? Maybe you could back into the payment?

the rate is 7% and we still owe $141,000 on it.
What does "back into the payment" mean?

LHarveyMadman · 04-09-2009, 11:19 AM

Okay, so what was offered to you was essentially a forbearance plan, to give you time to increase your income. So it's not a modification, but they're dangling one out there.

In order for folks here to offer you suggestions, you'll have to provide some more details about your loan and income situation.

You mentioned your loan balance and interest rate.

What is the market value of your home?

Do you have any other loans secured by the property (i.e. HELOC or second mortgage?

What is your hardship? Loss of job, medical expenses, new child?

What is your current monthly income?

How much of a deficit, if any, are you running?

AVSgirl1985 · 04-09-2009, 11:25 AM

Quote:

Originally Posted by LHarveyMadman

Okay, so what was offered to you was essentially a forbearance plan, to give you time to increase your income. So it's not a modification, but they're dangling one out there.

In order for folks here to offer you suggestions, you'll have to provide some more details about your loan and income situation.

You mentioned your loan balance and interest rate.

What is the market value of your home?

Do you have any other loans secured by the property (i.e. HELOC or second mortgage?

What is your hardship? Loss of job, medical expenses, new child?

What is your current monthly income?

How much of a deficit, if any, are you running?

The hardship is much less income AND when our loan was finally approved, it was hundreds higher than what we were expecting. We had been working on this house for over 3 years...building, loan paperwork, etc...so we went ahead and accepted the current payment

I'm not sure what the value is, probably what we owe. We paid over $30,000 in cash for it.
We have no other loans, just this mortgage.
Our current income per month is about $2000...sometimes more, sometimes less. I HAVE started babysitting for about $500 per month, but this was started last week.
We're barely making ends meet, and sometimes falling behind by $100+, depending on how many hours hubby worked.

LHarveyMadman · 04-09-2009, 11:40 AM

If you really think that your home is worth about the same as what you owe, then you really be looking into the "Home Affordable Refinance" program through the new Obama plan.

http://www.makinghomeaffordable.gov

Your current payment of $1239 - is that with property tax and homeowners insurance escrowed? If so, how much of your monthly payment is principal and interest?

AVSgirl1985 · 04-09-2009, 12:19 PM

Quote:

Originally Posted by LHarveyMadman

If you really think that your home is worth about the same as what you owe, then you really be looking into the "Home Affordable Refinance" program through the new Obama plan.

http://www.makinghomeaffordable.gov

Your current payment of $1239 - is that with property tax and homeowners insurance escrowed? If so, how much of your monthly payment is principal and interest?

monthly principal and interest is $946.07 and most of that is interest.

LHarveyMadman · 04-09-2009, 12:37 PM

Okay, so about $300 of your home expenses is immutable (the insurance and tax).

The $2000 income - is that gross or net? If $2000 is net, then what is your gross?

If you were to do the Home Affordable Refinance and snag a 4.75% interest rate (very doable), your principal and interest payments would go to $735.52 per month ($141,000 amortized over 30 years). Your total PITI payments would drop by $200 per month.

AVSgirl1985 · 04-09-2009, 12:41 PM

thats $2000 after taxes...

I believe we WILL try to refinance. Does it take long? even $200 would help out a lot!

LHarveyMadman · 04-09-2009, 01:01 PM

Big question for you now is whether Fannie Mae or Freddie Mac are the investors on your loan. If not, then unfortunately the Obama plan will not be an option to you. You can find out the answer through the link that I gave you.

If yours is not backed by either government entity, then you should try to work with an FHA lender. You would need only 3% equity to get an FHA loan, but it will come with PMI. You might still be able to save some money, though.

The goal of the Obama plan is to get a person's PITI down to about 31-38% of GROSS (pre-tax, pre-deduction income). To many people, this doesn't make any sense, but there's plenty of logic behind this reasoning that I'm not going to get into right now. But that's the way it is.

I'm going to venture a guess and say that your gross income (not including your babysitting) is currently about $2700 - I'm estimating that state, federal, social security, and Medicare tax plus other deductions (health insurance, for example) amount to about 25% of your gross income. If this is somewhat accurate, then your PITI would go from about 44% of your gross income to 37% of gross. Thus, you should be a good candidate for the Home Affordable Refinance plan (if the investor requirements are met).

I have no idea how long this process takes. However, once you start the process then your payments might be suspended for the duration of the process.

Oh, one last thing, participation in this plan by the lenders is voluntary. The Obama plan provides incentives to the lenders to participate, but if your lenders says that they are not doing it, then you're out of luck. But FHA would still be an option.

AVSgirl1985 · 04-09-2009, 01:10 PM

we're Fannie Maes kids.. heh

i'll have hubby call today and see what we can do with refinancing... thank you!

04-08-2009, 03:22 PM	#1 (permalink)
AVSgirl1985 Member Join Date: Apr 2009 Posts: 13 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Loan mod amount went UP! >:((( I am SO frustrated! We qualified for a loan modification and were told over the phone that our new payment for the 3 month trial period will be $672 (went down from $1239). I was jumping up and down with EXTREME joy and shrieking. My husband even made me call back just to make sure this wasn't an april fools joke (the call was made on april 1st), and I was assured that it was not a joke. They told us to wait about 2 weeks for our paperwork and go from there. We got the paperwork today. The amount they want now is $1052. As excited as I was about the $672 was just about how MAD I was about the new amount! I wanted to punch someone!!! Why did this happen?? I've been calling all day long and have been on hold for 2 hours total! One person I spoke to says that in their system it says $672! So what do we do?!? I can't get a hold of anyone! Has this happened to anyone? And with what outcome?

04-08-2009, 03:45 PM	#2 (permalink)
Hopefull2009 Senior Member Join Date: Feb 2009 Posts: 246 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Loan mod amount went UP! >:((( Does the $1052 include your taxes (if they are escrowed) maybe? Although I thought the 31% goal payment was to include the entire house payment (including the taxes).

04-08-2009, 03:51 PM	#3 (permalink)
AVSgirl1985 Member Join Date: Apr 2009 Posts: 13 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Loan mod amount went UP! >:((( I was told (i asked 3 different times) that the $672 includes the taxes...

04-08-2009, 03:52 PM	#4 (permalink)
LHarveyMadman Senior Member Join Date: Oct 2008 Location: California Posts: 554 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Loan mod amount went UP! >:((( You know, it is entirely possible that the figure in your document is a typo. There was a huge error in the preliminary loan mod papers that I received. It said that I had to make a lump-sum payment of $12,000 as part of the modification, something I had not been told over the phone. When I called back to clarify, the analyst couldn't figure out where that number came from. It took a while to get everything squared away, but eventually it did. Remember, these analysts are underpaid and overworked cogs in the wheel. They are human, prone to error just like anyone else. Work calmly with them, run the numbers yourself, and try to figure this out. The fact that their system still shows the $672 figure is a good sign.

04-08-2009, 03:56 PM	#5 (permalink)
AVSgirl1985 Member Join Date: Apr 2009 Posts: 13 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Loan mod amount went UP! >:((( I completely understand the overworked, underpaid thing, and I know I won't get anywhere if i'm rude...so i'm not, on the phone, at all... I really do hope its a typo! And I felt halfway better when one of the people I got through to said it was in the system. Its still frustrating not knowing whats going to happen! oh shoot. do you think they work tomorrow? since its passover? or friday? for good friday? i know this is insensitive, but they need us to decide by the 20th, and these are precious days slipping away!

04-08-2009, 03:58 PM	#6 (permalink)
MichelleLynn Senior Member Join Date: Dec 2008 Posts: 117 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Loan mod amount went UP! >:((( Hope it was a mistake!

04-08-2009, 04:01 PM	#8 (permalink)
LHarveyMadman Senior Member Join Date: Oct 2008 Location: California Posts: 554 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Loan mod amount went UP! >:((( Holy Thursday and Good Friday are not bank holidays in the US. They'll be open.

04-08-2009, 07:02 PM	#9 (permalink)
AVSgirl1985 Member Join Date: Apr 2009 Posts: 13 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Loan mod amount went UP! >:((( has anyone been through this? successfully? unsuccessfully?

04-08-2009, 08:00 PM	#10 (permalink)
Hopefull2009 Senior Member Join Date: Feb 2009 Posts: 246 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Loan mod amount went UP! >:((( LOL - IDK but I'll trade you my $3057 payment for your $1052 payment? Kidding If you don't mind me asking, when is your first payment due under the new terms?

04-08-2009, 11:04 PM	#14 (permalink)
dino1ny Junior Member Join Date: Nov 2008 Posts: 1 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Loan mod amount went UP! >:((( It is possible the $672 payment was a Forebearance / Trial payment. In reality your payment may have gone up from the 4672, but it actually went down from the $1239... Just a thought

04-09-2009, 07:31 AM	#15 (permalink)
AVSgirl1985 Member Join Date: Apr 2009 Posts: 13 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Loan mod amount went UP! >:((( UPDATE here's our "exciting" update. hubby called them. this is what they say... the difference between the $672 (it still says that in their system) and our current loan mortgage amount will be tacked on to our mortgage for 3 months. as well as a late fee for 3 months. and for those 3 months trial period we will be reported to the credit bureau. and after our 3 months are up, if we don't show that we have more income, then we wont get the loan modification.. my hubby isn't excited about the prospect of having almost $2000 added to our loan amount. and his solution is to either live going backwards, but paying the full amount. or not paying at all and let them take the house. i completely disagree. i've recently started babysitting in our home for an extra $125 a week...so that would probably count as extra income. And i tell my husband that if he's willing to completely shoot our perfect credit history ANYWAYS, why not try it their way, let them tack on the $2k (we'd pay about the same for a refinance, right?), and maybe get the $672 in the end after all. If not, THEN we can stop paying what we dont have. he tells me I have until the end of the day to make up MY decision. (one of his choices). He won't listen to mine, which makes perfect sense to me. What do you guys think from another persons perspective? The only thing I am NOT willing to do is live like we used to! Have nothing with the prospect of having even more nothing and fall behind.

04-09-2009, 09:01 AM	#16 (permalink)
CW California Senior Member Join Date: Feb 2009 Location: SoCal Posts: 1,127 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Loan mod amount went UP! >:((( What is the interest rate and balance on your loan? Maybe you could back into the payment?

04-09-2009, 11:19 AM	#18 (permalink)
LHarveyMadman Senior Member Join Date: Oct 2008 Location: California Posts: 554 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Loan mod amount went UP! >:((( Okay, so what was offered to you was essentially a forbearance plan, to give you time to increase your income. So it's not a modification, but they're dangling one out there. In order for folks here to offer you suggestions, you'll have to provide some more details about your loan and income situation. You mentioned your loan balance and interest rate. What is the market value of your home? Do you have any other loans secured by the property (i.e. HELOC or second mortgage? What is your hardship? Loss of job, medical expenses, new child? What is your current monthly income? How much of a deficit, if any, are you running?

04-09-2009, 11:40 AM	#20 (permalink)
LHarveyMadman Senior Member Join Date: Oct 2008 Location: California Posts: 554 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Loan mod amount went UP! >:((( If you really think that your home is worth about the same as what you owe, then you really be looking into the "Home Affordable Refinance" program through the new Obama plan. http://www.makinghomeaffordable.gov Your current payment of $1239 - is that with property tax and homeowners insurance escrowed? If so, how much of your monthly payment is principal and interest?

04-09-2009, 12:37 PM	#22 (permalink)
LHarveyMadman Senior Member Join Date: Oct 2008 Location: California Posts: 554 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Loan mod amount went UP! >:((( Okay, so about $300 of your home expenses is immutable (the insurance and tax). The $2000 income - is that gross or net? If $2000 is net, then what is your gross? If you were to do the Home Affordable Refinance and snag a 4.75% interest rate (very doable), your principal and interest payments would go to $735.52 per month ($141,000 amortized over 30 years). Your total PITI payments would drop by $200 per month.

04-09-2009, 12:41 PM	#23 (permalink)
AVSgirl1985 Member Join Date: Apr 2009 Posts: 13 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Loan mod amount went UP! >:((( thats $2000 after taxes... I believe we WILL try to refinance. Does it take long? even $200 would help out a lot!

04-09-2009, 01:01 PM	#24 (permalink)
LHarveyMadman Senior Member Join Date: Oct 2008 Location: California Posts: 554 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Loan mod amount went UP! >:((( Big question for you now is whether Fannie Mae or Freddie Mac are the investors on your loan. If not, then unfortunately the Obama plan will not be an option to you. You can find out the answer through the link that I gave you. If yours is not backed by either government entity, then you should try to work with an FHA lender. You would need only 3% equity to get an FHA loan, but it will come with PMI. You might still be able to save some money, though. The goal of the Obama plan is to get a person's PITI down to about 31-38% of GROSS (pre-tax, pre-deduction income). To many people, this doesn't make any sense, but there's plenty of logic behind this reasoning that I'm not going to get into right now. But that's the way it is. I'm going to venture a guess and say that your gross income (not including your babysitting) is currently about $2700 - I'm estimating that state, federal, social security, and Medicare tax plus other deductions (health insurance, for example) amount to about 25% of your gross income. If this is somewhat accurate, then your PITI would go from about 44% of your gross income to 37% of gross. Thus, you should be a good candidate for the Home Affordable Refinance plan (if the investor requirements are met). I have no idea how long this process takes. However, once you start the process then your payments might be suspended for the duration of the process. Oh, one last thing, participation in this plan by the lenders is voluntary. The Obama plan provides incentives to the lenders to participate, but if your lenders says that they are not doing it, then you're out of luck. But FHA would still be an option.

04-09-2009, 01:10 PM	#25 (permalink)
AVSgirl1985 Member Join Date: Apr 2009 Posts: 13 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Loan mod amount went UP! >:((( we're Fannie Maes kids.. heh i'll have hubby call today and see what we can do with refinancing... thank you!

Thread Tools
Show Printable Version Email this Page
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode