AHMSI Modification Surplus Question

[Hank123]

Hi All,

Was turned down today under the HAMP program because our mortgage payment is already less than 31% (PI only) when taking our total household income into account (my income alone puts us over and I'm the only one on the loan but they figured in my wife's income as well).

Anyhow, when figuring out the surplus do they calculate based on gross or net?

Thanks.

[Evan Bedard]

Hi hank123,

Was turned down today under the HAMP program because our mortgage payment is already less than 31% (PI only) when taking our total household income into account (my income alone puts us over and I'm the only one on the loan but they figured in my wife's income as well).

Anyhow, when figuring out the surplus do they calculate based on gross or net?

They will calculate your income using your gross pay. Also they will want to see your wife's income as well if she is contributing to household expenses...

[Hank123]

So to calculate the surplus for a traditional modification they are going to work off our gross and totally disregard what we pay in taxes and health insurance?

I understand that they base the 31% figure for obtaining a HAMP modification on gross (which, as I said, we were turned down for), but how can they get an accurate picture of our finances and the surplus when working the figures to see if we qualify for a traditional modification if they don't take what we pay in taxes into account? That would artificially inflate our net disposable income by almost a thousand dollars per month.

I'm confused.

[easydoesit]

I am bumping this old thread. I have been searching thru the site, and there seems to be a lot useful information here but I don't see anything related to my specific problem. My apologies if this has already been answered elsewhere, please point this stressed homeowner in the right direction.

Can someone please explain how AHMSI calculates surplus amount and what amount they are looking for? I submitted my finances for a traditional modification but have been denied because "the surplus amount was not right" (trying to get additional information, but no luck yet). I can cut expenses if necessary, but I don't know where they want me to end up. Is there anyone who can help point me in the right direction? I really want to keep my family of 6 in our home. Thanks in advance!

[Evan Bedard]

Can someone please explain how AHMSI calculates surplus amount and what amount they are looking for? I submitted my finances for a traditional modification but have been denied because "the surplus amount was not right" (trying to get additional information, but no luck yet). I can cut expenses if necessary, but I don't know where they want me to end up. Is there anyone who can help point me in the right direction?

Welcome and thanks for joining the community.

Are you currently pursuing a regular in-house modification or a loan mod under the government's Home Affordable Modification Program (HAMP)?

[easydoesit]

Welcome and thanks for joining the community.

Are you currently pursuing a regular in-house modification or a loan mod under the government's Home Affordable Modification Program (HAMP)?

Hello,

It is an in-house modification. I just learned this morning that they are denying me, based on them saying that my expenses are too high and my cushion too low. However, the expenses they quoted me are way off of what my actuals are. I don't know how they got the incorrect information. My loan balance is $683K, payoff is $755K and they were trying for a P&I payment of $683/mo!! No way would they approve that, neither would I frankly. I can afford much more. Their fully amortized payment (P&I plus escrow) they were trying to reach was roughly $1450 - less than 20% of my documented NET income (less than 15% of my GROSS)!! Something is way, way off in the figures they are using. I'm very concerned because they denied me for an in-house modification on 10/5, then denied me for the new "Alternative Modification" program on 10/11 based on the same reasoning. I can afford a payment much higher than what they "proposed" and still have a large cushion remaining. They are submitting me for a HAMP-2 mod but with the payoff amount so high it won't pass (BTW, they payoff is so high because they have dragged this on forever and keep capitalizing the interest - balance owed would qualify for HAMP). I have been trying with them for nearly 2 years with absolutely no success. I make a good living - not huge but certainly enough to afford a reasonable payment, but they set the bar at such a low payment and then denied it because they couldn't defer enough balance to reach the payment! I am concerned that once the HAMP-2 fails they will sell at auction (auction date is set for the 5th of every month, and keeps getting postponed each month because we are undergoing the mod attempt).

I believe what is happening is they are (maybe inadvertently) "double-dipping" some of my expenses - i.e. I listed *everything* on my financial analysis form, including auto loan, student loans, etc. - and then they pulled my credit report, and added the amounts it shows me owing on those loans to the amount I stated - artificially driving my apparent expenses through the roof when in reality they are nowhere near what they have stated.

This is probably a little hard to follow - sorry for the stream-of-consciousness, I just found out a few hours ago and my mind is frantic. To sum up, I have two questions:

1) What is the target they are looking for to calculate a payment for an in-house modification? I can clarify my financials to them, but I need to know how they are going to look at it. How much of a cushion do they want? I don't mind cutting expenses anywhere necessary to save my home.

2) Assuming that they are using inaccurate financials to support their recommended "affrordable" payment, is there an appeals process? How can I get them to reconsider the request utilizing clarified financial information?

Appreciate any replies, as well as any information about who I can contact within AHMSI (now Homeward, I guess) to sort this out. The guys who answer the phone aren't helpful. I'm afraid I don't have much time to get this sorted out. Thanks.