gmac trial approval, now need the pros and cons!!

[debo0187]

First of all, this is a damn good forum!! I have been browsing for 3 months now. endless amounts of info.

Hers's my deal. I recently got approved for the hamp 4 month mod through gmac. They sent my paperwork. payments went from 1357 to 1189. Why didnt it go lower? I reported gross of 3855 a month before debts. Do they calculate the 31% before debts or after debts? should I accept this trial payment? I definitely want it lower. Will my permanent modification be lower if I accept this offer and get approved after the trial? thanks in advance for information given!!

[heidi79]

31% of 3855 is $1,195.05 so the trial payment sounds like it was calculated correctly. The calculation is based on gross income.

Does the 1357 you have now include your taxes and insurance? The 1189 will include the escrow amount for taxes and insurance so it's up to you if it's a good deal or not.

According the the program, unless ther is a big change in income, the final payment will be right in that range, give or take some dollars.

[debo0187]

Thanks Heidi, I first reported 2000.00, I am self employed, and they turned me down. I resubmitted the second month with the 3855, and they approved me. I dont understand what they think is substantial income. Being self-employed in the construction industry is getting very hard. I was hoping for the 2% interest rate at the end of the hamp for permanent modification.

[debo0187]

Originally Posted by debo0187

Thanks Heidi, I first reported 2000.00, I am self employed, and they turned me down. I resubmitted the second month with the 3855, and they approved me. I dont understand what they think is substantial income. Being self-employed in the construction industry is getting very hard. I was hoping for the 2% interest rate at the end of the hamp for permanent modification.

If my income changes by 350 bucks less a month at the end of trial, will this end up in denial?

[MyHAMP]

Originally Posted by debo0187

If my income changes by 350 bucks less a month at the end of trial, will this end up in denial?

Since we don't know the other NPV-factors, we can't answer that question. Theoretically, ANY drop in income COULD lead to a denial since we don't know by what margin the initial NPV-test was positive..

[imlars]

Originally Posted by debo0187

Thanks Heidi, I first reported 2000.00, I am self employed, and they turned me down. I resubmitted the second month with the 3855, and they approved me. I dont understand what they think is substantial income. Being self-employed in the construction industry is getting very hard. I was hoping for the 2% interest rate at the end of the hamp for permanent modification.

If you were approved for the HAMP trial period, made all of your payments as scheduled and are still making enough to sustain the trial period payment amount you shouldn't have a problem. Your new mortgage payment will include your taxes and insurance. The interest rate will be 2% for the first 5 years, then it will increase 1% per year to a cap amount where it will fix for the life of the loan.
The lender wants to see you with a small surplus at the end of the month. Pick a number between $100 & $150 and juggle where you can to get it to fit into what you net per month. If you are self employed you must have to submit monthly P&L's so I'm sure between them and scaling back on some household expenses you can eek out something to keep them happy. A deficit will tell them you just cannot afford to keep the home and they will suggest a short sale.

[debo0187]

Originally Posted by imlars

If you were approved for the HAMP trial period, made all of your payments as scheduled and are still making enough to sustain the trial period payment amount you shouldn't have a problem. Your new mortgage payment will include your taxes and insurance. The interest rate will be 2% for the first 5 years, then it will increase 1% per year to a cap amount where it will fix for the life of the loan.
The lender wants to see you with a small surplus at the end of the month. Pick a number between $100 & $150 and juggle where you can to get it to fit into what you net per month. If you are self employed you must have to submit monthly P&L's so I'm sure between them and scaling back on some household expenses you can eek out something to keep them happy. A deficit will tell them you just cannot afford to keep the home and they will suggest a short sale.

So what you're saying is my permanent modification may drop to a 2 percent interest rate? so that means that my trial payment is more than a permanent mod payment will be?

[MyHAMP]

Originally Posted by debo0187

So what you're saying is my permanent modification may drop to a 2 percent interest rate? so that means that my trial payment is more than a permanent mod payment will be?

Not always - but often. I've seen several cases where the trial was about 10% higher than the permanent payment. Our trial is $1317.50 and 31% of gross is about $1180.
BTW, the interest can be as low as 2% - but that depends on your gross income and your mortgage debt amount. If you're approved, the less money you earn and the more you owe, the closer you will get to a 2% initial APR and a 40 year term.

[imlars]

Originally Posted by debo0187

So what you're saying is my permanent modification may drop to a 2 percent interest rate? so that means that my trial payment is more than a permanent mod payment will be?

The interest will drop to 2% to facilitate you paying back the delinquent amount within the remaining term of your loan. Sometimes they will drop the interest and extend the term of the loan to 40 years to get what you owe. If they didn't do that your payment would go up. They don't just forgive the delinquent amount you pay it back. Your permanent mod payment will be very close to what your trial payment is now. Doubtful it will go down.

[rsar999]

not really sure why...but my actual payment was 877, trial payment was 746, and final mod pay was 476, not that im complaining and my new interest rate is 2 %

[MyHAMP]

Originally Posted by rsar999

not really sure why...but my actual payment was 877, trial payment was 746, and final mod pay was 476, not that im complaining and my new interest rate is 2 %

And that's HAMP, including escrow? Seems like they made a mistake and switched the 7 and 4.

[debo0187]

Originally Posted by rsar999

not really sure why...but my actual payment was 877, trial payment was 746, and final mod pay was 476, not that im complaining and my new interest rate is 2 %

did income change at the end of the trial payments??

[BadBobMo]

debo
My lender did not send any "Trail Period" HAMP Doc's did you get HANP Doc's W/Logos ect. for your Trail Period?
Thanks

[debo0187]

Originally Posted by BadBobMo

debo
My lender did not send any "Trail Period" HAMP Doc's did you get HANP Doc's W/Logos ect. for your Trail Period?
Thanks

yes, they sent it rather quick, fedex. I havent sent em back yet. Because I want a lower payment. They are playin with the numbers . and only saved me 150 bucks a month

[rsar999]

no change in income for me not sure why the big drop, and yes it includes escrow

[debo0187]

Originally Posted by rsar999

no change in income for me not sure why the big drop, and yes it includes escrow

and you are with gmac? did they give you 2% interest over 40 years?

[imlars]

Originally Posted by debo0187

So what you're saying is my permanent modification may drop to a 2 percent interest rate? so that means that my trial payment is more than a permanent mod payment will be?

The trial period payments you are making now are not going toward your mortgage, they are going into a holding account. You are not paying any interest rate at this time, you are not paying any escrows at this time.
People who think they can adjust their income to get the payment they want are in for a surprize. It doesn't work that way.
Remember, they have your tax returns for at least the last 2 years, and by signing the 4506-T you have given them permission to dig futher into your personal finances.
Your trial period payments are approximately what your permanent mod payments will be for the first 5 years. After that your interest rate will increase 1% per year to a capped amount and fix.
There is a limit to how much can capitalized back into the loan. I have seen people not get the HAMP because the lender could not fit the delinquent amount back into the loan even with the 2% and the extended term. Considering that as the legal system sees it you broke your contract with the lender by defaulting on your loan. You should be happy they are working with you at all because if the government wasn't giving them money to pick up your slack you'd probably have a trustee sale date by now.

[debo0187]

so they dropped my payment 150 bucks for the trial. So youre saying my permanent modification can be more than my original payment??

[MyHAMP]

Originally Posted by imlars

The trial period payments you are making now are not going toward your mortgage, they are going into a holding account..

...until the funds on hold are sufficient to pay for a regular payment under your current loan. The funds are taken out of the holding account and are applied towards your oldest, delinquent payment.

[MyHAMP]

Originally Posted by debo0187

so they dropped my payment 150 bucks for the trial. So youre saying my permanent modification can be more than my original payment??

So far, I haven't seen that happen. They aren't supposed to be higher than your trial in the first place.

[imlars]

Originally Posted by debo0187

yes, they sent it rather quick, fedex. I havent sent em back yet. Because I want a lower payment. They are playin with the numbers . and only saved me 150 bucks a month

You need to know that you only get one chance at the HAMP. If you do not accept that offer there will not be another one made. This is not Let's Make a Deal. You owe the lender that money, you signed documents promising to pay them back. Thanks to the government you are getting the opportunity to stay in your home even though you aren't able to hold up your end of the deal. What you want and what you need are two different things. You best take that offer because its not going to get any better.

[MyHAMP]

Originally Posted by imlars

You need to know that you only get one chance at the HAMP. If you do not accept that offer there will not be another one made. This is not Let's Make a Deal. You owe the lender that money, you signed documents promising to pay them back. Thanks to the government you are getting the opportunity to stay in your home even though you aren't able to hold up your end of the deal. What you want and what you need are two different things. You best take that offer because its not going to get any better.

I agree. HAMP was not created to save amount x below your pillow every month. It wasn't created to erase negative equity, either. It was created to adjust your (increased) monthly mortgage to your (reduced) monthly income (said 31% of your gross).

It's a rescue plan to avoid foreclosure, not a wealth-building plan.

[debo0187]

Originally Posted by MyHAMP

I agree. HAMP was not created to save amount x below your pillow every month. It wasn't created to erase negative equity, either. It was created to adjust your (increased) monthly mortgage to your (reduced) monthly income (said 31% of your gross).

It's a rescue plan to avoid foreclosure, not a wealth-building plan.

right now you all are talkin to the birds, I am current on my mortgage. I'm not tryin to build wealth, who do you 2 work for? You 2 sound like two angry bankers. ME, a tax paying citizen getting help from the government that I pay every year, Which my money went to the banks is getting helped. You 2 guys seem like you all have the game wrong, do me a favor, fall back out of this thread MyHAMP AND IMLARS

[MyHAMP]

Originally Posted by debo0187

right now you all are talkin to the birds, I am current on my mortgage. I'm not tryin to build wealth, who do you 2 work for? You 2 sound like two angry bankers. ME, a tax paying citizen getting help from the government that I pay every year, Which my money went to the banks is getting helped. You 2 guys seem like you all have the game wrong, do me a favor, fall back out of this thread MyHAMP AND IMLARS

ME, a banker?

You obviously don't know me. Neither me nor my situation. Maybe you should read my other posts first. I wasn't even referring to you in person. I just wanted to point out what HAMP is and what not. It's an option to save your home. Nothing more!

Now you are current on your mortgage and might save an additional $150/month from HAMP. Isn't that wonderful?

So what are YOU complaining about?

imlars only told you "that's as good as it gets" and I agreed. What's your problem with that?

I already answered 3 of your questions in this thread. You could have told me before that I should "fall back"...
I'll gladly drop out this thread because I won't waste my time on members who only appreciate replies they want to hear...

[debo0187]

Originally Posted by MyHAMP

ME, a banker?

You obviously don't know me. Neither me nor my situation. Maybe you should read my other posts first. I wasn't even referring to you in person. I just wanted to point out what HAMP is and what not. It's an option to save your home. Nothing more!

Now you are current on your mortgage and might save an additional $150/month from HAMP. Isn't that wonderful?

So what are YOU complaining about?

imlars only told you "that's as good as it gets" and I agreed. What's your problem with that?

I already answered 3 of your questions in this thread. You could have told me before that I should "fall back"...
I'll gladly drop out this thread because I won't waste my time on members who only appreciate replies they want to hear...

u handled the answers like i was on welfare or something, which I am not. I only want what my tax dollars pay for.