loan mod U.S. Bank, help?

[rimuga]

In May 09' I applied for a mod. It is now Oct. and I finally got a "congratulations your approved" letter from U.S. Bank. The problem is that the new payment is higher than the old one and it is NOT 31% of my income. My income now that I am unemployed due to company closing their doors, is $1690 gross a month the new payment they are asking me to pay is $910 a month. What happened? That is over half of my income. I tried calling, the HOPE helpline people called and basically U.S. Bank is saying that it is correct and "take it or leave it". Does anyone know anything else I can do? I am up to date on my payments, because I haven't paid anything since Aug. except for the house payment. I don't want to lose my house, but I am stuck. Any help would be greatly appreciated.

[rimuga]

I forgot to mention in my first post that the mortgage amount is about 125,000 and the interest rate they were quoting for the new payment was 2% for 60 months, then it would increase by 1% a year until I hit the cap. I do not know what the cap is, but if $910 is more than my original loan payment which has a 7.35 intrest rate, then that amount will probably end up around $1,000 a month by time its all said and done. I'm not a math whiz or anything, but this just doen't add up.

[MyHAMP]

Did you report you change in income to the lender? If not, that's the reason for this high payment. While you are considered for HAMP, you have to inform your servicer of any change in income. That's part of the deal. Oh, BTW, your bank is incorrect. This mod wouldn't even meet the guidelines of HAMP and the treasury, so it's not a "take it or leave it".

[rimuga]

I recieved my packet that asked for my 08' taxes, my proof of income, and taxes and insurance info., and the hardship letter for the house after my job loss. So the income information they received was accurate and up to date. I've talked to 4 different people there to try to find out what they used to calculate my income. Each person tells me they send the packets out and the government is the one that comes up with the new payment. I don't know what to do at this point, I know this isn't right according to the guidelines for the program.

[MyHAMP]

Originally Posted by rimuga

I recieved my packet that asked for my 08' taxes, my proof of income, and taxes and insurance info., and the hardship letter for the house after my job loss. So the income information they received was accurate and up to date. I've talked to 4 different people there to try to find out what they used to calculate my income. Each person tells me they send the packets out and the government is the one that comes up with the new payment. I don't know what to do at this point, I know this isn't right according to the guidelines for the program.

Well, of course does the government (treasury) calculate the payment, BUT if the numbers they get from the servicer are wrong, it doesn't matter.

I'd say you get free counseling, person on person, by arranging an appointment. Call 1-888-995-HOPE.

They also contact your servicer to straighten things out.

There simply is no payment of 50% of your gross under HAMP and they can't create their own rules!

[rimuga]

I called the Hope hotline the day I got my trial modification packet, and they called the bank while I was on the line. The lady that she got ahold of while we were on three way is the one that said, "take it or leave it". This was a supervisor in the loss litigation department. She wouldn't or couldn't explain why the payment was so high. The lady from the Hope hotline told me to go on the Fannie Mae/Freddie Mac websites to see if they hold my loan. I did and they don't. U.S. Bank owns my loan. She couldn't offer me any other advice as to what I should do next.

[MyHAMP]

The fact that US Bank owns the loan could be a problem. BTW, do you owe more than what the property is worth?

I came up with a monthly payment of about $520 - using your current income. That might not be enough to get a HAMP-approval and pass the NPV-test.

Keep in mind that this amount has to include insurance, tax and HOA-fee. So there is not much left to pay for the mortgage. A regulation under HAMP is that if the interest bearing amount of your loan is less than what your property is worth, the lender is NOT REQUIRED to modify. Even worse: If your NPV is negative, they couldn't even modify you under HAMP at all.

However, this is still no reason why they are asking for this high payment. My assumption is that they want to collect this money from you for a few months and deny you later - either for a failed NPV or lack of income. They could NEVER get your mod through the treasury - not with these numbers.

Sorry I don't have better news - but this sounds like a rip-off attempt to me.

Maybe you can give us some input on what your property is worth and how much your taxes, insurance etc. are. I could have a look at it.

[rimuga]

The taxes and insurance come up to $152 a month. I'm not sure what my house is worth right now. If I had to guess 115k-120k.

[rimuga]

what is NPV? They already set up the escrow and paid my taxes and insurance for the year before I accepted or declined the trial mod, heck they paid those before they even came up with the trial mod.

[MyHAMP]

Originally Posted by rimuga

The taxes and insurance come up to $152 a month. I'm not sure what my house is worth right now. If I had to guess 115k-120k.

What is the current term of your mortgage? I'm curious because the payment is soo high ($910-$152) for such a low principal amount..

[MyHAMP]

Originally Posted by rimuga

what is NPV? They already set up the escrow and paid my taxes and insurance for the year before I accepted or declined the trial mod, heck they paid those before they even came up with the trial mod.

NPV= Net Present Value.

They compare the expected cash-flow of an unmodified loan to a modified loan - in other words, if it makes financially more sense to foreclose or to modify - from THEIR POV, of course..

[rimuga]

current payment is $875, 30 year fixed, interest rate 7.35%. The loan was originally 127k. I now owe 123.5k. I took out the loan in January of 2007. My taxes and insurance were paid seperate at the time I took the loan.

[rimuga]

I don't know if this helps, but my income is $1690 a month gross. After taking everything into account-house payment at $875, utilities, groceries, life insurance, and 1 charge card, and a equity line payment. I am upside down $616 a month. I have the money in a retirement account that I can pull to pay off the charge card and the equity line, but I don't want to pay the line off if I'm gonna end up losing my house. If I can get this mod, pay off those two bills, then I will be to the positive at months end. Not alot to the positive, but enough to get by.

[MyHAMP]

Originally Posted by rimuga

current payment is $875, 30 year fixed, interest rate 7.35%. The loan was originally 127k. I now owe 123.5k. I took out the loan in January of 2007. My taxes and insurance were paid seperate at the time I took the loan.

That's unbelievable!

OK, they "reduced" you payment from $1030 to $910.

I used the calculator on bankrate and according to the numbers of your loan, you monthly payment under HAMP (at 2% for the first 5 years, INCLUDING taxes and insurance) shouldn't exceed $650/month.

I used your current balance ($123.5K), remaining term (27 years) and initial interest-rate of 2%. The result is $493.62.

So no matter what income they used, there is something terribly wrong!
With 2% interest, this payment can't be that high.

I still have a feeling that this is not HAMP because they usually can't reveal any monthly payments of a potential modification before you even started the trial period. We will make our 3rd trial payment on 11/1 and still don't know these numbers. That all smells fishy to me!

[AZOwner]

Please sign the petition but together by Sr. Member caldwell:

Everyone - here are is our petition on two places on the web. Please sign them. Send the links to your e-mail buddies. Put it up on your facebook pages. Lets make this happen!

PETITION TO THE U.S. GOVERNMENT FROM AMERICAN HOMEOWNERS | Petition2Congress |

TO THE UNITED STATES GOVERNMENT FROM AMERICAN HOMEOWNERS Petition

[AZOwner]

Please sign the petition but together by Sr. Member caldwell:

Everyone - here are is our petition on two places on the web. Please sign them. Send the links to your e-mail buddies. Put it up on your facebook pages. Lets make this happen!

PETITION TO THE U.S. GOVERNMENT FROM AMERICAN HOMEOWNERS | Petition2Congress |

TO THE UNITED STATES GOVERNMENT FROM AMERICAN HOMEOWNERS Petition

[rimuga]

875 for 30 years at 7.35% is what the original loan was in jan 07'. The mod trial payment is $910 at 2% for 3 months. Then who knows what the payment will be.

[rimuga]

I looked online at my loan activity and if you take what they are making in intrest currently on my loan and add my escrow to it then this is what it looks like. monthly intrest 758 + monthly escrow 152 = 910 I wonder if that is just coinsidence (sp?)

[MyHAMP]

Originally Posted by rimuga

875 for 30 years at 7.35% is what the original loan was in jan 07'. The mod trial payment is $910 at 2% for 3 months. Then who knows what the payment will be.

In your second post, you wrote:

"and the interest rate they were quoting for the new payment was 2% for 60 months"

The trial-period has no other interest than your original loan. Unless you get a final mod, all other conditions and terms of your current mortgage stay in place.

So did they actually TELL you that $910 will be your monthly payment for the first 5 years? BTW, your 3 months trial payment should be close to what you will be paying after your final mod, so it doesn't matter.

The 2% and the $910/month SIMPLY DON'T GO ALONG with your mortgage. That payment is too high at that APR!

[MyHAMP]

Originally Posted by rimuga

I looked online at my loan activity and if you take what they are making in intrest currently on my loan and add my escrow to it then this is what it looks like. monthly intrest 758 + monthly escrow 152 = 910 I wonder if that is just coinsidence (sp?)

Possible - but that's not at a 2% interest-rate. Go to bankrate.com and play a bit with the calculators.

Your interest and principal payment (PI) on a loan of $123.5K over a term of 27 years would be MUCH LOWER than $758/month at 2% APR. It's about $495/month, to be exact.

[rimuga]

my papers state that my intrest rate would be 2% for the first 60 months, then increase by 1% a year until I capped off at the lock in rate which would be determined after the 90 day trial period. It says the lock in rate would be the rate that Fannie Mae/ Freddie Mac are using at that time. It also said the trial payment and the mod. payment would be close to the same. I know the numbers don't add up, and this is my problem. I've tried getting somebody at the bank to look at it again, because somebody messed up, but I am having no luck. Do I reapply? or just let the house go? or is there another option?

[MyHAMP]

Originally Posted by rimuga

my papers state that my intrest rate would be 2% for the first 60 months, then increase by 1% a year until I capped off at the lock in rate which would be determined after the 90 day trial period. It says the lock in rate would be the rate that Fannie Mae/ Freddie Mac are using at that time. It also said the trial payment and the mod. payment would be close to the same. I know the numbers don't add up, and this is my problem. I've tried getting somebody at the bank to look at it again, because somebody messed up, but I am having no luck. Do I reapply? or just let the house go? or is there another option?

That's the exact procedure as required under HAMP. What really confuses me is that payment amount. It can always happen that they make a typo and have your wrong info in the system, leading to a wrong payment. HOWEVER, I've never seen a case where the payments don't match the loan itself - no matter what your income is..

I really would get a consultant. Although you already called 1-888-995-HOPE, I strongly suggest you see a consultant IN PERSON, NOT over the phone. That's what we did to have a back-up in case something goes wrong. You never know who you get on the phone. We decided that our home was so important that we could justify spending an afternoon with a consultant. You order a pizza over the phone - but you certainly don't wan't depend on a single phone-call when your home is in jeopardy.

[rimuga]

I will set up that consultation, and HOPE for the best. I will post back when I get any different information. Thanks for your time, at least I know I'm not crazy, these numbers don't add up. Even though the bank insists they do.

[MyHAMP]

Originally Posted by rimuga

I will set up that consultation, and HOPE for the best. I will post back when I get any different information. Thanks for your time, at least I know I'm not crazy, these numbers don't add up. Even though the bank insists they do.

You're welcome, Good luck...and keep us up-to-date!

[rimuga]

UPDATE

U.S. Bank sent me a new application packet for the program, they said I need to get my info around and send it back in and I will have to start all over. It took almost 6 months to get the last trial mod. and it was messed up. I will try it again because I would like to keep my house, hopefully they do it right this time.