I received my modification agreement today. I'm very confused.
I see that the interest is the same as before @ 8.375. I thought the interest through the HAMP program was going to be 2% and then adjust upward til it reached the market rate currently or what it was when I applied for the loan modification.
My new principal balance on my loan is 355,242.68, which is about 12,000 more than my original loan of 342,400. That's not the problem.
My paperwork shows Years for loan 1-28 with 325 payments of $1573.34 total monthly payments.
It shows that a final balloon payment on the interest bearing principal balance of $107,393.39 is due on the Maturity Date.
Does this mean that after 325 payments of the $1573.34, I owe another payment in the amount of $107,393.39.
Then on the next page it read the following:
The deferred principal balance of $198,242.68 will be due as a balloon payment on the earlier of, payoff of the interest bearing principal balance, transfer of the property or on the modified maturity date.
Does this mean that after the 325 payments of the $1573.34, that I have another balloon payment in the amount of $198,242.68. Meaning that after I pay 325 payments of the $1573.34, that I have a combined balloon payment in the amount of $305,636.07.
Is this a horrible deal? It sounds aweful to me.