Non owner occupied, and jumbo loans you have a home too!!
Non HAMP or HAMP participating servicers, It doesn't matter new PRA Program Released soon with a separate waterfall, and it will include the new npv 4.0 "PRA" principal reduction alternative, being tested at servicers now!!! GMAC already pre qualifying, I'm interested to see how good it works, from what I have seen on the and can share, it looks decent if rules are followed.
This is the another modification option. I have got a bunch of emails and calls about the use of the REST Report for non hamp, I say it's just as good hamp or not because the REST Report checks for more than just HAMP eligibility. In fact the REST Report checks over a 100 other internal bank modifications. On the report the alternative is called a "FLEX MOD" does not have to be owner occupied or conforming loan amounts. Multi million dollar home are being modified with "FLEX MOD" the REST Report will check Flex,cap step and HAMP according to the Borrowers unique situation. A modification is Like a snowflake" No 2 modifications are identical.
The Flex Mod Option (not a program name that a servicer would recognize) is designed to mirror
HAMP's basic rate / term/ NPV calculations while allowing for more flexible eligibility criteria. The Flex Mod Option follows the same basic waterfall, term and rate guidelines of the HAMP program:
The Current Interest Rate of the specified loan is first decreased in .125% increments to not less than 2% (while the existing remaining loan term remains unchanged)
If needed, the term is extended to 480 months (or more if the existing loan term is already longer)
The Unpaid Principal Balance (UPB) is reduced until the resulting ratio of the monthly mortgage payment to the borrower(s)’ gross income is equal to 31%.
However, in this loan modification alternative, certain HAMP restrictions are replaced with more ‘flexible’ tolerances and variances:
There is no restriction on when the loan was originated
The property securing the loan does not have to be the borrower(s)’ primary residence and/or be currently occupied
The Unpaid Principal Balance (UPB) of the loan can be more than the usual limit of $729,750 set for Single Family Residences
The resulting Loan to Value (LTV) ratio of the new interest bearing balance compared to the new Estimated Market Value of the subject property can be lower than 100%.