AHMSI gave Permanent Loan Mod and then said mod denied

[margaretroses]

Received permanent Hamp loan mod with AHMSI. It had a large balloon and I called asking why the balloon was so high ($452,000)! I was told to fax in all inquiries which I did not do. NACALA was in town so I went to them for an explanation showing them my loan mod papers and the AHMSI rep said they could do better and I filled out their paperwork. My husband and I are self employed and NACA counted business expenses as personal expenses. NACA told us we should not send in the loan mod paperwork as we were about to do. We decided to go ahead and send it in although it was now late (I called AHMSI as instructed on the paperwork to advise them it was late). We sent a cashier's check with the notarized paperwork.

A week later I get a letter from AHMSI stating that we were denied the Hamp mod due to "excessive forebearance". The next day I receive a letter saying we were denied due to excessive debt!

When I called AHMSI I was told that I was denied the Hamp mod because I called questioning the balloon payment and the file was pulled. The denial for excessive debt was in response to the paperwork NACA submitted which was in error.

Upon reviewing Evan Bedard's comments it appears that the balloon cannot exceed 30% of the balance. My loan balance is $672,900? Was mod rescinded because it was wrong or because of NACA and what do I do now?

[Evan Bedard]

Yes they should not be deferring more than 30% of the balance and adding it to a balloon.. The reason they voided this modification more than likely was because the offer was not sent back before it expired and NACA generally submits packages right on the spot when you attend one of their events.. I do believe there may have been a mistake with the offer as a 452k balloon is just ridiculous and doesn't make sense why they would defer such a large amount of the mortgage..

[margaretroses]

Yes they should not be deferring more than 30% of the balance and adding it to a balloon.. The reason they voided this modification more than likely was because the offer was not sent back before it expired and NACA generally submits packages right on the spot when you attend one of their events.. I do believe there may have been a mistake with the offer as a 452k balloon is just ridiculous and doesn't make sense why they would defer such a large amount of the mortgage..

Thats exactly what I said and asked how they came up with that huge amount because the term was not extended and if it was the balloon would've been within 30%. Because they made the mistake when offering the permanent mod after we successfully paid the trial payments, is it grounds to deny me altogether?!?!

When I turned in the notarized Agreement, i called them first and they said it was fine and I included a cashiers check which was cashed. I made the 3 trial payments and the March payment made my 4th payment. On March 7th I was told to resubmit updated financials and income statement and to continue to make trial payments. I resubmitted and sent a cashiers check in April only to have it returned!!! Now I'm being told that it is being reviewed for Hamp and should have an answer in a few days. That was a week ago.

The values they're using are too high (based on last Hamp NPV that was denied for excessive forbearance) as the comps in my immediate neighborhood are super high (4 and 6 bedrooms) when my house is only 2 bedrooms. Two bedroom comps are 2 miles away and actually reflect a truer value.

Is there someone AHMSI that can help? Also, when we received the returned cashiers check I called them and they had no record of ever offering a permanent modification! The rep suggested I send a copy of othe paperwork to their escalations dept which I did. When I called 2 days later to confirm receipt I was told that the reason it was rescinded was because I went to NACA with new information! That denial was due to "excessive debt" due to NACA submitting business expenses as personal expenses! Another rep from AHMSI told me that the mod was rescinded because I questioned the balloon payment. Are we not allowed to ask questions???

I found outlater that NACA gets $1,800 for every file submitted whether approved or not! I feel like we've been backed into a corner and want to know if there is any chance at all for us to get a modification. Or do we just hand them the keys and give them our house.