Approved for a HAMP Modification, But

[wrh1646]

Okay, guess what! We finely received a HAMP modificationfrom Bank of America after 25 months and four attempts. This has been one of the hardest things we have ever done in our lives! Well I think everyone knows the issues. But the thing is, we’ll be saving only $158.86 a month! Here are the details.

Loan amount $158,123.00 + threes month behind
Monthly payments $967.00
Ins. $101.00
Tax’s $100.00
>
Combined gross monthly income $2591.40 (S.S. only)
>
Est. home value $112,000 – $122,000
>
Servicer / leader BOA /Freddie Mac
>
Modification trailpayments $1,008.86, this is where I have an issue. It’s my understanding your modification is based on 31% gross income,so I called my bank representative and she said the underwriter takes my gross income and multiples that by 1.25 and that’s my true income! WTF is this, have Itotally missed something here? Did I miss school that day this BS was covered? So I made a few phone calls and two people said that was SOP for all banks!
I just don’t get it! And to add more fuel to the fire, with only eight days to reply, I agreed and made the first trail payment, knowing I can’t do this. So today I call the bank representative and tried to explain my problem and before I could finish she advised me that if I don’t make my next trail payment I would be in default and kicked out of the HAMP program and would not be able to reapply and face FC.
Would someone please help me understand this madness. My wife and I do want to keep our home. I think tomorrow I will call a local housing counseling agency and see if they can help.

[Erik Sandstrom]

Hi Wrh1646,
Congratulations on your modification!

The reason they multiplied your income by 1.25% is because your social security/disability is non-taxable income. This is a guideline for almost all lending situations with that type of income. I guess it can come back and bite you at times or help in others.