Quick question about mod payment - Loan Modification Forum

mintdeer · 09-19-2009, 12:48 PM

When I spoke with a loan escalation specialist from our bank it seemed to me that if they were going to make a new mod payment it was just the house payment itself that had to be 31% of your gross income not including taxes, insurance, and PMI. He was telling me that a mod payment at my husbands current gross would end up being higher than what we already pay. I thought the total payment/ with escrow had to include everything and then be 31% of your gross.??? I am confused about this. Is he right or are they just trying to mess with us? I hope you can understand my question.

PS. our total payment with taxes, insurance, and PMI is $1703 per month
( this is all included in the payment) If I wasn't also paying escrow my
Payment would be $1.267. The rep I was speaking with said if they did a mod payment the new payment would be over $1600 ( just for the house therefore making my total payment higher than I pay now.) I am totally confused!

Moe Bedard · 09-19-2009, 01:43 PM

This is weird. What type of loan do you have? If it is a negative amortization, then that is why.

mintdeer · 09-19-2009, 03:03 PM

Its a 5 year interest only ARM.

mintdeer · 09-19-2009, 03:30 PM

6.5% interest, sorry forgot to put that in

nativelasvegan · 09-19-2009, 04:27 PM

When I spoke with a loan escalation specialist from our bank it seemed to me that if they were going to make a new mod payment it was just the house payment itself that had to be 31% of your gross income not including taxes, insurance, and PMI. I too spoke with an escalation specialist from Bank of America [whatever that is]

and I do believe the 31% of gross includes principal, interest, taxes, insurance and any HOA/POA fees.

He was telling me that a mod payment at my husbands current gross would end up being higher than what we already pay. Your gross should be 31% of your new payment that includes principal, interest, taxes, insurance and POA/HOA.

I thought the total payment/ with escrow had to include everything and then be 31% of your gross.??? You are correct. I am confused about this. Is he right or are they just trying to mess with us? I hope you can understand my question.

PS. our total payment with taxes, insurance, and PMI is $1703 per month
( this is all included in the payment) If I wasn't also paying escrow my
Payment would be $1.267. The rep I was speaking with said if they did a mod payment the new payment would be over $1600 ( just for the house therefore making my total payment higher than I pay now.) I am totally confused!

My current payment is $2414. Principal and interest only. I have no escrow/impound account. My loan was 80% of the purchase price. I put several thousand dollars down. From what I have read, the modified payment WILL include PITI (principal interest, taxes and insurance, poa/how fees) at 31% of gross income. Period. This information is on the fannie mae website. Fannie Mae owns our loan.

mintdeer · 09-21-2009, 11:10 AM

Thanks for the info, I just think they are trying to stall or deny me any help. This is so frustrating! I am going to talk to a chapter 13 lawyer tomorrow maybe that will get me some help or at least kick my banks butt into gear.

09-19-2009, 12:48 PM	#1 (permalink)
mintdeer Senior Member Join Date: Sep 2009 Posts: 102 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Quick question about mod payment When I spoke with a loan escalation specialist from our bank it seemed to me that if they were going to make a new mod payment it was just the house payment itself that had to be 31% of your gross income not including taxes, insurance, and PMI. He was telling me that a mod payment at my husbands current gross would end up being higher than what we already pay. I thought the total payment/ with escrow had to include everything and then be 31% of your gross.??? I am confused about this. Is he right or are they just trying to mess with us? I hope you can understand my question. PS. our total payment with taxes, insurance, and PMI is $1703 per month ( this is all included in the payment) If I wasn't also paying escrow my Payment would be $1.267. The rep I was speaking with said if they did a mod payment the new payment would be over $1600 ( just for the house therefore making my total payment higher than I pay now.) I am totally confused!

09-19-2009, 01:43 PM	#2 (permalink)
Moe Bedard Founder Join Date: Aug 2007 Location: Southern California Posts: 16,887 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Quick question about mod payment This is weird. What type of loan do you have? If it is a negative amortization, then that is why. __________________ Moe Bedard Founder LoanSafe.org "America's #1 Home Loan Forum" LoanWorkout.org "America's # Loan Modification Blog" Get My FREE Loan Modification E-Book \| Please donate to LoanSafe.org \| Loan Modification Training For Attorneys \| Rate Your Mortgage Servicer The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. Most of the information you find here is easily available on the internet. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Please Read our Privacy Policy and Legal Disclaimer Here.

09-19-2009, 03:03 PM	#3 (permalink)
mintdeer Senior Member Join Date: Sep 2009 Posts: 102 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Quick question about mod payment Its a 5 year interest only ARM.

09-19-2009, 03:30 PM	#4 (permalink)
mintdeer Senior Member Join Date: Sep 2009 Posts: 102 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Quick question about mod payment 6.5% interest, sorry forgot to put that in

09-19-2009, 04:27 PM	#5 (permalink)
nativelasvegan Senior Member Join Date: Sep 2009 Location: Near Austin, TX Posts: 789 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Quick question about mod payment When I spoke with a loan escalation specialist from our bank it seemed to me that if they were going to make a new mod payment it was just the house payment itself that had to be 31% of your gross income not including taxes, insurance, and PMI. I too spoke with an escalation specialist from Bank of America [whatever that is] and I do believe the 31% of gross includes principal, interest, taxes, insurance and any HOA/POA fees. He was telling me that a mod payment at my husbands current gross would end up being higher than what we already pay. Your gross should be 31% of your new payment that includes principal, interest, taxes, insurance and POA/HOA. I thought the total payment/ with escrow had to include everything and then be 31% of your gross.??? You are correct. I am confused about this. Is he right or are they just trying to mess with us? I hope you can understand my question. PS. our total payment with taxes, insurance, and PMI is $1703 per month ( this is all included in the payment) If I wasn't also paying escrow my Payment would be $1.267. The rep I was speaking with said if they did a mod payment the new payment would be over $1600 ( just for the house therefore making my total payment higher than I pay now.) I am totally confused! My current payment is $2414. Principal and interest only. I have no escrow/impound account. My loan was 80% of the purchase price. I put several thousand dollars down. From what I have read, the modified payment WILL include PITI (principal interest, taxes and insurance, poa/how fees) at 31% of gross income. Period. This information is on the fannie mae website. Fannie Mae owns our loan.

09-21-2009, 11:10 AM	#6 (permalink)
mintdeer Senior Member Join Date: Sep 2009 Posts: 102 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Quick question about mod payment Thanks for the info, I just think they are trying to stall or deny me any help. This is so frustrating! I am going to talk to a chapter 13 lawyer tomorrow maybe that will get me some help or at least kick my banks butt into gear.

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