HAMP They Did It Thier Way!

[BadBobMo]

Read and Learn and then thank Timmy & Sheila!!! Very bad language period!!!!!!!!


Trial loan modifications consistent with these Guidelines may be offered to homeowners beginning on this date, March 4, 2009, and may be considered for acceptance into the Home Affordable Modification Program upon completion of the trial period and other conditions. These Guidelines, however, do not constitute a contract offer binding on the Department of the Treasury.

See Question 10
# What happens if that is not enough to get to an affordable payment?

If a 2 percent interest rate does not result in a payment that is affordable (no more than 31 percent of your gross monthly income), your servicer may:

* First try to extend your payment term. At the servicer's option the term of the loan could be extended up to 40 years.
* If that is still not sufficient, your servicer may defer a portion of the principal amount you owe until the maturity of the loan. This is called a principal forbearance. However please note that with a forbearance, you will still owe the principal; but repayment is deferred until a later date. See Question 11 for more information on principal forbearance.
* A portion of the principal could be also be forgiven. This is optional on the part of the servicer. However there is no requirement for principal forgiveness and there is no guarantee that your servicer will offer principal forgiveness.
I got burned because of this language!
Now you know why the 7%, most are in-house then they can really leverage you on everything period!
Don't count on "HAMP"

[Evan Bedard]

I agree with you BadBobMo this program is not very reliable at all. Less than ten percent of ****wners that entered the trial period have received a permanent loan mod.. The HAMP/MHA program does not force the lenders to do anything, it's seems more of a suggestion to encourage lenders to modify loans..

[Mercury213]

Where the heck does HAMP say that they can do step rates that start you with a 31% of gross payment and then , over the course of the stepped rates, go way over the 31%?

Am I missing something? Maybe it's a loophole. Mine's says it's a HAMP mod but ends up at 48% of gross by the time the highest interest rate kicks in. This can't be HAMP, can it?

[davephx]

I believe the 31% is based on the current 2%/40 limit not when the higher rate of about 5% kicks in. Still low by historical standards and idea is you might make more or no longer have the hardship by then.

[paul98]

Yeah sure, make more in 5 years. I make the same I did 5 years ago, because my health insurance keeps going up.

[juskilentime]

I believe the 31% is based on the current 2%/40 limit not when the higher rate of about 5% kicks in. Still low by historical standards and idea is you might make more or no longer have the hardship by then.

^^^^^^^^^Exactly^^^^^^^^^

[litton nightmares]

Where the heck does HAMP say that they can do step rates that start you with a 31% of gross payment and then , over the course of the stepped rates, go way over the 31%?

Am I missing something? Maybe it's a loophole. Mine's says it's a HAMP mod but ends up at 48% of gross by the time the highest interest rate kicks in. This can't be HAMP, can it?

Unfortunately, yes.
I was TOLD by LITTON LOANS I'd get 2 PERCENT FOR LIFE OF THE LOAN, after it was modified. THEN, they did HAMP style, jacking the rate up. And yes, since it STARTS at 31 percent, it is nowhere near that by year 8.

[davephx]

You also have to realize if its HAMP, the taxpayer is funding part of the interest rate reductions (half as I recall) plus the various other incentives. So is is a taxpayer budget issue of the reduced interest rate also.