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"