approved for trial payments

[rolex629]

ok so today i received my paperwork from Select Portfolio Servicing saying that i was approved for the trail payments. Great news!!! but what concerns me is that these trial payments seem too low. my current payment was 2557.56 including taxes and insurance. my principle balance is around 260k our new payment under the trial is 699.23 which barley covers T&I. they say they based our new payment off of our current income which they determined is 2300 per month, i have figured our income at 4700 per month. I don't want to challenge them at this if this truly will be our new payment after the trial payments. how could they lower my payment so much or why would they?

the value of our house has been appraised at 165k ( per a friend who is an appraiser). if we make payments on time will this be approved is there any reason to believe sps is just setting us, at this point we are only one payment behind. i am very nervous about this.

any advice would be greatly appreciated

thank you.

[Jeffrey L. Shurtliff]

Play along and if you are modified under that payment that would be Stellar!

[acesfull]

Hi Rolex629

A $1800.00 reduction in your payment seems way out of line.. I have never heard of such a reduction.
Look closely over the documents. Then proceed, play along as Jeffrey suggested.
I hope your new payment is indeed the payment amount they quoted.

Best regards

Nj-18 Months
Acesfull/HWP

[Evan Bedard]

That is definitely a huge decrease in your payment, but I would follow Jeffrey's advice and accept the trial period and hope for the best. The permanent HAMP mod will include PITI in your monthly payment..

[Jeffrey L. Shurtliff]

Also adding here that if it is a HAMP and you sign the papers and start making payments at that rate, it cannot change much at permanent modification. Such a trial period would be a presumed contract and any major change, by the bank is barred under common law doctrine. Go for it!

[rolex629]

thank you for the advice will play along for the next 3 months and see what happens.