Hamp Tier 2

[Cat Damiano]

The Making Home Affordable Program was introduced in February, 2009. The HAMP Tier 2 program became effective June 1, 2012. Changes to the program have now been implemented in an effort to increase participation and the number of homeowners who are eligible in the hopes of preventing foreclosures.

The new guidelines fall under the title of HAMP (Home Affordable Modification Program) Tier 2, expanding the qualifications and deadlines to be eligible for a loan modification under HAMP or other relief available through Home Affordable Unemployment Program, the Home Affordable Foreclosure Alternatives Program or the Second Lien Modification Program. As set forth in Tier 1, HAMP Tier 2 also does not apply to mortgage loans through Fannie Mae or Freddie Mac or loans guaranteed by the Veterans Administration, the Department of Agriculture Rural Housing Service or the Federal Housing Administration, (FHA).

Read More Here;

Anna Cuevas: HAMP TIER 2 Mortgage Loan Modifications in a Nutshell

[sonickitty]

The Making Home Affordable Program was introduced in February, 2009. The HAMP Tier 2 program became effective June 1, 2012. Changes to the program have now been implemented in an effort to increase participation and the number of homeowners who are eligible in the hopes of preventing foreclosures.

The new guidelines fall under the title of HAMP (Home Affordable Modification Program) Tier 2, expanding the qualifications and deadlines to be eligible for a loan modification under HAMP or other relief available through Home Affordable Unemployment Program, the Home Affordable Foreclosure Alternatives Program or the Second Lien Modification Program. As set forth in Tier 1, HAMP Tier 2 also does not apply to mortgage loans through Fannie Mae or Freddie Mac or loans guaranteed by the Veterans Administration, the Department of Agriculture Rural Housing Service or the Federal Housing Administration, (FHA).

Read More Here;

Anna Cuevas: HAMP TIER 2 Mortgage Loan Modifications in a Nutshell

Does anyone have the new 5.0 version of the NPV Excel Spreadsheet that accompanies HAMP Tier 2? It is available for Servicers, but none of the sites available to the public has it yet. I checked the checkmynpv.com, MHA and the FDIC site (which has older version of Excel NPV Spreadsheet) and none of them have the updated HAMP Tier 2 spreadsheet yet.
I read much of the new guidelines that have been posted and dare I say it sounds encouraging.

I am currently in appeal for HAMP 1 and will likely still be denied. I'm debating to just go for shortsale and get out now in hopes of finalizing before the 2012 deadline or apply for HAMP 2 which I surely must qualify for based on what I read.

Would like to hear any updates\experiences people have with regards to Hamp Tier 2.

[Cat Damiano]

Hi sonickitty,


I am not finding that the new version is available to the public, however, you may be able to figure it out manually by going through the model documentation here;

https://www.hmpadmin.com/portal/prog...ntationv50.pdf

[sonickitty]

Hi sonickitty,


I am not finding that the new version is available to the public, however, you may be able to figure it out manually by going through the model documentation here;

https://www.hmpadmin.com/portal/prog...ntationv50.pdf

Thanks! I will check that out.

[christyhaz]

Cat, is this still true? And what is TPPs? My due date is July 1, a Sun. and I was told by Wells Fargo they have to call the bank on the 1st trial payment and then will take it right then. If this is true, I can't have it set up ahead of time, and I can't get them a payment until July 2, making it late. Also, they changed the auction date to Aug.13. I won't have completed my trial period until Sept. 1.

"Borrowers who do not make current trial period payments are considered to have failed the trial
period and are not eligible for a permanent modification. For TPPs with effective dates on or after
June 1, 2010, “current” is defined as the borrower having made each trial period payment by the last day of the month in which it is due. For TPPs with effective dates before June 1, 2010,
“current” is defined as the borrower having made all trial period payments by the last day of the
final month of the trial period."

[Cat Damiano]

Hi christy,


The TPP is the trial plan payment and yes, if the modification is a HAMP modification trial on a loan that is not backed by Fannie Mae or Freddie Mac, the trial plan guidelines stated are still valid.

[sonickitty]

Just wanted to post a recent experience with HUD. While many of the HUD counselors I have spoken to have been very helpful, the other day I called to try and ascertain likeliness as to whether my current HAMP 1 denial appeal will be approved based on all of the details. While discussing potential of applying for HAMP Tier 2, the counselor told me that the 31% DTI requirement still exists even under HAMP 2. She said this was a point of confusion but it was clarified in her "training". I was shocked and figured I had misread something. She also sided with B of A calculation of my DTI even though 3 previous counselors agreed with me and even escalated my case because of it - though a case escalation does not appear to be doing anything for me.

I have now gone back and checked the HAMP 2 guidelines and it does not even give a DTI% ratio as part of the initial eligibility. I also reviewed Anna Cuevas summary and she interpreted the same - that there is no longer the 31% magic number for initial qualification.

Every time I call HUD I learn something new. But what is very clear is that you cannot completely trust that their answers are accurate. Especially since HAMP 2 is new. Earlier in the week I talked to a different counselor that was actually chuckling and making light of my situation. I think utilizing HUD counselors is better than getting "taken" by a lawyer (unless you are lucky enough to have one that you completely trust and are certain they actually know what they are talking about) b/c I was steered horribly wrong by lawyers when I first started looking into this whole thing. I would much rather utilize the HUD counselors for free. But a word of caution that you still have to double check everything HUD counselors say. And unfortunately, many scenarios are not black and white and those are the ones like mine that seem to throw them all for a loop.

Has anyone on this forum applied for HAMP 2 yet and have any experiences they can share?

[Cat Damiano]

Hi sonickitty,



Had you checked to see if your loan was backed by Fannie or Freddie yet?

If your loan is backed by Fannie Mae or Freddie Mac, the guidelines are different, you can check this here first;

For Fannie Mae: 1-800-7FANNIE (8am to 8pm EST)
www.FannieMae.com/loanlookup

For Freddie Mac:
1-800-FREDDIE (8am to 8pm EST)
www.FreddieMac.com/mymortgage


The HAMP Tier addition does give information in regards to the DTI that you may be looking for;

Monthly Mortgage Payment Ratio:

To qualify for HAMP, Tier 1, verified income documentation must confirm that the borrower’s monthly mortgage payment ratio prior to the modification is greater than 31 percent. For HAMP Tier 1, the monthly mortgage payment ratio is the ratio of the borrower’s current monthly mortgage payment to the monthly gross income of all borrowers on the mortgage note, whether or not those borrowers reside in the property.

If the borrower’s monthly mortgage payment ratio is less than 31 percent, the borrower is not eligible for HAMP Tier 1 and the servicer must consider the borrower for HAMP Tier 2.

In the case of HAMP Tier 2, the borrower’s post-modification monthly mortgage payment ratio (also called a debt-to-income ratio or DTI ratio) must be greater than or equal to 25 percent and less than or equal to 42 percent (Acceptable DTI Range). In HAMP Tier 2, the DTI ratio is the ratio of the borrower’s modified monthly mortgage payment to the monthly gross income of all borrowers on the mortgage note. If the borrower is seeking to modify a mortgage secured by a rental property, the DTI ratio is the ratio of the borrower’s total housing expense to the monthly gross income of all borrowers on the mortgage note including any net rental income from the rental property being modified.

If a borrower being considered for HAMP Tier 2 has a modified DTI ratio that is outside the Acceptable DTI Range, the borrower is not eligible for HAMP and the servicer must send the borrower a Non-Approval Notice

[sonickitty]

Hi Cat -

Thanks. Yes, I've already checked - loan not Fannie or Freddie. The part of the DTI calculation I was referring to is the initial qualifications. The 25%-42% as noted above refers to the post modification DTI. When I look at HAMP Tier 2 qualifications, it says the following:
A mortgage loan may be eligible for HAMP Tier 2 if (i) the borrower satisfies the basic eligibilitycriteria for HAMP set forth in Section 1.1.1; (ii) the loan did not satisfy the criteria in Section 1.1.2 forHAMP Tier 1 or, upon evaluation for a HAMP Tier 1 modification, failed to receive a modificationunder HAMP Tier 1; and (iii) the following criteria are met:

I'm not going to post the entire following section that follows, but it does NOT mention the 31% DTI criteria.

Update: I received a letter much to my huge surprise telling me I qualified for a loan mod and will receive a letter regarding trial payments, etc. I called bank and they are going to try and research because the letter mentioned it was on my "second lien mortgage". She was just as confused as I was b/c the loan number listed was my primary. Oh and btw, she told me a qualified for HAMP 2 - but she was not my primary CRM - so will wait for my primary CRM to return to office to get more info on exactly what it is they are offering.

I'm going to try and get them to tell me what the mortgage terms will be up front b/c I have heard so many horror stories of making trial payments and then getting offered some horrible deal that eventually climbs back up again which of course would defeat the purpose. After weeks of balling, I'd finally come to terms and was emotionally and practically ready for the SS option when the door bell rang with this letter. Timing was uncanny b/c I was about to take papers to realtor for SS. So the craziness continues! Ahhh!

Has anyone been able to get the bank to tell them prior to starting the trial payments what the terms of "perm mod" would be? I need to decide whether to do a SS or not b/c if I end up getting a lousy loan mod deal - I would no longer have time for a SS option at that time - which would take me towards Fall because I'm not betting on the MDRA to get extended. I don't even know amount of trial payment yet - that should be interesting.

[Cat Damiano]

What it means is that if you were denied initially because the payment was under the 31 percent threshold, they would need to try to get the payment to greater than or equal to 25 percent, so it doesn't go lower. Some members had payments that were lower than the 25 percent so they still would not be able to qualify.

Since the trial plan is a proposal of the actual permanent modified payment, they may not at that time be able to tell you what the permanent modification will entail as they do a work up of the figures once you accept the trial.

Also the permanent modification under HAMP does involve a step rate beginning with a fixed rate which can be as low as 2 percent for the first five years and increases by 1 percent for year six and an additional 1 percent for year 7, then is fixed at the current prime rate at the time the modification is made permanent for the remainder of the term.

[sonickitty]

What it means is that if you were denied initially because the payment was under the 31 percent threshold, they would need to try to get the payment to greater than or equal to 25 percent, so it doesn't go lower. Some members had payments that were lower than the 25 percent so they still would not be able to qualify.

Since the trial plan is a proposal of the actual permanent modified payment, they may not at that time be able to tell you what the permanent modification will entail as they do a work up of the figures once you accept the trial.

Also the permanent modification under HAMP does involve a step rate beginning with a fixed rate which can be as low as 2 percent for the first five years and increases by 1 percent for year six and an additional 1 percent for year 7, then is fixed at the current prime rate at the time the modification is made permanent for the remainder of the term.

Thanks Cat. Interesting about the step up rate b/c if it really stepped up like you mention that would put me higher than current payment so would not make sense. What I see on HAMP 2 is that modified payment must be at least 10% less than current payment while also fitting in between the 25-42% DTI. I didn't see anything about the step-up thing in the guidelines - but maybe it's in one of the latter sections I did not read. But, yes, I have heard about this step-up thing which concerns me. Getting my house ready for SS just in case...

[Cat Damiano]

What you have to keep in mind is that the Tier 2 is in addition to HAMP and it doesn't change all of the HAMP factors, it just adds some additional information to help more homeowners qualify who have legitimate hardships and are unable to keep up with their payments.

[sonickitty]

What you have to keep in mind is that the Tier 2 is in addition to HAMP and it doesn't change all of the HAMP factors, it just adds some additional information to help more homeowners qualify who have legitimate hardships and are unable to keep up with their payments.

Thanks - yes, I realize this. I was denied HAMP 1 and have been appealing with an escalated case. New guidelines state that if borrower does not qualify for Tier 1, that after June 1, they should determine if they qualify for Tier 2. Since my original denial was prior to June 1, I do not believe they are required to automatically check. But if the letter I received is not a mistake, then they either agreed with my appeal and are giving me a trial mod under Hamp 1 or since it was an escalated case maybe they decided to see if I qualified for Hamp 2. It's all a mystery until I'm able to speak with my CRM - hopefully on Monday.

Anyways - have a good weekend!
Sonickitty

[Cat Damiano]

Keep us posted on what you hear from your RM, I do hope they are able to work something out to help.

[sonickitty]

Keep us posted on what you hear from your RM, I do hope they are able to work something out to help.

B of A is the devil himself incarnate in the form of a big frigging mass of pure evil. Apparently, the letter they sent me telling me I was eligible for a loan mod and that I would receive frank-dodd form and then get instructions on trial payments was a "system glitch" according to my CRM. This is the second time they have messed with me and told me I was approved.

I am sick about this whole situation - congress not extending MDRA or waiting until the last minute....banks expecting you to be on frigging top ramen before you seek help - a step away from homelessness. it is all so F'd up - I'm so fed up and I haven't even gone through half of what so many people on this forum have gone through. I want to scream. I feel like I need a support group for people in this situation - but then we'd probably all just sit there and dwell on our problem rather than move on....I sat with a realtor last night and he was telling me about buyers he has lined up for the frigging fire sale that is able to take place on the home i have lived in for nearly 8 years. longest time i've lived in one place since leaving "home". they are going to get this place for so dirt cheap they are never going to let it go. is it a dream home? No. but i have become very attached to it and the neighborhood which is a rare find in terms of lot location.

I am so frigging pissed! California and especially bay area is an expensive place to live. I don't qualify for california programs b/c I make just a tad too much. While I am thankful for all that I have - I am so resentful and pissed at all of the greedy entities that put us all in this position brought the world economy down. Yes, I was a first time home buyer and if I knew then what I know now - would i have made different decisions? Yes. Did the banks know then what I know now in terms of the mechanisms of certain types of loans? Yes and they gave it to me anyways. I will never go interest only again. I remember back in 2004 sitting with a wells fargo broker trying desperately to convince me to do what even I knew was a risky variable loan. She was a a super sales person trying very hard to convince me. Luckily I didn't go for it - but an example at how hard they were pushing these risky loans on first time naive home buyers. but i still did go for something i would never go for now b/c I had not a clue like the rest of the avg citizen just how far prices could fall.

I am naive enough to hope that in the last hour something will change and I will get some kind of mod...

Thanks for letting me vent. The for sale sign went up today....and it's really hard. I'm sure many others going through same thing and can relate. I guess this is like a support group.

[Cat Damiano]

It is just like a support group, and feel free to vent here anytime.

[sonickitty]

It is just like a support group, and feel free to vent here anytime.

Thanks Cat! This has been the most helpful site with the most helpful people like yourself. I really appreciate it.

[motorcitymadness]

Cat, I was looking at the Tier 2 program and I'm a bit confused regarding Freddie Mac's participation in this program. Are they participating or not? I can't really tell based on what I've read.

Thanks,
Motor

[Cat Damiano]

Hi Motor,


Unfortunately not, it is an added tier to the HAMP guidelines for Non GSE backed mortgages and it states;

This guidance does not apply to mortgage loans that are owned or guaranteed by Fannie Mae or Freddie Mac, insured or guaranteed by the Veterans Administration or, except as specifically noted herein, insured or guaranteed by the Department of Agriculture’s Rural Housing Service (RHS) or the Federal Housing Administration (FHA).

[KeepHouse]

Hi Cat -

Has anyone been able to get the bank to tell them prior to starting the trial payments what the terms of "perm mod" would be? I need to decide whether to do a SS or not b/c if I end up getting a lousy loan mod deal - I would no longer have time for a SS option at that time - which would take me towards Fall because I'm not betting on the MDRA to get extended. I don't even know amount of trial payment yet - that should be interesting.

I rcd a trial mod offer and was told over the phone that my perm mod payments would be about the same, with the addition of final capitalization. They add what I owe, plus attorney fees and PNC fees to the back of the balance and will spread the loan across 40 years instead of 30 but at a much lower interest (usually it's 3.5 - 5%, but they said mine was calculated at upper 2s). They also told me that the foreclosure process would pause, but perhaps I misunderstood, as I just was assigned a sale date. In follow up they told me that the sale would be stopped if I were still in trial program or approved by then. This is with PNC. I'm having trouble getting my second carrier (Chase) to really even acknowledge the stuff I send them.

[Cat Damiano]

I rcd a trial mod offer and was told over the phone that my perm mod payments would be about the same, with the addition of final capitalization. They add what I owe, plus attorney fees and PNC fees to the back of the balance and will spread the loan across 40 years instead of 30 but at a much lower interest (usually it's 3.5 - 5%, but they said mine was calculated at upper 2s). They also told me that the foreclosure process would pause, but perhaps I misunderstood, as I just was assigned a sale date. In follow up they told me that the sale would be stopped if I were still in trial program or approved by then. This is with PNC. I'm having trouble getting my second carrier (Chase) to really even acknowledge the stuff I send them.

Hi KeepHouse,

For Chase you can try escalating your file to the executive team to see if you are able to get somewhere. Have they mentioned that they would need to wait until the first is modified to see what program you qualify under? That could be what is happening.

Chase Executive Team
Jamie Dimon CeoPhone: 212-270-1111
Fax : 212-270-1121
E-Mail Address: jamie.dimon@jpmchase.com

[robert.rei]

Hello, I am new to this site and forums in general so bear with me please. I just spent the last 2 days on the phone with BoA and talked to 5 different people in 5 different departments. To say I am frustrated is understating it. So, I have a rental property that I owe +/- $110k, can only collect $600 month rent, mortgage payment is $1100 and house is worth (according to BoA Harp dept) +/- $50k. It's been on market for 8 months and won't sell. BoA claims I dont qualify for any assistance because it is a rental property. Aside from mailing the keys back to them are there any other options?

[canigetamod]

I am I'm the underwriting process a for a tier 2 with Nationstar. This is one of the most stressful and frustrating processes that I have gone through. Well here's my situation: I requested a mod on 7/28/12 sent in all docs, joined NACA 8/6/12 and sent in the same documents again, received a note from Nation star through the NACA portal 8/17/12 saying they have received all info and started the process. I was denied 8/22/12 for Tier I because I have a different mailing address and they tried to say that I wasn't living in the home. I have sent them via email utility bills and other random mail stating otherwise, but they still are moving forward with tier II as of 8/21/12. Now after 2 points of contact changes and 2 denial letters (which no one can explain what the second one is for), I am still in underwrittring since 8/17/12. Any suggestions as to how I can get this escalated or is this the normal process?

[Cat Damiano]

I am I'm the underwriting process a for a tier 2 with Nationstar. This is one of the most stressful and frustrating processes that I have gone through. Well here's my situation: I requested a mod on 7/28/12 sent in all docs, joined NACA 8/6/12 and sent in the same documents again, received a note from Nation star through the NACA portal 8/17/12 saying they have received all info and started the process. I was denied 8/22/12 for Tier I because I have a different mailing address and they tried to say that I wasn't living in the home. I have sent them via email utility bills and other random mail stating otherwise, but they still are moving forward with tier II as of 8/21/12. Now after 2 points of contact changes and 2 denial letters (which no one can explain what the second one is for), I am still in underwrittring since 8/17/12. Any suggestions as to how I can get this escalated or is this the normal process?

Welcome to the forum and thank you for joining.............

NACA has their own restructure program to get the payment to an affordable level, have you been in touch with your NACA rep, what are they saying? We have a rep from NACA that is able to help members of our forum that are checking on the status of their modifications through NACA, he can be reached here;

Tim Trumble
Online Operations, NACA
ttrumble@naca.com

[canigetamod]

Welcome to the forum and thank you for joining.............

NACA has their own restructure program to get the payment to an affordable level, have you been in touch with your NACA rep, what are they saying? We have a rep from NACA that is able to help members of our forum that are checking on the status of their modifications through NACA, he can be reached here;

Tim Trumble
Online Operations, NACA
ttrumble@naca.com

Thank you Cat, I just emailed him. I've contacted NACA explaining the situation last week. They responded through the NACA portal stating that I have to wait 30 days after 8/21/12 and I would get a response through the portal as soon as they have an answer. I'm getting frustrated because it seems like they are using the time to find a reason to deny me. Especially now that 30 days has already passed... again! Hopefully Tim will respond and assist me with retrieving an answer/ modification/ restructure.

[canigetamod]

Welcome to the forum and thank you for joining.............

NACA has their own restructure program to get the payment to an affordable level, have you been in touch with your NACA rep, what are they saying? We have a rep from NACA that is able to help members of our forum that are checking on the status of their modifications through NACA, he can be reached here;

Tim Trumble
Online Operations, NACA
ttrumble@naca.com

QUOTE=Cat Damiano;425834]Welcome to the forum and thank you for joining.............

NACA has their own restructure program to get the payment to an affordable level, have you been in touch with your NACA rep, what are they saying? We have a rep from NACA that is able to help members of our forum that are checking on the status of their modifications through NACA, he can be reached here;

Tim Trumble
Online Operations, NACA
ttrumble@naca.com[/QUOTE]

Thank you Cat I wasn't aware of that, I just emailed him. I've contacted NACA explaining the situation last week. They responded through the NACA portal stating that I have to wait 30 days after 8/21/12 and I would get a response through the portal as soon as they have an answer. I'm getting frustrated because it seems like they are using the time to find a reason to deny me. Especially now that 30 days has already passed... again! Hopefully Tim will respond and assist me with retrieving an answer/ modification/ restructure .

Monthly income: $6099
total expenses: $2584 (with my husband who is not on the mortgage)
31% of the gross income: $1890
My current mortgage: $466385. $3440/ month interest only 8.75% tax & insurance: $467
40+ months late ( I lost my job in 2008)
I live in a 2 family home in nyc ( which is why my servicer says I cant qualify for tier 1 of HAMP)

[Cat Damiano]

Thank you Cat, I just emailed him. I've contacted NACA explaining the situation last week. They responded through the NACA portal stating that I have to wait 30 days after 8/21/12 and I would get a response through the portal as soon as they have an answer. I'm getting frustrated because it seems like they are using the time to find a reason to deny me. Especially now that 30 days has already passed... again! Hopefully Tim will respond and assist me with retrieving an answer/ modification/ restructure.

I am sure he will, please do keep us posted on how it goes. I do hope they are able to help you with the workout program.

[canigetamod]

I am sure he will, please do keep us posted on how it goes. I do hope they are able to help you with the workout program.

Thank you. I haven't received a response yet but I will be sure to keep you guys informed!

[lwillhite]

Hello canigetamod,

As of this writing I have not received an email from you, or at least one I can associate with your screen name here on LoanSafe. Will you please send it again?

Thanks!

Tim Trumble
Online Operations, NACA
ttrumble@naca.com

[canigetamod]

My apologizes, I just realized that my phone didn't actually send the message and it was waiting in the "drafts". I just re sent it. Sorry for the mix up. Yesterday my servicer informed me that they were missing page 4 from the HAMP Application.... I call almost Everyday... this is something that could have been taken care of before. It has been more than 45 days now. I really get the feeling that they are doing everything in their power to deny me. Nationstar has the very high denial rate.

Hello canigetamod,

As of this writing I have not received an email from you, or at least one I can associate with your screen name here on LoanSafe. Will you please send it again?

Thanks!

Tim Trumble
Online Operations, NACA
ttrumble@naca.com

[canigetamod]

Hello Tim,
I am just following up to make sure you recieved the email. After the last 30 days passed, the servicer requested another document. This re-set the clock and now they are telling me another 30 days. I don't understand why they didn't mention this before. They even sent me notices that my file was complete and nothing else was required. This is terrible

[DO NOT DRINK THE KOOLAIDE]

Thanks to all the moderators and all the contributors to this forum. The informatiuon here has been very helpful.

I reviewed the HAMP 2 guidelines. It looks like I would qualify for HAMP 2. My property has a tenant. I meet the income / employment(or lack there of), requirements

I have an in the money first with HSBC(purchase money) and out of the money second with Chase(not purchase money). I have a couple of questions as follows:

Does HAMP 2 only apply to first mortgages or both first and second mortgages? Or do you have to apply for a modification per your first mortgage and then see what happens with your second? I have noticed in some cases in the forum where people get hamped for their first and then without doing anything get relief for their second?

I am trying to get clarity to what is happening so I can deal better! I understand logic does not always (maybe rarely), apply or at least it is hard know what is happening inside these big banks. If the big banks do not know themselves how some one outside know.


In another thread Cat communicated to me that HSBC does not participate / cooperate with any goverment programs. Is that consistent with every one else's experience? If HSBC does not cooperate / particpate can they be induced to legally? HSBC is not requiored to participate? Can I apply for HAMP 2 assistance with the servicer(Chase) of my second without having dealt with my first because of HSBC's lack of cooperation?

Regards,

DO NOT DRINK THE KOOLAIDE?

[Cat Damiano]

The reason why HSBC doesn't participate in any of the government programs is due to the fact that they didn't take any of the TARP bailout funds that the other lenders did to be required to participate. In order to be eligible for the 2MP program on a second lien, your first lien would need to be modified under HAMP. HSBC does offer inhouse modification programs;

When mortgage payment difficulties arise | HSBC

HSBC Bank Home

[DO NOT DRINK THE KOOLAIDE]

Thanks again Cat, for all your help and the clarification about HAMP 2 as it would apply to my circumstances. So in other words because my first is with HSBC(a bank that did not get "TARPED"), and I am not eligible for HAMP 1 or 2. Correct?

[Cat Damiano]

Thanks again Cat, for all your help and the clarification about HAMP 2 as it would apply to my circumstances. So in other words because my first is with HSBC(a bank that did not get "TARPED"), and I am not eligible for HAMP 1 or 2. Correct?

They do not participate in HAMP, but I included the link to the information about the programs that they offer inhouse. And if you are looking to modify your second lien as well, most lenders will also offer inhouse programs on those.

[DO NOT DRINK THE KOOLAIDE]

Thanks Cat.

As a result of your consultation, I already spoke on the phone with some one in the default department at HSBC, filled out the forms online, and I am preparing the rest of the documents they requested to be faxed in.

An interesting issue is the processor on the phone in the default department at HSBC said initially that the inhouse mod program is only for borrowers in default. I pointed out the irony of the fact that I am current but have a of net worth of minus 500K. She said there are cases where a default is about to occur that they will give a loan modfication when a borrower is current. I hope the processor I spoke to knows what she is talking about.


Cat, the interest rate on my second with Chase is 2.50% currently but floats at prime less .75%(IO). So at some point when interest rates rise that is potential killer.

So the only relief that would be helpful from a Chase Inhouse Mod is elimination or reduction of the principle or if the interest rate would be fixed at a low interest rate and remain an interest only loan.

My other options for modifications are:


1. Per DOJ Settlement
2. Just Settle the second with Chase per the strategy

Do you know what Inhouse Mod's Chase has offered on second mortgages?

Thanks again for all the help!!

Regards,

DO NOT DRINK THE KOOLAIDE

[Cat Damiano]

Thanks Cat.

As a result of your consultation, I already spoke on the phone with some one in the default department at HSBC, filled out the forms online, and I am preparing the rest of the documents they requested to be faxed in.

An interesting issue is the processor on the phone in the default department at HSBC said initially that the inhouse mod program is only for borrowers in default. I pointed out the irony of the fact that I am current but have a of net worth of minus 500K. She said there are cases where a default is about to occur that they will give a loan modfication when a borrower is current. I hope the processor I spoke to knows what she is talking about.


Cat, the interest rate on my second with Chase is 2.50% currently but floats at prime less .75%(IO). So at some point when interest rates rise that is potential killer.

So the only relief that would be helpful from a Chase Inhouse Mod is elimination or reduction of the principle or if the interest rate would be fixed at a low interest rate and remain an interest only loan.

My other options for modifications are:


1. Per DOJ Settlement
2. Just Settle the second with Chase per the strategy

Do you know what Inhouse Mod's Chase has offered on second mortgages?

Thanks again for all the help!!

Regards,

DO NOT DRINK THE KOOLAIDE

If you are eligible for the DOJ settlement on the second lien, it could potentially extinguish and release that lien so you may want to try that first.

[DO NOT DRINK THE KOOLAIDE]

If you are eligible for the DOJ settlement on the second lien, it could potentially extinguish and release that lien so you may want to try that first.

Dear Cat,

Thanks for your comments and support.

I agree getting the extiguishment or principle reduction for the second is more importnat in this case than getting a mod on the first from HSBC. Other than rental income I have no other income, so that means if if they consider me inspite of the fact that I am current on my first I would only be eligible for forbearance. The max forbearance, I understand, they grant is 6 months of paying 1/2 your normal payment. That is $1675 per month less you have to pay but what you do not pay now gets added on the end of the loan.

The problem is even though in theory(based on what the settlement document broadly states), I am eligible to be considered to have my second extiguished per the DOJ settlement by Chase, to be considered per the wording of the DOJ Settlement with Chase a borower has to "apply". I am pretty sure "apply" means fill out the Chase forms and supply financials. All it says about seconds in the document is that certain seconds will be considered based on the characteristics of the first but it does not say what those characteristics are.

So then the question becomes do you violate the "strategy" for settling your second by sending info and financials to try for the DOJ settlement of your second?


The other thing the DOJ Settlement Document says is Chase must post in a public place the criteria for selecting which loans are modified. If that exists I do not know where it is. Does any know if Chase has posted that info?

One approach I could take(before assuming I need to send info / financials to "apply"), for the DOJ settlement is start hammering Chase to first see if I am eligible to be considered for sure for the DOJ settlement and see if I can brow beat Chase into considering me and giving me a modification poer the DOJ withoiut sending info. By "hammering Chase", I mean start sending emails and calling Jamie Dimon's office relentlessly until I get answers and raise legal issues about Chase not posting the criteria of the loans that get selcted to be modified per DOJ. But again that is a violation of the "strategy" for settling an underwater second just by not paying, and going quite until Chase capitulates because you would not be staying quite.

The result of that type of "hammering" will be either I will never, ever be considered for the DOJ settlement(no matter what info I send them), or Chase will grant me the extinguishment or reduction per the DOJ Settlement to just to shut me up, get me off their back and to stop the irritation that would be me hammering them.

I am surpised no one esle has not made a stink about Chase not posting the criteria(if that is in fact the case), of how Chase selects which second loans per the DOJ settlement get modified.


I may be splitting hairs about this whole matter of trying to get relief on my second, But I do not even know if a property that is not owner occupied or a loan that is current is eligible per the DOJ Settlement.

[Cat Damiano]

Dear Cat,

Thanks for your comments and support.

I agree getting the extiguishment or principle reduction for the second is more importnat in this case than getting a mod on the first from HSBC. Other than rental income I have no other income, so that means if if they consider me inspite of the fact that I am current on my first I would only be eligible for forbearance. The max forbearance, I understand, they grant is 6 months of paying 1/2 your normal payment. That is $1675 per month less you have to pay but what you do not pay now gets added on the end of the loan.

The problem is even though in theory(based on what the settlement document broadly states), I am eligible to be considered to have my second extiguished per the DOJ settlement by Chase, to be considered per the wording of the DOJ Settlement with Chase a borower has to "apply". I am pretty sure "apply" means fill out the Chase forms and supply financials. All it says about seconds in the document is that certain seconds will be considered based on the characteristics of the first but it does not say what those characteristics are.

So then the question becomes do you violate the "strategy" for settling your second by sending info and financials to try for the DOJ settlement of your second?


The other thing the DOJ Settlement Document says is Chase must post in a public place the criteria for selecting which loans are modified. If that exists I do not know where it is. Does any know if Chase has posted that info?

One approach I could take(before assuming I need to send info / financials to "apply"), for the DOJ settlement is start hammering Chase to first see if I am eligible to be considered for sure for the DOJ settlement and see if I can brow beat Chase into considering me and giving me a modification poer the DOJ withoiut sending info. By "hammering Chase", I mean start sending emails and calling Jamie Dimon's office relentlessly until I get answers and raise legal issues about Chase not posting the criteria of the loans that get selcted to be modified per DOJ. But again that is a violation of the "strategy" for settling an underwater second just by not paying, and going quite until Chase capitulates because you would not be staying quite.

The result of that type of "hammering" will be either I will never, ever be considered for the DOJ settlement(no matter what info I send them), or Chase will grant me the extinguishment or reduction per the DOJ Settlement to just to shut me up, get me off their back and to stop the irritation that would be me hammering them.

I am surpised no one esle has not made a stink about Chase not posting the criteria(if that is in fact the case), of how Chase selects which second loans per the DOJ settlement get modified.


I may be splitting hairs about this whole matter of trying to get relief on my second, But I do not even know if a property that is not owner occupied or a loan that is current is eligible per the DOJ Settlement.

I have posted this in numerous threads throughout the forum, the criteria that each of the five lenders is having to follow as a result of the DOJ settlement can be found in their consent judgements which can be downloaded from the right side of the following page under the settlement documents;

Payments to borrowers who lost their homes to foreclosure | NationalMortgageSettlement

[canigetamod]

Hello,
I was recently denied for a hamp 2 mod because my debt /income ratio is above 31%. Is it required by HAMP for the servicer to automatically start the "waterfall " process or is this something that is done on a case by case basis?