Got 3 trial Payments But They're Too High

[mookster]

Hi- My mortgage company just called me on the phone. They very hastily told me I was approved for 3 trial payments starting Jan 1st . payments are $1382 per month
We are registered with Naca and have a complete Naca file. I thought our mortgage company had to go through Naca before offering us anything?

We went to the save the dream event in Miami,Nacas budget to the mortgage company was
$1059 per month. We then met with AHMSI and they crunched numers and came up with $1049 (yes they beat nacas proposal) now they've come up with $1382 per month trial payments.

I hate to be ungrateful but we were paying $1537 per month. We really needed to be in the $1049-$1054 range. With $1382 we're only saving about $150 per month versus the $500 we thought we'd be saving.

Two question please-
Is the trial payment higher for some reason,then it will drop lower?
Can Naca negotiate and make this trial payment lower?
Thanks in advance.

[Cat Damiano]

mookster,


You would need to contact the person you are working with at NACA and go over this information with them, they should have also received the information from the lender as well. We wouldn't be able to tell you why your payment in the trial is different, but they would.

[sh9730]

Also, a common misconception is that the payment budgeted INCLUDES escrow when it does not. Could the 1049.00 be your principal and interest payments, and the rest if for escrows of insurance, property taxes etc...?

[Cat Damiano]

sh9730,


The amount calculated for the Trial Payment for HAMP is calculated at 31 percent of gross income and that figure does include the Principal, Interest, Taxes, and Insurance. The only thing that is not included in those calculations is PMI insurance which is added back in once the modification becomes permanent thereby making the then permanent modification payment higher than the trial payment, and if there was an escrow shortage that would be added into the payment once the payment becomes permanent which would be outlined in the cover letter to the permanent modification giving you the chance to pay the escrow shortage upfront to keep the payment the same instead of having it increase.


The borrower’s monthly trial period payment must be set at the target monthly mortgage payment ratio of 31 percent by applying the standard waterfall. If your trial plan was a HAMP modification trial and your payment became higher than 31 percent of the gross income once it was made permanent due to your normal tax escrow being added, then your HAMP modification wasn't laid out accurately and you should dispute that.

[mookster]

I thank you all once again. I will have to get in touch with NACA. This is not satisfactory. I just checked my Naca file and it still says "Processing Stage"

I was caught off guard when AHMSI called me,and was driving. I guess I was preparing for her to tell us we'd been denied. She never mentioned (I forgot to ask) will I get documentation for making these trial payments? I just wrote mr. Winn. Thanks again

Shari and Cat

[freeme0215]

I was reading that the trial payment for HAMp is 31%...I am going thru Seterus and they have me at 36%, including all but insurance. The paperwork does not state HAMP....it is a 3 month temp mod. I am thinking of going to NAcA event to get a better offer.
can we get a permanent mod when working with NACA and not have to do a temp mod?

[Cat Damiano]

freeme0215,


That would be an inhouse modification if it doesn't state HAMP. What was the reason you were denied HAMP?