What does this mean?

[Hstreet151]

I just called AHMSI to find out why I am getting letters from BPO investors here in my area, they did not know in the home retention department. They do not show anywhere in there records who would have ordered a BPO abd why? That's the first question.

The second is when I called AHMSI they said the most resent update on our account was updating tax and escrow. What does that mean? Our taxes are current and we have lived in our home for 13 years. So what would be in escrow?

[SillyWorld]

Sounds like they are checking you out for a MOD, the Taxes MUST be escrowed in a MOD, the BPO would be if they would rather forclose or offer help, whichever is in the Banks best interest

[Hstreet151]

Originally Posted by SillyWorld

Sounds like they are checking you out for a MOD, the Taxes MUST be escrowed in a MOD, the BPO would be if they would rather forclose or offer help, whichever is in the Banks best interest

Yes, we are in the HAMP program right now. Now we are property tax exempt due to Survivor benefit's veteran's status. So is this a good sign, that are looking at the taxes and escrow? We have already made our first HAMP payment, the second is ready to go now, and I have been in contact with our negotiator in the last month.

We have a lot of equity in our home, so the BPO scares me, but the people in Home retention do not show anyone ordering a BPO, and have no clue as to why it was sent.

Since we do have over $100k in equity should we be nervous that the bank ordered a BPO or could it just be that they are getting ready for the perment mod?

[SillyWorld]

Sounds like it..Good Luck, just make sure they do not have you listed as late on your mortgage some of these banks never inform the collection dept of your MOD and they will start collections on you, I would call collections just to be sure and if they say all is fine then yea they must be getting ready to put you in permanent MOD

[Hstreet151]

Originally Posted by SillyWorld

Sounds like it..Good Luck, just make sure they do not have you listed as late on your mortgage some of these banks never inform the collection dept of your MOD and they will start collections on you, I would call collections just to be sure and if they say all is fine then yea they must be getting ready to put you in permanent MOD

Thank you for your help.

Yes they are saying we are behind in our payments, just simply going on the HAMP program makes puts you behind. But we ware due for July, Aug, and September. The collections department has not called but, I talk twice week to the home retention department. Tonight after the investor called and asked me to shot sell my home, and that he found my name in BPO, I called AHMSI and they said they show no foreclosure pending and that they would send an email to my negotiator to call in the morning.

I do hope that since we are in HAMP trail plan, that the tax, escrow and the BPO are just getting us ready for permanent mod, but that does sound like it right?

Thank you again!!

[BadBobMo]

sounds like you are in the trail plan the lender will need a BPO- that's not more than 90 days old, to turn in with your finial paperwork.

[Hstreet151]

Originally Posted by BadBobMo

sounds like you are in the trail plan the lender will need a BPO- that's not more than 90 days old, to turn in with your finial paperwork.

So everything is normal? Tax and escrow and the BPO are just part of trail plan and is good thing?

[BadBobMo]

Normal never can say but yes escrow and BPO are normal for HAMP!

[MyHAMP]

Setting up escrow (incl. taxes) and a BPO (or any kind of property-value evaluation for the NPV) isn't only a sign of HAMP, it's actually a REQUIREMENT, so you are on track..

[Hstreet151]

Originally Posted by MyHAMP

Setting up escrow (incl. taxes) and a BPO (or any kind of property-value evaluation for the NPV) isn't only a sign of HAMP, it's actually a REQUIREMENT, so you are on track..

Wow! NPV is a new term for us. So in my case this makes it even more of a worry. In our local market the home price have not crashed and buyers are still here. What could that mean for us And is calculator somewhere I could use to see what the NVP number is?

[Hstreet151]

Originally Posted by Hstreet151

Since we do have over $100k in equity should we be nervous that the bank ordered a BPO or could it just be that they are getting ready for the perment mod?

So this where the NPV comes from? So how will this effect us?

[lennox]

The NPV is used by the servicer to determine if it makes more sense from a financial standpoint to foreclose or do a mod. If a person has a lot of equity, they may determine it may be more profitable to the investor to foreclose versus the cost of a modification. If a person has too little income in comparison with their mortgage, they may determine the borrower will end up in default, even with a new mod, and foreclose and take the loss.

T

[MyHAMP]

Originally Posted by Hstreet151

is calculator somewhere I could use to see what the NVP number is?

That's one of the main complaints with HAMP: This calculation is CONFIDENTIAL to the borrower..

[Hstreet151]

Originally Posted by lennox

The NPV is used by the servicer to determine if it makes more sense from a financial standpoint to foreclose or do a mod. If a person has a lot of equity, they may determine it may be more profitable to the investor to foreclose versus the cost of a modification. If a person has too little income in comparison with their mortgage, they may determine the borrower will end up in default, even with a new mod, and foreclose and take the loss.

T

Thank you! That I do understand. And here this morning I found out that the most recent BPO done was in Aug. So they are now just updating for the HAMP.

[Hstreet151]

Originally Posted by MyHAMP

That's one of the main complaints with HAMP: This calculation is CONFIDENTIAL to the borrower..

I have not yet spoke to my negotiator but Home Retention did say the BPO they did was in Aug. So they need an update. But in her notes we did qualify for the HAMP program under the NPV guidlines, which the person in Home Retention was able to see in Aug. And not much has changed. So is this a good thing?

[MyHAMP]

Originally Posted by Hstreet151

I have not yet spoke to my negotiator but Home Retention did say the BPO they did was in Aug. So they need an update. But in her notes we did qualify for the HAMP program under the NPV guidlines, which the person in Home Retention was able to see in Aug. And not much has changed. So is this a good thing?

How far in the HAMP are you right now? If you already made some payments, it's very likely you passed the initial NPV-test. Did you get the official trial period plan?

The NPV test is run twice: Once before the trial starts and once before you get the final modification. The test they use is identical - so if your income stays the same and property-prices didn't change much, you should be fine.

The majority of borrowers who DON'T pass the NPV-test don't even make it into the trial-period - and that's how it's supposed to be. Some get a denial after the trial due to a failed NPV - but that's very rare (due to the mentioned reasons) and often by mistake. There was a case were they simply forgot to include the second income of the borrower for the second test. So they said "failed NPV". But that error was corrected.

[lennox]

In the guidelines it states that the BPO can't be more than 90 days old. I'm guessing the current BPO is less than 90 days.

Do you know what the BPO came in at? It may not be as high as you think (which in the case for modification is a good thing).

If you don't mind...can I ask some questions? What is your DTI on your current income versus your mortgage payment? Is your mortgage a fixed conventional or is it an option 1, or IO that is set to recast?

T

[lennox]

Myhamp, I'm not sure if I am reading your comment correctly, but it seems you are saying that if you make it through the trial, most people get permanant modifications....
I apoligize because I may not be interrupting what you are saying correctly...but it seems just the opposite. From everything I read on this board, or in news articles, it seems the majority of people that get approved for the trials, (and even under seemingly successful completion) are getting denied for the permanant.

Perhaps that will start change and the servicers will start giving permanant modifications...but given all I've read on this board and elsewhere, I don't think anyone is getting their hopes up that because they have been approved for a trial or are even going through their trial, will be granted a permanant modification.

T

[MyHAMP]

Originally Posted by lennox

Myhamp, I'm not sure if I am reading your comment correctly, but it seems you are saying that if you make it through the trial, most people get permanant modifications....
I apoligize because I may not be interrupting what you are saying correctly...but it seems just the opposite. From everything I read on this board, or in news articles, it seems the majority of people that get approved for the trials, (and even under seemingly successful completion) are getting denied for the permanant.

My last comment was about approval/denial for NPV only.

The number of permanent approvals is in fact low. Too low. However, I wouldn't come to the conclusion that it means that everybody who hasn't been modified yet is going to be denied. It's just taking far too long. In addition, the system is still full of glitches that need to be worked out. If you make your trial payments on time and still get denied, there is something wrong. The problem is that the borrower has very limited possibilities to check WHAT actually went wrong. Servicers are understaffed and often don't even know what they are dealing with. One servicer denied a borrower because "his CURRENT payment on his mortgage EXCEEDS 31% of his gross income"...that's truely amazing..

Yesterday, I posted an interesting article about the HAMP-procedures, the dificulties and the "progress" () so far.

This is it:

A very interesting article about HAMP

I think the majority of people who completed their trial payments so far (many people even made 5 or more) are STILL WAITING for the decision.

[Hstreet151]

Originally Posted by lennox

In the guidelines it states that the BPO can't be more than 90 days old. I'm guessing the current BPO is less than 90 days.

Do you know what the BPO came in at? It may not be as high as you think (which in the case for modification is a good thing).

If you don't mind...can I ask some questions? What is your DTI on your current income versus your mortgage payment? Is your mortgage a fixed conventional or is it an option 1, or IO that is set to recast?

T

Thank you everybody! We are in the trail plan, and have made the first payment, the second will be in there hands on November 1. We meet the income guidelines, and we are still on a adjustable rate.

The chase site said $229k and we owe $223k. I have not yet heard from my negotiator to get the exact number.

[MyHAMP]

Originally Posted by Hstreet151

Thank you everybody! We are in the trail plan, and have made the first payment, the second will be in there hands on November 1. We meet the income guidelines, and we are still on a adjustable rate.

The chase site said $229k and we owe $223k. I have not yet heard from my negotiator to get the exact number.

OK, after (almost) 2 months into the trial you can be sure that they ran the initial NPV. That shouldn't be an issue than if everything else (income etc.) stays the same..