An example of an AHMSI in-house modification (warning: may be nauseating)

[Melina]

After I was refused for a HAMP modification - it only took AHMSI five months to decide this - they came back with what they called an in-house modification offer. I scanned the Schedule A so everyone can take a look:

https://docs.google.com/leaf?id=0B-M...thkey=CPOYi8EI

Here's some background, and why I'm so annoyed:

1. AHMSI gave me the three-month HAUP forebearance when I lost my job in mid-2010. However, it only took me five months to get another job. I wanted to start making my full payments again, but AHMSI said "no, your loan must be modified". This was so they could collect HAMP money - they don't have to actually qualify a borrower for HAMP to get funds for going thru the mod process.

2. After turning me down for HAMP, saying my Debt to income was too low, they offer me a mod that will take half of my take-home pay. Click on the link to check it out.

3. My taxes are paid in full but AHMSI won't remove this, even after I sent them a receipt from the county appraisal district.

4. Junk fees and bogus charges galore!

The crowning insult is that they also want me to pay over $10,000 in late fees. Remember, this is the same bunch who refused my payments while they pretended to consider me for a HAMP mod. During this time, they lost my faxed app three times. I still have my Transmission Successful docs to prove they got them.

Since I'm in Texas, it looks like the only way I can get out of unaffordable mortgage payments is to file for Chap 13 or walk away. I don't want to do either, but AHMSI won't consider lowering the payments. Any suggestions? I'd be happy to pay an attorney with a record of successfully challenging AHMSI.

[Cat Damiano]

Hi Melina,


When you say that they denied you because your debt to income was too low, were your monthly mortgage payments already less than 31 percent of your gross income?

[SurfwhenUcan]

That's good information, let's break this down:

2. After turning me down for HAMP, saying my Debt to income was too low, they offer me a mod that will take half of my take-home pay. Click on the link to check it out.
Were you paying Principal, Interest, Taxes and Insurance previously or just Principal and Interest, then paying Insurance and Taxes separately. Sounds like the latter. If so, what was your payment then?

3. My taxes are paid in full but AHMSI won't remove this, even after I sent them a receipt from the county appraisal district.
Try this - delinquent taxes charged to the borrower must be applied to delinquent taxes. AHSMI has a department that handles taxes, escrow etc - find it and get a detailed statement of taxes charged to you and applied to delinquent tax bills. If taxes have been double paid, either get a refund from AHSMI or the Tax Board.

The crowning insult is that they also want me to pay over $10,000 in late fees.
This is legitimate interest due the lender for payments due but not paid. Nowhere does this say fees. Actual late fees are $65. If interest is due and you keep the loan and the house, that's just got to be paid. Actually the $17000 tacked on only accounts for what amounts to around an $85 increase over what you would have had if no fees and interest had been tacked on. I"m actually amazed there are as few fees as there are.If they weren't accepting payments, you should have been socking these away - that way when it comes time to do the mod, you could pay off the outstanding interest rather than capitalizing. Don't feel bad if you didn't do this, no one does.

The loan is amortized over roughly 22 years so they didn't extend the term, which would have helped lower the payment. What exactly is your gross income (make sure you are calculating it correctly). You say the payment is half the take home pay, but take home is irrelevant to the lender, gross income is how they calculate affordability. In-house mods generally get a payment of 34-38 percent of gross, so it looks like your payment is actually around that. From my experience, this is normal for AHSMI.

You have nothing here to challenge AHSMI on, other than the delinquent taxes for which no attorney is needed. I am wondering what you will find when you investigate exactly where those taxes were applied. I would document with the tax board a detailed property tax payment history and get that in front of the bank.