Working on second AHMS loan mod

[Crisssyfl]

I received a step loan mod in 2007 with ahms. Our income has since dropped, our payment has adjusted to 6 and now they are escrowing for insurance. Oh and my husband just had a heart Attack.

I came back to the site last week (after 3 yrs) and was very optimistic from recent posts. I have the paper work ready to submit... But I just noticed everyone is discussing ballon payment on the end of the mortgage. Is this consistent across the board? On my first modification there was no ballon.

I would love to hear from others regarding this ballon situation....

Thank you all!

[Cat Damiano]

Hi Chrisssyfl,


If you are applying for a HAMP modification, the modification process involves a series of waterfall steps. The goal is to get the payment to within 31 percent of the gross income including principal, interest, taxes, insurance, and HOA dues if applicable. In some cases in order to get the payment down to that 31 percent it would be necessary to take a portion of the unpaid principal balance and separate it into a non interest bearing non amortizing balloon payment which would not become due until the property is either transferred, sold, refinanced, or at the end of the initial loan term. The balloon is just a part of the unpaid principal balance of the loan.

Step 1: Capitalization

In the first step, the servicer capitalizes accrued interest, out-of-pocket escrow advances to third parties, and any required escrow advances that will be paid to third parties by the servicer during the TPP.

Step 2: Interest Rate Reduction

In the second step, the servicer reduces the starting interest rate in increments of 0.125 percent to get as close as possible to the target monthly mortgage payment ratio. The interest rate floor is 2.0 percent. The initial interest rate would be fixed for the first five years then increase by 1 percent in year 6 and another 1 percent in year 7. For the remainder of the term the rate will be fixed at the prime market rate at the inception of the permanent loan modification.

Step 3: Term Extension

If necessary, in the third step the servicer extends the term and re-amortizes the mortgage loan by up to 480 months from the Modification Effective Date to achieve the target monthly mortgage payment ratio.

Step 4: Principal Forbearance

If necessary, the servicer will provide for principal forbearance to achieve the target monthly mortgage payment ratio. The principal forbearance amount is non-interest bearing and non-amortizing.

The amount of principal forbearance will result in a balloon payment fully due and payable upon the earliest of the borrower’s transfer of the property, payoff of the interest bearing UPB, or at maturity of the mortgage loan.

There is no requirement to forgive principal under HAMP.

[Crisssyfl]

Thanks Cat for your response. You walked me through my last modification and I am very great full to you.

I was playing around withe the numbers and it seems that I can get to 31% if the interest rate was between 3 and 4, that includes taxes and insurance. Since 3 - 4 is pretty close to market rate, do you think that they may not require a ballon?

[Cat Damiano]

I am so happy I was able to help you on the first mod, hopefully we can get this one to a successful outcome as well.

It is very possible if that is the case, that you would get through the process without needing a balloon.

If you haven't already done so, can also put more detailed figures in here;

https://checkmynpv.com/

[Lori25]

Hi there!

We just reapplyed for another modification; we had one earlier last year and have ran into some downfalls since then. Currently my paperwork is with a negotiator working on the HAMP process. We didnt qualify for that last year and we were given an in house mod but unlike seemingly everyone else, we were not given a step one which I would have loved. Our interest rate went down a point and it was around 100.00 savings a month but it didnt really make that much of a difference. I am hoping this time for a step mod or something.

The weird thing is last year it took only a few days for them to tell me we didnt qualify for HAMP and this time my paperwork has been with the negotiator for 2 weeks; and she requested a copy of our electric bill and our HOA coupon so i am not sure what is going on there......neither of these items were requested from us last time.

Keep us posted on your progress, etc...I am really curious.

Lori

[Crisssyfl]

Update, no update! I call every 2 days, everyday they say it's in review. I have not been able to reach my "relationship manager" which has changed 4 times in 2 months. "they" tell me the review process takes 30 - 45 days under writing another 30 - 60. I will be reaching out to jim Davis shortly.

[Crisssyfl]

Out of frustration I called Making homes affordable helpline. They assigned me a counselor and the plan is that if I don't get a approval or a denial from the date my package was compete, the counselor will contact AHMSI and escalate. 30 days is up in 6 days. I will keep all posted

[Crisssyfl]

Update, relationship manager said its in under writing and says that it looks good...

[ufkenmill]

hope you get good news soon!

[Crisssyfl]

WOW! So I decided to call again just to see if I would get different information, and sure enough the "relationship Manager" who answered said she did not see the my mod in underwritting and say the lady I spoke to yesterday would not have had access to that info! Absolutely crazy. She asked if I wanted to be transferred to my negotiator and I said sure, though she has never once been available. To my shock, she actually answered the phone! She told me that she was just waiting for my schedule A, intold her I faxed it in on 12/27 and that it was supposedly posted on the 29th of December according to the 17 people I have spoken to since I faxed it in. She asked me to hold, came back and said she does see it and that she just submitted it to underwritting! Insanity I tell you. This is why the program hasn't helped as many as it should have. The saga continues.

[ufkenmill]

You're exactly right that that's why they haven't helped many people. Call me crazy but I personally believe that all their stalling and "losing paperwork" is one of their methods for making it really hard for people to get a modification. They want you to give up and keep making unreasonably high payments like good little "sheep"! Don't give up though!

[Crisssyfl]

Update... We were approved for a trial mod at around 2.6 percent no ballon. Cat, you were right, it took a little less than 6 months. My advice to those who truly want to modify; know if you will qualify before hand. Cat has posted the NPV site a few times. Turn in your paper work maticulausly filled out and call every few days. Ask who your investor is and if they require approval (my investor did not need to approve). Be very kind to those you speak with, most, truly want to help and they all sit in the same office, you don't want to be labeled a pain. Good luck to all. Thank you Loansafe (especially Cat!) I know we would not be in our home if it wasn't for the amazing contribution you have made to society. You all should be very proud. Pardon spelling errors, I am in a car...

[Cat Damiano]

Hi Crissy,


That is such great news, I am so happy for you!! Congratulations!! I am happy I was able to help.