365K new home bought in July 2006
80/20 loan both WF
1st: 5/1 I/O ARM 292K
2nd: 15 yr balloon 72K left
Last payment to both was Nov 2008.
Since the beginning, I've been planning on walking away. But since I wanted to stay in the house as long as possible, I called in for a loan mod as well.
I never sent any paperwork. Everything was verbal on the phone.
Last month the 2nd approved me under their HAMP program as long a the 1st will approve me for the same. Initial trial period payments of 3 months are $120 per month instead of the $600 I was initially paying. I was told this is based on1% interest rate for 5 yrs.
Yesterday, I got a UPS package from the first. They want me to make 3 trial payments under the HAMP program and the payments are approx $1400 (including taxes) instead of the $2000 I was paying initially. I called them today and they said this is based on 2% interest rate for the life of the loan.
Both are trial programs and if I make the 3 payments, I'll be considered for the modification.
I asked them how they came up with this number and they told me its based on my NET Income I had quoted on the phone. I went over the financials again and I was told the calculated $1400 was also based on approx $300 surplus.
Now, I thought they should calculate the new payments based on 31% of my gross salary. If that is the case, my payments should've been approx $1780, instead its almost $400 less ($1400). I was never asked my gross salary during the questions.
The thing is that my net pay is relatively less because a big chunk is taken out from my gross towards insurance before calculating the net pay.
My question is, will this make a difference when they see my higher gross pay? Or will they still consider the net pay?
And what are the chances that they'll change the amount after the 3 trial period payments?
Has anyone had success with Wells Fargo's HAMP program?