Home Loans and Support

HAMP approved ... Not happy ... can NACA do better???

Discussion in 'NACA' started by margaretroses, Feb 8, 2012.

  1. margaretroses

    margaretroses LoanSafe Member

    Just rec'd HAMP approval paperwork last week and everything looked good until we noticed that there is a HUGE balloon payment in 25 years in the amount of $450k+!!! Servicer is AHMSI and I believe investor is Wells Fargo.

    Principal balance is $672k
    Original payments: $3394 (interest only)
    Rate: 5.875

    HAMP offer:
    New Principal Balance: $731,537
    Deferred Principal Balance: $99,637
    Interest Bearing Principal Balance: $631,900
    1-5 Years: 3.063%
    Payment: $3,366 (PITI)
    6-25 Years: 3.875%
    Payment: $3,642.49 (PITI)
    25th Year: $452,837

    Everything's fine except this HUGE balloon in year 25!!! We have to sign papers by 2/16. The phrase that gets me is "interest will now accrue on the unpaid interest that is added to the outstanding principal balance, which would not happen without this Agreement". Seems like the interest would be compounding which explains the huge balloon???

    Trying NACA to see if we can get approved through them. Can NACA do any better? Is it possible to get a 2% mod over 30 years with a smaller balloon? I have never heard of anyone having a balloon this big. We would have to set aside at least $1,500 every month for the next 25 years to avoid this huge balloon payment. Otherwise, we'd have to get financing which would be starting all over again. This HAMP modification makes no sense. Will working with NACA affect the HAMP offer we have now? Should we travel to the next NACA event to see if we can do better, or just accept this HAMP modification and pay "rent" and plan to move in 25 years.

    Any suggestions anyone ...
  2. Cat Damiano

    Cat Damiano Mortgage Wars

    Hi margaretroses,

    Not sure if this member had a HAMP modification first, but they received help from NACA by going to one of the Save the Dream events.


    Also there is a NACA forum where you can post questions directly to them as well here;

    NACA Forums • View forum - NACA Home Save

    A NACA counselor "lwillhite" does post in this forum, perhaps they will answer the question as to whether you can apply for NACA if the HAMP modification you received was not affordable.
  3. margaretroses

    margaretroses LoanSafe Member

    Thank you for replying Cat. I have posted under the NACA forum as well. It was unorganized and we waited for hours for 2 days before we finally made any headway. By then it was too late and we were told to go to Seattle or San Diego and we can directly to the servicer. The only problem is the closest city (San Diego) is a good 8-10 drive. The NACA folks said it's best to arrive early on the first day. Still deciding if we should take the drive. It would take us away from work (self employed) and were hoping to see if anyone had any experience with NACA when a HAMP has just been approved. Just don't like the $452,000 balloon 25 years from now.
  4. margaretroses

    margaretroses LoanSafe Member

    Thank you for the NACA forum ... I thought you meant on this board. Hopefully someone can share some insight. Do you know if our pursuing a NACA mod if this would give grounds to the bank to rescind the HAMP loan mod? We are self employed and our income has been even further reduced in the last 3 months.

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