Find out Now If you even QUALIFY for a Loan Workout Solution. Post Your Situation

1. Loan Balance Now= $489,500.
2. Past Due if any= $38,900.
3. Gross Monthly Income Borrower & Co Borrower= $6,500 ($5,500 job income + $1,000 rent of Casita on property to family member)
4. Mortgage Payment without taxes and insurance (do not include taxes and insurance) = see chart below
5. Real Estate Taxes per month= $1,050.
6. Insurance and/or HOA per month= $130.
7. Home Value (check zillow.com or chase home value estimator)= $625,000/ $650,000
8. Mortgage servicer and Investor= The Servicer is Nationstar, Guarantor is Ginnie Mae, but I don’t know who is the loan investor.
9. Other monthly debt payment total for credit cards and collections = None
10. Current interest rate = 3.5%
11. Fixed Rate or Adjustable Rate? = Fixed
12. Have you been modified before? if so, what date? = UP forbearance May 2013
13. When did you get this loan, what year? = Oct. 2008

"We see that at 2% rate (hamp fixed rate for 5 years, then 3% year 6, 4% year 7 and 4.25% approximate ceiling rate for remainder of term of loan, 480 month amortization,) the payments of P&I on the new loan balance is sum of principal due and past due, $528400, equaling $1600.13.

This when added to T&I, you end up with PITI of $2780.13 which must 31% of the gross income of $8968.16 at the minimum as of today.

The fact you have significant equity does not help your case because the investor would recover all of the loan amount and past due by going to foreclosure because of the approximate loan to value of under 84%.

If you run checkmynpv.com you will see it will likely show you “may not” be npv positive for loan modification.

Npv positive means that its better for the investor to modify since the recovery at foreclosure is less than the recovery through modification and this occurs in homes with little to no equity. Your property values are probably rising also so that does not help either.

We can help call and work with Nationstar as we had discussed, I just don’t want you to think this is an easy case since it’s not in the investor’s best interest to modify the loan."

The servicer has to be convinced that by modifying your loan there is something unique to your case, such as problems with the loan itself or the servicing that would make the loan a liability for them.

In essence we need leverage more so than in cases where there is neutral or negative equity.

Let me know and I will schedule a call with you to discuss further.
 

carjacx

LoanSafe Member
1. Loan Balance Now= $228,969.00
2. Past Due if any= $5,054.91
3. Gross Monthly Income Borrower & Co Borrower= $2,689.50
4. Mortgage Payment without taxes and insurance (do not include taxes and insurance) 783.09
5. Real Estate Taxes per month= $105.63
6. Insurance and/or HOA per month= $210.49
Def. shortage (escrow per month)= $104.33

7. Home Value (check zillow.com or chase home value estimator)= $94,160-$119,840 per Chase
8. Mortgage servicer and Investor= The Servicer is Nationstar, Investor U.S.Bank
9. Other monthly debt payment total for credit cards and collections = None
10. Current interest rate = 2.5%, 3.5%, #3.625%
11. Fixed Rate or Adjustable Rate? = Step Rate
12. Have you been modified before? if so, what date? = HAMP 3/2010; BAC 01/2013
13. When did you get this loan, what year? = Nov, 2006

Have asked for a HAMP modification and Nationstar stated I have one. My current modification is an in-house BAC and I was "not in good standing" with HAMp in 5/2011.

Currently I am behind 4 payments and was put on a repayment plan of 4 months. My payment of $1051.54 was increased to $1203.54 in Feb 2013 due to escrow shortage (homeowners increased). Repayment puts my payment at $1803.54 for the next 4 months of which I cannot afford.

I am very interested if I can qualify for another HAMP with Principal Reduction Incentive as I am well over $100,000 underwater and not to come up any time soon.

Any help would be appreciated.....thanks
 
carjacx -

from your scenario, your current repayment amount for the next four months is 1803.54 which when divided by your gross income of 2689.50 is 67%.

if this were a modification payment it would not be considered affordable but since its a repayment plan, they validated you have enough room in your budget to afford it by doing a verbal or written interview with you regarding your monthly household budget.

one significant obstacle lies in the fact you are at 2.5% to 3.5% with ceiling rate at 3.625% from what we understand from your post.

the HAMP tier 1 if you are deemed "not in good standing" would take significant labor hours to correct based on documented evidence in your possession or received from nationstar and bofa regarding the in house mod.

i doubt you have anything in writing saying you are not in good standing and not eligible for HAMP tier 1 as this would be something to verify if you did in fact have something in writing.

let's assume you are in fact deemed in not good standing under HAMP as nationstar says which would therefore rule you ineligible for Tier 1 help that could potentially go as low as 2% fixed for 5 years.

the HAMP Tier 2 mod is at 4.25% this week over 480 month amortization which would yield payments of $1089.98 of P&I on new loan balance of $234,023.91 after the past due is added to the existing loan balance.

the PITI is therefore 1404.80 which is 52.2% of gross income and this is acceptable at nationstar for HAMP Tier 2 dti range ratios as it falls between 10% and 55% of your gross income.

if you passed for the HAMP Tier 2 PRA (Principal Reduction Alternative) then the loan balance would be at 115% of market value (using high value you found chase to be conservative) the loan balance at 115% is $137,816.

so under HAMP Tier 2 PRA you are looking at $137,816 at 4.25% over 480 month term resulting in payments of $641.89 for P&I and PITI of $956.71 which is 35.5% of your gross income.

the best option for modification again in your case would be this program or a proprietary mod in house with similar payment amount and loan balance and rate and term.

however, due to the investor and already being at a ceiling rate of 3.625% and currently at 2.5% to 3.5% this may not be possible due to investor restrictions can't be certain without more work in researching it.

in summary, the first step is to contact the MHA Help Team at 888-995-4673 to see what they independently say about your standing under MHA HAMP.

if you call the non-profit alliance at that number, please make sure to ask for MHA Help Team and escalation.

you can ask the MHA Help Team to check on the investor restriction on re-mod and PRA.

if you are eligible for HAMP Tier 1 and HAMP Tier 1 PRA then they have to review you for that option at Nationstar.

if MHA Help says you are not eligible for HAMP Tier 1 and HAMP Tier 1 PRA, then you should still remain eligible for HAMP Tier 2 and HAMP Tier 2 PRA barring investor restrictions or participation since you are attempting a re-modification of a previous modification that failed possibly because the loan to value is at 191%.

US Bank in our experience does not participate in principal reductions more often than they do, but each and every loan must be verified if principal reduction is possible or not by looking at the other loans in the mortgage backed security since US Bank acts as a trustee for certain mortgage backed securities as well owning mortgages in their own portfolio and on their own balance sheet as a bank.

if is imperative to find out the restrictions on your loan but first go ahead and apply if you don't want to spend any money.

should you need expert help, don't hesitate to reach out to us at [email protected].

-michael
 

carjacx

LoanSafe Member
carjacx -

from your scenario, your current repayment amount for the next four months is 1803.54 which when divided by your gross income of 2689.50 is 67%.

if this were a modification payment it would not be considered affordable but since its a repayment plan, they validated you have enough room in your budget to afford it by doing a verbal or written interview with you regarding your monthly household budget.

one significant obstacle lies in the fact you are at 2.5% to 3.5% with ceiling rate at 3.625% from what we understand from your post.

the HAMP tier 1 if you are deemed "not in good standing" would take significant labor hours to correct based on documented evidence in your possession or received from nationstar and bofa regarding the in house mod.

i doubt you have anything in writing saying you are not in good standing and not eligible for HAMP tier 1 as this would be something to verify if you did in fact have something in writing.

let's assume you are in fact deemed in not good standing under HAMP as nationstar says which would therefore rule you ineligible for Tier 1 help that could potentially go as low as 2% fixed for 5 years.

the HAMP Tier 2 mod is at 4.25% this week over 480 month amortization which would yield payments of $1089.98 of P&I on new loan balance of $234,023.91 after the past due is added to the existing loan balance.

the PITI is therefore 1404.80 which is 52.2% of gross income and this is acceptable at nationstar for HAMP Tier 2 dti range ratios as it falls between 10% and 55% of your gross income.

if you passed for the HAMP Tier 2 PRA (Principal Reduction Alternative) then the loan balance would be at 115% of market value (using high value you found chase to be conservative) the loan balance at 115% is $137,816.

so under HAMP Tier 2 PRA you are looking at $137,816 at 4.25% over 480 month term resulting in payments of $641.89 for P&I and PITI of $956.71 which is 35.5% of your gross income.

the best option for modification again in your case would be this program or a proprietary mod in house with similar payment amount and loan balance and rate and term.

however, due to the investor and already being at a ceiling rate of 3.625% and currently at 2.5% to 3.5% this may not be possible due to investor restrictions can't be certain without more work in researching it.

in summary, the first step is to contact the MHA Help Team at 888-995-4673 to see what they independently say about your standing under MHA HAMP.

if you call the non-profit alliance at that number, please make sure to ask for MHA Help Team and escalation.

you can ask the MHA Help Team to check on the investor restriction on re-mod and PRA.

if you are eligible for HAMP Tier 1 and HAMP Tier 1 PRA then they have to review you for that option at Nationstar.

if MHA Help says you are not eligible for HAMP Tier 1 and HAMP Tier 1 PRA, then you should still remain eligible for HAMP Tier 2 and HAMP Tier 2 PRA barring investor restrictions or participation since you are attempting a re-modification of a previous modification that failed possibly because the loan to value is at 191%.

US Bank in our experience does not participate in principal reductions more often than they do, but each and every loan must be verified if principal reduction is possible or not by looking at the other loans in the mortgage backed security since US Bank acts as a trustee for certain mortgage backed securities as well owning mortgages in their own portfolio and on their own balance sheet as a bank.

if is imperative to find out the restrictions on your loan but first go ahead and apply if you don't want to spend any money.

should you need expert help, don't hesitate to reach out to us at [email protected].

-michael
 

carjacx

LoanSafe Member
Thank you for that informative post Michael. I have a letter from BAC dated 5/2011 saying I am "not in good standing" with HAMP. Also, you are saying I need to find out if US Bank participates in PRA as this would be my best option. It seems counterproductive to just do a HAMP 2 with interest rate so much higher than what I have now. My biggest hurdle is past due amount currently and value of house in long term. I have a balloon payment of over $78,000. Nationstar insists on repayment of past due during the next 4 months after raising my escrow to be unaffordable. Is there a forbearance program I could apply for? If I can get a HAMP 2 would it be unwise for me to accept without a PRA attached? How do I go about finding my investors' restrictions? Thanks again!
 

SJP1995

LoanSafe Member
1. Loan Balance Now= $296,135.45
2. Past Due if any= $0
3. Gross Monthly Income Borrower & Co Borrower= $7,800
4. Mortgage Payment without taxes and insurance (do not include taxes and insurance) = $2111.97
5. Real Estate Taxes per month= total escrow for taxes and ins is $308.67 (not sure of individual amounts)
6. Insurance and/or HOA per month= $67.
7. Home Value (check zillow.com or chase home value estimator)= $230,000-$250,000
8. Mortgage servicer and Investor= Chase
9. Other monthly debt payment total for credit cards and collections = $750 (credit card and car payment)
10. Current interest rate = 6.5%
11. Fixed Rate or Adjustable Rate? = Fixed
12. Have you been modified before? if so, what date? = Tried for loan mod in 2008, finally after 2 years they gave us a CHAMP and basically just added the payments we missed to the back of the loan, didn't change any terms.
13. When did you get this loan, what year? = June 2006

Also, we currently have a 2nd mortgage with Chase we haven't paid on in years, we have tried for a settlement but so far nothing. Do we even qualify for a loan mod on our 1st?
 
SJP1995 - thanks for your post.

current DTI is 2487.64/7800= 31.9% which is considered affordable.

your scenario does not show eligibility for a modification that will save you monthly payments by at least 6% or greater over the existing P&I payments.

going late to get a mod without a proven hardship will just cause you a headache and wasted time.

if you did go late due to hardship and they offered you a mod the payments would not drop and may in fact go up.

as for the 2nd mortgage, if its charged off they should be trying to resolve it with you.

perhaps there is something there that can be done if that loan is charged off.
-michael
 

SJP1995

LoanSafe Member
SJP1995 - thanks for your post.

current DTI is 2487.64/7800= 31.9% which is considered affordable.

your scenario does not show eligibility for a modification that will save you monthly payments by at least 6% or greater over the existing P&I payments.

going late to get a mod without a proven hardship will just cause you a headache and wasted time.

if you did go late due to hardship and they offered you a mod the payments would not drop and may in fact go up.

as for the 2nd mortgage, if its charged off they should be trying to resolve it with you.

perhaps there is something there that can be done if that loan is charged off.
-michael
Thanks for your help. The 2nd is charged off and we were in negotiations last summer, but Chase never responded to our counter offer. Thanks again for your help.
 

carjacx

LoanSafe Member
Thank you for that informative post Michael. I have a letter from BAC dated 5/2011 saying I am "not in good standing" with HAMP. Also, you are saying I need to find out if US Bank participates in PRA as this would be my best option. It seems counterproductive to just do a HAMP 2 with interest rate so much higher than what I have now. My biggest hurdle is past due amount currently and value of house in long term. I have a balloon payment of over $78,000. Nationstar insists on repayment of past due during the next 4 months after raising my escrow to be unaffordable. Is there a forbearance program I could apply for? If I can get a HAMP 2 would it be unwise for me to accept without a PRA attached? How do I go about finding my investors' restrictions? Thanks again!
Where and when do I have to pay for help? Could you please address the above concerns as I don't know what direction to go. thanks
 
hello carjacx

thanks for the post back.

the letter from bofa from 2011 may in fact be incorrect.

bofa has had some "issues and challenges" in 2010 and 2011 to put it lightly with evaluating loan mods properly.

check with mha help first is what we would do first.

if you had the funds, yes it would be wise to verify if US bank deems your loan to be eligible for PRA, and the is achieved first for free and your time by writing in to the servicer and asking them if your investor allows PRA on your unique loan.

if they say US bank does not, then you can pay third parties a reasonable sum (under $1,000) to do research to verify this since this is what you want.

the balloon payment is at zero interest and was done to make the payments affordable, it sucks its there but its worse if you had to make principal and interest payments on it.

the repayment plan option, would only be given if your financials supported it, and that option you did receive is considered a type of forbearance from entering foreclosure since you were not current when they offered it to you.

you must make the payments to keep eligibility and show willingness to keep the property since you did your financials and this payment was deemed affordable (or else they should have done an interview to check to see if this repayment amount made sense).

all servicers are supposed to review you for all loan mod options and provide you, in writing, with the one that best meets the investor's requirements of losing the least amount of money while minimizing the risk of future re-default.

you don't get to pick which mod you get when you apply, they choose for you by running an evaluation and give you reasons why don't qualify for certain programs.

our suggestion is to set up an appointment by emailing in below and let's talk first see what we can do and make sure you understand the waterfall of options.
 

SJP1995

LoanSafe Member
I posted a month or so ago and since then our income has gone down and will stay this way. :(
Can you check if a loan modification is even possible?
1. Loan Balance Now= $296,135.45
2. Past Due if any= $0
3. Gross Monthly Income Borrower & Co Borrower= $7,200
4. Mortgage Payment without taxes and insurance (do not include taxes and insurance) = $2111.97
5. Real Estate Taxes per month= total escrow for taxes and ins is $308.67 (not sure of individual amounts)
6. Insurance and/or HOA per month= $67.
7. Home Value (check zillow.com or chase home value estimator)= $230,000-$250,000
8. Mortgage servicer and Investor= Chase
9. Other monthly debt payment total for credit cards and collections = $750 (credit card and car payment)
10. Current interest rate = 6.5%
11. Fixed Rate or Adjustable Rate? = Fixed
12. Have you been modified before? if so, what date? = Tried for loan mod in 2008, finally after 2 years they gave us a CHAMP and basically just added the payments we missed to the back of the loan, didn't change any terms.
13. When did you get this loan, what year? = June 2006

Our monthly income unfortunately went down about $600.00.
 
SJP1995 thanks for your post.

your housing ratio of PITIA to gross income is 2487.64/7200= 34.6% so you are hamp tier 1 eligible.

the payment savings under hamp tier 1 style standard mod is down to 31% or $2232 in your case with p&i being $1856.33 a savings of $255.64 a month for possibly up to 5 years.

to get to $1856.33 p&i, the loan balance would remain the same, and keeping rate at 6.5% and having a term of 369 months would equate to $1857.07 which is close enough to target P&I payments.

you should be fine since no equity.

principal reduction under HAMP Tier 1 PRA may be an option since you owe more than 115% of the home value.

however, the payments will still remain the same at 31% target.

depending on what they get for home value, the loan at 115% of market value at $250K is $287,500 and if at $230K value then 115% of that is $264,500.

under HAMP Tier 2 and HAMP Tier 2 PRA, the rate would be 4.125% approximately over 480 month term fixed under normal parameters but they don't have to go so low on the rate nor as long of a term since you make more money than is required to reduce the rate any lower.

you are eligible for HAMP Tier 1, HAMP tier 1 PRA and HAMP Tier 2, HAMP Tier 2 PRA.

you look qualified for HAMP Tier 1 and HAMP Tier 1 PRA as well as Tier 2 and Tier 2 PRA.

since you appear qualified for HAMP Tier 1, they have to give that to you over Tier 2 as part of the evaluation.

they may not believe your income drop is sufficient to create enough of a hardship to miss your payments especially if you have more than 2 months of PITIA reserves in your checking and savings accounts.

retirement funds and emergency funds are excluded from reserve requirements.

hope this helps.
 
Please Help:

My husband passed away 4 weeks ago. Our mortgage is with Greentree. In my grief and emotional state, I called Gree Tree and told them what happened (I had panic for a moment and thought I would need to tell them.) They said they would not "take the home back." The mortgage is in his name only (my husband) only. I ask if I could modify the loan and they stated I would have to get in into my name first. Which I dont know how to do that? We live in Ohio so we are a Dower state.

-Was I wrong in telling them?
-Can or will they call the loan due since I am not on the mortgage,or if I keep paying the mortgage am I ok?
-Any suggestions in getting a modification, my payments are too high for me to do this alone. I did get some life insurance, will they count that as income and possibly not modify it.
-I cannot refinance as my income will not allow and we have $18,000 worth of IRS tax liens on the house, but we still have about $50.000 in equity above that.


I am so concern they will call the loan due? This has been overwhelming to deal with.
Thank You for your help
 
hello Lukeabby- we are sorry for your loss.

no you weren't wrong in telling them.

call and ask them how to assume the loan due to death of spouse.

they will want proof that you are authorized to speak on his behalf so please seek appropriate legal counsel first to make sure you have the ability to speak to green tree on his behalf.

they will not call the loan due if you are paying on time.

you can't modify the loan and assume it at the exact same time.

you must get permission to speak on the account and proof that you have ownership of the property and that you reside in it.

you can and should make payment arrangements with the IRS as soon as possible and know that since you have a lot of equity, a loan modification is not likely a good benefit to the loan investor over the alternatives if you fell behind on the mortgage.

you can apply for a loan mod if you have written authorization on the loan and they should be able to handle the assumptions concurrently but through the appropriate department.

hope this helps.
 
I received an " in house" loan modification in 2009 but even those payments have become unaffordable due to my divorce and the fact that my interest rate has gone up to 3 %.

I tried to get a re-modification in 2013 due to my divorce but I was denied due to “excessive forebearance”. I am very stressed and using my credit cards to get by at the end of every month. My hardship is that due to the fact that I became divorced and that my mortgage rate has gone up to 3 percent and will continue to rise until it caps at 5 percent. The divorce was final in April of 2013. The interest rate increased on August 1, 2014. (At 3% my mortgage is $300 more per month than when I it was at 2%).

Will the dealbreaker now we that I have equity in the home due to improvements in the housing market?

Thank you so much in advance for your help.

1. Loan Balance Now=$543, 611
2. Past Due if any= 0
3. Gross Monthly Income for Borrower and Co Borrower=$8389 for me only since I am divorced. This includes child support and rental income for home office and also some money I get for meal and auto expenses.
4. Mortgage Payment without taxes and insurance (do not include taxes and insurance) = $2177 this year but it is going to keep going up and and will cap at 5% in 2016. ( That payment will be $2796 and there is no way I will be able to make it.)
5. Real Estate Taxes per month=$800
6. Insurance and/or HOA per month=Insurance only $110
7. Home Value (check eppraisal.com and chase home value estimator)= $766085
8. Mortgage Servicer and Investor (check if fannie or freddie or MERS below links) It is not Fannie or Freddie. Nationstar. At one time I think Lehman was the investor but I am not sure.
9. Other monthly debt payment total for credit cards and collections =$150 is what I told them or credit card payments. That did not include car payment of $310
10. Current interest rate =3 %
11. Fixed Rate or Adjustable Rate? = it is going to keep going up and and will cap at 5% in 2016.
12. Have you been modified before? if so, what date? = July 1, 2009
13. When did you get this loan, what year? = Original loan was from Aurora in January 2006
14. If you own any other properties, include PITIA for each property and gross rental income for each= No I do not.
 
thank you for your post marincountyowner -

as a frame of reference today's refinance rates for a 5 year mortgage fixed are at 3% on average for people with 760 ficos or higher and 25% or more equity.

a 3o year fixed is at 4.0% to 4.25% for the same A+ borrower.

the rate adjusting upwards is likely a lower rate than anyone you are speaking to at the servicer or amongst your friends and family who have a mortgage.

this is all so that you can see you have a good rate at 3%.

now for the affordability on a re-modification effort.

they will use today's payment at 2177+800+110 to get 3087 for PITIA housing and dividing this by gross income of 8389 puts you at 36.80% which is still acceptable under most in house mod options.

you have a loan to value of 70.96% which makes the loss mitigation effort not favorable at all in your case for a mod.

a refinance since you are not late at 4.25% over 360 month term fixed on loan balance of $543,611 gets p&I payments at 2006.03 and PITIA at 2916.03 which would save you $77 per month and would qualify because the back end ratio would be 40.2% when factoring the car payment and credit card payment which is acceptable as well.

so in essence don't bother wasting your time trying to get a loan with the numbers you posted, but rather focus on a refinance on 30 year fixed or another 5 year fixed at 3% which would make the p&I at 1719.21 and PITIA at 2629.21 which is a $457.79 drop in payment.

remember in a refinance the new loan is a new 30 year term in exchange for the lower payment.

another option is to downsize by selling it or get roommates or renters to live with you for more income or rent the entire thing out and move somewhere smaller with a smaller payment.

if you want a refinance pre-qualification, please email me below and let me take an initial application for you and see what we can do for you with our network of mortgage bankers based on credit profile and last two year's of income proof.

-michael
 
Yes I would love to refinance with a $457.70 drop in payment! I don't understand why refinancing would give me a drop in payment when I am at 3% now. Maybe you can explain that. I used to have a credit score of over 760 but Nationstar raised the interest rate without warning me and held my funds in suspense and waited to 2 months to tell me this happened. ( I automatically paid mortgage online, and whenever Nationstar called I answered and there was no one on the line. I never realized it was Nationstar until I star 69'd them). Now my credit score is just under 700.
 
Michael I just checked my loan modification and it matures in 2047. That is 33 years from now. So I am not sure how a refinance would save me any money.