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].
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.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.
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. thanksThank 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!