HAMP Guidelines

[Hopeful In Hawaii]

I have a question about a HAMP modification contract verses an "in-house"

Does HAMP allow or require this provision in their contract:


"In consideration of this Modification, Borrower agrees that if any document related to the Security Instrument, Note and/or Modification is lost, misplaced, misstated, inaccurately reflects the true and correct terms and conditions of the loan as modified, or is otherwise missing, Borrower will comply with Lender's request to execute, acknowledge, initial and deliver to Lender any documentation Lender deems necessary. If the original promissory note is replaced the Lender hereby indemnifies the Borrower against any loss associated with a demand on the original note. All documents Lender requests of Borrower shall be referred to as Documents. Borrower agrees to deliver the Documents within ten (10) days after receipt of Borrower of a written request for such replacement."

If so , why would they?

This sure sounds like it requires waving any future requirement for the servicer or investor ( or whoever )
to have correct documentation to prove ownership and right to foreclose.

Just wanted to update , I found out that HAMP actually DOES have this same provision in their contract as well!!!!!!!!!!
I am now confused as to what this actually means?

Does anyone know if it means they get a free pass by me signing this if any of their "proof of ownership or correct chain of title " is out of order? Or is that for what applies to the loan modification?

 

[Arezo]

Hi, I have few questions on HAMP program...1st I got the paperwork for permanent modification through HAMP program (with BofA), but they are adding $ amount to my loan that I am not sure what it entails....how can I find out what can be added to my principal balance? I can see the unpaid back payments, but can they add late fees? My 2nd question is would bank provide me "Truth in Lending" Statement...they just gave me what my payments through the years would be...and my last question is the credit that government gives (max $5000) is it applied toward principal or loan balance? I have to sign the papers on Monday and I want to make sure that BofA is not fooling me into signing something that I don't understand.

 

[Cat Damiano]

Hi Arezo,


If you do not understand what it is that you are signing, you may want to have someone such as a real estate broker or an attorney go over the documents with you before you sign. It takes just a bit of time and most will consult with you on that for free. I will answer your questions here, but you still should have someone look at the paperwork with you.

If you modification is a HAMP modification they can not add late fees to the principal balance.

9.3.2 Late Fees
All late charges, penalties, stop-payment fees, or similar fees must be waived upon the borrower​

receiving a permanent modification.

9.3.3 Administrative Costs
Servicers may not charge the borrower to cover the administrative processing costs incurred in
connection with HAMP. The servicer pays and will not be reimbursed for any actual out-of-pocket
expenses, including, but not limited to, any required notary fees, recordation fees, title costs,​

property valuation fees, credit report fees, or other allowable and documented expenses.


Some of the amount being added could be an escrow shortage of your taxes or insurance if you were in default so be sure to calculate that amount too.

This is not a new mortgage loan in which the Truth in Lending would be in effect, it is a modified version of your original loan so the modification agreement is the only paperwork you will receive.

The way the HAMP incentive works is:

13.2 Borrower Incentive Compensation
Borrowers whose monthly mortgage payment is reduced through HAMP by six percent or more
and who make timely monthly payments will earn an annual “pay for performance” principal
balance reduction payment equal to the lesser of:​

​

​

$1,000 ($83.33/month); or
One-half of the reduction in the borrower’s annualized monthly payment for each month a
timely payment is made.​

The “pay for performance” principal balance reduction payment will accrue for each month in
which the borrower makes current payments. The payment will be payable annually for each of
the first five years after the anniversary of the month in which the TPP Effective Date occurred as
long as the loan is in good standing and has not been paid in full at the time the incentive is paid.
For example, if the borrower is current and makes 10 out of 12 payments on time, he or she will
be credited for 10/12 of the annual incentive payment as long as the loan is in good standing at
the time the annual incentive is paid. A borrower whose loan is delinquent on a rolling 30- or 60-
day basis will not accrue annual incentive payments.​

This payment will be paid to the mortgage servicer to be applied first towards reducing the
interest bearing UPB on the mortgage loan and then to any principal forbearance amount (if
applicable). Any applicable prepayment penalties on partial principal prepayments made by the
government must be waived. In the event the borrower is delinquent, but still in good standing,
the borrower’s incentive should continue to be applied as a curtailment to the interest-bearing
UPB.​

If the loan ceases to be in good standing or is paid in full, the borrower will forfeit any incentive
payments that have accrued but are unpaid and will cease to be eligible for any further incentive
payments after that time, even if the borrower subsequently cures his or her delinquency. With​

respect to PRA, if a borrower loses good standing before the entire PRA Forbearance Amount

​

​

has been applied as principal reduction to the UPB, the unapplied PRA Forbearance Amount
shall remain as non-interest bearing principal forbearance for the remaining life of the loan.​

“Pay for performance” principal balance reduction payments are excluded from gross income for​

tax reporting purposes.

 

[Arezo]

Thank you for the info.; I couldn’t get the info. you had given me from the bank rep. and I won’t ask to get the “Truth in Lending Statementâ€. But in reviewing the paper work…just wanted to make sure the math was right, I came to another issue and I am hoping someone can take look at this with me and guide me in how to handle it.
The paperwork I received states that my unpaid balance is 167473.91 and apparently what they are adding to my loan is interest of 13599.25 + insurance of 715.01 + expenses paid to 3<SUP>rd</SUP> party of 45.00. Well I got my loan history and I am not getting their numbers….Here is the detail that I have:
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My unpaid balance is 154397.93
I have missed total of 16 payments. The very last payment I had made showed the interest portion of the payment at 741.07; so if I multiply 741.07 * 16 = 11857.12 is the interest portion.
My loan history also shows that the bank has paid 475.00 in insurance & 746 in property taxes. (I have also received paperwork stateing that I have "excrow shortage of 487.03?)
If I understand this correctly I should not be charged $45 in 3<SUP>rd</SUP> party expenses
Also the 3 months trail payments (total of 2434.20) are showing as “unapplied total†in my payment history.
I don’t think the bank has calc. my loan correctly…I don’t want to lose the chance of getting permanent modification, but just looking at the interest calc. difference…I don’t want to sign the paperwork. Any advise….
I called the bank to ask them to go over the calc. and they couldn’t explain the calc. to me. I could write OCC and add to my original complain and wait for their respond …but it would take too long and I don’t want to lose the chance of getting permanent mod. What would you do (anyone please)?

 

[Cat Damiano]

Arezo,


I had let you know what you can do in my previous post. A Real Estate professional or an Attorney or even the loan officer at the place where you do your banking should be able to go over the paperwork with you and also help you with the figures.

 

[Arezo]

Hi, I don't know how an attorney, Real Estate professional can help me dealing with bank ....I can do the math and get the figures myself. BofA rep. told me I have missed 18 payments, but clearly based on the printout of my loan history, I only missed 16... hance the reason for miscalc. my interest!!! (this is really basic math). My question is how do I get the bank correct their paperwork and not lose my chance of getting permanent mod.? Has anyone else had to go throught this?

 

[Arezo]

Hi, since you have all this knowledge about HAMP, can you please tell me when the bank modifies the loan and starts at 2% rate...is loan calc. based on 2% or is the bank calc. at APR rate of that 2% (something around 2.2%)?

 

[Arezo]

Hi,
I had posted this question few days ago and I haven't receive a respond...so I am posting it again in hope of an answer....
Could you please tell me when the bank modifies the loan and starts at 2% rate...is loan calc. based on 2% or is the bank calc. at APR rate of that 2% (something around 2.2%)?<!-- google_ad_section_end -->
Also if the bank miscalc. the interest balance that is added to principle....is there anything I can do? When I call the bank to give me explanatin of the interest calc., they are unable and I am told nothing will get changed no mattar what!!! BofA is adding over 900 to my principle balance and that over the life of the loan is good amount of change that I don't want to pay...what can I do?

 

[Hopeful In Hawaii]

This is one of the few questions I have not seen asked here and I do not know the answer.

I know that the bank often miscalculates many many things .

Most people are so happy to get a permanent mod they usually let the bank bully them over the calculations.

However, I personally got on the phone and asked many questions . I do not get truthful answers so I did turn down my mod, it was not a very good offer in the first place though.

Without giving your story and posting your mortgage amount, interest terms etc, PITI, how late etc it is difficult for most people to give a helpful answer it would just be guessing.

 

[Cat Damiano]

Arezo,


If the modification is at 31 percent of your gross income that is the best modification you are going to get at this time. If the amount of $900 is standing in your way of signing the modification, then you will lose this opportunity and unless your income changes by 25 percent less than it is right now, you will not be able to apply for another modification under HAMP. Unfortunately since the bank is being uncooperative about rendering you a statement of how they arrived at the figure for the principal balance one option to find out would be to send a QWR (Qualified Written Request)
HUD RESPA Sample Written Complaint to Lender Letter

but that takes time and would go beyond the timeframe that you have to accept the modification. It is a very tough choice that you have to make but you have to do what will work best for you.

 

[cheri]

can someone answer this question, In review for HAMP with a Rest Report, was just denied, due to they counted the 2nd little loan (deed) as a debt against us. rest report had it charged off. since they counted that, it ruined our NPV Values. Can they count that as a debt ?

 

[Cat Damiano]

cheri,


Do you have a call into Charlie? I would think that since he has your file and has helped with this, he would have the answer for you and be able to help. I hope they can get it worked out for you soon.

 

[cheri]

thanks Cat, I will call him. was wondering if the Bank was trying to squeeze a foreclosure in that 30 day waiting period, they said I have to wait 30 days before I can re apply again, and am hoping Charlie can help me from the 30 day waiting period. The bank admits I qualify with out the second deed. Just dont understand why I couldnt appeal it and not wait 30 days again. Just scared they could foreclose inbetween that waiting period, dont want to loose our home.

 

[Cat Damiano]

I am thinking that he will be able to work this out. Keep us posted on what you hear tomorrow.

 

[cheri]

Me and Levi called the Bank, but computers down. we are calling them tomorrow. Im praying they dont argue this is a debt. Levi said it shouldnt be on there. We shall see what they say tomorrow when we go over the financials again. will re post tomorrow.

 

[Vol 16]

After almost 2 years of fighting with Wells Fargo and not qualifing for the HAMP, we are facing foreclosure. Back balance now approaching $11k and not knowing what to do? We have a 22yo child with life long medical conditions and explaining expenses being more than income and begging with mortgage company, it seems as if we are hitting a brick wall. What should I do? There only offer is to pay the back balance and reinstate our loan, which is only a temporarily fix.

 

[Cat Damiano]

Vol16,


The lowest the mortgage is able to be put at is 31 percent of the gross income including the principal, interest taxes and insurance with hoa dues if it applies. If the mortgage payment is already at or below this figure then it isn't the lender that you would need to work something out with. If it is monthly medical expenses you may want to try asking for hardship assistance with them. Some hospitals, physicians, and prescription companies will offer some sort of hardship assistance to lower medical expenses.

 

[cheri]

I am re applying for hamp when our fed ex package gets here any day, they messed up my inputs and wanted us to wait 30 days, but I appealed. one question the rep asked us was "how many people in the house hold" ?? is this new? never had a rep ask that question before. also we are told are pool of investors wells fargo doesnt participate, and the bank said no in house we qualify for?? our rest Report shows we qualify for hamp, so what will they do with us if we dont qualify for an in house according to bofA or a hamp according to our investor ??

 

[Vol 16]

Its not the bills as most of them are covered from primary coverage and medicare. It's much deeper than words can describe and he will be living with us for most all of his life. Budget cuts from job and being over extended from credit card survival from being out of work for over a year was a huge setback. I am sure the attourney will have some advice and I have a feeling what it will be. Thanks for your input and suggestions.

 

[Liza09]

You may need to consult an attorney regarding a bankruptcy filing to relieve you of your credit card debt and other debt that is weighing on you. Nobody likes to file bankruptcy but it is your right to do so and is in place for people like you who find themselves in a difficult financial situation. You have enough on your plate caring for your son. If you can relieve some of the financial burden by filing bankruptcy, it may be the way to go for you. Wishing you and your family the best.