mod offer

sandiegosub

LoanSafe Member
May 23, 2010
60
0
6
my relationship manager called and told me the terms of my loan mod
these numbers are rounded off
past due 90,000
current balance 574,000
differing principle to 474,000
2% 1-5
3% 6
4% 7
4.75% 8-26
balloon at end 453,000
i asked why the balloon is so high still waiting for an answer
i thought it should be the 190,000 they were differing
where did the other 263,000 come from
the underwriting is investigating i hope i didnt mess things up by questioning this
but doesnt that seem wrong are they charging me interest on the 190,000 for 26 years my first trial payment is due may 1 so i hope they get it handled
if they stick with that number do i just accept it and be grateful i get
to stay in my upside down house for 26 years at a good rent price
 

Michael Naz

Michael Naz
Jan 9, 2011
2,965
38
48
Southern California
Hey Neighbor,

Yes that is a ton to tack on the back of loan 40 year balloon. Not sure why it would be that much. Was it HAMP? the terms you gave match HAMP, but if they take you to a 2% over 40 year term.... and need to take that much off loan balance to get you to 31%? Not sure keep us posted, I would really like to know what happened as well. Did you have a 2nd with same bank?
 

capote203

LoanSafe Member
Jan 29, 2010
551
3
18
California
my relationship manager called and told me the terms of my loan mod
these numbers are rounded off
past due 90,000
current balance 574,000
differing principle to 474,000
2% 1-5
3% 6
4% 7
4.75% 8-26
balloon at end 453,000
i asked why the balloon is so high still waiting for an answer
i thought it should be the 190,000 they were differing
where did the other 263,000 come from
the underwriting is investigating i hope i didnt mess things up by questioning this
but doesnt that seem wrong are they charging me interest on the 190,000 for 26 years my first trial payment is due may 1 so i hope they get it handled
if they stick with that number do i just accept it and be grateful i get
to stay in my upside down house for 26 years at a good rent price
Are they amortizing the loan over 40 yrs, but payable in 26yrs? This would cause a larger balloon...
 

sandiegosub

LoanSafe Member
May 23, 2010
60
0
6
that sounds about right to me so if that is the case what are my options
do i accept the mod turn it down ask for more or walk away
im worried if im going to walk away i should do it now while its still ok
before they change the rules again and come after me for the difference right?
or stay here while i clean up my credit for a few years buy another house then walk
i appreciate all your input thank you
also my morg payment was 4600 a month under this plan it is 1900
which is cheaper than i could rent a house and shop
cause i run my business out of this house
 

TomEason

LoanSafe Guide
Jun 18, 2009
12,390
85
48
SF Bay Area CA
that sounds about right to me so if that is the case what are my options
do i accept the mod turn it down ask for more or walk away
im worried if im going to walk away i should do it now while its still ok
before they change the rules again and come after me for the difference right?
or stay here while i clean up my credit for a few years buy another house then walk
i appreciate all your input thank you
also my morg payment was 4600 a month under this plan it is 1900
which is cheaper than i could rent a house and shop
cause i run my business out of this house
sandiegosub
Since you want to stay in your home and can afford this very low payment, if I were you, I would accept it. You can always choose to other options at a later date. 26 years is a very long time - personally I can't even contemplate that far into the future, LOL. As you stated, you get to stay in your home at monthly payments lower than a comparable rental house. And, you are still on title. You might look at it this way. Although you will have no equity for many years, if ever, if you like your house and neighborhood, you may never want to sell anyway. And if that's the case, then you will be able to save a bunch of $$ over the years to either pay the balloon or buy another home. Good luck!
 

interesting...

LoanSafe Member
Dec 28, 2010
541
2
0
I think I would run from this one!
yup. Think about it a second... this is basically the kind of sub-prime loan that began the great recession we're in now. Why are they replacing bad loans with worse loans. It may not be an "interest only" loan, but it amounts to the same thing.
 

sandiegosub

LoanSafe Member
May 23, 2010
60
0
6
yes the loan was amortized over 40 and due in 26 the investor did not want to extend the life of the loan
the difference along with past due and differed amount came to the 453,000 which i can re fi in 26 years if the house
is worth that or save enough money to pay it off if we want to stay. is there anything i can do about this or not?
what are the chances of talking to someone and having them change anything. who would i talk to rm or exec ofc
thanks for all the input... still 1900 a month is cheap and i dont qualify for a new house credit bad, after 5 years here maybe i can get something else then
 

interesting...

LoanSafe Member
Dec 28, 2010
541
2
0
Let them foreclose and see if they'll talk to you? I'd stop paying... but it's hard to say if I was in the same situation... and I don't really know the specifics of yours... but consider the fact that if you stop, you'll save $1900 a month... it could take them 1-2 years to kick you out. During that time, you may or may not see a better offer. IF you actually pay off this loan... which seems like a pretty big IF... you're also going to be paying the past due... I dunno... in the long run you may be better off with another loan in 7 years after your credit recovers.
 

Hopeful In Hawaii

LoanSafe Member
Apr 10, 2010
595
2
0
yes the loan was amortized over 40 and due in 26 the investor did not want to extend the life of the loan
the difference along with past due and differed amount came to the 453,000 which i can re fi in 26 years if the house
is worth that or save enough money to pay it off if we want to stay. is there anything i can do about this or not?
what are the chances of talking to someone and having them change anything. who would i talk to rm or exec ofc
thanks for all the input... still 1900 a month is cheap and i dont qualify for a new house credit bad, after 5 years here maybe i can get something else then

I have been going through something similiar with Bank of America.

I am guessing your offer is NOT an HAMP?

You finally pass the NPV after two denials and now they come up with " your investor will not allow an extention".

You have to make your own choices of course, you have to do what works best for you.

I understand the feeling you have. You know this offer is unfair, but you have a fear they will foreclose if you do not take it.

I am doing my second appeal on NPV, it is over the home value this time.

BOA also offered me a mod with a huge balloon payment but they did not offer me HAMP terms ( 2% etc ).

The next move for me is to challenge the home value, I sent them a BPO but they used a less accurate measure.

I know my BPO will make the NPV positive so according to the new HAMP rules, they have to get an Appraisal,
( which they get to choose but they charge ME for ).

My concern is

1. either the appraisal will be too high ( even though I have to pay, BOA is the apprasers customer not me , and my appraisal when buying the home was too high )

2. If the appraisal is good and I pass NPV they will now tell me my investor will not extend the terms of the loan. They have already mentioned this before.

I am seeing an Attorney next week.

I have very good reason to people that my "investor" is NOT my investor ( therefore the claim that they will not extend terms is bogus ).

It sure looks like the security my loan is supposed to be in was never transferred and according to the PSA , my loan can not be a part of
this security if that is true.

This can also causes some major IRS problems among other things.

I have decided to see an Attorney , to find out if what I suspect is true, if the Attorney can use this as leverage for a much better loan modification.

If not, I can decide from there. I also REALLY want to keep my home, but I am tired of being on the defensive and getting the run around.

Thanks to the REST REPORT I KNOW my NPV is positive. If I had not known that I might have caved awhile back.

After I demanded the NPV appeal they came back with an offer much worse than than the one they had made only a few weeks before ,
and one I can not afford .

You might want to talk to an Attorney that "get's it" or find out if there is anything illegal about your loan.


Think about this. Why did they put you through all this , when they already knew who your investor was, and if that investor would extend terms or not?

They don't "ask " investors, they look at a summary list from the PSA your loan is most likely in.

Even if they do not extend the terms, your servicer can almost always buy the loan , and because they have a HAMP contract they should.
 

Hopeful In Hawaii

LoanSafe Member
Apr 10, 2010
595
2
0
I DO qualify for 2%.

However, I did not know that HAMP actually allows these types of balloon mortgages?

I have seen the waterfall, 31% gross, first decreasing the percentage of intrest, than extending loan terms up to 40 years and last reducing or forbearing principal.

But not a 40 year amortization due 26, ( or in my case 22 years ).

I have read all the HAMP rules, and have never seen where they allow that?

Are you sure about that?

Thanks!
 

Hopeful In Hawaii

LoanSafe Member
Apr 10, 2010
595
2
0
Actually, I found it!

The thing is that virtually every PSA does allow the servicer enough room to extend terms if it benefits the investor.
 

sandiegosub

LoanSafe Member
May 23, 2010
60
0
6
thanks to all for the input
this is a mha loan mod
and yes it is another bad loan
keep your home california said they
will pay up to 15,000 in past due amount also
so i think we are going to move forward on this
first trial payment is due 5-1 im still not sure it will
be permanent but its worth a try
tom-i have been on the hampster wheel for 20 months with no payment
so i dont think i could get another year or two if i turn this down
no second on the house
good luck everyone and i will update when it becomes permanent or a problem arises
 

Michael Naz

Michael Naz
Jan 9, 2011
2,965
38
48
Southern California
Actually, I found it!

The thing is that virtually every PSA does allow the servicer enough room to extend terms if it benefits the investor.
Hopefull, when you and i spoke. I explained to you 3rd step in the waterfall is in fact this balloon payment no payments or interest for 40 years... or term of your loan. Only way to fix that is with more income, which is possible in some cases. You got your PSA, from the secret new thing being released... I heard michael did that for you, wow... i have yet to run one. That is really cool. Kinda nice being in control eh?
 

sandiegosub

LoanSafe Member
May 23, 2010
60
0
6
does anybody know if chase is doing the principle reduction alternative

do you have to be current with no lates to qualify
i need info on that to see if we can get it that would handle alot of the balloon payment
any info anyone has is appreciated ill look through posts to see what i can find but i think
its a new thing
 

Hopeful In Hawaii

LoanSafe Member
Apr 10, 2010
595
2
0
Hopefull, when you and i spoke. I explained to you 3rd step in the waterfall is in fact this balloon payment no payments or interest for 40 years... or term of your loan. Only way to fix that is with more income, which is possible in some cases. You got your PSA, from the secret new thing being released... I heard michael did that for you, wow... i have yet to run one. That is really cool. Kinda nice being in control eh?
Hi Charlie!

Actually, no mine was not HAMP, and it was not HAMP terms.
I spoke with Mike several times, and I am following the next steps.

Just like we suspected, they used an automated model rather than my 12 page detailed BPO I sent with my report.
I heard this verbally and I am waiting for my results NVP in writing.

The next step is for me to challenge the home value which by simpley giving them the BPO I aready gave them! :-}

With Mike's help I already know it will be positive even with a decent amount of wiggle room.

They have to run the NPV again with my BPO and if it passes ( as it will as we already know! :-} )
they have to get an apprasial ( which get's paid by me but via them ).

I am still waiting for the "decline letter" and NPV results from them.

Meanwhile, I can't thank you guys enough for that PSA!!!!!!!!!!!!!!!!!!!!!!!!

I have found out so much from that!

They say they can not extend my terms due to my "investor" but the PSA gives them some room to do this.

But even more interesting...I am pretty sure my " investor" is not my investor, and due to the terms of the PSA!!!!!

Thanks to you guys , I now have enough info to feel very confident and go on the offense rather than defense
and I am seeing a local attorney who specializes in foreclosure defense and civil rights.
He sounds like he totally "get's it" and is working with a bunch of cases like mine.

I feel that thanks to the REST REPORT and the PSA and title search I have a lot of leverage for them to negotiate in "good Faith" with me now!

I am actually excited to show him what I got from you guys!
How is that for a change in this type of situation!

Again, I can not thank You Charlie, Mike, Angela, Everyone at REST REPORT MATTERS!

Not to sound like an ad, but I really mean it!
 

Michael Naz

Michael Naz
Jan 9, 2011
2,965
38
48
Southern California
Hi Charlie!

Actually, no mine was not HAMP, and it was not HAMP terms.
I spoke with Mike several times, and I am following the next steps.

Just like we suspected, they used an automated model rather than my 12 page detailed BPO I sent with my report.
I heard this verbally and I am waiting for my results NVP in writing.

The next step is for me to challenge the home value which by simpley giving them the BPO I aready gave them! :-}

With Mike's help I already know it will be positive even with a decent amount of wiggle room.

They have to run the NPV again with my BPO and if it passes ( as it will as we already know! :-} )
they have to get an apprasial ( which get's paid by me but via them ).

I am still waiting for the "decline letter" and NPV results from them.

Meanwhile, I can't thank you guys enough for that PSA!!!!!!!!!!!!!!!!!!!!!!!!

I have found out so much from that!

They say they can not extend my terms due to my "investor" but the PSA gives them some room to do this.

But even more interesting...I am pretty sure my " investor" is not my investor, and due to the terms of the PSA!!!!!

Thanks to you guys , I now have enough info to feel very confident and go on the offense rather than defense
and I am seeing a local attorney who specializes in foreclosure defense and civil rights.
He sounds like he totally "get's it" and is working with a bunch of cases like mine.

I feel that thanks to the REST REPORT and the PSA and title search I have a lot of leverage for them to negotiate in "good Faith" with me now!

I am actually excited to show him what I got from you guys!
How is that for a change in this type of situation!

Again, I can not thank You Charlie, Mike, Angela, Everyone at REST REPORT MATTERS!

Not to sound like an ad, but I really mean it!
You are one of the first to use the new "PSA" tool, we have not even published anything about it yet, that is GREAT!.. and you know what you don't sound like an AD, more a home owner that is ready to stop the uncertainty and move on. Mike is really good at all the techy mumble jumble. Keep us posted, and we apprecaite all the kind words. amazing they did not use the 12 page DETAILED BPO you sent in...woops.. something in their favor...
 

TomEason

LoanSafe Guide
Jun 18, 2009
12,390
85
48
SF Bay Area CA
Hi Charlie
I have a question for you about the new PSA tool. Is this a tool that will find the investor of the borrower's loan when contained in a RMBS or other security? Many forum members have asked their loan servicers for the investor info to include the security ID, the trustee, etc. The loan servicers often refuse to divulge the specific info, often stating just that the loan is held in a "private label" security, i.e. not a GSE (Freddie or Fannie or VA). But then not providing more specific info. If the tool does that, it could be a valuable addition to the Rest Report. Thanks!