Year Sixth In Hamp, Rate Increase Need To Modify Again.

delta97

LoanSafe Member
My rate went up to 3% after completing successfully first five years at %2 in HAMP program. During this period, I got sick, went through chapter 7 (did not reaffirm my property), lost job. I do have another job now but at much less pay. I was able to keep all of my payments on time but now, an additional $130 a month is a bit too much, since I am left with only $300 to live on a month after housing payments.

My question is, if I request to modify again do I immediately go into streamline modification at 40 years at 4% or would I be considered to begin HAMP all over again and hopefully capture 2% yet again? My LTV is less of 80%.

Anyone has any experience in such matter? As well, do I have to request Form 720 to get $5000 in the sixth year by January 01,2016 or wait till year sixth in HAMP expires. The reason I state it, my bank has not even notified me of rate change (I just checked it myself), perhaps due to my debt not being reaffirmed in Chapter 7.

If I do modify, do I have to reaffirm my loan? And will it disqualify me from receiving a performance payment of $5000 at the end of sixth year?

Thank you for all the advice I can get in such sensitive matter.
 

delta97

LoanSafe Member
My rate went up to 3% after completing successfully first five years at %2 in HAMP program. During this period, I got sick, went through chapter 7 (did not reaffirm my property), lost job. I do have another job now but at much less pay. I was able to keep all of my payments on time but now, an additional $130 a month is a bit too much, since I am left with only $300 to live on a month after housing payments.

My question is, if I request to modify again do I immediately go into streamline modification at 40 years at 4% or would I be considered to begin HAMP all over again and hopefully capture 2% yet again? My LTV is less of 80%.

Anyone has any experience in such matter? As well, do I have to request Form 720 to get $5000 in the sixth year by January 01,2016 or wait till year sixth in HAMP expires. The reason I state it, my bank has not even notified me of rate change (I just checked it myself), perhaps due to my debt not being reaffirmed in Chapter 7.

If I do modify, do I have to reaffirm my loan? And will it disqualify me from receiving a performance payment of $5000 at the end of sixth year?

Thank you for all the advice I can get in such sensitive matter.
P.S. I have 24 years left and my mortgage rate will be capped at $4.75 eventually if keeping current modification.
 

just_me

LoanSafe Member
My rate went up to 3% after completing successfully first five years at %2 in HAMP program. During this period, I got sick, went through chapter 7 (did not reaffirm my property), lost job. I do have another job now but at much less pay. I was able to keep all of my payments on time but now, an additional $130 a month is a bit too much, since I am left with only $300 to live on a month after housing payments.

My question is, if I request to modify again do I immediately go into streamline modification at 40 years at 4% or would I be considered to begin HAMP all over again and hopefully capture 2% yet again? My LTV is less of 80%.

Anyone has any experience in such matter? As well, do I have to request Form 720 to get $5000 in the sixth year by January 01,2016 or wait till year sixth in HAMP expires. The reason I state it, my bank has not even notified me of rate change (I just checked it myself), perhaps due to my debt not being reaffirmed in Chapter 7.

If I do modify, do I have to reaffirm my loan? And will it disqualify me from receiving a performance payment of $5000 at the end of sixth year?

Thank you for all the advice I can get in such sensitive matter.
Hmmmm...Are you able to refi independently??? I would give that a quick review (income and house value) with your local bank before you have accumulated any lates and credit damage. If you are qualified for x amount, offer them a short proposal maybe? Not sure on incentive payments and processing, but do know if you announce 'issues' they may transport you into default measures. I did not reaffirm mod after bk7 and since then have never received statements. I have gotten rate notices however, these are 60 days in advance currently, so maybe they have dropped the ball on it. When you modify, you are creating new loan terms and this does not constitute a reaffirmation per se, but will make you liable for any new balance (rolled into new mod) that was otherwise discharged. You could split hairs and fight it, but it's probably not worth haggling, yet may give you some rights in negotiation.

The new mod formulas use 40 year amortizations and balloon payments. The balloon payments are at 30 years, meaning you are not paying sufficient principal to make payoff at end of term, given extended amortization accounting.

My only other thought... get a roommate to keep some funds available to protect your credit history, while you attempt to refi or lower the payment. Yeah, I know, we are all being squeezed to live on less, especially with an impossible to maintain "stair stepped interest" built into the mods.
 

delta97

LoanSafe Member
Hmmmm...Are you able to refi independently??? I would give that a quick review (income and house value) with your local bank before you have accumulated any lates and credit damage. If you are qualified for x amount, offer them a short proposal maybe? Not sure on incentive payments and processing, but do know if you announce 'issues' they may transport you into default measures. I did not reaffirm mod after bk7 and since then have never received statements. I have gotten rate notices however, these are 60 days in advance currently, so maybe they have dropped the ball on it. When you modify, you are creating new loan terms and this does not constitute a reaffirmation per se, but will make you liable for any new balance (rolled into new mod) that was otherwise discharged. You could split hairs and fight it, but it's probably not worth haggling, yet may give you some rights in negotiation.

The new mod formulas use 40 year amortizations and balloon payments. The balloon payments are at 30 years, meaning you are not paying sufficient principal to make payoff at end of term, given extended amortization accounting.

My only other thought... get a roommate to keep some funds available to protect your credit history, while you attempt to refi or lower the payment. Yeah, I know, we are all being squeezed to live on less, especially with an impossible to maintain "stair stepped interest" built into the mods.
Thank you for your reply. I am pretty sure there is not going to be any credit score damage ,since mortgage is not on any books since the debt was discharged through Chapter 7. Refinancing is not the option since my income slashed dramatically since first modification. I have learned that I cannot reapply for HAMP again, I am qualified though for streamline modification. Regardless was it reaffirmed or not, they cannot make me to reaffirm it, but they are required to offer me a streamlined modification once I request it, since I am already in a government program so to speak.
 

just_me

LoanSafe Member
Thank you for your reply. I am pretty sure there is not going to be any credit score damage ,since mortgage is not on any books since the debt was discharged through Chapter 7. Refinancing is not the option since my income slashed dramatically since first modification. I have learned that I cannot reapply for HAMP again, I am qualified though for streamline modification. Regardless was it reaffirmed or not, they cannot make me to reaffirm it, but they are required to offer me a streamlined modification once I request it, since I am already in a government program so to speak.
I do not know about the streamline program, maybe someone else does???

It certainly sucks you do not have benefit of "on time payment reporting" with the credit bureaus. I know it's a struggle to maintain these on reduced income and while going through periods of illness and unemployment. Of course, if you miss payments, you are not dinged with the credit bureaus either. (or one would hope)
 

patnj

LoanSafe Member
I do not know about the streamline program, maybe someone else does???

It certainly sucks you do not have benefit of "on time payment reporting" with the credit bureaus. I know it's a struggle to maintain these on reduced income and while going through periods of illness and unemployment. Of course, if you miss payments, you are not dinged with the credit bureaus either. (or one would hope)
Thank you for your reply. I am pretty sure there is not going to be any credit score damage ,since mortgage is not on any books since the debt was discharged through Chapter 7. Refinancing is not the option since my income slashed dramatically since first modification. I have learned that I cannot reapply for HAMP again, I am qualified though for streamline modification. Regardless was it reaffirmed or not, they cannot make me to reaffirm it, but they are required to offer me a streamlined modification once I request it, since I am already in a government program so to speak.
Hi,

I am in the same boat. Loan discharged in chapter 7 and had a 2% mortgage. Last June 3% and this June 4%. I'm losing my job in a few weeks and cannot afford this new payment. Why no mor HAMP? What happened in your case? I only want to keep the house another year. Im with Bank of America. I've never been late but still don't get any credit for it. I wanted to reaffirm but at the time they said they didn't do that. Any ideas people?

Thanks
 

delta97

LoanSafe Member
Hi,

I am in the same boat. Loan discharged in chapter 7 and had a 2% mortgage. Last June 3% and this June 4%. I'm losing my job in a few weeks and cannot afford this new payment. Why no mor HAMP? What happened in your case? I only want to keep the house another year. Im with Bank of America. I've never been late but still don't get any credit for it. I wanted to reaffirm but at the time they said they didn't do that. Any ideas people?

Thanks
I am still trying to get another modification with the bank. In an early process of it. I have no updates as of yet. I want to keep my place but hopefully, at the lower rate. It makes sense for you to sell if you just want to get out of it.
 

patnj

LoanSafe Member
I am still trying to get another modification with the bank. In an early process of it. I have no updates as of yet. I want to keep my place but hopefully, at the lower rate. It makes sense for you to sell if you just want to get out of it.
 

patnj

LoanSafe Member
Why can't you get another HAMP? And what is a streamlined modification? It's unfair that the 2% doesn't stay intact as all it does is put you back in the mess you were in when you first got it. I have a little over a year till I can sell. I might just go 69 days past due which will save me 7000 to use towards other payments over the next year. I m waiting for them to call about unemployed programs they are supposed to offer fir a short period of time. Anyone know about these?
 

delta97

LoanSafe Member
Why can't you get another HAMP? And what is a streamlined modification? It's unfair that the 2% doesn't stay intact as all it does is put you back in the mess you were in when you first got it. I have a little over a year till I can sell. I might just go 69 days past due which will save me 7000 to use towards other payments over the next year. I m waiting for them to call about unemployed programs they are supposed to offer fir a short period of time. Anyone know about these?
The best is to contact the bank and ask about your options. HAMP is only one time entrance so to speak, if you were in one, another one is forbidden. Streamline is driven by standard modification interest rate which is 3.75% now, it fluctuates every month or so.
 

patnj

LoanSafe Member
The best is to contact the bank and ask about your options. HAMP is only one time entrance so to speak, if you were in one, another one is forbidden. Streamline is driven by standard modification interest rate which is 3.75% now, it fluctuates every month or so.
Ok thanks , I'll see what they offer.
 
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