Hamp Mortgage Modification JOKE
Date: Thu, 08/26/2010 - 16:41
Guess what??? They increased the balance (by $30k), they increased the duration of the mortgage (by several years) and YES, YOU GUESSED IT....They increased the payment by $200/mo. Awesome, huh?
Well, as they told me, it is very expensive to have a law firm put you in and take you out of foreclosure for a year and we had to attach those costs to your account. What a freaking joke. While HAMP requires a payment of not more than 31% of income, they decided it would be fair to also include retained earnings of my (very) small business.
If the interest was not deductible, I would walk today. Anybody else dealing with HAMP?
OMG. How stupid is that. Sounds like they took advice from the
OMG. How stupid is that. Sounds like they took advice from their credit card department - "if they can't pay - raise the interest rate and payment".
I wouldn't sign the papers. At some point they may agree to put the fees at the end of the loan or just forgive them.
I have not heard many good things about the HAMP program. They are modifying very few loans and those they have are defaulting at a rate of about 50%.
This makes me assume two things. 1. They feel you are a strategic defaulter 2. They don't want the property back. I would use the 2nd one as leverage to see if they can eliminate the $30k in fees and extend the loan period which should bring the payment down.
A guy in my networking group works for one of those companies that modifies loans (not recommended by the way - unsure about them), but their sheet of success stories shows 2% interest and 40 year terms for several clients.
Oh are you able to tap the retained earnings or are their other owners. If you can't, simply prove to them that this is not your money and you don't have access to it so it should be removed from the formula.
I'm so sorry this has happened to you - you have done so well so far.
Yes, they take retained earnings and apply the percentage of you
Yes, they take retained earnings and apply the percentage of your ownership to them and add it to income. How strange. They did 30 year and 2% on me as well. but they added around 15k in foreclosure costs that were absolutely unnecessary, since I always told them I could pay and would pay if they modified. then they added escrow and taxes and at 31% my payment went UP. Lesson to everyone...apply 31% to any income they may find or attribute to you and that WILL be your payment. They could have taken it down to 40 years and really cut my payment, but that is NOT their goal. Their mission is to use 31% whether or not it helps the homeowner.
Regarding the house, they WANT to foreclose as I have equity. Even though it dropped in value from $550k-$600k down to $300k, my mortgage balance was just $255k. This may well be why they do not help me.