I WANT MY NPV – AND MY MOD TOO, FOR THAT MATTER!
THE MYSTERY OF THE NPV FAILED HAMP HOME AFFORDABLE MODIFICATION PROGRAM
BY ANNA CUEVAS; THE LOAN MOD GURU
THE MOTTO OF THIS POST: As long as people will accept crap, it will be financially profitable to dispense it.
Dick Cavett (1936 – )
Many people wondering what is NPV Net Present Value, what does it have to do with me and my modification. What is the mystery of the NPV – they are supposed to tell you in layman’s terms why you were denied. But this is what most get - DENIED – FAILED NPV.
So now what what is your next move? Should I start packing? Well I say NO don’t give up just yet…. I see mistakes in line items almost on a daily basis. It is important that you do two things call and keep calling until you can get line by line numbers verified – That means income they used, expenses they used, not as a lump sum but line by line, BPO Broker Price Opinion value used- ask for it all, this is YOUR HOME at stake, do not lose it to a mistake. Reasons you were declined, in detail. Then also put it in writing and fax and mail and quote the guidelines that I have on my other post. VERIFY, VERIFY, VERIFY – FIGHT FIGHT FIGHT!
Here are the mysterious factors that used to calculate the ALMIGHTY dollar profit comparison for investors for the HAMP Home Affordable Modification Program’s infamous NPV TEST, live and uncensored. Include these questions in your call, fax, and letter! Be sure to CC Treasury Department and contact Fannie Mae and Freddie Mac (if they are your investor), if you find that your servicer is NOT following the guidelines.
Available NPV Inputs
a. Unpaid balance on the original loan as of [Data Collection Date]
b. Interest rate before modification as of [Data Collection Date].
c. Months delinquent as of [Data Collection Date]
d. Next ARM reset date (if applicable)
e. Next ARM reset rate (if applicable)
f. Principal and interest payment before modification
g. Monthly insurance payment
h. Monthly real estate taxes
i. Monthly HOA fees (if applicable)
j. Monthly gross income
k. Borrower’s Total Monthly Obligations
l. Borrower FICO
m. Co-borrower FICO (if applicable)
n. Zip Code
o. State
Save Your Home
Helo Anna,
I have been following your responses to others in my situation and have seen a lot of answered questions, I was hoping that you might be able to help me with my own situation and my fight to save my home.
I have been trying for over a year to modify my mortgage with HmQ, and just resubmitted my package for the third time because they had everything wrong. My first contact with them was back in February of 2008 trying to get my loan rate reduced from 8.75 because it would be rolling over in a couple of months. To no avail. I am exactly 15 months behind, no notice of default filed yet, probably due to the 2 modification companies that I hired since my initial contact with my lender, but they just gave me bad advice after taking my money and then leaving me months behind on my mortgage with out a return phone call, one of those mod companies was Parsa Law Group that left me in the dark. Log story short, My total Gross income is $8,879 Net $ 8,020.73 total montly expences $4,041 plus my current mortgage Payment of $ 3,427.17 not including my Property Taxes or Insurance total for them is $467.00 so overall total is $ 7,935.17 in expences per month. I am in arrears 54,849.36. The lender just accepted a payment from me the other day, so this amount is accurate today. My arrears are due to loss of income and death in my family. My current appraised value according to an appraiser is Max $325,000 and my Principal balance owed to the bank is $ 463,059.79. I know I can afford to make my payments if it was reduced by lowering our interest, but that is my question to you, I am not sure if we would qualify or not, we have lived here for 12 years and dont want to lose our home so we need all the help we can get. Your help and suggestions are Greatly Appreciated.
God Bless you and your helping others.
Hello Betty! Glad to welcome you to “our” site. Ok so when you said they had it all wrong what did they have and what was the response in the denial? I would like to know in detail what they had and what they said to you.
I know that HomEQ is following a HAMP guideline for their loan modifications. If you are the squeaky wheel you can get them to listen to you. So you said you recently sent them the new accurate numbers right? Call them in about a week and make sure that they have the accurate figures in the system. I have been very successful with HomEQ. I think you have a very good chance to get it done. Your numbers are within reason under a HAMP type of guideline.
What happened with the 2 companies? How much did you pay out to them? and what have you done to recoup your money?
Isaiah 40:28-31
Have you not known? Have you not heard? The Lord is the everlasting God, the Creator of the ends of the earth. He does not faint or grow weary; his understanding is unsearchable. He gives power to the faint, and to him who has no might he increases strength. Even youths shall faint and be weary, and young men shall fall exhausted; but they who wait for the Lord shall renew their strength; they shall mount up with wings like eagles; they shall run and not be weary; they shall walk and not faint.
EXPECT MIRACLES!
I am here for you
Anna
Anna, thank you for your encouragement to my wife Betty. My name is Mario and I am Betty’s husband I just got home from Men’s Bible Fellowship at Harvest Christian Fellowship in Riverside, Ca. (www.harvest.org) I just read Isaiah Chap 40 to her just last Friday to encourage her in the Lord, and told her to wait upon the Lord because He already knows the outcome and will bless us as He always does. We will get the information you requested regarding the figures that Homeq had received before, that were incorrect and was given to them by the modification companies we had hired. That’s why we were turned down the first time and failed the NPV. Until then May the Lord richly bless you as you continue to faithfully serve Him for His Glory. You remind me of queen Esther and how she brought deliverance to her people and the words of her uncle Mordecai to her Esther 4:14
“Yet who knows whether you have come to the kingdom for such a time as this?”
NKJV
1 Cor 1:26-29
26 Remember, dear brothers and sisters, that few of you were wise in the world’s eyes or powerful or wealthy when God called you. 27 Instead, God chose things the world considers foolish in order to shame those who think they are wise. And he chose things that are powerless to shame those who are powerful. 28 God chose things despised by the world, things counted as nothing at all, and used them to bring to nothing what the world considers important. 29 As a result, no one can ever boast in the presence of God.
God Bless you and your family for all of your help!
Mario and Betty
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You are quite welcome Mario- I dedicate my life as a living sacrifice -as instructed in Romans 12 and feel very close to Isaiah 61
Living Sacrifices
1Therefore, I urge you, brothers, in view of God’s mercy, to offer your bodies as living sacrifices, holy and pleasing to God—this is your spiritual[a] act of worship. 2Do not conform any longer to the pattern of this world, but be transformed by the renewing of your mind. Then you will be able to test and approve what God’s will is—his good, pleasing and perfect will.
3For by the grace given me I say to every one of you: Do not think of yourself more highly than you ought, but rather think of yourself with sober judgment, in accordance with the measure of faith God has given you. 4Just as each of us has one body with many members, and these members do not all have the same function, 5so in Christ we who are many form one body, and each member belongs to all the others. 6We have different gifts, according to the grace given us. If a man’s gift is prophesying, let him use it in proportion to his[b]faith. 7If it is serving, let him serve; if it is teaching, let him teach; 8if it is encouraging, let him encourage; if it is contributing to the needs of others, let him give generously; if it is leadership, let him govern diligently; if it is showing mercy, let him do it cheerfully.
Love
9Love must be sincere. Hate what is evil; cling to what is good. 10Be devoted to one another in brotherly love. Honor one another above yourselves. 11Never be lacking in zeal, but keep your spiritual fervor, serving the Lord. 12Be joyful in hope, patient in affliction, faithful in prayer. 13Share with God’s people who are in need. Practice hospitality.
14Bless those who persecute you; bless and do not curse. 15Rejoice with those who rejoice; mourn with those who mourn. 16Live in harmony with one another. Do not be proud, but be willing to associate with people of low position.[c] Do not be conceited.
17Do not repay anyone evil for evil. Be careful to do what is right in the eyes of everybody. 18If it is possible, as far as it depends on you, live at peace with everyone. 19Do not take revenge, my friends, but leave room for God’s wrath, for it is written: “It is mine to avenge; I will repay,”[d]says the Lord. 20On the contrary:
“If your enemy is hungry, feed him;
if he is thirsty, give him something to drink.
In doing this, you will heap burning coals on his head.”[e] 21Do not be overcome by evil, but overcome evil with good.
Isaiah 61
1The Spirit of the Lord GOD is upon me; because the LORD hath anointed me to preach good tidings unto the meek; he hath sent me to bind up the brokenhearted, to proclaim liberty to the captives, and the opening of the prison to them that are bound;
2To proclaim the acceptable year of the LORD, and the day of vengeance of our God; to comfort all that mourn;
—
Hello Anna,
Thank you so much for your words of wisdom, they really ministered to me last night. In response to your question in regards to Homeq and their denial, they had all of our income and expenses from Parsa Law Group that were not correct I dont even know how Parsa Got the figures they did, They had $10,200 for expenses and $9,000 for Income. I never knew Parsa had even submitted a package to the lender because they left me stranded. They never returned my calls and then I finally discovered that he was closed down due to some horrible acts he committed, it was all public record. Anyhow, The numbers were obviously mixed up with some body else. I asked them why they did not use the updated and current income and expenses and financials that I had sent them, and why didnt they call me when they declined me, I had to contact them to find out. I received the denial on Feb 1, 2010 and it read, We have given your request careful consideration and regret that we are unable to modify your loan terms at this time for the following reasons. Failed Modification Financial Guidelines. To discuss other options for handling your mortgage obligation, please call us at 800-795-5125.
We are committed to helping you identify the best solution for your situation. No I have not received any refunds, from either of these companies, Hope N Housing was the first company that I wrote to and told them I wanted my money back, they laughed at me and stopped answering their phones. Parsa Law, they should pay me back the 3,500 I gave them to help me, but I dont know who to contact about that, they are no longer practicing. I guess My only prayer at this time is just to get my loan Modified or restructured. By the way, in October my husband went all the way to San Fransisco for The Save the Dream Event we had heard about, being held by NACA. He spent 4 days there with no sleep when he finally got his chance to sit with a NACA counselor at 3am in the morning, I was on the phone with them at that time to going over our financials so that they could forward our restructure request to the lender, well I have not heard from NACA nor have they returned any of our emails and I spent 1 and a half hours at a time on the phone waiting for someone to pick up the phone only to be put on hold and then hung up on. Long story short, when I asked Homeq about our NACA package and what was the status with what they had sent, their response was They dont have anything from them and they dont need anything from them, so I dont know what ever happened to that. We have really been through a lot with all of these companies that we hoped would come through for us, but to no avail. This is when I decided to try and do it on my own, this has really taken a tole on me for the last year in a half, that is how long I have been trying to get modified with them. Your help is so much appreciated and I will be Praying as well for you and your counsel to others as well as myself. Thank you Mario and Betty Roberts
Hello Betty – your husband Mario sounds like a sweet husband – like mine
Come unto me, ye who are weary and overburdened, and I
will give you rest.
– Matthew 11:28
Can you give me all of the details your loan situation so I can see where you are on all of this. I want to see what is the best way for you to proceed. You can do it – stay strong!!
Expect Miracles,
Anna
Thank you Anna, yes I was blessed with my husband he is my TRUE LOVE.
I Just got off the phone with Homeq a few minutes ago, and as always they were very rude. They told me that they sent out a default letter on February 5 2010 and that if we dont bring our loan current by March 12, 2010 they will foreclose because the default letter is still in affect. They never filed a nod and there was never a nod recorded against my property so I am not sure what they mean by that. I just told the rep that we wanted to know the status of our Modification and she said it was in pending and that in mean time we need to beg steal or borrow to bring our loan current. Our current arrears are $54,857.39 and Principle loan balance is approx $ 463,059.79. Our monthly Payments are $3,427.17 this does not include taxes or insurance. Our loan was a 2/28 and it rolled over to an adjustable in February of 08. our current rate is 8.75%. When I first started communicating with homeq was back in feb of 08, and told them that I needed to try and modify my loan because we were having a tough time making payments and we wanted to do something before our loan rolled over to an adjustable. They put us in a forebearance plan and that just did us in, we could not keep up with the large payments they required of us. I dont understand how they thought that we could afford $3,427.17 plus an additional 2-3 thousand on top of that. Thats just what they did, and we used up all of our savings trying to keep up with these payments. We just couldnt do it. That is when we first filed a chapter 13 June 7 of 08, we had no help and no way out and Homeq would not help us, so against our beliefs and principals we filed the chapter 13 to save our home. We continued to make our monthly trustee payment to cover all of our creditors in the amount of 1,350 and made our payments to homeq in the amount of $3,427.17 every month begining July 1, 2008. We made every payment through january 09. June 08, when we file the bk is when we hired the first company HopenHousing to help us get modified, but month after month they led us on and made us believe that we did not need to make payments because we needed to show a hardship and if we came up with money the lender would think that we could afford the payment and then they would not modify. Well we trusted them and fell behind 5 months, when they stopped taking our calls. Panicked, we saw Parsa Law Group on television and thought we had no where else to go so we got together $3,500 and hired them thinking that because they are attorneys, we would have a better chance at getting a modification. We were wrong again, another 6 months and I was at a loss for words when I called the office and it was a generic voice mail asking me to leave a message and someone would get back to me. That never happened. We had fallen so far behind that we didnt know what to do, until one of our friends from my husbands mens bible study group told him he had just gotten modified with the help of a company called NACA, and that we needed to get to San Fransisco one way or another to get them to help us. They were our last hope. Here we are again, no help 3 failed attempts, 3 different companies, and now we are fighting to save our home on our own. Please tell me how this could happen to people? we have made every effort to make this work and this is our last ray of hope. Now just today, I was told by a rep at Homeq that the foreclosure will continue even through we are being considered for the HAMP modification and are in process, so for us to have a back up plan and try to bring it current in the mean time. Anna, we have been in our home for 12 years, and refinanced when we shouldnt have, but every bit we took out went right back into our home and before we could refi out of the loan the values dropped so we got stuck in this loan with homeq. We dont want to lose our home we want to stay and work it out, only if we could get the lender to lower our rate a little, we are confident that we could afford to make our payments. They dont seem to want to help us, they have put us through so much and they are the reason for our current position. They never helped us when we first looked to them for help back in 08. They dont seem to care. Anyhow, here I go rambling on I am so frustrated and dissapointed in the whole modification process. Please let me know what to do and what your suggestions are as to how to proceed with this.
Thank you so much and May God Bless you!!
Betty Roberts
Hello Betty – If they haven’t filed your NOD in California then they are just threatening you because they must file it for the clock to start ticking on a foreclosure.
What is the total gross income ?
do your payments currently include an escrow amount? what is the monthly tax and insurance?
You can email me if you wish.
With men it is impossible; but to God all things are possible.
– Matthew 19:26
______________________________________________________________________
EXPECT MIRACLES!
Anna
Hi Anna,
Thank you again for everything. My monthly payment of $3,427.17 does not include my taxes and insurance. They are $ 467.00. $316.00 for taxes and $151.00 For insurance. Total $ 3,894.17.
Our total Gross monthly Income is $8,879 net $ 8,020.73. Total Expences
$7,468.17 plus taxes and insurance $7,935.17.
My Husband is w2, from the motion Picture industry is is a stunt man 32 years, and he gets a retirement as well, plus residuals. My income year to date is $1,327 from real estate. the rest is my husbands.
I hope this makes sense. Talk to you soon.
God Bless!!
Betty
Hello: Even after reading everything possible on the HAMP I am still confused about how to qualify. Here are my figures. My monthly gross is $10,300 and my mortgage payment was $1850 (before I went into pre-foreclosre and they stopped taking my payments). Add on $605 which includes taxes, HOA, and insurance. THis equals $2455 which is well below the 31% that HAMP uses. Even after all the deductions, I bring home $5500 each month. AFter paying a mortgage of $2455, I still have $3045 left. I only have a car payment of $700-no credit cards or other loans. I am more than capable of paying my mortgage. They say I am a total of 10 months behind-my payments were made sporadically over the past 2 years. My delinquency started when I seperated/divorced and moved to Georgia. I rented my property and my tenant paid 8 out of 17 payments. I did the best I could for as long as I could. Last November I moved back to Maryland and into the property, so I am responsible for paying the mortgage and I want to live in my home. Do you think i am a good candidate for HAMP? If not and I am denied, what other options to I have? Thank you for any advice you have.
Gretna, Hello I am sorry I hope I did not confuse you – my hope is to inform and bring knowledge definitely NOT to confuse.
In your case I don’t think that HAMP is what you need anyway – and you would not qualify based on the information you gave me in your post. I do however believe that you are a good candidate for a traditional loan modification. Put together a good letter of explanation of your previous hardship along with a good cover letter stating that you ARE NOT applying for HAMP that you need a loan modification simply to Capitalize the previous past due payments in the amount of …. x Note that you don’t need current payment assistance but that you have suffered a previous hardship that led to the default of the 10 payments and you require their assistance to put all of those payments to the end of the loan so you can continue to be current now.
I hope this helps bring some clarity to what you need to do. I think you CAN definitely make this happen with determination -DO NOT GIVE UP – escalate if necessary but be clear before you proceed!
God is with you in all that you do.
– Genesis 21:22
EXPECT MIRACLES – I am here for you – let me know if you have any other questions.
Anna
Anna: Based on everything that I read about HAMP, I figured I wouldn’t qualify, so you did not confused me, you totally broke it down for me. Thank you for the suggestion, it is exactly what I needed to hear. Now I now how to proceed. Thank you, thank you, thank you!
Gretna
Gretna – You are very welcome – Thanks be to God!
Keep us posted on your success – do not give up FIGHT this and make it happen- I AM POSITIVE YOU CAN- YOU MAY HAVE TO PUSH – BUT IT IS POSSIBLE, I HAVE SEEN IT!! Put together good letters, and have a good follow up – who is your lender?
Be truly glad. There is wonderful joy ahead!”
– I Peter 1:6
________________________________________________
Anna
My lender was Wilshire but as of March 1, 2010 Bank of America brought my loan. I decided to enlist the help of NACA and will attend their workshop next week. In the meantime, I am gatheringing all the documentation I will need and will write my letters. It will take time and a lot of effort/hard work to see this through but I am determined to save my home because i believe I can afford. Any other advise for me? Thanks again, Gretna
Another question, I divided my annual income of $122,700 by 12 months (I get paid bi-weekly) and came up with the gross income of $10,300 per month. But actually my gross is $8410 (except for the 2 months I get paid 3 times). Which formula do I use? If I use the $8410 gross per month, my mortgage payment might meet the 31% threshhold. My current mortgage payment ($1850+605) would not. However, if Bank of America takes my new balance of about $290,000, add on escrow for taxes/insurance, a new mortgage payment could meet the HAMP requirements. Right now Wilshire is telling me that my request is with HAMP being considered. Should I wait to get a “no” from them, then do what you suggested, get a loan modification? I hope this all makes sense. . .thanks for your help. Gretna
Hello Gretna,
Thanks for your question – ok if your annual income is 122700 regardless of whether you get paid 2x or 3x your total annual income is 122,700 but either way even if you take the 8410 as your gross (which I wouldn’t because it is not accurate from what I am reading) 31% would then be 2607.10 and if your current payment is 1850+605 = 2455 your current payment is already lower than what 31% is – so in my opinion if they are following a TRUE HAMP this loan would not be eligible under the Treasury Making Home Affordable Modification Program. Again, your best best is to get a different in-house modification to try to capitalize the past due amount. (basically add it to the back of your loan)-
Please let us know how it goes with NACA.
Cast your cares upon the Lord, for he cares about you.
– I Peter 5:7
Expect Miracles,
Anna
Hello Anna
I recently discovered your website and it has been very helpful and informative… Bless you and thank you.
I received two letters from W.F. this week. I have been denied for the HAMP that I requested last June when my loan was still with Wachovia. The first letter stated a modified payment was denied based on my income and expenses. Both amounts listed in the letter does not reflect the amounts in my financial statement. The letter does not say anything about HAMP, but I was told over the phone on 2/01 (I call every 10-15 days) that I did not qualify for HAMP because I was negative 5K or more. At that time I requested by phone and fax a copy of my BPO and the reason I failed the NPV.
After receiving the first letter on 2/13, I called customer service on 2/15 and requested to be transferred to loss mitigation to let them know that the income and expense figures in the letter were incorrect. After reviewing my expenses and income with Ronanda (we updated them from the amount I had faxed on 01/15/10) I was told I was speaking to the collection dept.! She said because I have been denied, I have been removed from loss mit. and have to START OVER and re-apply with a new modification request.
I mentioned Announcement 09-31 (thank you again Anna) and requested a copy of the NPV values used in my calculation. I was given another number to call and was transferred to “customer care specialist” Teena. She said “All modification denials are being put on hold per the Treasury Dept. and requests for modifications will be re-evaluated”. Teena took my phone number and said W.F. will call me to let me know when it will happen. She said I will receive another letter with more details and that she does not have the NPV values at this time.
I received the second denial letter on 2/16, the day after I spoke to Teena. It does have the HAMP Team and Customer Care phone number. This is a HAMP denial letter and offers to provide the NPV values I requested from Ronanda and Teena on 2/15. It does NOT mention that they must provide the information within 10 calendar days of my request. It does say to call if I have any questions or my circumstances have changed or I can provide additional information for consideration.
I have been trying to get a HAMP since last June. I fax required monthly updates to my financial statement, hardship letter and copies of my bank statements, in addition to all the other documentation they have requested.
Anna, I would like to know if you think I can qualify. I am current on my mortgage payments, property taxes and hazzard insurance. My debt coverage ratio is less than 1.20. I am retired, living on social security and IRA distributions (reduced due to stock market losses). I share my home with roommates that contribute to monthly expenses. Can I send you financial details here or by email? Thank you for any help or suggestions you have…Julie
Hello Julie -How are you today? I hope not too frustrated, I understand how this process can make you feel out of control frustration with all of the red tape, and mystery. Take a deep breath – this too shall pass…. I am glad to help you and I am here for you!!! I am glad you are getting some good information from “our” site as that was my intention to empower as many people as possible with this knowledge.
Since I offer free assistance on this site, and the reason being is by helping ONE we can help MANY I would love if you could list the bare necessities on this site so we can take a look and see the calculations – NPV is complex but at least we could get a good idea of where you stand.
I need your gross income broken down.
monthly prop tax
monthly insurance
do you have an HOA
current payment
current property value or did they give you BPO value
principal balance
do you have more than 3 months of payment in the bank?
Psalm 73:26
My flesh and my heart may fail, but God is the strength of my heart and my portion forever.
EXPECT MIRACLES,
Anna
I am open to helping you one on one offline if you need a private consultation, if you are interested let me know.
Hi Anna,
Thank you for your words of encourgement…you are a blessing to all!
My monthly gross income from my roommates does fluxuate depending on the cost for utilities. I listed 800.00 on my financial statement to W.F. but it is usually closer to 850.-875.00. I can increase my IRA distrubution if needed to show more income. However, I have reduced the amount I take twice since Nov. 2008 when the value of my IRA decreased by 1/3. To preserve what was left in my Mutual Funds, I transferred all of my equity funds to an FDIC insured IRA money market and CD accounts that are earning very low interest. My IRA value at this time is 258,000. and my concern is that it will not last for another 25-30 years.
I do not have HOA fees. I have 20,000. in a non-IRA money market account.
Social Security 903.00
IRA distribution 450.00
Roommates 800.00
Non-Secured Promissory Note 390.00. = Total Income 2543.00
I pay outside of mortgage…Property taxes 140.75 Hazzard Insurance 96.41
Current Mortgage Payment 1313.25 (30 yr. fixed at 6.375%)
Principal Balance 207,000
BPO 289,000
I have not received a copy of the BPO as requested. This is the amount I was told over the phone. I am not “underwater”, or delinquent in payments so why would my first denial letter only recommended a short sale, or a deed in lieu of foreclosure?
I have never filed for bankruptcy and my credit score is excellent. I have lived in my home since 1987 and want to stay here until I need to move into senior housing.
I would be interested in a private consultation if you need more information and think it would help me get an interest rate modification.
Thank You for your time and suggestions…Julie
Hello Julie – I am here to serve. Thank you for the kind words.
I would write them the letter that I have here on the site to request the exact reasons you were denied – I think this should be your first step.
I don’t know if you submitted this, but If the bank sees your non ira money market account – regardless if this is what you have to live on you the actual guideline for HAMP when you are NOT late on you mortgage to calculate imminent default considers over 3 months of payment in the bank NOT to be imminent risk.
The Social Security income is non-taxable and should be calculated at 125% of face value –
I did run some very basic calculations and this is what I see:
2543.00 x 31% = 788.33 being you maximum TOTAL mortgage and taxes and insurance payment (regardless if you pay it outside – they will impound for HAMP)
788.33 – 140.75 and 96.41 = $551.17 is your max mortgage only payment allowable if they would have stretched your term to 40 years this leaves 264,561 in total mortgage payments over the 40 years VS $289,000 in current sale value and full cash back to the lender TODAY vs over 40 years -
Next I take 207,000 loan amount, lower the rate to the lowest under the program which is 2% and stretch the term over the 40 years and the payment is 626.85 (this is mortgage only)
so if we take the $551.17 calculation vs the minimum reduced amount $626.85 (prior to any principal deferment or forgiveness, which they DO NOT like) our income figure comes up short on two calculations * Now you see this is why they gave you the recommendations – as it is more profitable than modifying you loan.
Now if we fix the social security income to the 125% – right that in on your application 1128.75 and increase the roomates to the correct amount of $875 =2843.75 x 31% 881.56 then minus the 140.75 and 96.41 for tax and ins. then you get a 644.40 x 480 term extension = 309,312 – higher than the BPO of 289,00 and higher than the minimum rate and term thresholds.
Now you have a better chance. Getting comparables showing the home is worth less and spelling out 50-60 k average cost to foreclose are worth bringing up.
I obviously am not a computer and cannot get into every formula they use but this is a good gauge to see if you are on the right track.
You may qualify for a different sort of modification (in-house program) if you can prove your hardship. Next: The other chance you have is to do a refinance instead if the first option doesn’t work.
I hope I did not confuse you -with all of my calculations – please let me know what else I can do for you.
22 Then Jesus said to the disciples, “Have faith in God.
23 I assure you that you can say to this mountain, `May God lift you up and throw you into the sea,’ and your command will be obeyed. All that’s required is that you really believe and do not doubt in your heart.
24 Listen to me! You can pray for anything, and if you believe, you will have it.
Expect Miracles,
Anna
Hi Anna…Thank You for your suggestions. I think I understand your calculations….But, I do have more questions.
The non-IRA money market account is on my financial statement, so they know I am not at imminent risk for default. This is a Freddie Mac loan.
I was told I did not qualify for an in-house program when I called and got the collection dept. on 2/15 and we changed my expenses (listed befow). When I called 2/8 (before I received either denial letter) I was told I was 1000. short per month to qualify and that they would have to lower my payment to 300. I know the income and expenses they used were incorrect after I received the first denial letter on 2/13.
I understand that I need to show increased income to have a better chance to qualify. I had to fax Wachovia/W.F. a copy of my 2008 tax return last June when I requested a HAMP. They also have copies of my bank statements from Sept. 2009 throught Jan. 2010 that reflect 903. from social security. Isn’t my monthly income of 2543. considered net income for the following reasons?
I have not had to pay income taxes since 2006 because of my low retirement income (IRA and S.S.) and high morgage interest (13,000. for 2008). I think my roommates contributions are tax-free as shared expenses and the 390. I receive from a non-secured promissory note. The 390. is an interest only payment from my daughter on the money I loaned her for a down payment on the house she bought in 2004. She is now underwater on that loan, but that is a whole other story…
I can show more income from the roommates and I can increase the amount I withdraw from my IRA if necessary to qualify.
What expenses does the NPV input for Borrower’s Total Monthly Obligations include? On my financial statement to W.F. on 1/15/10 my monthly expenses are 2900. (this includes the 237. for property taxes and homeowners ins.) Health, life and long term care insurance is 313. I can cancell the life insurance which will reduce that expense to 119. When I called W.F. and reviewed expenses on 2/15, they were were reduced to 1917. by removing the p. taxes, h. ins., life ins., all utilities, and reducing food expenses. I explained that one of my roommates pays the utilities. I do not receive that money or deposit it in my checking account. With 2543. income and 1917. expenses I have 626. left over monthly. Is that enough difference to have a better chance to qualify for HAMP?
I can fax the changes to my expenses, or do you think the phone call update with collections is all that is needed while I wait for the HAMP team to provide me with the NPV values they used, and to let me know when they will re-evaluate my modification.
Thank you again for your help and encouragement….Julie
Hello Julie,
With the money market you would most likely not qualify for the HAMP although your investor Freddie Mac would probably be able to do something with your loan had you not had that account (catch 22) …… sad but the guideline, UNLESS you can make them see that this is all you have — and request an EXCEPTION for HAMP and maybe even go directly to Freddie Mac and tell them you have a hardship because you are on a fixed income …. etc.. that would probably be the ONLY way you could convince them to give you a HAMP
so that being said if you are going for an in house program then they usually want to see a few hundred over your expenses in income – see if you could call and speak to loss mitigation department and see if you can update your financials with them. The left over amount after all household debt and insurance etc. is not that big of a deal on a HAMP as they are more concerned with first the housing ratios, and for NPV the debt loan on credit is just one of the many inputs ALL basically to calculate the likelyhood of your default if they do modify, the costs associated with that and whether or not the profit is greater one way or another modification vs foreclosure or you selling the property either conventionally or shortsale in the case of equity.
The base NPV model projects default rates in two scenarios. It projects the probability of default if the loan is not modified and the probability of default if the loan is modified. Default rates depend on a number of variables particular to the loan. In general, however, the default rate is assumed to vary based on the credit quality of the borrower, the borrower’s debt burden( debts on credit) , the loan-to-value (LTV) of the home at the time of modification, and whether the loan is modified earlier or later in the delinquency cycle.
I am the Lord your God. I am holding your hand, so don’t be afraid. I am here to help you. Isaiah 41:13
Expect Miracles,
Anna
Anna
Thank you for the “qualified written request” letter to send to my servicer and your insite on my situation in your last reply. I will stay positive and continue to focus on Miracles.
Thank You again for your help and suggestions….Julie
Previously Emailed
Hello Anna,
I am thankful that I was fowarded to your website (from my sister) and all the information I have gathered so far has been a godsend. I am, like most people, working on an abbreviated time frame to respond to my lender in order to apply for a modification. Any help or insight from you would be absolutely helpful and greatly appreciated.
Here is some information on our situation & background:
My parents are immigrants to the U.S. & have sacrificed their entire lives w/ little to no resources so that my sister and I can have opportunities that they were never given. Finally, after a lifetime of monetary sacrifices (working labor intensive/menial jobs 7days a week to pay for private school education & help with college tuition) they saved enough to realize…at least momentarily… an American dream of house ownership now turned into nightmare. Hopefully, by getting a solution to this nightmare it will be one small way for my sister and I to pay them back.
My parents bought their first house in 2004 in CA after living in a small apartment for over 25 years. The mortgage broker told them “as long as you have good credit, don’t worry about income…”
My mother was working at the time we were approved, but a year later due to physical challenges, she is not able to work. So to take care of our parents, my sister and I moved in to help pay for the mortgage which we have continued to do for the last 5 years(we are not on the loan).
In short, my sister lost her job and the income is not enough. We were current on the mortgage until almost 2months ago. I was liquidating out of my savings and 401k to be current. We went to a NACA event where we were turned down by Citimorgtage (our servicer) b/c lack of income since it’s solely based on my fathers net income. I told them we have been current since my sister and I have been helping for years, but they didn’t believe me since we didn’t have receipts (we paid cash to our parents & naturally since they weren’t strangers we didn’t keep records). Still, Citi insisted to have receipts of our deposits and I told them, “if we weren’t helping, how do you think my father has been current on the morgtage for YEARS on an $1800/mo net income?” She shrugged her shoulders and said she couldn’t do anything.
Here is a quick snapshot of our situation:
Loan amount: $350k
House value: $350k-400k
Net income (for father): 1800/mo and gross approximately 2400
Loan rate: 7% 30 year fixed (equals a $2900 monthly pmt)
Servicer: Citimortgage
Investor: Aurora
It was a hard decision, but we DECIDED to stop paying the mortgage given the fact citi didn’t seem motivated to modify since we were current and I didn’t want to continue to deplete my savings given that the money WILL eventually run out.
I apologize for the long story, but thought it would be important to detail as much as I can so I can get helpful advice.
I am scheduled to call Citi Morgtage to give them the data I supplied above in 2 days, but I am concerned about what I should include as gross income. My concern is that the rep said after she inputs the data in the system it’ll almost instantly spit out an approval or denial based on the computer calculations. If we pass, I can begin the trial payments. So supplying the right data seems ever so critical.
These are my questions:
1.) Based on the rough data I supplied above, how much income (ballpark) should we include and is there anything else we need to adjust to give us the best chance of qualifying under HAMP?
**A NACA rep indicated that I can draft a rental agreement for myself and parents to show more income for my father that Citi “should accept”. I can probably put close to $2000/mo to help.
Apart from my contributions, I can possibly muster up borrowings from friends to add more income to the rental agreement if needed (so I am fortunate that I can be somewhat flexible here even though I am limited in the amount of borrowed contributions).
2.) I think this relates to NPV, but correct me if I am wrong…Do you know if there is a calculation or a guide that these lenders follow which influence how much MAXIMUM they will reduce an original loan amount for a loan modification?
Ex/ Assuming everything else met their criteria for a modification, would they still not do it if the original monthly mortgage was reduced by more than 50% (from $2900/mo to lets say $1400). Is there a percentage they won’t touch?
Anna, thanks so much for extending your time if you have been able to read even half of this email. Making sure we don’t lose our house and that the payments are affordable would indeed be a positive life changing event.
Thanks so much for any input you have to offer for our specific situation and any questions I’ve outlined.
All the best,
T.S.
Hello Tony and Angel
*******DON’T
APOLOGIZE I AM HERE TO HELP*******
***** DON’T STRESS TO MUCH ABOUT YOUR CALL TO THEM , IF
YOU ARE DENIED, YOU CAN SAY YOU ARE GOING TO RENT A ROOM, AND CALL BACK IN
A FEW DAYS TO ADD THAT INCOME AND TRY AGAIN*****
I need more information to be able to give you a ballpark in regards to HAMP
WHAT HAPPENED WITH NACA??
****FLEXIBILITY IS GOOD***** START A
LITTLE LOWER AND THEN ADD AND RESUBMIT IF YOU DON’T GET IT DONE THE FIRST
TIME
2.) I think this relates to NPV, but correct me if I am wrong…Do you
know if there is a calculation or a guide that these lenders follow
which
influence how much MAXIMUM they will reduce an original loan amount for
a
loan
modification? ***PRINCIPAL REDUCTION IS NOT VERY LIKELY*** NPV is all about profitability – what brings in more money to the investor – modification vs foreclosure sale
Ex/ Assuming everything else met their criteria for a modification,
would
they still not do it if the original monthly mortgage was reduced by
more
than 50% (from $2900/mo to lets say $1400). Is there a percentage they
won’t
touch? ***IT REALLY DEPENDS IF THEY PUT YOU ON THE HAMP PROGRAM OR ON
ANOTHER PROGRAM***
*****YOU CAN DO THIS I HAVE HAD GREAT LUCK WITH CITI,DONT GIVE UP!******
*****I WANT TO GET YOU MORE
INFORMATION BUT I NEED MORE DETAILS***** I need your monthly tax, insurance, how much is your home worth –
So do not fear, for I am with you; do not be dismayed, for I am your God. I will strengthen you and help you; I will uphold you with my righteous right hand.
Isaiah 41:10
EXPECT MIRACLES,
Anna
Hello Anna:
I just learned today after 10 months of making trial payments that I was denied for the HAM program. The explanation Citimortgage gave me was because of the property value of $605,000 was in the negative. I am not quite sure what that means. I am in arrears of almost $42,000, but have successfully made my trial modification payments of $1640 per month to include taxes and insurance for a total of $2320. What are next steps for me? Do I keep making the trial payments? I am so disturbed over this! Thanks for your assistance!
Amelia
Hi there,
We have been struggling with our modification with One West Bank for about a year now.
Can you help in any way? My husband built a new home that was a construction loan and later became a permant loan, he put his heart in to that project and now they want us to foreclose so they can get the FDIC insurance money, since Indy Mac was insured by 100% and now Onew West Bank needs to profit.
Help
Hi Vera, Welcome to “our” site – I am so sorry about all of your struggles – it must be so frustrating for you and I know how hard your husband must have worked to build your home- where are you at in the process, and what was the last letter your recieved? Please give me more details. I am here to help.
If you have faith as a grain of mustard seed, you will say to your
mountain, “MOVE!” and it WILL move… and NOTHING will be
impossible for YOU!
– Matthew 17:20
Expect Miracles,
Anna
Hi Anna
I have been reading up on your website and hope you can help us save our home…long story as short as I can get it…we are self employed..called in 10/09 to BOA servicer of our 1st and Heloc..we owe $148K on first and $19K on Heloc…1st rate is 7.87 fixed conventional with prepayment penalty till 2010..heloc is rate currently of 9.375…this is all originally countrywide and my husband had less than perfect credit at the time…needless to say we pre qualified for a review under hamp told to wait 45 days waited longer than that no reponse..meanwhile calling your under review..your not under review blah blah..go to the bank branch sit with a loan officer for 2 hrs to be told to stop paying or they wont help…we sent partial for nov partial for dec which they turned into all of nov and part of dec now after all this time they finally after much persistance on my part had me answer income/expense questions and tell me we dont qualify for hamp as we have neg $$ after doing income expense..but we do qualify for in house…currently our taxes and ins not in mortage they are $160 tax per month and $43.00 ins and our payment is currently 1119.52…I did some research and found out about contacting exec office at BOA sent them a email about all i have been thru with no answers and they assigned me a negotiator who called within 48 hrs..i sent in the rest of dec the other day as I am worried about foreclosure got notice of intent that expired on 1/2/10 so I am terrified…waiting on a check for a job we just completed and dont know whether to send them something for Jan but cannot do all 3 months that I will be behind once dec posts…should I pay something or wait to hear from them? also only sent 2007,2008 tax returns as 2009 hasnt been done by cpa yet…I am also worried because last year got slow and I got a full time job for a few months and then lost that..wont that make it look like we made more last year when actually now I cant find a job and the self employment is all we have? do i just explain to them I had a job last year that I lost? I didnt receive unemploy because they fired me for having to be out for surgery in my 90 days…this only adds $7k to our income last year but as I have seen that can affect things and I want them to consider that I dont have that job anymore….oh by the way after doing income and expense with negotiator we have a postive not negative the rep entered it wrong the first time…postive is a few hundred $$ but she is now out of town and I cant get a response from anyone…what do I do??? thanks in advance i am so sleep depraved at this point and believer of Christ and totally believe only he has gotten me this far!
Hi Jennifer
Ok so when you first applied with the negotiator you are speaking what income did you use? What state are you in, are you aware of the way the forclsosure filing laws work in your state?
You have not done your taxes so they will not see what you made last year they will most likely use a Profit and Loss for year to date – When is the negotiator coming back from vacation? I think you are on the right track – I just got a fabulous permanent modification from B of A this week – so think positive and take a deep breath, they will stop all action during the processing so just stay on top of it – you can even ask the negotiator to put a credit hold on your account. Keep me posted on what happens, I care about you – and again forgive me I guess I answered you in my own head because I did read your post. Take a deep breath and sleep well tonight my friend you will get through this! I am sure of it.
“And we know that all things work together for good to those who love God, to those who are the called according to His purpose. For whom He foreknew, He also predestined to be conformed to the image of His Son, that He might be the firstborn among many brethren. Moreover whom He predestined, these He also called; whom He called, these He alos justified; and whom He justified, these He also glorified. What then shall we say to these things? If God is for us, who can be against us?” Romans 8:28-31
Expect Miracles,
Anna
Anna,
Great site and a wonderful service you are providing here. May God bless you.
Please look over our info and let us know if you think we could qualify for a HAMP. We have tried with Wells Fargo for the past year to no avail. We’ve applied twice. Both times we applied we were current. We have now fallen behind in payments. We spoke with someone over the phone and they ran our numbers again and again they said we didn’t qualify. Our investor is Freddie Mac.
Monthly gross income ~ 8,883.00
Mortgage Payment ~ 2,250.00 (Interest only payment)
Insurance 100.00
Taxes 850.00
Mortgage balance $408,000 not including what we owe in arrears/escrow deficiency
We are currently 5 months behind. No NOD has been filed yet. We are in NJ.
Thank you.
Lee, I am glad you like “our” site. Therefore, my dear brothers, stand firm. Let nothing move you. Always give yourselves fully to the work of the Lord, because you know that your labour in the Lord is not in vain – 1 Corinthians 15:58
Let us not become weary in doing good, for at the proper time we will reap a harvest if we do not give up. Therefore, as we have opportunity, let us do good to all people, especially to those who belong to the family of believers – Galatians 6:9-10
I don’t know what the value of the home is, have you checked? (www.eppraisal.com) are you showing too many expenses vs income? or do you show too much money in assets over 3 months (bank accounts?)
Here is my suggestion – since you have Freddie Mac it should make life a little easier –
Fill out a brand new HAMP application – and SEND it in vs calling them – they have to respond within a certain amount of time that way – and you will have something to go the Freddie Mac with if necessary. That is what I would do. I am here for you Lee.
Wells Fargo Bank, NA
http://www.wellsfargo.com/homeassist
800-678-7986 phone
HAMP Application Documents 1000 Blue Gentian Road
Suite 300 X9999-01N
Eagan MN 55121
fax 866-359-7363
Nothing will be impossible to you – Mat 17:20
Expect Miracles,
Anna
Anna,
Thank you so much for your encouraging words.
From what I’ve learned on your site I’ve been able to figure out that we are under the 1.20. This is how I went about it. Let me know if it’s correct.
Added all of our monthly expenses such as food, utilities, gas, insurance, real estate taxes and homeowners insurance. Everything except for the mortgage payment (which is interest only )
Expenses add up to $3878 subtracted that from our net monthly income of $6283 which gives us $2405 (A) I divided that by our monthly mortgage payment of $2250 (B) which comes out to 1.0688.
We do not have more than 3 months payments in our accounts. Do they count 401K ? Did I figure that correctly? Also, does it matter that we are 5 months behind in payments ?
I was able to find out that WF has modified interest only loans. We were initially told they didn’t do that but I found a site that shows what modifications they have done.
For example:
Loan #01518****8 was given a modified rate of 0.0375 bringing their payment from $3,069.34 to $ 1,770.77.
**(I intentionally left out the whole loan number to protect the privacy of whoever that loan belongs to)
Thank you again for your help.
Hello Lee – The calculations for eminent default are the ones you are using here – but if you are already behind it does not apply if you are per the HAMP guideline, I know I know so much calculations and confusion – trust me I had to re-read the guidelines a few times myself, and that is that I know the mortgage jargon (see below) but in your case IF you had not been behind you most likely would be denied because you are BELOW 1.20 and you are considered at risk if you are ABOVE 1.20
Lenders do all kinds of different things – a .0375 really sounds unrealistic but who knows stranger things have happened- Among the same servicer also lies different investors and one may be doing something extra great and this could be your neighbors loan and your investor could be different and do other programs.
The first thing you need to decide is whether or not you want the HAMP because HAMP is not interest only. This is not to say they don’t have a program for interest only because they definitely do have a program for interest only – having an expectation of 0.0375% – would be unrealistic and a heartbreak waiting to happen, I do not know the specifics of that loan nor do I know the accuracy of the information to be able to figure out how, why and if – I personally have not seen that kind of a rate. But you have to figure out if the HAMP gets you where you need to be
Monthly gross income ~ 8,883.00 x 31% 2753.73 PITI total ( Principal – Interest – Taxes – Insurance)
Mortgage Payment ~ 2,250.00 (Interest only payment)
Insurance 100.00
Taxes 850.00
vs 3200 that you are paying now – 446.27 difference
You can specifically send in just a regular workout request and specify that you need an interest only relief and are applying for a Wells Fargo in house modification, so do not mention HAMP-
from my article -
This is the Formula used when you are not currently in default to determine whether or not your default is imminent:
The borrower’s debt coverage ratio is less than 1.20. The debt coverage ratio is the borrower’s monthly disposable net income divided by the borrower’s current monthly principal and interest payment on the first lien mortgage loan (excluding tax and insurance payments). Monthly disposable net income is the borrower’s monthly gross income less (1) monthly payroll deductions, (2) monthly escrow allocations of property taxes, property insurance and mortgage insurance premiums, (3) monthly homeowner’s or condominium association fees, (4) monthly allocations of all other monthly credit
obligations, (5) all other reasonable living expenses allocated monthly, and (6) any other monthly net negative amounts paid or incurred by borrower (such as negative rental income, mortgage loan payments on investment properties); and
The borrower’s cash reserves are less than three times the current monthly mortgage payment, including tax and insurance payments (using estimated payments if the mortgage loan is not currently escrowed). Cash reserves are liquid assets the borrower has available for withdrawal from any financial institution or brokerage firm, including checking and savings accounts, certificates of deposit (even if held for an extended time), mutual funds, money market funds, stocks or bonds.
Matthew 8:13 Jesus said to the centurion, “Go your way. Let it be done for you as you have Believed.” His servant was healed in that hour.
Expect Miracles,
Anna
Hello Anna,
Is there a Freddie Mac phone number or website to report that Wells Fargo has not provided me with the NPV input values that was used to deny my HAMP request? They did not respond within 10 calendar days from my requests listed below.
I requested the NPV values on 2/15, 2/25, 3/05, 3/12, and 3/15. Each time I was told by W.F. that they do not have the NPV values at this time. How could they not have the values they input? They also said they are waiting for instructions from the U.S. Treasury Dept. on how to proceed. The guidelines are changing and all recent denials will be re-evaluated.
Thank You….Julie
Hello Julie – did you put your request in writing? that is the first step I would take put it in writing – and cc and fax to the treasury – the fax is posted on this site.
Romans 8:37 No, in all these things, we are more than conquerors through him who Loved us.
Expect Miracles,
Anna
Hi Anna,
I cannot locate the Treasury fax number on this site. Would you mind posting it here?
Bless You….Julie
Hi Julie, I hope you are doing well – keep going you are doing great! Stay strong, stay determined, believe!
Here it is :
Chief of Treasury’s Homeownership Preservation Ofc
Department of the Treasury 1500 Pennsylvania Avenue, NW Washington, D.C. 20220
Fax: (202) 622-6415
I will instruct you and teach you in the way you should go; I will counsel you and watch over you – Psalm 32:8
Expect Miracles,
Anna
Hi Anna:
I tried to post earlier but do not see it now. You had mentioned that there were individual state government resources that we should employ in our efforts. Could you please re send that information.
Thanks
Joe
Hi Joe:
ok for HAMP I recommend the Treasury Department – but it would be most helpful if you told me who your lender is, who your investor is and the issues so I can best direct you to what I would do. Here is the Treasury for now –
Chief of Treasury’s Homeownership Preservation Ofc
Department of the Treasury 1500 Pennsylvania Avenue, NW Washington, D.C. 20220
Fax: (202) 622-6415
I will instruct you and teach you in the way you should go; I will counsel you and watch over you – Psalm 32:8
Expect Miracles,
Anna
Anna,
thanks for the response..I just had to guess based on how much we paid ourselves for the whole year but to my dismay it looks like after picking up our taxes from the cpa we had nothing else to depreciate this year and that makes it look like we made even more $$ he wrote BOA a nice letter explaining to them that was the reason(depreciation) and showed them we actually made 25% less last year so hopefully they will consider his letter…we live in Virginia and I have no idea about the laws at all…can you help me with that? Now we have gotten another fedex from BOA for HAMP but negotiator tells me not to fill it out..the hope team called yesterday and said do fill it out…what would you do…it seems the left hand doesnt know what the right hand is doing there…Im so overly stressed..and dont know what to do
Hello Jennifer: I know it is stressful but under stress we are not as productive – do some light meditation even if for 5-20 minutes upon awakening and before bed – profound breathing works wonders too – do not let this affect your health. Stay focused on the end result of saving your home and consider it as being already done. Make sure you do your YTD profit and loss for 2010 and fill out your HAMP application with the correct numbers you want them to use.
Here is the VIRGINIA FORECLOSURE TIME LINE -*** VIRGINIA ONLY***
Foreclosure Timeline
The following table provides an overview of the process from the time of the late charge notice to the foreclosure sale date. Please note that this is based on no contact/no loss mitigation with the borrower and is considered the earliest a loan would be foreclosed on. These requirements and timeframes are governed by the Insurer/Guarantor, Deed of Trust, Code of Virginia and Federal Law.
Action
1 A late charge notice is issued on the 17th day of delinquency. Collections and various other letters are sent between the 18th and the 37th day. On chronic accounts, collections begin as early as the 10th day of delinquency.
2 Around the 37th day of delinquency, a HUD I and or a breach letter is issued.
The HUD 1 letter provides (7) business days for the borrower to respond. The HUD brochure is sent at this time also.
The breach letter provides a 30 day reinstatement period.
3 If the borrower cannot be reached, calls and “no contact” letters will continue from the 38th day to the 61st day
4 At 62 days delinquent, at (3) payments past due the loan is assigned to a loss mitigation queue for a possible work out. Over the next 10 days aggressive efforts are made to contact the borrower.
5 When the loan is 72 days delinquent and there is no contact with the borrower, the loan is recommended for foreclosure and referred to an attorney to commence foreclosure.
6 Once the attorney opens the file, it takes approximately 45 days to arrive at a foreclosure sale date. During the 45 days, the attorney will simultaneously do the following:
Examine title
Comply with Federal Fair Collections Debt Act by sending out a 30 day notice providing the borrower with a final warning of the foreclosure and a copy of ads placed in the newspaper. (Generally most Deeds of Trust ((DOT)) require ads to run for once a week for 2 consecutive weeks. Some DOT’s require one ad for 4 weeks. In the newspaper ad, The Code of Virginia only requires Trustee’s to provide a 14 day notice; however, most trustees allow a 30 day timeframe.) The 30 day notice is also sent to Junior lien holders, Homeowner Associations and the IRS. This time also allows the borrower to appeal the debt.
In Virginia, in cases where the loan has been identified as a “Subprime” loan, the lender/attorney must provide an additional 30 day period in addition to the approximately 45 days if the customer contacts them for a work-out. This may mean that the foreclosure sale would need to be cancelled for a 30 day period to allow the servicer to make a decision or determine if a work-out is possible.
On the day of the foreclosure sale, loans are approximately 117 days delinquent (4 months) or 147 days if the loan falls under the “Subprime” definition. ***VIRGINIA ONLY***
*Please note: I am not an attorney and do not give legal advice – just my humble opinion and personal interpretation of the HAMP guidelines and state foreclosure information –
Matthew 9:28 When he had come into the house, the blind men came to him. Jesus said to them, “Do you Believe that I am able to do this?” They told him, “Yes, Lord.”
Expect Miracles,
Anna
Anna,
We were served with a Notice of Default. We are now 6 months behind. We have been offered a 6 month forbearance persuant to the Mortgage Stabilization and Relief Act. Basically the foreclosure process will be paused during the 6 month period while we try and work something out with our lender. The forbearance was offered from the Lender’s attorneys. Have you ever heard of this being done ? We have to remain in the home during the 6 month forbearance period and we also need to attend Foreclosure mediation. Is this something that we should trust ?
Thank you.
Lee
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
“Then Jesus answered, ‘Woman, you have great faith! Your request is granted.’”
Matthew 15:28 (NIV)
Hello Lee,
ok Notice of Default – You can still win this battle – what state are you in Lee? Yes I have heard of that being done – and the foreclosure mediation can be a very good thing – I have an attorney friend that saw great results at one where she represented a borrower at a mediation –
Matthew 8:13 Jesus said to the centurion, “Go your way. Let it be done for you as you have Believed.” His servant was healed in that hour.
Expect ONLY Miracles,
Anna Cuevas
Hi Anna,
Here is the information you requested I send.
Gross income: Unemployment $376.00 per week
Principal balance $116,488.78
Approximate value ( I use http://www.eppraisal.com) No listing In Sept. 2007 it was $279,000.00 now it’s probably $225,000
Current payment: Original mortgage payment $927.73
Investor and lender: Fannie Mae – PHH Mortgage
Trial payment if you had one: $631.60
Monthly property tax $$109.67
Monthly insurance: $46.22
Please may I call you?
Sincerely,
Susan
Hello Susan my dear –
Ok well NPV is a science and all I can offer is my humble opinion and rule of thumb guesstimating on the NPV as I do not have their NPV model to go by just a common sense approach at looking at it –
and this is what I see – first of all they do not like to give HAMPs out when you have a higher value vs loan amount for NPV – can you take a deeper search to see if you can find some low comps the lower the better. Your income @ 31% leaves a very very low payment where they would have to lower the rate to 2% as well as the term to 40 years but you do make it –
what they view for NPV is the answer to the question what makes us more money – foreclosure or modification and with a higher value – selling the home brings higher revenue for the investor BUT
what I would do instead of speculating on the reasons you failed NPV to write a letter immediately and request all of the inputs for the NPV to be given to you so you can compare and make sure that they are accurate and correct – especially since you have Fannie Mae as the investor. Push the envelope all the way and keep pressing them. I am here to guide you and will provide a sample letter. I also have several articles on the topic of NPV so you can read them and understand what they are talking about when you call, it helps to be informed and confident on these topics.
“Our deepest fear is not that we are inadequate. Our deepest fear is that we are powerful beyond measure. It is our light, not our darkness that most frightens us. We ask ourselves, Who am I to be brilliant, gorgeous, talented, fabulous? Actually, who are you not to be? You are a child of God. Your playing small does not serve the world. There is nothing enlightened about shrinking so that other people won’t feel insecure around you. We are all meant to shine, as children do. We were born to make manifest the glory of God that is within us. It’s not just in some of us; it’s in everyone. And as we let our own light shine, we unconsciously give other people permission to do the same. As we are liberated from our own fear, our presence automatically liberates others.” Marianne Williamson
Also:
Please enjoy my favorite Earl Nightingale – We Become What We Think About! What do you think? http://www.youtube.com/watch?v=JgUc7eLXs0s
____________________________________________________________________HERE IS THE LETTER FOR NPV________________________________________________________
URGENT ASSISTANCE NEEDED – REQUESTING ALL INCOME AND EXPENSE AMOUNTS USED AND THE NPV INPUTS USED IN DENYING MY HAMP HOME AFFORDABLE MODIFICATION PROGRAM
Loan#
DEAR EXECUTIVE OFFICE MHA/HAMP ESCALATION TEAM:
I was recently notified that I was denied for a HAMP loan modification due to NPV – Per the Treasury guidelines for HAMP I have the right to have an explanation of what the NPV means including for you to tell me the factors used to make the NPV decision and I hereby request the values used in making the calculations along with the date the process was completed within 30 days of the notice of denial. and dates, per that same guideline. I have attached the portion of the Treasury HAMP directive for your review. In addition I would like a line by line explanation of what gross income was used, what expense figures were used as well as where the value you obtained came from, was it a BPO, What amount was it, because the value I have differs significantly from the value figure I was given by the representative.
HAMP Directive:
When the borrower is not approved for a HAMP modification because the mortgage loan is deemed NPV negative as outlined in Announcement 09-31, Updates and Clarifications to the Home Affordable Modification Program, the notice must include a list of certain input fields that are considered to reach the NPV result and a statement that the borrower may, within 30 calendar days of the date of the notice, request the date the NPV test was completed and the values used to populate the NPV input fields defined in Attachment 1.
Sincerely,
cc: Department of Treasury
Phyllis Caldwell
Chief of Treasury’s Homeownership Preservation Office
Department of the Treasury 1500 Pennsylvania Avenue, NW Washington, D.C. 20220
Fax: (202) 622-6415
cc: Fannie Mae too – I will get you the address
———————————————————————————————————————-
O, God, who by the light of the Holy Spirit, did instruct the hearts of the faithful, grant that by the same Holy Spirit we may be truly wise and ever enjoy His consolations. Through Christ Our Lord. Amen.
Expect Miracles,
Anna
do you have the email address for Phylllis Caldwell .. thanks.
Hi Ti – All I have is the fax number and the address – certified mail works pretty good -
“The LORD bless you and keep you; the LORD make his face shine upon you and be gracious to you; the LORD turn his face toward you and give you peace.” Numbers 6:24-26
Expect Miracles,
Anna
Anna, Thank you so much!
I need help. PHH mortgage is trying to foreclose on me even though I was never behind on any payments. Below is a summary of the whole story. I hope it helps others. Be wary of the HAMP program, it can make things worse.
Please let me know what you think I should do next.
I applied for the HAMP (Making Home Affordable program) in July 2009. I have been laid off of my job and receive unemployment. I was making all my mortgage payments on time and was not behind. I am not underwater on my mortgage and I want to keep my house.
I applied for Hamp to reduce my payment so I can keep up with all my bills including my mortgage. I called the housing counselor and they thought from the information I provided I would be eligible.
I applied for the program and was approved for a trial period payment of $631.60. My original payment was $947.00. I was instructed to began making the trial payment in Sept. 2009. I have been making all the trial payments as requested. I made a trial payment from Sept. 09 through the current month of March 2010.
During the months from Sept. 09 through March 2010 I have submitted all the required paperwork and documents. In Dec.09 I was notified I was approved for a modification but the final paperwork was still in process… keep waiting. Ok, I kept waiting. I was told I would have an answer in Jan 2010. Then in Jan. 2010, I was told they are still behind and the paperwork isn’t ready so keep waiting. I kept asking if it was ok, was everything done, did I need to do anything else and the answer was no, everything is fine. Then I was told they are doing an audit and I will have my final papers at the end of Feb. 2010. In February I was told I would have the final papers by the 2nd week of March and again everything is fine.
About March 8th 2010 I received a call at 4:45pm from a Deb. She stated you have been denied you HAMP because of the decision of the “state treasury”. I was in complete shock and asked what treasury, where? She didn’t know, just the state treasury.
I couldn’t speak with someone who knew anything until the next day. When I reached them and spoke with a HUD counselor and the mortgage company at the same time I was told I was behind several thousand dollars on my mortgage and the clock was ticking. Didn’t I know I could be foreclosed on? My response was, “No, I didn’t know if I made all my payments and followed all the rules I would be put in foreclosure.
For the last 2-3 weeks I have been struggling with the mortgage company to find out why my HAMP was declined after I was told for 4 months it had been approved. They seem to have amnesia when it comes to agreements or commitments. It took them 7 months for a final answer on my HAMP application which was completely different from what they told me it would be but it took them less than 24 hours to begin the foreclosure process clock without my knowledge and while I was still in the HAMP review according to the US Dept. of Treasury.
Now they are requesting I pay $3708.00 with a 10 day notice. I haven’t got my re-review of the HAMP and NPV yet and they have said it would be somewhere between 30-90 days before I would get an answer on the in-house modification or repayment plan. They told me on 3/22/2010 that they would use my documents and application from the HAMP process for the in-house modification. Now on 3/25/2010 I have been told it ”would be in my best interests” to submit an application and documents for the in-house program.
I am asking they accept my March modified payment which they sent back to me and my April modified payment and I will resume my full payment which is now $927.00 a month on May 1st 2010. I am requesting the foreclosure process stop until I receive a final answer on the modification or repayment plan. I will make my payments every month during this wait time. At this point they are saying this is not possible. They are demanding the whole arrears now. Arrears!! I was never behind on my original payment or my modified payment. I would not recommend the HAMP program to any one. It is just a concealed way to take my house.
I am fighting for my house and in essence everything I own. Anna, please advise my next step. I have spoke with the HUD escalation team, my congressman’s office and both of my Senators constituent assistance offices. I have also went for help to the Attorney general’s office here in Minnesota.
Nothing has been suggested except to go to the HUD counseling, which I have done 6 or more times.
I have spoke to 25-30 people at my mortgage company, PHH and continually receive misinformation or the wrong answer. One or two people have given me some accurate information but they have had no influence and it changes within a day or two.
If you go into HAMP save the remainder of your old payment each month or you will be forced into foreclosure with it’s additional expenses, stress and trauma. I want to do everything I can to fight this and keep my house. It seems I should be able to take legal action about this but I haven’t found a way yet.
Help, I need advice.
Susan – I am not sure if you got the NPV dispute letter template I sent you on 03/23. Also do you happen to have any household contribution or room rent that you can add to your income and reapply – that would be my biggest suggestion to you – You could write letters and complain to the person below. I also think your income being that the 31% is right at the threshold may just be hitting a tiny bit too low to pass the NPV test and you can re-do your package with new income if you have it and resubmit it as another angle.
Here is some info on your Mortgage Company so you could write to the President of the company and voice your concerns and advise him of your experience and frustrations- if you are compelled to do this instead of the other:
Call in the Holy Spirit to guide you to write the letter – and send the Holy Spirit that your letter can touch the heart of:
Mark Danahy; President
PHH Mortgage Private Label Solutions
1 Mortgage Way
Mount Laurel, NJ 08054
I’ve commanded you to be strong and brave. Don’t ever be afraid or discouraged! I am the Lord you God, and I will be there to help you wherever you go. Joshua 1:9
Expect Miracles Susan – I am praying for your success – You will come out a stronger person from all of this and you will prevail SUSAN!! Do Not Give up!!!! I am here for you.
Anna Cuevas
Loan Mod Guru
SUSAN,
When you are making a modified (lower payment) payment. You are not making your full payment amount. That is why you are in arrears. Also, they report you late/not paying in full to the credit report agencies. Google the office of the president for your lender. Email as many people as you can.
Also, you got a verbal approval, correct ? Never trust what they don’t put down in writing.
Good Luck to you.
Lee
Susan, if you were on time prior to the HAMP trial mod – you can dispute the lates if they are not being reported as below:
Per Freddie Mac HAMP bulletin:
(i) For Borrowers who are current when they enter the Trial Period, the Servicer should report the Borrower current but on a modified payment if the Borrower makes timely Trial Period payments by the 30th day of each Trial Period month, as well as report the modification when completed
(ii) For Borrowers who are delinquent when they enter the Trial Period or who fail to make timely Trial Period payments by the 30th day of each Trial Period month, the Servicer should continue to report in such a manner that accurately reflects the Borrower’s delinquency and workout status following usual and customary reporting standards, as well as report the modification when completed
Expect Miracles,
Anna Cuevas
This is the FDIC’s Net Present Value Tool…. Hope it’s helpful to someone.
http://www.fdic.gov/consumers/loans/loanmod/loanmodguide.html
Click on Net Present Value Worksheet (Excel)
Thank you for posting this Lee –
“Our deepest fear is not that we are inadequate. Our deepest fear is that we are powerful beyond measure. It is our light, not our darkness that most frightens us. We ask ourselves, Who am I to be brilliant, gorgeous, talented, fabulous? Actually, who are you not to be? You are a child of God. Your playing small does not serve the world. There is nothing enlightened about shrinking so that other people won’t feel insecure around you. We are all meant to shine, as children do. We were born to make manifest the glory of God that is within us. It’s not just in some of us; it’s in everyone. And as we let our own light shine, we unconsciously give other people permission to do the same. As we are liberated from our own fear, our presence automatically liberates others.” Marianne Williamson
Expect Miracles,
Anna Cuevas
Dear Anna and all, I have been having the very same problem with my lender INDYMAC/ONEWEST BANK for 1 year and praying and praying 24 hours a day to our Lord and Savior Jesus Christ and God.. I have just sent a Consumer Complaint Form to the Office of Thrift Supervision in Washington, D.C. as per Attorney General Edmund Brown, Jr’s, suggestion via a letter I wrote to him regarding all this unbelieveable greed/same loan mod/HPV problems. My lender will not supply me with a copy of the HPV simply because it can’t be proven! I stated to the Atty General, my congressman, 2 senator’s , Fannie Mae Corporate Inquiries, the Office of Thrift Supervision how the lenders are manipulating, frauding, badgering, frightening, etc. thousands and thousands of people just to steal their homes away from them to put the monies back into their bank accounts… etc. too long to go over, but I STRONGLY TELL EVERYONE ALSO TO PLEASE KEEP BADGERING THEM LETTERS, LETTERS, LETTERS, TO YOUR CONGRESSMAN, SENATORS, ATTORNEY GENERAL OF CALIFORNIA, FANNIE MAE CORP. INQUIRIES, FREDDIE MAC CORPORATE INQUIRIES, THE OFFICE OF THRIFT SUPERVISION (who oversees my lender and many more), Write letters to the investors of your lender, to the President’s, Vice Presidents, CEO’s and Chairmen of your lender! Keep writing and knocking until the door opens! Make your VOICE heard in the name of God and Jesus Christ I pray! And.. if anyone wants to email me feel free, I believe we must all fight together in the Lord’s name as he has given me this very moment to speak to all of you.. I have been praying for him to open the door so that I could speak to many more like myself in his name, to give glory to him! Please don’t give up! I almost did, until he spoke to me and told me not to! God will come through.. now I know after reading this site. So please feel free to email me and quite possibly we can all expose these lenders of their scams, theivery and greed in the Lord’s name. And justifiably keep our homes. Keep calling, keep writing. God Bless us all! He is our defender, protector, provider, battles our enemies for us! Trust in him!
Hi Anna,
I started my modification process back in August of 2009. I’ll spare you most of the details. Heres my situation. Starting in January of this year over several phone calls I was told I was pre qualified for MHA and I would be starting the trial period by the end of March. (An escrow account was created in November but I wasn’t notified until Feburary.) Two weeks ago I received a call from BofA saying that I had been approved for MHA but because I didn’t make any of the trial payments which started in January, the offer was now void. But the good news is that BofA can offer me an in-house modification that is very similar to MHA. I advised the caller that I was told the MHA was in process but never received written notice of approval or payment start date. The caller insisted that two Fed Ex packets had been sent, the second was sent 3 days ago.
Several phone calls later they insist I was determined not eligible and my only option is their in-house mod.
My question is, if I was pre-qualified and later determined not qualified, isn’t BofA required to send me written notice?
Also, since that phone call the sent me an in-house mod proposal which is not the same as we discussed by phone. And I just found that they also paid my current property tax through the escrow account they set up when I was pre-qualified. I have not signed any mod proposal. Would I be required to pay them back if I don’t get a modification with BofA?
Dear Anna:
How beautiful to see that you are a person whom believe in god, as he is my pastor and he will guide me through toft times.
To make my story short, I have been struggling in obtaining a loan modificaiton with Wells Fargo Bank since November 2009, when I turned to them for help as a small business homeowner whom was seen my income reduced drastically, I have since been on a nightmare, on May 2009 was approved for HAMP, what was supposed to be three months trial period, it was December 2009 when I make my last modified payment without receiving the final documentation to make my modification permanent and went to a NACA Save the Dream event on 12/11/2009 and got a 3% fixed for 30 years modified new payment (original payment was $3,326), new Payment including taxes and insurance was $2,622.00 but due to discrepancies and two judgments which turned out where not mine and someone else with similar name but different social security they denied my modification and stated that my income was not sufficient as they calculated my rental income which original is $1,400 to a mistaken one of $1,060, which game a negative cash flow of 400.00, then reapply and was given an offer of 2,409 with 40 years fixed, again turned down for investor as they said my income did not qualify as they requested copies of my 2009 tax return which showed an adjusted income of $25,000, but the Naca Rep. told me is still under review as they are not taking in consideration the cash flow which was the original amount taken in consideration by Wells FArgo Bank servicer at the Naca Event on 12/11/2009. Meanwhile on my NACA web file still shows the following message:
C. PROPOSAL: Below is the proposal from your Servicer.
Servicer Proposal Information
Type: – Other Term: 1
PITI: 2,408 PI: 1,517 Taxes: 781 Insurance: 110
HOA: 0 PMI: 0 Term: 480 Rate: 3.00%
Principal: 423,688 Value:
Delinquent Interest: 38,628 Late Fees: 244 Late Penalties: 0 Unpaid Escrows: 12,035
Mon Day Year # Months PI Rate Amortization
0
Servicer Comment:
investor has denied proposal of 3%, term of 480. Unable to meet naca’s proposal of $1134/PITI…..mortgagor is not showing affordability for any other type of workout option…….denying loan….will remove in 15 calendar days…..042010/gtu
I have also received a letter from Wells FArgo with different story as to why they denied my application, and I would like to know if you have a direct number I can contact you for further advise.
Can you please tell me what my options are, in the last paragraph of Wells Fargo letter it says the following: Regrettably, after a thorough review of the upadated financial information provided, we are unable to offer you a loan modificaiton or any other workout options at this time. We are unable to offer yo a modification because of your current income deficit of $708.84. Unfortunately, this deficit cannot be overcome by any modification your loan may currently qualify for. Thus, your ability to afford a modified payment is not suppported by your current income.
I am even willing to move to my basement, to live in my attic, to rent one bedroom of my apartment if that would satisfy the bank, but have no idea if they would reconsider. I dont have any idea how they have come to the $708.84 deficit. Can you tell me which questions to ask, and if you see any possibility for my case.
I thank you in advance for your cooperation, and will be anxiously awaiting on your response.
God bless you for the work you are doing by helping others.
Sincerely yours,
Belkys
Dear Belkys,
I am so sorry you have gone through all of this! Do you know who your investor is? Have you checked if it is Fannie Mae or Freddie Mac? The good news is that the guideline says is that if your income changes then you are able to reapply so my suggestion is to get your income and expense sheet all buckled down so you know your numbers inside and out Calculate your HAMP- start here with Find out why you were denied and reapply for HAMP
On Rental income they only use 75% that is why they only used 1050 – so if you rent another room or your attic, etc then that will give you a way to re-apply – HAMP APPLICATION
I would ask – exactly what income they used – what value they have for your property – who is your investor – did they process you for HAMP or what kind of modification – Go line by line in what expenses they used – that would be what I would ask to make sure of what they have in their system exactly then go from there – call in the Holy Spirit to guide you before you call ask him to be in your heart and in theirs as well! You can do this! – If you don’t understand the numbers I would be glad to go over it with you – feel free to post it all here.
Usually they would not want to see a deficit after the modification figures – on the in-house modifications/traditional modifications – where this would not matter so much for HAMP –
You are now very sad.
But later I will see you,
and you will be so happy that no one will be able to change the way you feel. John 16:22
Expect Miracles,
Anna Cuevas
Loan Mod Guru
INVESTOR: FANNIE MAE
TOTAL MONTHLY GROSS INCOME: 3,659
CURRENT EXPENSES: 479
LIABILITIES: 737 (CREDIT CARDS) + MORTGAGE PAYMENTS $3,326
CASH FLOW: 2,343
31% GROOS INCOME RATIO: 1,134
PRINCIPAL 423,688
DELINQUENT INTEREST: 38,628
UNPAID SCROWS: 12,035
THE PROPOSED REESTRUCTURED RECOMMENDED BY NACA WAS $2,343.00
THE PROPOSAL SUBMITTED BY WELLS FARGO SERVICER TO INVESTOR WAS $2,408 (INCLUDING TAXES AND INS.)
SAME WAS DENIED AFTER INVESTOR REQUEST OF NEW BANK STATEMENTS (TOTAL OF ABOUT 8,000) ON BOTH BUSINESS & PERSONAL (CHECK AND SAVINGS) + VERIFICATION OF MY 2009 INCOME TAX RETURN WHICH SHOWS A TOTAL INCOME OF 25,416, BUT ADJUSTED GROSS INCOME OF $23,810.
This is the complete story, I applied first for HAMP on 05/2009, got approved for new modified payment of $2,844 which was supposed to be fixed amount to be paid for next 30 years upon review of documentation, 3 months trial period, which commenced on June 1, 2009, but extended until December 1, 2009 without receiving final documentation to convert to a permanent modification, which I took the decision to attend a NACA Save the Dream event on 12/11/2009. With the information previously stated I got recommended for a restructuration amount of $2,343, resulting on an approved proposal by Wells Fargo Servicer of $2,622, after several attemps and submitting documentation back and for, the new Escalation Servicer of Wells Fargo proposed $2,408 fixed for 40 years at a 3% Interest (Interest of actual loan 6.375%), but unfortunately got denied again and the letter I received from Wells Fargo I wish I can forward same to your attention so you can compare the serial of lies, discrepancies and fault of veracity in their arguments to denied the new proposed payment. Any way, I am going to include the last paragraph of the Wells Fargo Denial letter:
“Regrettably, after a through review of the updated financial information provided, we are unable to offer you a loan modification or any other workout options at this time. We are unable to offer you a modification because of your current income deficit of $708.84. Unfortunately, this deficit cannot be overcome by any modification your loan may currently qualify for. Thus, your ability to afford a modified payment is not supported by your current income.
However, you may want to consider contacting a credit counselor at Hope Now to assist you in reviewing your current financial situation. The credit counselors may work with you and assess your current financial situation and propose solutions to assist you.
My question is, Isn’t NACA considered a Credit Counseling Agency?, aren’t their recommendation after reviewing my documentation supposed to be taken into consideration by Wells Fargo. The Naca Servicer has advised me that she is waiting to hear from Wells Fargo by next Friday on a conference they will have on my file, as they said when I got the approved proposal on 12/11/2009 the income they base the proposal was CASH FLOW and not the gross income on my tax return. But that they can not promised any solution until they hear from Wells Fargo Again. Meanwhile Wells Fargo is stating that by approaching Naca, I was advised (which is not true) that I was not longer interested in pursuing HAMP Options.
I don’t understand, but I believe they are just playing games, running around just for me to get discouraged and give up. Which I will never do, this is my home, the home that probably just means numbers and money to Wells Fargo, but for me and my family the memories we have, the time spend in each corner of my home is “Priceless”.
Any suggestions, will be highly appreciated. I have the number for the Executive Mortgage Specialist whom issue the letter, and if you can tell me which questions I should ask them when I approach them, I would highly appreciate. I have been trying to reach NACA Escalation Servicer via email, but since last Saturday she does not get back to me with instructions to follow in this matter. So I am getting very frustrated on the Lack of communication with NACA.
(John 16:22 said: You are now very sad.
But later I will see you,
and you will be so happy that no one will be able to change the way you feel.) How beautiful and how touching.
I am expecting Miracles, my god is a good of trust and believe, and I know he is hearing my prayers not only for myself, but all of others in similar situation.
Thank you Anna for your prompt response.
Belkys Santos
Dear Anna:
I am not sure if you have a special communication with god, but I can give testimony that you can offer others the way to trust, believe and wait patiently until he shows his mercy and love to you.
After submitting the above message to you, I just went to my NACA webfile and find the following proposal:
Servicer Comment:
MORTGAGOR OFFERED 3% TERM 360 AT NY NACA EVENT ON 121109. WITH CURRENT FINANCIALS, MORTGAGOR CAN NOT AFFORD A LOAN MODIFICATION, REFORE, THIS IS AGAINST INVESTOR GUIDELINES. WE CAN OFFER STEP RATE WHICH BRINGS THEM TO AFFORDABILITY AND ALLOWS THEM TIME TO EITHER IMPROVE INCOME OR DECREASE EXPENSES AFTER 1ST 5 YEARS. NOTE AT 2% RATE OFFER THE MORTGAGOR SHOWS AFFORDABILITY WITH CURRENT financials. 1-5 2.000% 6/1/2010 $1,524.19 7/1/2010 60 6 3.000% 6/1/2015 $1,714.81 7/1/2015 12 7 4.000% 6/1/2016 $1,911.56 7/1/2016 12 8 5.000% 6/1/2017 $2,113.13 7/1/2017 12 9-32 5.125% 6/1/2018 $2,138.25 7/1/2018 281
I am not sure what it means, but if it is what I am trying to understand, I have been offered a 2% reduction for the next 5 years, and increment for the following of 1%, which I believe is gods will. I know is not a fixed 30 or 40 years, but at least give me time to recover financially, and eventually if I show income increase or decrease of liabilities, I am so excited, I can dance, I am not 100% sure if it is a good deal, but anything that can alleviate the stress I have been put through all these months will let me enjoy a full night of sleep.
I would highly appreciate if you can explain better, as I am trying to reach my NACA negotiator without response, and need to accept or deny this new offer.
Thanks, and yes, there are miracles. Every body should expect same.
Belkys Santos
After sending Loan Mod Applications since October 2008, going through and sending every documents again and finally getting temporary trial modification in 2009, we received our HAMP denial due to NPV today. I first panicked, but after reading your posts, I’m a bit calmer. We’re sending our request for Chase’s NPV calculations tomorrow and will start updating our Loan Mod Application papers again. Thank you for calming me down.
HI Michelle!! I am glad you were able to find the hope you needed here on “our” site – welcome!!
NPV Calculations
Prayer to the Holy Spirit
O Holy Spirit, Soul of my soul, I adore You. Enlighten, guide, strengthen and console me. Tell me what I ought to do and command me to do it. I promise to be submissive in everything that You permit to happen to me, only show me what is Your will.
Expect ONLY Miracles,
Anna Cuevas
The Loan Mod Guru
Been trying for Mod since 2008. Today they finally ordered BPO for the HAMP. My property is 18 acres, but the original appraisal (basis for mortgage) was only allowed to be on 5 acres (althought they wrote the mortgage against whole property). My question is will the BPO also only be on the 5 acres, do I need to tell the servicer that it should only be done on the 5 acres? I am afraid that if they include the whole 18 in the BPO that I will fail the NPV test due. Please advise, THANK YOU!
Hello Valerie,
I understand exactly what you are talking about – and I am aware of the way these appraisals were done at the 5 acres even if they were more. I would bring it up to their attention asap, who is your lender? Either way I think you may be able to escalate it and fight it if for some reason they use a higher number – they should not be able to only penalize you at their own convenience, so I think it is something you will be able to dispute. Let me know what happens.
Trust in the LORD with all your heart, And lean not on your own understanding; In all your ways acknowledge Him, And He shall direct your paths. (Proverbs 3:5-6 NKJV)
Expect ONLY Miracles,
Anna Cuevas
God bless you Anna! You have a wonderful website and spread HOPE and FAITH which is so rare these days.
I am in a pick-a-pay loan with Wachovia and I’ve been trying to get out of it since 2007. Its due to reset in october of this year.
I have been denied 3 times when I apporached Wachovia directly. Each time I was given so much hope, wachovia told me I am in a terrible loan and they wanted to help me… completed all the paperwork 3 times, only to be denied in the end… because I was in “imminent default”, I was current, I could afford my mortgage the way it was set up (interest only).
then I approached NACA. Naca agrred that I am in a predatory loan (its over 8% interest!. They sent a proposal to Wachovia on 4/26. On 5/21 I got a call from Wachovia saying they are working with Naca and their proposal looks good, they confirmed some numbers and said it was going to an underwriter. on 5/26 , I have a note in my web profile that WACHOVIA “DNQ’d” Naca’s proposal due to “no financial hardship”.
In my counselling session with NACA they said they would never even consider me if I was current, so I have been holding back my mortgage since April. I was supposed to have a counselling session with NACA today but they never called.
Should I pay my mortgage at this point?
Mortgage bal is 461,000
Home value is 550, 000
min payment is 2489 (with taxes and ins)
interest only 3446
gross monthly 8880
I learned my hubby may loose his job next week and I think I am pregnant. Lovely news. I believe that God has a plan for all of this… but its hard to see right now.
Any advice? Thank you.
Believes in miracles,
Christine
Hello Christine, thank you for the wonderful blessings. May God bless you and your family too! Remember to be extra happy and positive, your baby doesn’t need the stress.
I just want to make sure you checked your home value with http://www.eppraisal.com and http://www.zillow.com to make sure.
If they are saying you are not in imminent default I have written an article about how to calculate that – With Wachovia, I have seen some great modifications come out of here – ESPECIALLY ON THE OPTION ARM. All of the people I helped with Wachovia were late, but under the HAMP program that is not a condition but if you are not late then you have to pass the HAMP imminent default test -click on here for my article about imminent default and how it is calculated for HAMP
With the HAMP and your current income the payment would be approx 2752.80 inc tax and ins. Wachovia also has a MAP program which I love because it does cut the principal balance by 20% if you are underwater but, from what you say you are not there. How much will your income be like if your husband loses his job? If you do decide to hold back your payment put it aside somewhere – if it is in your bank account and you have too much money in there that is another reason for decline for no financial hardship -
Just know that with determination and belief everything always works itself out – don’t let the annoyance of these obstacles affect your joy. You can overcome all of this by being the squeaky wheel buy you have to get your numbers right.
“Ask, and it will be given to you; seek, and you will find; knock, and it will be opened to you. For everyone who asks receives, and he who seeks finds, and to him who knocks it will be opened. (Matthew 7:7-8 NKJV)
Expect ONLY Miracles,
Anna Cuevas
The Loan Mod Guru
it seems the hamp mods are designed only to help people whose homes are in a negative equity situation if you have been paying for years and have equity they are holding it against you, perhaps it is better to negotiate terms directly with lender? another government program that fails the people it was supposedly designed to help, what a sick joke.
Anna,
I need help getting my numbers where they need to be.
Unemployment 1700 monthly
Child Support 230
Principal 798.37
tax/ins 327.17
Car 511. (my father is making payments)
Credit card 88
student loan 67
electric 240
Water 85
Phone/Cable/Internet 150
food 400
Savings 920
I was denied a HAMP by B of A because they are telling me I have sufficient funds to pay my mortgage??? where are they coming up with this??
I have been unemployed since Feb and have 20 weeks extension but I do start a job monday @ 14 per hour. Do I reapply now or wait til I start working and get a check.
Do I need to have my daughter pay some rent? I just need help since B of A has no answers for me!
Thank you
Patti
oh…my home is worth 168,000 per zillow, I owe 120,249.
I have a question in regards to the NPV requirements, on the denial letter i received stating i did not pass the NPV on the reasons it states as of 11/19/10, we provided them with everything they requested over a year and a half ago, not just a few months ago, why would they use the date i provided this information to them? of course now a year and a half later the outstanding loan will go up. Not to mention they didnt use my correct financials. what can i do?
Hi Connie,
First take a deep breath, you deserve it. I know you have been on this long journey and now this…. but you can go out in nature and do a little meditation to get you strength to go back in the ring and fight back.
You need to write an escalation appeal letter to them asap. Request your NPV inputs and find out exactly why you were denied. Overnight the letter and fax it as well.
Keep us posted on the outcome of the appeal. I have a couple of articles on NPV on this site, please read them so you understand NPV before you speak to them. Call in the Holy Spirit for renewed strength before you call or write –
“Courage and perseverance have a magical talisman, before which difficulties disappear and obstacles vanish into air.” John Quincy Adams
Expect ONLY Miracles and Question Authority,
Anna Cuevas
The Loan Mod Guru
A friend of mine has been through repeat trauma over a SunTrust loan failure where she made the payments for two months, they accepted the payments for two months, and neglected to tell her they ALSO foreclosed on her. THEN SunTrust failed to respond so long that twice she has had to scramble.
God bless you Anna! You have a wonderful website and spread HOPE and FAITH which is so rare these days.
On 2009 I was denied 1 time. The second time I was in imminent default I they gave me 3months trial period and after fighthing I finally had an in-house modification on December 2009. Wells Fargo lower my interest from 6% to 5.25.
At that time I received $1,600 rent from first floor.
2010 was difficult for the family and I couldn’t rent first floor anymore and we moved down. (two family house, we were on 2nd floor, paying $1,000 before, but the 2nd floor was too small for us five). Due to a significant dental problem, with no possibility of delay we had to incur into extra unexpected expenses, not covered by the insurance.Plus, we used all the Credit Cards and we recently filled for ch.7. I’m 4 month behind now. I apply on Dec. 2009 for a hamp, they send me all the papers and I sent them back. (WF said I could apply for a hamp because I was $200 negative) Feb. 2nd denied. “Mortgagor financials do not meet the criteria for a loan modification. Mortgagor will have to show an increase in income or a decrease in expenses to quialify for a mod. The mortgagor can re-apply once their situation changes.” I’m not sure if it is because I didn’t have any rent coming at that time.
Should I pay my mortgage at this point?
WF Mortgage bal is 280,000
Home value is 330, 000
Chase heloc $100,000
min payment is 2416 (with taxes and ins)
HOUSEHOLD INCOME: $5,100.00
GROSS MONTHLY INCOME: $5,608.33
LESS: Federal and State Tax, Fica: $594.923
LESS: Other Deductions: $652.08
NET MONTHLY INCOME: $4,350.00
RENT: $750.00 ($1,000.00)
EXPENSES TOTAL: $5,010.00
I’m 10,000 past due and it is impossible for me to pay all at once if I don’t receive some help from WF.
Any advice? Thank you.
Believes in miracles,
Berta
Oh, On Feb. 2nd when I was denied, the lady that gave me the numbers said my investor doesn’t work with hamp, only in-house mod using the 31%-38% and at that time I was around $350 negative (between income and expenses).
I really thought they were going to work on the hamp. If they lower my interest to 2% all the numbers would make sense.
Advice?
Thanks Anna
And God bless, continue the good work
my loan is with BankofAmerica/country wide.
I was denied for HAMP due to Negative NPV.
They will not send me my figures so I can file an appeal. I have been waiting since Dec’10. Each time I call they say that they are on their way.
They also stated that the appeal was denied but I haven’t even been able to file an appeal without the figures. What should I do?
Hi Donna,
My suggestion is to write to the Office of the President for Bank of America and send a copy and cc, your congressman, senator and the Treasury Department letting them know that B of A is not following the HAMP guidelines. Send it certified. Keep calling and escalate to a supervisor and ask for verbal numbers. Include your appeal letter in all of your correspondence so it is clear.
Please let us know of your success.
Expect ONLY Miracles and Question Authority
Anna Cuevas
The Loan Mod Guru Empowering You to SAVE YOUR HOME
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Hello Anna,
I used your web site HAMP calculator yesterday and I must tell you that I am so impressed. After researching many different avenues to pursue saving our home, including getting wrong information from a government HAMP counselor, waiting on the phone for hours, and passing on expensive offers that seemed a bit too snake oilish, I invested in using your program. Wow, what a fabulous resource at a reasonable price. Your site was easy to use and extremely comprehensive. Now I feel confident that I’m putting our best foot forward and that we have a shot at working this out. Thank you, thank you, thank you. This is an awesome contribution! I recommend your web site enthusiastically and hope everyone will have the opportunity to use it.
Cathy, Los Angeles, CA
Hi there,
I applied for my mod with BofA back in July 2009, I was approved through underwriting in Feb of 2011 and off the package went to the investor. Today, 4/11/2011 I get a letter saying that I am not eligible for the HAMP program! I don’t get it, if it was approved through underwriting doesn’t that mean that I’ve met the HAMP eligibility guidelines? When I called, they said that the investor didn’t accept the modification package. WAIT A MINUTE! That’s 2 different things. Not being eligible for a federal program and the investor not having interest in the mod?
I did get the letter stating NPV, but it never says what part of it is not right. It’s just a bunch of entries that look pretty accurate to me. (maybe the home value is low by about $50k).
I’m thoroughly confused. They did say that I’m now in their traditional “in-house” modification program which is supposed to have a higher success rate. hmmm….. I could dispute the HAMP findings, but I’m not sure what I’m disputing and don’t want to spend money on an appraiser if it won’t help.
I asked for a more specific letter and was told that I have the specific details.
Dear Anna,
I cannot tell you what your words of wisdom have done for me during these trying times. I will be most grateful for your advice. We have been denied due to: unable to create an affordable payment equal to 31% of our reported monthly gross income. Our numbers are as follows:
Gross Income – 4966.00
Total Principal Balance – 369,000
Total Loan balance fees/arrears – 54,000 (not sure may be more)
Property Taxes – 433 per month
Homeowners Insurance – 148 per month
Flood Insurance – 38 per month
HOA – 108 per month
Freddie Mac is the owner of your mortgage
Home is worth – 256,000
I plan on reapplying and will not give up – GOD is my rock! Should I rent a room to show more income? Will this help? What is your advice?
Resubmitting with correct email address. Thank you.
Dear Anna,
I cannot tell you what your words of wisdom have done for me during these trying times. I will be most grateful for your advice. We have been denied due to: unable to create an affordable payment equal to 31% of our reported monthly gross income. Our numbers are as follows:
Gross Income – 4966.00
Total Principal Balance – 369,000
Total Loan balance fees/arrears – 54,000 (not sure may be more)
Property Taxes – 433 per month
Homeowners Insurance – 148 per month
Flood Insurance – 38 per month
HOA – 108 per month
Freddie Mac is the owner of your mortgage
Home is worth – 256,000
I plan on reapplying and will not give up – GOD is my rock! Should I rent a room to show more income? Will this help? What is your advice?
Dear ANNA:
I CONTACTED YOU A FEW WEEKS AGO WONDERING IF YOU COULD HELP:
DENIED FOR NEGA NVP.. HARDSHIP VERY SICK CHILD AND DIVORCE LEFT AREA TO SEEK TREATMENT FOR 16 MONTHS UNEMPLOYED STAYED CURRENT ON MTG APPLIED AND CONTACTED BANK BECAUSE I WAS SHORT TAXES OF 4200.
SO THE STORY CONTINUES 20 MONTHS LATER DENIED
INCOME 2400 WAITRESS
CHILD SUPPORT 3200.00
TAXES AND INSURANCE TAXES 683 INSURANCE 115= 938
P & I 1678.06
UNPAID BALANCE 229,311.44 AS OF 11/15/2010
DO I QUALIFY…. WOULD I BE BETTER OFF DISCLOSING 400 I RECEIVE AS ALIMONY? HELP
EILEEN
HI ANNA:
FORGOT TO TELL YOU
NO $$ IN BANK LIQUIDATED ALL FOR DAUGHTERS MEDICAL
CURRENT WITH MTG KINDA AFTER REPEATED ATTEMPTS FOR SHORTAGE WITH RESPECT TO TAXES AND DURING THE 20 MONTH PROCESS THEY PAID TAXES FOR 1.5 YEAR NOW A DEFICIT OF 13000 SO AS OF JANUARY THEY CHANGE MY MTG PAYMENT TO INCLUDE DEFICIT I PAID BACK 2062 WHICH WHAT WAS PAID ON MY BEHALF FOR INSURANCE SO THE DEFICIT IS BEING CALCULATED ONTOP
OF CURRENT PAYMENT OF 1678.06 AND 890.00 ????
SO WOULDN’T I QUALIFY BASE ON NEW PAYMENT
I received a fedex package from BOA with request for modification – I had a deep impact on my monthly income and currently i gross 3964.00 plus $1500.00 rental income.
Do you think they will modify my loan? My info is :
Bank of america 1 st mort: $445,800. 26 yrs left
6.75 % – due $4190.44 (principal and interest $3,035.44 escrow payment $1,155.00)
My credit cards bills total minimum payments $675.00
Utility and household bills and expence $1290.00
total income $5464.00
total bills $6155.00
before I submit my current income to my expence -I can look into renting out my garage and rooms inside my house and storage space in my basement for additional income. What do you think would help me get the loan mod? I am concerned about the NIP denial. Thank you so much.
Hi Anna:
I hope you can help me. I have been denied a home re-modification for the 3rd time. The bank has stated I should do a short sell or I will be in foreclosed. I am one month behind. The NPV off. Someone has stated I should get an appraisal for less on my home in order for them to accept my re-modification. I know the appraisal would never be that low. What should I do?
Hi Anna:
I am still awaiting on moderation.
But I received a call from the Bank of America again. The have stated my NPV is of am I need to get more income.
I thought this was making homes affordable?
It is not my fault I have become disabled and my husband lost his job. He is know working but that seems to be not enough for the Bank of America.
You try getting a good job in this economy?
What’s wrong with this picture??
Your thought.
Rosa
Hello Rosa,
Thank you for your post – I know it is tough out there for so many people – with job loss, illness and then the whole loan modification process is so full of red-tape.
It is important for you to go over your figures to see where you stand. So you can know if an error was made in underwriting or you are short some income to qualify – the loan modification still needs to make the investor more money than a short sale or foreclosure.
I hope this helps –
Expect ONLY Miracles and Question Authority,
Anna Cuevas
America’s Loan Modification Guru – #1 Bestselling Author of Save Your Home
Hi Anna,
I have apply for a modification to the servicer of my loan chase, today by phone have
been told that I did not qualified. I have been trying to keep up with my mortgage pmt.
since my job discountinue back on june 2009 after 26 years with the co. but I was
hable to get early retirement and with the uneployment I was making my pmt not paying anything else . but as of late august I no longer receive the unemplyment only
my retirement of 2040.00 per month. My mortgage payment principal andinterest is
1226 and taxes and insurance 310 (for both) for a total of 1536.00 my loan is escrow.
I also pay 40 dollars to a hoa. My balance is 260,000. andI have a negative arm product. My property is value by what the bank has 150,000. ( as a drive by apprasal)
I am current as of today but cannot continue. I just did the test of the npv and supposely came up with that I would qualified then why I am denied. Please help.
Thank You,
Zaida