What are all of these fees on my HAMP Loan Modification?
The following is a sample qualified written request from you, the borrower, to a lender. Use this format to address complaints under the Real Estate Settlement Procedures Act (RESPA). Be sure to read more about RESPA, and your rights under this Act, elsewhere on the RESPA site.
Attention Customer Service:
Subject: [Your loan number]
[Names on loan documents]
[Property and/or mailing address]
This is a “qualified written request” under Section 6 of the Real Estate Settlement Procedures Act (RESPA).
I am writing because:
Describe the issue or the question you have and/or what action you believe the lender should take.
Attach copies of any related written materials.
Describe any conversations with customer service regarding the issue and to whom you spoke.
Describe any previous steps you have taken or attempts to resolve the issue.
List a day time telephone number in case a customer service representative wishes to contact you.
I understand that under Section 6 of RESPA you are required to acknowledge my request within 20 business days and must try to resolve the issue within 60 business days.
Sincerely,
[Your name]
REMEMBER: This letter SHOULD NOT be included with your mortgage payment, but should be sent separately to the customer service address.
You SHOULD continue to make the required mortgage and escrow payment until the request is resolved.
You may bring a private right of action under Section 6, if you suffer damages due to the lender’s servicing of the loan. See the RESPA statute and regulations.
Save Your Home
Anna 7/30/2010
Hello first let me say i have stubbled onto your site after praying this morning and it has already lifted my spirit and renewed my hope . Here is my status:
As of today denied HAMP loan! Started process in September of last year (2009) Late on payments May 09′- Present Hardship was over 5 months later. Been trying to pay since Sept 2009/ and modify. Applied 3 times this is the first time actually denied. They are looking at a in house (MAp2) Program and will let me know today or monday if I qualify.
Lender: Wachovia
Loan Balance: 270,000 est
Loan Payment was 1,220.00 (Pick a Payment Loan )included tax & ins.
Fixed 7% rate
Loan Value: 230,000-260,000 Not sure I stated 230,000
Self-Employed: 3,800.00 on application
Monthly Property Tax: 133.00 est.
Monthly Homeowners ins. $48.00
Monthly Hoa dues: $17
Household Exspense: 1300 I stated on app.
Auto Payment: 320.00 (1 vehicle)
CC debt monthly I stated $ 400.00
I am trying to target a payment around what I was paying 1200.00. What do you think it was that made me deny, they said they did not know at that point. I need this to work I am stuck can you give me any advice also I have considered hiring a third party to get this done. What are your thoughts?
Sincerely Sarah
Sarah,
Yeah! I am so happy that you are feeling better!!! The MAP program is a pretty awesome program, I actually like it much better than HAMP – they usually lower the balance on that program which is superb and Wachovia is one of the few that does this. I hope you get approved for this. I will say a prayer that you get approved!!! Keep me posted.Expe
“Ask, and it shall be given you; seek, and ye shall find; knock, and it shall be opened unto you: For every one that asketh receiveth; and he that seeketh findeth; and to him that knocketh it shall be opened.” – Matthew 7:7-8 KJV
Expect ONLY Miracles,
Anna Cuevas
http:www.theloanmodguru.com
Hi Anna,
I am in foreclosure pending auction sell that was supposte to happen 06/11/2010. I have been making modifcation payments throughout 09 while on unemployment and was denied. I recently found a job income 62400.00 Orig loan 175,K with payments of 1,470.00 – Due to FC my loan is now 200,K since 5/2010 I have been on a Modification with my lender and my payment is my actual mortgage payment of 1470.00 I was advised yesterday i was denied the HAMP Mod due to insuff income. I was spoken to rather harshl;y by my lender and still do not have any good news going forward so my future looks bleak. This is my first home and I have never been in this situation before I feel so lost and stay frustrated and nervous. I have made 4 payments of 1,470.00 since may to august 2010 and for what? What do I do
Lender: GMAC: Loan was 175,000.00 Loan Payment was 1,470.00 Loan Balance FC now: 200,000 Fixed 7% rate
Income on my App 4800 and it ahould be 5200 Monthly . Property Tax: 150.00 est.Monthly Homeowners ins. $38.00 Household Exspense: 700 I stated on app. Auto Payment: 450.00(1 vehicle) my daughter’s vechicle 2 is 170.00 and she pays this. Credit card 85.00 my students loans are in deferrment and I have an old bill from my ex spouse 4,000.00 what t do you think it was that made me deny, What are your thoughts
Hi Denise,
Your future is not bleak – You got a great job now and you can fight because you can make a reasonable payment now. You can do this!!!
The reason you were denied is because your payment at 1470 was already LOWER than the HAMP program guideline payment of 31%
your income was 4800 x31% = 1488.00. Now that you are behind and your income is higher then you will have to try to push for an in-house modification or traditional loan modification, so that you can get the past due amounts added to the end of the loan and either resume your previous payment or try to lower the rate if possible, but I think at this point getting that 25k added to the back so you can keep your home is first priority.
I would first of all take a deep breath, call in the Holy Spirit to guide you, take a little walk in nature to ground yourself and find some inner peace. Then roll up your sleeves and fight for your home!
The traditional modification uses net (after tax income) vs expenses to qualify, you do not want to see too much more than approx 250 in surplus on those types of modifications.
Proverbs 16:3
3 Commit to the LORD whatever you do, and your plans will succeed.
Expect ONLY Miracles,
Anna Cuevas
The Loan Mod Guru
Sarah,
Thank you for the kind words – I am so happy that you found comfort here!
On your self employment income what did you turn in to back that up, was in a profit and loss statement? what was the net? they use the net on S/E borrowers.
I would first call them and ask exactly what they used for each value
Income, expenses, what expenses did they used to qualify credit debt or all household debt, what home value did they use -
that is where I would start, so you know how to proceed. Many mistakes are made on this part alone.
Wachovia has an awesome program called MAP specifically for pick a pay loans – most times I have seen up to a 20% balance forgiveness and conversion to a fixed loan. Ask them if you can apply for this – it is the best program out there!
Matthew 7:24
“Therefore everyone who hears these words of mine and puts them into practice is like a wise man who built his house on the rock.
Expect ONLY Miracles,
Anna Cuevas
The Loan Mod Guru – Breaking News, You asked for it, you got it. Due to the numerous requests for more assistance, “I am pleased to announce the launch of The Loan Mod Guru website” – A Professional, full service site to help you create and complete a successful HAMP submission.
Hi, I got a call this morning from Wachovia, after being denied for HAMP several months ago. I am in foreclosure with sale date of Oct. 6, 2010.
It was about a new mod. called MAP2. I applied over the phone and I hope the third time is a charm. I passed up their ‘in-house’ mod. last Aug. cuz I wanted to go for a HAMP with lower interest.
Anyone know about this MAP2?
Thanks, Linda
Hi Linda! Thats great MAP is a great program! Usually get principal reduction with it.
Expect ONLY Miracles,
Anna Cuevas
What do you know about the details of the MAP 2?
Thanks, Linda
Hello Linda,
I have seen 20% principal forgiveness and numbers within HAMP guideline range as far as debt to income ratios of 31% but using principal forgiveness as step 1.
I hope this helps.
Psalm 18:2
The LORD is my rock, my fortress and my deliverer; my God is my rock, in whom I take refuge. He is my shield and the hornof my salvation, my stronghold.
EXPECT ONLY MIRACLES,
Anna Cuevas
http://www.theloanmodguru.com
The Loan Mod Guru – Breaking News, You asked for it, you got it. Due to the numerous requests for more assistance, “I am pleased to announce the launch of The Loan Mod Guru website” – A Professional, full service site to help you create and complete a successful HAMP submission.
Hi Linda,
I forgot to mention, stay on top of your foreclosure sale date and make sure they postpone it as the date gets closer.
Anna Cuevas
The Loan Mod Guru
Anna,
I’m working with OneWest bank (formely 1st Federal) I have been trying to get a modification since Jan 2010 was put into trial period of $1,860 paid Feb-July was told my foreclosure was being postponed during this time. Call OneWest regulary (weekly) get a different rep every call with different answers.
My home was sent to auction on July 29th and a notice posted on my door for Cash for Keys, when I call the bank about what happened to my loan modification they have no record of it. I have spoken to two diferent supervisors for OneWest and been told now that my loan is waiting for the foreclosure department specialist to find out whats happening and if they can reverse anything. Don’t know what else to do? Have local real estate offering me cash to get out by Sept 1st, and bank telling again be patient wait and call back.
I filed a compliant with BBB today and going to call my local Congress office.
Try this – Corporate Customer Experience
Phone: 626/535-5043
Fax: 626/535-4113
any advice what else I should do?
Megra,
I am so sorry to hear about what has been going on with your loan modification. Did you know if your numbers qualified you for HAMP? So the property already sold at trustee sale? what state is your home in? How was the follow up on your end, did you keep notes? what were the conversations prior to the July 29th auction date.
It is very important when you try to get this reversed that you leave NO Stone unturned, I am going to be very honest with you it is very very hard, it is a lot of hard work, but if you fight it can be done, I have done it. – write to Sheila Bair at the FDIC, the Treasury, go to your congressmans office, call HOPE, –
“And this is the confidence that we have in him, that, if we ask any thing according to his will, he heareth us: And if we know that he hear us, whatsoever we ask, we know that we have the petitions that we desired of him.” – 1 John 5:14-15 KJV
Expect ONLY MIracles,
Anna Cuevas
http://www.theloanmodguru.com
I am a former mortgage loan officer with two questions for you, if you don’t mind:
1) I have a 1st mortgage loan mod under HAMP, finalized in March. However, a new Treasuray Directive in March REQUIRES the loan servicer to now do a HAMP loan mod on the 2nd if the servicer has both loans. See: https://www.hmpadmin.com/portal/docs/second_lien/sd0905r.pdf
Although not required under this Directive, I provided financial docs with an application found on Chase (EMC).
I’ve spent 2 months of getting nowhere and have been recently told EMC will not modify my 2nd because it was done 2 years ago under a different program. I explained that the Treasury Directive mandates them to modify it regardless of past non-Hamp programs I was under prior to my 1st being modified.
EMC has referred my case to management with a promise to get back to me within 48 hours (never did). What are your thoughts?
2) Our good friend was denied a HAMP loan mod because “Freddie Mac stated that it is required that the Net Present Value result be greater than $5000. On this ground the investor denied you for Modification.”
Our friend has equity in her house. She also owns her own daycare business and repeatedly has had to “correct” their figures. This is a GMAC loan, and they’re treating her horribly.
What can be done for her? Please advise and thank you!
I want to obtain a lower payment in order to keep my house. Prior mortg payment was 2947.@360,000.(8.5%)
Current value of house is $285,000. I now have total income of $4400. monthly.Affordable Mortgage payment would be $1200.00
Servicer is Wells Fargo. Two years this has gone on for. Do I have a chance???
Hi Mary Ann,
I do not know how much your taxes and insurance are or if you have an HOA payment, all of this goes into the calculation for HAMP
@ 4400 x 31% the total payment including taxes and insurance is: 1364 – tax, ins, hoa = your mortgage only payment –
What has gone on for 2 years? the HAMP process? I used a 364.00 payment for tax and insurance and I think you do have a chance and you should keep fighting!!!
Escalate your case – write a letter to Wells Fargo Executive Escalation Team to the address on your statement. Detail everything and either overnight it or registered mail with return receipt.
cc: Phyllis Caldwell from the treasury, Sigtarp, and your congressman.
O Holy Spirit of God, abide with us; inspire all our thoughts; pervade our imaginations; suggest all our decisions; order all our doings. Be with us in our silence and in our speech, in our haste and in our leisure, in company and in solitude, in the freshness of the morning and in the weariness of the evening; and give us grace at all times humbly to rejoice in Thy mysterious companionship.
John Baillie
Expect ONLY Miracles,
Anna Cuevas
The Loan Mod Guru – Breaking News “I am pleased to announce the launch of The Loan Mod Guru website” – A Professional, full service site to help you create and complete a successful HAMP submission.
Before people get too excited about any of these programs, please read Zach Carter’s article on HAMP.
These programs are designed to help the Big Banks stay in business instead of fail, as free market dictates. They actually are hurting the average citizen and helping the big banks and Wall Street investors, all of whom are not part of the productive society.
Here is that article, which is really layed out in very easy to read layman’s language.
http://www.americanpendulum.com/2010/08/big-banks-enriching-themselves-off-of-hamp-program-for-struggling-homeowners/
This entire 2 years of helping big banks has actually been the reason why our nation will continue to slip into further depression. It is the “Too Big to Fails” that are the problem….many solutions are now even touted on mainstream media, as the mainstream media is in the pockets of Big business.
Another idea: If you are living beyond your means, consider buying a house in a depressed area for pennys on the dollar…BEFORE you go belly up where you are at. All people deserve essential housing and shelter.
Cathy,
Thanks for sharing this article. It is informative but many people really would like to keep their homes for various reasons and for those people this is all they’ve got to hang their hat on, sometimes they can get the payment close to what rent would be and stay in their home, this program and they need to be empowered with good information so they can stand up for themselves. Thanks again –
A blessing I will condense and pass on to you: May the Lord bless you and keep you and make His face to shine upon you, and give you peace.
Bible, Numbers 7:24-26
Anna Cuevas
Hello Anna, Thank you for website.2008 SE income went from approx 7000 per mon to close to 0. we cashed out of any stocks and meager retirement to keep up with mortgage. In 1/2009 Homeq servicing added a property tax impound to mtg which added 700.00 per mo. we could not handle that raise. We continued to make payments but ended up a little over 90 days late in 4/2010, death in family caused us to have to use mtg for help with funeral exp.Default notice tacked onto door 5/16/10. After being denied last year for reason not stated we tried again for a modification.We applied for HAMP but were denied because of NPV(?)
We were offered a 3.75 mod with a pymt of 2408.00 with tax and ins. This was offered to us yesterday for 5 years at which point it reverts to old terms of 2812 at 5.8.Original payment was 2288.34 w/o tax and ins Concerns are Homeq being taken over by OCWEN with a BBB rating of F. Current balance is 355,491 unapplied funds of 5626.00. Home appraisal of 525,000. S/E income is up to about 7,000 + Unsure of whether to sign docs or not.
Hello Anna,
We ended up signing loan docs on 8/31/10 after seeing atty. However, now OCWEN (new servicer has bought Homeq) says that we need to apply again for Hamp.They also said that Homeq did not own our loan on the day it was offered to us. We were offered Homeq loan mod and signed paperwork. Homeq said that new servicer would abide by any terms offered to us. OCWEN sent us new paperwork on 9/11/10 we responded by telling them we already signed docs with Homeq and were making our 1st pymt Oct 1. what do you think of our situation?
Hello Patty,
On all of the ones I had at the end of Homeq Ocwen did honor them – What is the date on the servicing transfer letter? I would have your attorney send them a stern letter.
My client made her first payment on Sept 1 with Homeq – I would send them the Oct 1 payment with a copy of both the transfer if the transfer says 9/1 as well as the copy of the mod and send it to the Ocwen Headquarters.
I hope this helps.
When you believe in a thing, believe in it all the way, implicitly and unquestionable.
Walt Disney
Expect ONLY Miracles – To think for yourself you must QUESTION AUTHORITY!
Anna Cuevas
The Loan Mod Guru – Breaking News “I am pleased to announce the launch of The Loan Mod Guru website” – A Professional, full service site to help you create and complete a successful HAMP submission.
Hi Anna:
It’s been a while since I sent you an email. Thanks for all your previous help.
I am still in the ame problem with my Loan Modification with CHASE. This is a brief backgound of our situation.
We applied for a loan Modification in 2009, was give a trial for 3 months then denied for the permanent.
We re-appliend for Hamp In January 2010, denied but offered an inhouse modification with a trial payment that is much higher than the first trial plan.
Our first payment was suppose to be July of this year, but before the 1st payment is due, I sent a letter in June asking for a rework for using the wrong figures. They requested for updated documentation which we did, then received a denial again for a non payment as their basis. I called and told them that we sent all the documentations they needed and that we sent a letter way before the 1st payment. Now the Executive Department is saying that our case is now closed and cannot re-apply anymore. But I just talk to a customer service in the Loss Mitigation Department and they were saying we need to re-apply again.
What can I do to make this work? There is no sale date as of today since I’ve been calling everyday to check for the sale date.
Please guide me on what to do. We really want to keep this house. This is the only one we got now.
Thanks.
God Bless
Hi Anna:
Just wondering if you had the chance to read my previous email.
I am anxiously waiting for your response. Please help me on what to do?
Thanks.
Hello Amabel,
How are you – I am sorry to hear about all of what you have been through with Chase on your HAMP request.
I would say definitely reapply – It looks like you were not being qualified for HAMP anyway and if your numbers changed you are eligible to reapply per the guideline. Make sure you know your numbers and calculate them well. Check out my new system below.
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 ONLY Miracles!
Anna Cuevas
The Loan Mod Guru – Breaking News, You asked for it, you got it. Due to the numerous requests for more assistance, “I am pleased to announce the launch of The Loan Mod Guru website” – A Professional, full service site to help you create and complete a successful HAMP submission.
They are now asking me to call them for a live financial update.
Can you give me sample of a sure approve expense report?
Thanks.
Amabel,
Try the new site – it will tell you if your numbers are off – CALCULATES HAMP FOR YOU
Mark 11:24 Therefore I tell you, all things whatever you pray and ask for, Believe that you have received them, and you shall have them.
Expect ONLY Miracles!…..and question authority!!!!
Anna Cuevas
The Loan Mod Guru – Breaking News, You asked for it, you got it. Due to the numerous requests for more assistance, “I am pleased to announce the launch of The Loan Mod Guru website” – A Professional, full service site to help you create and complete a successful HAMP submission.
We were able to re-apply and they opened a new file for us. We received a FEDEX package from CHASE with some documents besigned and be sebt back by Ocotober 15th. Today, October 11th, I will be sebding the documents via FAX. But I just received a Notice of Trustees Sale scheduled for Nov. 3. I don’t understand why they scheduled a Sale Date when infact we did not receive any deniala letter. I just sent a letter requesting for a postponement of the Sale Date until Loan Modification Process is being resolved. Please help me on what else could I do.
Amabel,
Make sure you also send them back Fedex – and I want you to keep on top of that NOV 3rd date. They will postpone it , they keep going through the process – I know it is confusing, but that is they way they do it. ****BUT I NEED YOU TO CALL AND MAKE SURE THEY HAVE REQUESTED THE POSTPONEMENT – ALSO PUT IT ON YOUR COVER SHEET WHEN YOU FAX THOSE DOCUMENTS IN ***** stay on it and double check, write down names.
“And this is the confidence that we have in him, that, if we ask any thing according to his will, he heareth us: And if we know that he hear us, whatsoever we ask, we know that we have the petitions that we desired of him.” – 1 John 5:14-15 KJV
Expect ONLY Miracles – To think for yourself you must QUESTION AUTHORITY! LISTEN TO HOW HARRY LOVED THE LOAN MOD GURU SYSTEM
Anna Cuevas
The Loan Mod Guru – Breaking News “I am pleased to announce the launch of The Loan Mod Guru website” – A Professional, full service site to help you create and complete a successful HAMP submission. TAKE THE GUESSWORK OUT OF THE HAMP PROGRAM!!!
Anna,
We were recently sent paperwork, which stated we are eligible for the FHA partial modification program and I have made my 1st payment, which was due for September trial payment plan. Although the payment has been made I am concerned because I originally set up a postpayment plan with BAC for the funds to be withdrawn on the August 27 2010, but when I checked the account to see if the funds had been withdrawn it had not. So I panicked and called BAC on Saturday August 28th and spoke to Stan. Stan stated that he sees that a payment was set, but because of the system used to setup my paymentplan this usually will take up to 5 business days from August 27th. I told him I am on a trial payment plan and that money needs to be there on or before September 1. So Stan told me that he could setup another payment to be withdrawn the same day, August 28th, but it depends on when my Bank will process the payment. The payment was processed on Sunday August 29-30th, but he did state that I will need to call the bank to see if they can do a stop payment on the initial payment and all he had available to me was a confirmation number. I call my bank and I requested a stop payment and gave the Rep the confirmation #, but she could not guarantee that it would still try to go through, but it appears that the initial payment tried to clear last night, August 31st because there is a NSF charge on my account. I hope and pray that because of this I will not be kicked off of the trail payment plan. Do you have any advise?
Thank You for your time.
Beth
Beth,
I do not forsee this being any problem for your approval as long as the other payment gets posted – you should really be fine.
Just stay on making sure that it went through, document everything and even send a letter confirming everything that was said on the phone with names, dates, loan number, etc. to the correspondence address return receipt and after that no more worrying – Because you are fine.
I hope this helps.
Expect ONLY Miracles,
Anna Cuevas
TRY The Loan Mod Guru
Hi Anna,
Lender: Deutsch Bank .OCWEN servicing as of 9/1/10
Mtg Balance: 350,000 est
Behind 6 months down payment made of 5626.00
called unapplied funds on acct info page
Current appraisal: $515,000
Current Payment was $2812.00
Fixed 5.8
Loan serviced by HOMEQ currently OCWEN 9/1/10
Self-Employed: $266.66
Monthly Homeowners ins. $61.91
Monthly Hoa dues:0
We were given an offer on 8/3010 faxed back after reviewing on 8/31 fax # did not go through due to takeover of Homeq by OCWEN. What obligation does new company have to holding to terms set by old servicer? So now we have all new people, offshore in India, we really didn”t want our financial/personal info going overseas. New terms: 5 years at 3.75 payment 2405.00 inc tax/ins after 5yrs reverts to old rate 5.8. They’ve added 10,000 escrow to total 32,000 onto 350,000 balance.total 382,000. fax was received by a security personnel don’t really know what happened to it on other end. Should we overnight docs to new servicer?
Hello Patty – were you planning on accepting the offer or were you still trying to go for the HAMP modification?
Ocwen will honor the terms of the modification set forth by Homeq – I had several during the closure at Homeq and we are fine.
Contact Ocwen and escalate if need be – mail them a copy of the modification – return receipt and certified to their US address. Ocwen also has an ombudsman online –
“Ask, and it shall be given you; seek, and ye shall find; knock, and it shall be opened unto you: For every one that asketh receiveth; and he that seeketh findeth; and to him that knocketh it shall be opened.” – Matthew 7:7-8 KJV
Expect ONLY Miracles!…..and question authority!!!!
Anna Cuevas
The Loan Mod Guru – Breaking News, You asked for it, you got it. Due to the numerous requests for more assistance, “I am pleased to announce the launch of The Loan Mod Guru website” – A Professional, full service site to help you create and complete a successful HAMP submission.
Sorry Anna,
Self Employed Inc. $7,000 appx
Prop tax 266.66
Date of offer 8/30/10 10 days to return
nod date was 5/16/2010
Hello Anna,
I am trying for a HAMP mod with Chase bank. I was recently denied because they said our property was vacant when the appraiser came. This is my primary residence and I also have a tenant. They admitted it must have been a mistake. Now they are asking for our monthly expenses and I’m afraid we will be denied because of our bills. They are as follows:heloc-$350,credit cards-$980,car-$347,insurance-$218,gas-$65,electric-$320,phones,cable and internet-$200,food-$200.My mortgage payment is 2,575.80 this includes taxes and insurance. This is an interest only loan that will reset in February. The current rate is %6.375. I also don’t know how they are figuring my husbands income. It varies due to over time. His year to date earnings $43,355 as of the last pay stubs we sent in dated Aug.12th. He is paid every two weeks.We also receive $725 a month in rent. Do we have a chance at getting this mod? I feel so lost but I’m willing to fight. Any help would be appreciated.
Thank you,
Laura
Sorry, I forgot to add in the student loans for $200. The home value ranges from $465,000-$525,000 depending on the web site. My primary loan amount is $405,000.
Thank you again,
Laura
Hi Anna,
Good news for me (finally!),
Never did get my HAMP even tho totally qualified (I am very familiar with guidelines and know that my lender applied them improperly but could not force them to correct and resubmit). However, I did get an in-house mod that ended up being better than HAMP (includes principal forbearance and a 3% rate).
The lender gave me a 38% front end instead of the HAMP_required 31%, but because they totally miscalculated my income I ended up with a lower payment anyway. Incompetence is a double-edged sword I guess. And with the principal forbearance (they don’t do term extension), I ended up with a real rate lower than 2%.
Not telling who the lender is until after the paperwork is signed and the new note filed with the county, would hate to lose this if they discover their mistake. Thanks again for encouraging me to keep reapplying. It was a horrible process but we are saving almost $1300 a month now and it is a tremendous load off our shoulders.
Great news Gina!! I am sooo happy that you prevailed!!! Great job fighting for your home. You are an inspiration for many! Thanks for letting us know.
Glory to God.
Anna Cuevas
I applied for modification last year and have been making modified payments for 9 months now. They just denied me because some of the endless paperwork they required got there late. Now they say I can ‘re-apply’ but need all new paperwork.
my house is valued at @ 290,000 and the mortgage is 273,000. My payments used to be 2800 on an ARM and they modified to 1915.
what are the numbers needed to ‘work through this approval. In addition to the mortgage, I have electric, waste disposal, gas, car gas and insurance, food, medical bills, and credit card debt. Do these matter? Or do they only concern themselves with mortgage to income ratio?
please advise
henry
My first question: unemployment issue, SPS says that the unemployment is not good for 9 months because the payout rate will not last for 9 months… even though the letter from the unemployment states that benefits are covered from 4/18/2010 to 4/30/2011
Reg wks = 26
Emerg wk = 20
Extended Benefit = 20
Total wks = 66 Total amt = 29,568
I say SPS was wrong in not allowing the unemployment income, what do you think?
This is the 3rd time SPS has said the NPV test failed. We started HAMP last Sept 2009, first they said we failed in Oct 2009, then in April 2010, now July 2010 – we have made all of the agreed upon payments to date.
They now say we have to go back to the original amount, or short sale, otherwise the big Foreclosure.
NPV values: (I requested their data used)
Mortgage Balance = 252,009.87 as of 4/23/2010
How many payments are you behind =6
Current Value – 148K per zillow
Current Payment – 1698.48 (we were trying for a modification via HAMP for 1141.13)
rate = 6.82 variable
Lender = SPS (Select Portfolio Servicing)
Investor if you know who it is = won’t say
Total GROSS income = borrower #1 -self-employed, net 2ndQ – 1650.
GROSS income, borrower #2 – unemployment 1692. (not ALLOWED per SPS)
Monthly Property Tax = 211.84
Monthly Homeowners Insurance = 131.08
Monthly HOA (if you have this) = 0
fico = 661
co-borrower = 713
zip code = 93286
st= CA
Second question: fico values, is higher or lower better?
Thanks ever so much for your time and thoughts!!
Best Regards,
Sharon
Home Value at your appraisal site:
370,000
First Mortgage with RCS
390,000 plus 70,000 back payments
My income now-
$75k per year….($6250 per month gross).
I completed 3 trial payments
$1937.50 which is 31% of my gross monthly pay.
My tax is around 7 k / year
My insurance is $1000 /year
With these numbers I think i should be eligible for HAMP. But RCS just rejected my permanenet Mod after 3 trial payments. Their reason – Income is not sufficient to adjust the loan within 31%.
Do you see a reason why my HAMP should be rejected?
Hello Pat –
If they are taking the fully capitalized amount of 460k which is including your past due amounts. Then you would be about 40k short with the waterfall process for HAMP of
lowering the rate to floor of 2%
and extending the term to 40 years
you would need an income of approx 6646 to cover the full balance currently due – without principal forbearance or forgiveness, which most are not willing to do yet.
I hope this helps.
Mark 9:23 Jesus said to him, “If you can Believe, all things are possible to him who Believes.”
Expect ONLY Miracles!…..and question authority!!!!
Anna Cuevas
The Loan Mod Guru – Breaking News, You asked for it, you got it. Due to the numerous requests for more assistance, “I am pleased to announce the launch of The Loan Mod Guru website” – A Professional, full service site to help you create and complete a successful HAMP submission.
Anna:
Thanks for the posting. Aren’t the lenders supposed to at least try forbearance (the amount in question – 40k is not significant in comparison with the mortgage amount). Looks like most banks are doing Principal Forbearance except probably RCS. They bought the loans from banks at such a discounted price promising to help homeowners stay in their homes, but obviously they are not trying to help in anyway.
Anna, did you say my monthly gross should be 6646 for us to qualify for HAMP without forbearance? (did you say that my annual salary is short by 6646). Please let me know.
Thanks.
Pat:
You are welcome. I do not think anyone is going to actually enforce for the lenders to have to to forbearances or even consider to do them- even with the new plan it is a choice – the government is just going to sweeten the pot for them to do so – but the final choice will still be up to the investor and the servicing agreements they have in place with the servicer. Not all lenders are agreeing to forbearance.
The total monthly income is the amount I was referring to –
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Expect ONLY Miracles!…..and question authority!!!!
Anna Cuevas
The Loan Mod Guru – Breaking News, You asked for it, you got it. Due to the numerous requests for more assistance, “I am pleased to announce the launch of The Loan Mod Guru website” – A Professional, full service site to help you create and complete a successful HAMP submission.
Hello, Anna. It’s me again, Amphy. I think the last time I posted here I told you that the bank just informed us that the HAMP loan mod app denial letter was just a mistake and that our loan mod app was still under review. That was after we had already sent our letter of request for NPV calculations. Anyhow, we never got any reply letter to our NPV calculations request. Then, the bank just waited a whole month following that and telephoned us to inform us that we were indeed denied on our loan mod app. I couldn’t help but think that their early assurances, that we were not really denied, was just so they could not be compelled to give us the NPV calculations. They obviously had found a way around that. Then, the bank (Chase) informed us that we could apply again. And so we did. Around the same time, we again sent a letter of request for their NPV calculations (since it’s official that we were denied per telephone call) which you had kindly informed us before that we were entitled to. Again, we did not receive any letter regarding the NPV calculation. FYI, we sent the two letters of request via certified mail (cc the Department of the Treasury, etc). After a few weeks, we again received a letter of denial. Per your advice in your previous post to VERIFY, VERIFY, VERIFY, we went to the Chase office and again was informed that our loan mod was still “under review” and not to worry about the letter. Fast forward to the present, we were informed again this week that our latest loan mod app was again denied. (It’s funny how the time gap between our receipt of denial letter; they telling us not to worry about the letter and that it was all a mistake and our app was still “under review”, and their telephone calls informing us we were denied was always within a 30 days period – the exact amount of time given before our rights to that NPV calculations lapse.) I don’t understand why they kept denying us. I believe that you already have our numbers from previous posts, Anna. Added to that, we have acquired two renters ($500 each) and another $500 contribution from my daughter. Yet, they keep denying our application due to “insufficient funds.” And they won’t give us a written explanation via NPV calculations why we are being repeatedly denied. FYI again, while undergoing our latest loan mod application, we are paying our regular mortgage payments because we don’t want to accrue any more debts and as a show of good faith. Yet, it is not showing on the website that we have been paying mortgage payments. Our debt just keep on growing and growing even though we are now paying our regular monthly mortgage while applying for a loan mod. However, we fear that we cannot bear this financial strain much longer if we don’t get a loan mod soon.
How can we compel them to send us a written explanation (the NPV calculations), as is our right, why they keep denying our application? Do you think that we should send them a qualified written request now or should we wait? We have exhausted everything we have and think we could do for a loan mod and yet we couldn’t seem to get any headway. Please help us, Anna.
Thank you for taking the time to read this. God Bless!
Hello Ampathy!
With Chase you have to keep going, keep fighting and keep questioning authority! You MUST! First call and ask them how much income they are using for you, also ask what the value came in at – go line by line with expenses too – pray to the Holy Spirit before your call –
NEXT….
I want you to send your certified letter to the Executive Office at Chase cc your congressman, the treasury, office of the comptroller, sigtarp – Chase Compliance – detail everything but make sure you have your numbers straight and organized.
I hope this helps. Matthew 21:22 and all — as much as ye may ask in the prayer, believing, ye shall receive.’
Expect ONLY Miracles!…..and question authority!!!!
Anna Cuevas
The Loan Mod Guru – Breaking News, You asked for it, you got it. Due to the numerous requests for more assistance, “I am pleased to announce the launch of The Loan Mod Guru website” – A Professional, full service site to help you create and complete a successful HAMP submission.
First of all, thank you so much, Anna, for your speedy reply. We really are very anxious about this situation we find ourselves in. I have a few more questions for you. I hope you don’t mind answering them. We want to proceed with this with as much knowledge and clarity of the matter as we can so please forgive us for our seemingly incessant questions to you. My first question is, should we wait for the “official” denial letter to arrive before we again send in our request for the NPV calculations? We are aware that sometimes they don’t send written denial letters to borrowers, like what happened in our case the first time we applied. (And when they do send a denial letter, they just say that it was a mistake; wait about a month and say, “Oh by the way, you are indeed denied” which by that time they are not obligated anymore by guidelines to explain their denial.) We do have an email from them (from an agent in the Chase Homeownership Preservation Office) informing us that our file is being declined. Is that enough for us to send our letter of request for the NPV calculations?
My husband had tried calling them to ask them why we were constantly being denied and to get the values but they refused to give us any information at all.
With regards to the certified mail again, I believe I have the addresses of the Executive Office at Chase, our congressman, the treasury, and office of the comptroller but I don’t know the address of sigtarp. Can you help us with that?
Again, thanks for your help, Anna. We really appreciate it. And, yes, we are praying so hard that we get through this. Thanks again so much.
Amphy,
We are going through the same thing with Chase. Just denied again yesterday. This time for NPV and insufficient income. In 7 to 10 days we were told we would receive the calculations. I’ll go over everything and apply once again for a mod. I don’t know how my numbers play out. We’ve accrued much debt trying to make ends meet in the past 2 years. I can understand what your going through. Please know that your not alone and continue to fight for your home. Although each case differs, I’ll post any information I receive that I think will help you. It is a struggle and a battle but we have to fight! Have faith and don”t give up! I’ll keep you in my prayers.
Laura
Laura,
Hello, Laura. Thank you so much for your prayers. We really appreciate it so much. It helps a lot to know that there’s someone out there who understands what we’re going through right now. Thank you so much for your offer of help. Any information you could give us would be greatly appreciated. Same here, we’ve been in this fight for 2 years also.
Well, we finally received the letter of denial for our third loan mod application yesterday. It’s the NPV and insufficient income reason again. I’ll try sending another request for NPV calculations again tomorrow. How did you get them to agree to send you the NPV calculations? My husband called them again to request the calculations by phone but once again they declined to give out any information. Then, my husband called HOPE and related to them our situation with Chase. He told them how Chase kept insisting the we don’t have sufficient income for approval of the loan mod application and how we succumbed to renting out our two bedroom and asking our daughter for monetary contributions just to increase our income. HOPE said that because we have added an extra $1,500 to our income (rents and family contribution) that now we are ineligible for the gov’t modification prog. So, now we don’t know what else to do. How can Chase tell us that we have “insufficient income” based on all our regular incomes, rents, and family contribution while HOPE tells us that we don’t qualify because we have more than enough income. It is so confusing!
Then, we are concerned about where our monthly mortgage payment is going. We have been paying our regular monthly payments while going through our third loan mod application because we don’t want to be buried so deep in debt that we can’t get out of it. But it doesn’t show on the record that we have been paying at all! When my husband called them, they told him that the payments were all going to a “suspended account” or escrow because we’re in modification. So, our credit record is shot to heck as well. What makes me so mad is that we are not in modification because they wouldn’t approve us. We are not in a trial payment program. So why is it that they are not putting our payments down as regular payments and are funeling them to an escrow account? Instead, “on the record” we are accruing debts month by month so large that it’s making me weak-kneed just to think about it. I don’t know what to do to correct this matter. I’m seriously thinking of sending them a qualified written request just to know what’s what but I’m not sure if it’s the right thing to do. I’m so confused right now.
Whew! It feels great to have all this frustrations out. Again, thank you so much, Laura, for being out there. I wish that we are not going through this at all, but it’s kinda nice to know that I’m not alone. It’s quite accurate to say that I have never been much acquainted with helplessness before as I have been for the last two years of my life. It’s quite a disconcerting and sickening feeling. It is indeed a battle we are going through right now.
I’m still trying my hardest not to give up. And I’ll keep you in my prayers as well, Laura. May God bless us both with patience and much grace.
Amphy
Hello Amphy,
I am so sorry that you are still going through this mess, as you see from all of the press Chase is getting they make alot of mistakes. Stay strong. ps YES SEND THE QWR TOO!
Are you sure that the latest denial is based off of your latest application? Have you gone over all of your numbers with a fine tooth comb to make sure you cover the balance if they were to reduce your payments according to the guideline? Remember rentals are counted at 75%, what info are they giving you on the phone – will they give you what income they used? so you know which application they used?
Fight one more round. When your arms are so tired that you can hardly lift your hands to come on guard, fight one more round. When your nose is bleeding and your eyes are black and you are so tired that you wish your opponent would crack you one on the jaw and put you to sleep, fight one more round – remembering that the man who always fights one more round is never whipped.
James Corbett
Write a letter of non-compliance of HAMP Program –
detail that you are entitled to the NPV values used and that you cannot appeal them per the progams guidelines if you do not know what they are. cc: fdic, treasury, sigtarp, your congressman, senators. Address it here:
Jamie Dimon
JP Morgan Chase & Co.
270 Park Avenue New York, NY 10017
I do hope you go over your numbers forwards and backwards to know if you qualify or what you need to work on to qualify. It is imperative you do this. I will continue to pray for you and please continue to call in the Holy Spirit and come back here for moral support and guidance we are praying for you!!! You can do this!
Click HERE to listen to someone who saved his home
Expect ONLY Miracles – To think for yourself you must QUESTION AUTHORITY!
Anna Cuevas
The Loan Mod Guru – Breaking News “I am pleased to announce the launch of The Loan Mod Guru website” – A Professional, full service site to help you create and complete a successful HAMP submission.
Hello, Laura. Been thinking about you lately. Hope you’re doing well under the circumstances. Did you receive your NPV calc yet? Sent my request letter for NPV last week. CCed everyone I could think of – congressman, senator, Dept. of Treasury, SIGTARP, FDIC, OCC, Jaime Dimon, etc. All by certified mail too. Have yet to receive any reply. Still waiting on it. Hope it arrives. We really need to know what numbers they used in calc.
My husband went to a NACA convention in Sacramento (CA) on weekend. Chase refused to participate. All the other banks were there except Chase. My husband had to forego sleep all night and waited till the next day. NACA arranged for them (other borrowers) to be transported to a Chase office instead just so they could talk to someone from Chase. When they got there, all Chase reps removed their ID tags and refused to give out their real names even when the borrowers requested they give out their names. They all just told these exhausted and stressed-out borrowers to call them some often funny and obviously faked names. It was so maddening! Obviously, they’ve been told not to tell their real names so anything they say couldn’t be binding and wouldn’t hold up in court. How come all the big banks have all the protection and the “ordinary people” do not have any ounce of protection whatsoever from the frauds these banks were and still are perpetrating? When did America become like this? This land is supposed to be the land of equality where all are considered equal under the eyes of the law. How did it come to this?
And when I hear those pundits saying that foreclosure is a must for the recovery of the housing crisis, it makes me so mad. My home need not go to foreclosure. We did not and doesn’t want to walk away from our financial obligation. We’re currently paying our mortgage payment but we have some missed payments. We’re doing our best here in the real world. The current amount is just putting a lot of strain on our finances and we cannot refinance because we’re “underwater” and due to some missed payments. We just want an affordable payment to get us by and be able to save our home. We’re not asking for much. They created this housing crisis and now they’re making it like it’s our fault that the housing market is slow to recover because we’re fighting foreclosure? They can make all the illegal acts they can for profit and greed (illegal foreclosures and illegal maneuverings to prevent modifications and foreclose) and not be held accountable while if, for example, we do the exact same thing (provide false documents, sign documents we know to be false, offer false testimony, etc.) we would be thrown in jail in a New York minute for sure. What happened to the scale of justice in this country? And why is it that those in the government who are supposed to represent the people are not doing their best to protect our rights? Who is looking out for us?
Well, enough with the venting for today. Hope you got your NPV calc, Laura. You’re in my prayers.
Amphy
Hi Amphy,
I am following your story, I know you will receive your information soon. I am in full agreement with you over the state of this crisis and lack of help from the obvious sources that should be helping to stop all of the red tape that continues to strangle American homeowners.
You can always vent here and know that we continue to support you. Keep fighting –
Let me know when you get your numbers so we can move on to the next steps!!
“And this is the confidence that we have in him, that, if we ask any thing according to his will, he heareth us: And if we know that he hear us, whatsoever we ask, we know that we have the petitions that we desired of him.” – 1 John 5:14-15 KJV
Expect ONLY Miracles – To think for yourself you must QUESTION AUTHORITY! LISTEN TO HOW HARRY LOVED THE LOAN MOD GURU SYSTEM
Anna Cuevas
The Loan Mod Guru – Breaking News “I am pleased to announce the launch of The Loan Mod Guru website” – A Professional, full service site to help you create and complete a successful HAMP submission. TAKE THE GUESSWORK OUT OF THE HAMP PROGRAM!!!
Hi Amphy,
Been thinking about you also. I know what you mean about being able to talk to someone who is experiencing the same thing you are,though I wish neither of us to be going through this. Some times my heart is so heavy with this! Other I know going through this are selling their homes and moving in with their parents.Not an option for us. My parents live 3 hrs. away. I will not uproot my family. They are actually excited about moving in with their parents. We live on the same block and we would still make a profit if our homes were sold. So for them they will have money in the bank plus whatever they can save monthly being they wont have as many obligations. As I said that is not an option for us.
Let me explain a bit. When I was 17 my parents decided to move to a rural community in New York state. I’m a city girl,was dating my now husband and decided I’m not going.I would live with my mother’s sister who has since moved by my parents. Fast forward 3yrs and I was expecting a baby. We were engaged anyway so we got married quickly.Let me say I wouldn’t trade my husband for the world. He loves me in a way that he doesn’t see any flaws.LOL. We adore eachother and I’m grateful God gave us that. We moved in with his parents. We were there for 7yrs.Decided it was time for another child and my second daughter was born. *mo. after her birth my mother in-law became ill. It was Columbus day weekend. She was having trouble breathing. She went in the hospital and never came home. She passed away on Halloween. This is a hard time of year for us. I remember her plea the last time she saw my youngest ” God please let me see her grow”. Then when she knew she was dying she asked to speak to each of us alone. To me she said “Love my son forever”.
These word will always stay with me. Her daughter was to be married in May,my father in’law is legally blind. We had our plates full. We continued to live in his parents home and I took care of his father through his depression. Two years later he met a great woman sold the house and remarried. He gave us a down payment for our own home and he moved not far away. His new wife works so he had to be in walking distance of us,so I could be of assistance to him. Life has not been easy,but it has been full of love. I like to believe that my getting married so young and having my children was a blessing. By that happening My mother-inlaw was able to see her son married and enjoy her granchildren. If we would have done things by the book that would never have been. God does things that we may not always understand but he see’s the bigger picture. Maybe some how what we’re going through now will make us stronger,strengthen our faith or just make us better people. Who knows? I wouldn’t have reached out to you if not for this.I know plenty of people have it worse than me. I am grateful for every day I have with my family and the many small blessings I experience every day. I’m sorry for such a long story. I just wanted you to know a little of who I am. I did receive the calculations. I didn’t even have to ask for them. The rep I’m dealing with at Chase said he was going to put in that I requested them. I don’t understand it very much as to how it was calculated. I don’t think they gave me all the numbers. It is as follows:
unpaid balance:404,371.05
interest rate before mod:6.375
months delinquent: N/A (I’m not behind)
next arm reset date:N/A (I have an interest only that will reset in February)
P&I before mod:$2,148.22
monthly insurance payment:94.08
monthly real estate taxes:328.14
Monthly gross income:5,463.92
Borrowers total monthly obligations:4,173.92
Then it just says our fico scores wich range from 670-724
Now my denial letter say we were denied for npv,but the rep also said insufficient income.I don’t understand what these numbers mean. It doesn’t explain anything. We do have a lot of debt between credit cards and our equity loan and car payment.We may have to consider bankruptcy. That would make things a little easier.It’s just hard on a 50% pay cut to make all ends meet. My oldest is in college and she pays for her gas and tolls to go to school but we make the car payment. She can only work part time while attending school. I just don’t know how to fight this anymore. I’m very confused. My husband says sell. Where would we go? If I sold and payed off all our obligations we would have no money left. To rent where we live would be about the same payment as my modification. I will not relocate. I just don’t know anymore. I refuse to believe this is it. I just turned 40yrs old and I feel like I’ve been through the ringer. Please don’t take me for a complainer. I’m truly not. I just need to vent and no one here understands. The frustration can be over whelming. I know you have probably felt this too. I just try and keep the faith and push forward. Now I need to figure out my next step. Maybe it will all be resolved soon. My 20yr wedding anniversary is coming up and that would be the best gift I could ever ask for. All any of us want out of life is to be able to live it fully. I don’t want riches and wealth beyond measure. In that respect I consider myself wealthy in health,love ,family and friends.I have my faith. All I want is to keep my home. I’m sure you feel the same way. We are supposed to be going forward. It just doesn’t always feel that way.I always believed God only gave you what you could handle. I’m handling it, just not sure for how much longer.
Sorry for the sob story. Don’t feel sorry for me as I’ve said I’m blessed in so many ways. Just venting and I feel a little lighter for having done so. It’s nice to have a friend who can hear and not judge.
I hope all is well with you. I will keep you in my prayers.I believe all things are possible with prayer.
Your friend,
Laura
Hello, Laura. I want you to know that I’m so touched that you shared your story with me. And I want you to know that I can see and admire your strength of character. I’m much older than you but I feel that you are the stronger and wiser one, considering your outlook and your unending faith, and you should feel extra proud of that fact. And you are not in the least bit a complainer. From what I can see, you possess a stoic attitude that is rare nowadays. It’s just that you are overwhelmed, as we all are, with fear and frustrations walking down this unfamiliar and scary road were journeying right now. Sometimes it’s OK to just let it all out – the fear, the frustrations, the feeling of hopelessness – in order to sort out our emotions and reboot ourselves for another rounds of fight. I totally understand what you meant by not wanting riches and wealth. I feel the same way. I just want the security that I’ve enjoyed and felt living in my own beloved home as I have done for years. I have never aspired to more than that. For us, wealth has a different meaning. Wealth is family and friends.
You’re very lucky that you have a nice Chase rep. In our case, it’s like pulling teeth getting them to provide us with the NPV calculations. Well, we finally received it yesterday and, boy oh boy, what a mess it was. First and foremost, the loan number on the letter does not match our loan number! Can you believe that?! Then, most of the input values were either inaccurate or completely wrong. Let me just say that I don’t understand it very much either and these numbers have been giving me migraines since yesterday. I don’t even know which of these numbers are actually ours or from that other loan number. It’s a big mess! It says on the letter that we have a HOA fees. WE DON’T! I have no idea where they got the monthly gross income at $4,268.40. We have looked at every loan mod application we’ve sent them and we couldn’t find a match. Same goes for the Total monthly obligations. They have it at $4,153.36. No idea where they got that but we know for sure that we don’t spend that much in a month! We don’t have any other debts other than some credit card debts and the mortgage. All our money is spent on just food, med insurance, and utilities. So, have no clue where they got that amount. It also says that we’re behind 13 months. We have called and called everyone at Chase trying to figure out why that was when it didn’t match our payment records. How it seems like we’re paying month after month but it’s not showing on record and our debt keeps getting bigger and bigger. When we complained to one Chase rep she just said that it was OK even if our payments were not being reflected on public records because “they know we’re paying.” What kind of explanation was that? Nobody could give a satisfying answer. The funny thing is (ok, not really funny ha-ha) it says on the letter that we are due for the October 1, 2010 payment when the fact of the matter is that they just cashed our check a few days ago, the one we sent on Oct 4th. We even got a payment confirmation email thanking us for paying. What a mess! And they had cashed each and every check we had sent the month before that and the month before that and so on and so forth.
So, I have spent the better part of yesterday and today composing letter after letter telling them of their mistakes, appealing the NPV calculation, and requesting a new NPV evaluation. Once again, I wll CC my congressman, OCC, Jaime Dimon, and our Attorney-General. I am sick of this! It seems that all I do nowadays is write letters.
I have no idea what to do after that. I am so tired and exhausted fighting this fight but I don’t want to give up just yet. I don’t want to lose my home.
Did you double check all your NPV input values against the values you submitted in your application? You can appeal them if they don’t match, I believe. I almost missed the wrong loan number on the top of the page. Oh how I thanked God when it finally caught my eye! It gave me hope. I suspect that they made a mistake somewhere along the line and they somehow combined some values from our application and other values from another application (that different loan number) and used that for our NPV calculation. I think that’s the reason why they repeatedly denied our application and why they keep saying negative NPV value and insufficient income as reasons for our denial. Because Anna looked at our numbers before and she said that it’s doable.
I still don’t know what’s going to happen next but I’m hoping that this is the break and the answers to all my prayers, all my family’s prayers and all my friends’ prayers we’ve been hoping for.
I hope all is well with you. You are in my prayers always. Stay strong.
Your friend,
Amphy
Anna:
I am just hearing about HAMP with PRA (Principal Reduction Alternative), which goes into effect on October 1. Are all the banks supposed to do this? I read about that in the HAMP Admin Page and they are talking about Principal Reduction as the first step in the Loan Modification Process. Let me know if I am interpreting that right. My home value is around $370k. My outstanding balance on my first is around $460k. So, it looks like i will definitely be eligible to get a principal reduction of 30-40k, which may make me eligible for HAMP.
Anna:
At my work it is typical to get bonus in the region of 5k-6k per year. Is that something I could add to my income? Do the servicers ask for proof of bonuses? (because this is something I am expecting to get this year, I cannot show it now in the paystub or in the job letter).
Pat:
Usually they would want to have a history of it – you may be able to get them to use it if your employer would fill out a verification of employment and verify that you will indeed get the bonus. You must have proof. All about the paper trails.
I hope this helps.
Expect ONLY Miracles,
Anna Cuevas
The Loan Mod Guru – Breaking News “I am pleased to announce the launch of The Loan Mod Guru website” – A Professional, full service site to help you create and complete a successful HAMP submission.
Anna-
I was just told I was denied HAMP, after being in this process for 9 months, because my investor, Wells fargo does not participate in HAMP. I know they do as I know some people who have gotten a mod from them. I bought this up to the negotiator, and she said there were “subgroupss” within Wells fargo that do not participate. when I asked who those “subgroups” were, she would not tell me. How do I go about finding out who these groups are?
Also, I was old I was denied because my husband was still on the loan, although we separated almost 2 years ago, he has not and will not pay on this mortgage, and signed a quit claim. The MSA, which is still waiting to be signed by the judge, states this clearly, and I spent a lot of time clarifying this with BOA, in my hardship letter, in follow-up letters, in 3 way conferences with a HOPE hotline counselor, BOA and myself. I was told this was not an issue, that the person residing in the home, and paying the mortgage was the income that was considered. I had my case escalated for the second time via the office of the president of BOA, but haven’t heard anything back.
what are your thought on this. i recevied no answer when I asked about the possibility of an in house Mod.
Jennifer
I’m grateful to be on a trial period. It turned out that Chase decided to use the $4200 income figure that I submitted. What worries me now, though, is that our income has dropped to about $3400 per month!! So I have 2 questions: What is the forbearance based upon? Is it based on the BPO appraisal or the loan amount of $284,000? With a $3400 per month income, would the numbers still work out to a doable modification? Also, if the BPO drives the forbearance limit, then a new BPO is in order because even the broker’s office that did the opinion told me that my home would definitely not sell for the BPO amount. My home is worth, at the most, $201,000 (according to them), but would likely appraise for $175,000-$185,000.
I appreciate your opinion. November will be the end of the 3 month trial period, so they will look at the income again and see the decrease in income from $4200. I’m thinking about writing a letter regarding the BPO being too high, if that will make a difference. Thanks for your opinion!!
Hello SJW,
Hi, how are you? I am so glad you were able to get on to the HAMP trial plan. If they would do a forbearance, not a given unfortunately, it is based off of the waterfall to get you to 31%, using the BPO and doing forbearance of your balance accordingly.
Based off of the new income of 3400 x 31% = 1054.00 total PITIA –
284k balance @2% / extended to 40 years is 860.02 + taxes, insurance and HOA if you have it. Just remember you were previously denied for NPV, so you can hypothetically find yourself back in that situation – I hope you don’t but be prepared.
It can’t hurt to challenge the BPO, it still does not guarantee that they will do a forbearance, but worth a shot – maybe the Realtor that did it can give you the new comps. to send in with your challenge letter. Why did they turn in the higher number??
“Determine that the thing can and shall be done, and then we shall find the way.”
~Abraham Lincoln~
Expect ONLY Miracles,
Anna Cuevas
The Loan Mod Guru -
PLEASE CLICK HERE TO LISTEN TO HOW BETTY SAVED HER HOME AND YOU CAN TOO!
Anna:
I am just hearing about HAMP with PRA (Principal Reduction Alternative), which goes into effect on October 1.
I read about that in the hamp admin website and they are talking about Principal Reduction as the first step in the Loan Modification Process. Let me know if I am interpreting that right. My home value is around $370k. My outstanding balance on my first is around $460k. So, it looks like i will definitely be eligible to get a principal reduction of 30-40k through HAMP PRA (because 115% of the current value of my home $370k is around 425k, which may make me eligible for HAMP.
My gross monthly income is $6250. The Loan is now with RCS (they purchased the bad loans at a discount from several banks…mine was with GMAC/Homecomings Financials).
I completed 3 trial payments of $1937.50. Now they sent me a rejection letter stating that they could NOT find a payment arrangement at 31% of my gross income.
My gross monthly income $6250
My tax is around $6700 per year
My insurance around $900 per year.
What should I do now?
Should I ask for their calculations which caused them to reject HAMP?
Should I ask them for a new package to apply HAMP with PRA?
Should I escalate to the higher authorities at RCS? Do you have the contact info of the executive office at RCS?
Thanks Anna
Hi Anna, got your email, waiting for your response. But here is the info you asked for. Balance on loan, 192.000. Weve made 10 partial payment of about 800 a month since stopping our full payments. Value is @ 180,000. Payment is 1440 including tax and insurance. With Bank of America. Gross income 3372.00 mo. thanks, hope you can help. Supossedly I am to have a converence call with a HUD officer and BOA and myself today or tomorrow about working something out for a HAMP mod. We sill see if that happens. Ive been in communication with the Hud/fha office since end of June. Thanks, Ed
Hi Ed,
That is great that you are having a conference with HUD and B of A please let us know how that went for you.
From your numbers you seem to be on the right track with what you owe and the guidelines of the program and waterfall.
How did it go on the conference call?
It’s the repetition of affirmations that leads to belief. And once that belief becomes a deep conviction, things begin to happen.
Muhammad Ali
Expect ONLY Miracles – To think for yourself you must QUESTION AUTHORITY! LISTEN TO HOW HARRY LOVED THE LOAN MOD GURU SYSTEM
Anna Cuevas
The Loan Mod Guru – Breaking News “I am pleased to announce the launch of The Loan Mod Guru website” – A Professional, full service site to help you create and complete a successful HAMP submission. TAKE THE GUESSWORK OUT OF THE HAMP PROGRAM!!!
Hello Amphy,
Double checked the values on npv calculation today. The numbers seem to be correct but they left out that my mortgage is interest only. called my rep at Chase and left a message. Maybe I’ll hear back from him tomorrow. On the up side I may have found a job as a nanny. I’ll know by Thursday if I have the position. This would add $1,100 gross a month to our income. Perhaps enough to help pass the npv. Only problem is they want to pay me cash with no deductions. In order to document this I’ll have to ask for some type of contract as proof of employment.Keep your fingers crossed for me. Have you tried using the npv calculator on the fdic web site? It might give you a better understanding of what the bank is looking for.
Keep fighting and remember I’m fighting along with you.As always your in my prayers.
Your friend,
Laura
Hello, Laura,
I’m so happy to hear your good news! I’m keeping my fingers crossed. Hope you got the job. Maybe you can ask your employer if they can supply you with a letter as proof of income then you can have it notarized or something.
Thank you for suggesting the NPV calculator on the FDIC website. I’m still a bit confused about some of the fields to be filled in but I’m playing with it.
I have sent my letter of appeal re: NPV calculation last week. Still waiting for a response. CCed my attorney general, congressman and Jaime Dimon for good measure. Someone from Chase called to ask us to apply again. I’d rather they re-calculate the NPV calc first but they always seemed to be in such a hurry to get the homeowners to apply for mod everytime. We’re in contact with NACA too for help in all the confusion about all the mistakes re: NPV calc. Well, in the meantime we’re still playing the waiting game again. Cross your fingers that all these will be sorted out and soon. Sometimes, I just feel sooo tired about all of these. Then, I think of you and your will to fight. It gives me strength to continue fighting too. So, keep all fingers and toes crossed. Keep praying. And stay strong. I’m praying for you too, Laura. Thanks for your support and help. I really, really appreciate it.
Your friend,
Amphy
Hi Anna , to folow up my previous entrie, I just received my hamp congratulation letter, with the numbers broke down , the problem is my income is $3300, monthly and all doc. suport this, and they meaning wells fargo put it at $5174.monthly thus the reason for the $100. dollar deduction only in my payment ,my original loan intrest is 6.75% WF. new rate 5.% im going to write a letter and try to get someone to look at the file , I can also ask for a forbearing, in the mean time , while this gets straight , the letter states I have to make the first payment Nov. time runing out ( I am very exhausted with this whole process, im going to need some strength. 2years, wow ! any sugestions ? / god bless …
Bo.
Hi Bo
This happens all the time!!! Fight it all the way, escalate it and force them to fix it!!! I have fought several and get them to fix it, you have to keep pushing them and being the squeaky wheel but you can break through, and yes the people I fought for did not make that approval payment BUT Make sure that you still qualify at the 3300 –
I am not an attorney and do not give legal advice but this is what I have done and is my opinion – be prepared to fight for what you believe in. You can do it!!!!
“Do not go where the path may lead, go instead where there is no path and leave a trail.”
Ralph Waldo Emerson
Expect ONLY Miracles – To think for yourself you must QUESTION AUTHORITY! LISTEN TO HOW HARRY LOVED THE LOAN MOD GURU SYSTEM
Anna Cuevas
The Loan Mod Guru – Breaking News “I am pleased to announce the launch of The Loan Mod Guru website” – A Professional, full service site to help you create and complete a successful HAMP submission. TAKE THE GUESSWORK OUT OF THE HAMP PROGRAM!!!
Anna:
I was rejected for HAMP by Residential Credit Solutions (RCS) after trial mod for 3 months.
My gross monthly income is $6250. The trial mod amount is $1937.50. Principal Balance is $381 k. Back due payments around 80k. The home is worth less (in the lower 300s).
I asked for the values they used to reject my loan. They gave me a list of values. The Escrow Amount per month in that list showed around $1150 per month. That seems very high to me. My tax per year is around 7k, which equates to around $600 per month. The Insurance is around $1000 per year, which is about $80 per month. Do you know if there is any other amount they add to the Escrow calculation?
RCS did pay the taxes for last year (around 7k). Can they add up those amounts to my monthly escrow payments to catch up with that. I thought they would add that to my Principal instead. Adding an extra $500 per month to my escrow does NOT seem like a good way to do a loan modification.
Any thoughts Anna? Do bank generally do that?
Pat:
Looks like they possibly have a forced placed policy or something like that. It could be that they added the paid taxes – I would detail a letter and appeal that they should have capitalized (their fancy term for adding it to the back of the loan) the back taxes and also show them the tax bill and the insurance bill – tell them that you want this corrected.
The current income looks to only cover 415,255 @ 2% and 40 years and they may not be willing to lower the balance by the 45k needed to get you to 31%
you need approximately an additional 440 to get you where you need to be, if this lender does not allow principal forbearance or forgiveness. I would start with fixing the monthly escrow and have them re-run the NPV.
“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. 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. It’s not just in some of us; it is in everyone. And as we let our own lights shine, we unconsciously give other people permission to do the same. As we are liberated from our own fear, our presence automatically liberates others. ”
Nelson Mandela, Quoting Marianne Williamson
I hope this helps!!!
Expect ONLY Miracles – To think for yourself you must QUESTION AUTHORITY! LISTEN TO HOW HARRY LOVED THE LOAN MOD GURU SYSTEM
Anna Cuevas
The Loan Mod Guru – Breaking News “I am pleased to announce the launch of The Loan Mod Guru website” – A Professional, full service site to help you create and complete a successful HAMP submission. TAKE THE GUESSWORK OUT OF THE HAMP PROGRAM!!!
Anna:
I talked to RCS today. They gave me the actual escrow number which is $720 (tax + insurance). But they told me that the Escrow is not what caused them to reject my HAMP. They told me that the outstanding balance was 30% or more greater than the original principal balance owed (Original Principal: $380,000). They told me that the outstanding balance was 70k which was more than 30% of my $380,000. I told them it wasn’t. It was less than 20%. Then she was confused. They she came back and told me it is probably 70k plus the taxes owed. I believe the outstanding balance plus tax paid by the bank was 70k total. She then said there is additional attorney fee etc, which brings it more than 30% which causes the denial. The truth is they are trying to find all the reasons to deny this modification.
My question for you Anna is -
Is there any regulation in HAMP that says that the outstanding balance cannot be greater than 30% of the Original Principal Balance?
Can you please answer this ASAP. Thanks a ton!
Hi Anna:
Thanks for all your help. I’ve been in and out of Chase Loan Modification. I was offered trial thend denied and re-applied. This is my third application in process which I don’t know how will it go.
I’ve heard about the HAMP Principal Reduction Alternative. How can I send a request for that while my Loan Modification is pending?
Thanks.
Hey Anna!!! I just want to thank you from the bottom of our hearts for all the help and information you gave us!. We made it through the trial period and just received the real loan modification papers! This is an update as to the progress we’ve made on our loan mod with IndyMac. For everyone who has no clue what I’m talking about….. about a year ago my husband and I were facing foreclosure and without Anna’s help we would have lost our home…. because of Anna’s devotion we wrote everyone…. Senator Deinstein, OTC (Office of Thrift Supervision) FDIC – HAMP …. the list goes on and on…… do not give up! Have one contact at the bank or financial institution and exert all the pressure you can from wherever you can! ….. If you have income but just can’t afford the current payment YOU CAN DO IT! Do not give up hope! Love You Anna…. Tom and Cheryl
Anna:
RCS (Residential Credit Solutions) rejected my permanent mod, saying that the Outstanding balance is more than 30% of the Original Principal Amount.
I read the entire HAMP Guideline book.
The only thing which was even relatively close to that was this -
6.6.1 Principal Forbearance Limits
With respect to both “positive” and “negative” NPV results, servicers are not required to forbear more than the greater of (i) 30 percent of the UPB of the mortgage loan (after any capitalization under Step 1 of the standard modification waterfall) …
Forbearance, as I understand, is the balloon payment which is due at the end of the mortgage (for which we do not pay any interest).
RCS representatives seem to be confusing the ‘Forbearance’ with ‘Outstanding balance due as of today’.
Pat:
Yes they are definitely confusing the guidelines – unless they have specifics of how much they allow to capitalize back into the loan but my guess is that they are confusing the guidelines, which would not be the first time. I would write a letter of escalation challenging the denial and let them know that you know that there is no such guideline within HAMP and you know there must be some sort of mistake. That is where I would begin. You are doing a great job, keep questioning authority, you can do this!!
Nothing can stop the man with the right mental attitude from achieving his goal; nothing on earth can help the man with the wrong mental attitude.
Thomas Jefferson
Expect ONLY Miracles and Question Authority,
Anna Cuevas
The Loan Mod Guru Empowering You to SAVE YOUR HOME
The Loan Mod Guru – Breaking News “I am pleased to announce the launch of The Loan Mod Guru website” – A Professional, full service site to help you create and complete a successful HAMP submission.
I hope this helps
I think I got my answer. Let me know if I am right. I think when they go to 2%, they do the calculation for the term of the loan – 30 years or 40 years. In my case $1937.50 across 40 years at 2%. After 5 years the rate adjusts to 3% causing a higher payment…so the payment progressively gets higher each year after the 5th year (by 1%) till it reaches the cap by the 10 th year…after which the rates don’t change.
Hi Pat,
You are very close. When the permanent HAMP loan modification (if you are approved for HAMP vs another loan modification program) is processed the final rate is that days rate. So if the starting HAMP rate is 2% then after the 5th year it would go up to 3% then 4% and depending on what the final rate was the next change would go to what that rate was so if for example it is 4.25 then that would be the last and final change, so it would not necessarily take 10 years to get there. I hope this helps.
Relying on God has to start all over everyday., as if nothing as yet been done.
-C.S.Lewis
Expect ONLY Miracles and Question Authority,
Anna Cuevas
The Loan Mod Guru
Anna:
I am in contact with HAMP Solution Center. They agree with me that according to HAMP Guidelines the Servicer will have to capitalize the escrow advances paid by the servicer (tax payment made by the servicer). They have sent several messages and emails to the servicer to get a response back. The servicer is not contacting them back. What should I do? What is the next level of escalation. I had sent a letter to Phyllis Caldwell and that is how HAMP Solution Center got in touch with me.
What should I do next?
I am sure the good Lord will see us through this….
Pat:
Keep the faith Pat, I do not know if you have done this but I suggest you draft a detailed letter in regards to the errors being made, explain everything clearly, provide your proof, address it to the address below and overnight it. Call in the Holy Spirit before you write the letter to inspire your words and their answers. Believe you will succeed, keep us posted.
RCS.Corporate@ResidentialCredit.com
Residential Credit Solutions, Inc.
Office of the President
Dennis Stowe, Chief Executive Officer and President
4282 N. Freeway
Fort Worth, TX 76137
Also call this number (682) 647-2500 and let them know you have a complaint that you would like to escalate to the Office of the President –
“In tribulation immediately draw near to God with confidence, and you will receive strength, enlightenment, and instruction.” St. John of the Cross
Expect ONLY Miracles and Question Authority,
Anna Cuevas
The Loan Mod Guru
Thanks Anna you are a blessing!
Anna:
I did communicate to the Office of the President. Now they have come back with a new reason to deny my modification.
Here is the content of their email -
“RCS attempted to qualify this loan for a modification by capitalizing the escrow shortage at
your request. The loan failed to qualify for a modification due to the Market-to-Market
Loan-to-Value (MTMLTV) ratio. The modified Unpaid Principal Balance would be
$387,391.00. The property is valued at more than that amount. The value of the property is
higher than the modified balance if the escrow was capitalized or spread over 60 months and
therefore does not qualify for a loan modification.
Your letter states that if this escrow shortage was capitalized the principal forbearance would
be less than $50,000.00, that figure is incorrect. The balloon payment would be over
$86,358.79. The balloon balance does not change the MTMLTV, the loan fails to qualify for
a modification whether we capitalize the escrow or not”.
Anna, these are the numbers I have -
Original Principal = 381,000
Escrow Shortage = $24,933.11
P & I Arrears = $63,000
When I add up all these numbers it comes to close to $470,000. This I understand is the Unpaid Principal Balance.
My Home value at eppraisal is $365,140.
So, I don’t see how the home value is greater than the outstanding Principal Balance?
Anna, would appreciate your wisdom in this…
Thanks.
Pat:
Have you asked them how much they are valuing your home for? Try and see if you can get the BPO amount from them – this would be a great piece of this puzzle. They are obviously giving it a much higher value that what you are seeing. Put together some recent and close in proximity comparables to present a value rebuttal.
They are definitely letting you know that they will not do any forbearance amount. You may need to rent out a room to increase your income to cover the forbearance amount – then prepare to fight on! Don’t forget to cc everyone you can think of once you have all of the ducks in a row and you are ready to take your escalation to the next level.
Keep us posted on the progress and answers you receive.
Expect ONLY Miracles and Question Authority,
Anna Cuevas
The Loan Mod Guru, a loan modification DO IT YOURSELF online system, the same system I used to help hundreds of people, that can help you prepare a loan modification with a fighting chance for success!
Anna:
OK, I ran through all the numbers in great detail. Here is what I have -
Gross Income: $6250/per month
Original Principal Balance: $381,137.28
P & I delinquency: $63,364.00
Escrow Advances paid by Servicer: $24,933.11
Fees: $4,315.00
Total Capitalized Principal : $473,749.39
Monthly payment at 31% of gross: $1937.50
Actual Escrow: $764.38
Monthly P&I Payments = 1937.50 – 764.38 = $1173.12
I ran the calculation for $1173.12 for 40 years at 2% and this covers Principal of $387,391.00.
This is the number my servicer RCS is using. They are saying this is the Modified Unpaid Principal Balance ($387,391.00). According to them the property is valued at more than the amount of the Unpaid Principal that is modifiable without forbearance (ie $387,391.00).
The forbearance amount in this case is $86,358.39
This is what their email said -
““RCS attempted to qualify this loan for a modification by capitalizing the escrow shortage at
your request. The loan failed to qualify for a modification due to the Market-to-Market
Loan-to-Value (MTMLTV) ratio. The modified Unpaid Principal Balance would be
$387,391.00. The property is valued at more than that amount. The value of the property is
higher than the modified balance if the escrow was capitalized or spread over 60 months and
therefore does not qualify for a loan modification.
”
Is that valid grounds to reject the HAMP? In this case the Unpaid Principal Balance is $473,749.39.
The Modifiable portion without forbearance is $387,391.00. According to them, the Property value is greater than the modifiable portion $387,391 so not eligible for Loan Modification under HAMP…Is that a valid reason for HAMP rejection. I don’t see such a thing in HAMP Guidelines. If they use the UPB ($473, 749.39) instead of the modifiable portion ($387, 391) I am clearly eligible.
Anna:
Sometime in February RCS came back with another Modification Plan (inhouse mod plan)…the plan according to them, would consider a principal reduction of about 150k. They told me they would put me on a new trial for 5 months…and my monthly payment would be around $2350 (abt $400/month more than HAMP)….but the problem is, they want a first payment equal to 3 months payment ?($2350 x 3 = around $7000). I told them I don’t have that kind of money …and if I had that I would not be behind….then they told me that they have an unapplied balance (from HAMP trial payments I made) and that they could apply that (around 7k) towards my first payment. I asked them to send the Loan Mod Paperwork. They sent me the doc (looked similar to HAMP trial paperwork), but asking that the first payment of 7k was due on Feb 1, 2011 and that the trial mod would be null and void if they didn’t receive the payment by then. Surprisingly, they sent this doc only on Feb 14 (14 days after the first payment was due!)…I asked them to correct that info and resend it to me…they refused to correct it, saying that they cannot modify anything which is generated by a Software….how dumb is that? How can i assume this is a valid contract when it starts with such a big mistake to begin with…
I was threatened that if i don’t sign the contract with 72 hours then they will close the case and foreclosure will commence….what do I do now?
As this was in process, I did not have any other enquiries for my original HAMP denial…how do I approach this situation now? I understand that there are new regulations for HAMP NPV request…and that the servicer should provide the info like the property value etc….can i still do that now?
Anna:
I understood from your recent article that the servicers are not required to provide the Home Appraisal value they used to deny the HAMP Modification. My HAMP Permanent was denied after 4 Trial payments. I requested for the NPV values and they provided different reasons for HAMP denial. This was their final reason –
This is what their email said -
““RCS attempted to qualify this loan for a modification by capitalizing the escrow shortage at
your request. The loan failed to qualify for a modification due to the Market-to-Market
Loan-to-Value (MTMLTV) ratio. The modified Unpaid Principal Balance would be
$387,391.00. The property is valued at more than that amount. The value of the property is
higher than the modified balance if the escrow was capitalized or spread over 60 months and
therefore does not qualify for a loan modification.
”
But then I told them that the property value they are using was higher than the actual. They then went back did a re-appraisal and said that the revised appraisal showed the property value much lower than their original number. But they are refusing to give the Appraised value.
I see from your article that (per the revised HAMP guidelines effective Feb 1, 2011) they are supposed to give the appraised value to me. How do I handle this situation?
Anna, can you help me with a letter format as to how to handle this situation? Would appreciate your help. Thanks.