Got a call from a homeowner who can no longer afford her mortgage payments, and her history is this ...
Earlier this year, she called her lender, US Bank, asking for a loan mod. US Bank reportedly told her to skip 3 payments and then apply for an FHA-HAMP mod. She did, and US Bank sent her all the docs to sign (by this past Monday), and here's the language in the agreement ...
Modified Note Rate: 5%
Date Rate in Effect: 5/1/2011
Principal Balance: $166,276.35
Principal and Int.: $892.61
Monthly Escrow: $493.77
Total Payment: $1,386.38
First Payment Due: 6/1/11 (letter is dated June 8, 2011 !)
New Maturity Date: 5/1/2041
Second Mortgage Principal Amount: $67,615.71
Funds Due Back with Docs: $24.67
Here's the rub. The home is worth probably $200K - $210K, so before she signed the loan mod, it wasn't a short sale. I asked her to call US Bank and get a loan payoff amount, and when she did, they told her the $67,615.71 would be added to the $166,276.35, even if she sold the house tomorrow. What?
By the way, her brother-in-law who co-signed on the mortgage encouraged her to sign the loan mod.
This is my first encounter with HAMP, so any comments would be greatly appreciated!
Please disregard this post. Met with seller today, and she does, in fact, have an original principal balance around $230K.