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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!

Thanks,

JPP