310.376.9865
Not sure anyone knows how this convoluted HAMP program works. They lender usually tells the applicant, Stop making house payments for 3 months. The applicant doesn’t make house payments, and of course the applicant does not save the payments, the lender tells the applicant, “hey, you don’t qualify.” When the applicant doesn’t make the 3 missed house payments, the bank forecloses.
For a bank to approve a loan modification, the Principal, Interest, Taxes, insurance, and home owner association fees must equal between 31% to 38% of the applicants Gross Income.
The banks go through a 3 step process to see if applicant will qualify for a loan modification:
- Reduce the interest rate down to 2%.
- Extend the term of the loan to 40 years
- Reduction of principle. However instead of forgiving the principle entirely, the program allows the lenders take the reduced amount of the principle, and tack it onto the end of the 40 yr note as a balloon note due and payable when house is sold or refinanced.
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- Law Offices MJ Mann Bankruptcy Attorney
- 2706 Artesia Blvd, Suite BK
- Redondo Beach, CA 90278
- 310.376.9865
