Permanent Loan Modification Under HAMP

Completed permanent loan modification is defined as a trial loan modification that successfully is converted to a permanent modification.

Just 31,382 borrowers nationwide had received permanent loan mods as of Nov. 30 under the Home Affordable Modification Program (HAMP), the Treasury Department reported. Meanwhile, First American CoreLogic says that 1.7 million homes are likely to be lost to foreclosure next year.

Although more than 650,000 borrowers have been given trial mortgage modifications, few borrowers have received permanent loan modifications. Many borrowers complain that it is difficult to get permanent loan modifications even once they have made trial payments. Some have even ended up further behind on their mortgage payments while trying to covert to a permanent loan modification.

“HAMP is turning out to be something of a disaster,” said Lisa Sitkin, an attorney at Housing & Economic Rights Advocates in Oakland, who works with many struggling borrowers. “There are delays and lost steps at every turn. The bureaucratic requirements are endlessly frustrating.”

Some mortgage executives expect 25% to 35% of borrowers who currently have a trial program will qualify for final permanent loan modifications.

Sucessfully Get a Permanent Loan Modification Under HAMP

1.I recieved my perm mod last thursday after making 5 trial payments,Original 1601 at 8.25%,Trial 735,Perm 901 at 2% for 5 years 3% 6th year 4% 7th year 5% 8-27years. Left on home 186,000 new amount 192,000 past due 11,000 including late fees and mortgage payments . They didnt apply the whole 11,000 to the back end only 6,000 and forgae the rest. My mortgage will never go back to 1600 only aroung 1100 for the life of the loan when i get to my 8th year  also only extend my loan by 2month was 9/1/2036 now 11/01/2036.

My mod is under the Hamp the loss mitigation manger was telling me if I pay on time every year for the first 5 years. They will take off 1000.00 each year totaling 5000.00 of my principal balance.

My trial payments went towards my contratual mortgage payment of 1601.That what i was told and i could see it on my online account .They would hold it in a suspence account until i had enough to make a full payment.Also My HAMP no my income did not change. i had a lot of overtime that they did calculate in for this year.

I keep cose contact with the loss mitigation manger at litton . He called me back every time I leave him a messege he walked me through the process. My mod payment of principal and interest is 726.00 and the escrow amount is 176.00 total 902.00 for 5 years. then six year 809.70 principal n interest 7th year 895. principal and interest 8-27 year 981.00 principal  interest

2.Completed the HAMP trial and received a permanent modification,I have received my permanent modification paperwork on oct.2009.Its already all notarized and dropped in the FedEx box.. NO WHERE on the paperwork does it say Hamp, Government plan anything .. But Litton told me once again this morning I am under the Obama Plan.

Current Terms:
Loan Balance: $360,490.12
Interest: 6.75 %
Payment: $2580.51
Maturity Date: 2/1/37
This does not include escrow for insurance but does include escrow for taxes

Trial Payment: I made 6 payments of $1876.62 ( Just made my Nov 1 Payment today)

New Terms:
Loan Balance: $366,617.21
Interest/Pymt: Yrs 1-5 2.5% Payment 1789.60
Yr 6 3.5% 1951.50
Yr 7 4.5% 2116.03
Yr 8 -28 4.875% 2177.74

Tips on HAMP Permanent Loan Modification

Fr om the HAMP progress reports, very few are being converted into permanent mods (I think it is about 1100+). There was a 2 month waiver to extend the trial period to allow borrowers more time to get their documents sent in (servicers are permitted to send out the trial period plan based on stated info over the phone and verify that info based on documents the borrower sends in while on the trial).Of course, we all know how paperwork gets lost so how accurate this is remains to be seen. I have not seen any figures as to how many trials have been denied.

I anticipate the next progress report will have more detailed info available. The servicers have until the 4th business day to report on HAMP results, so the report usually comes out a few days after that.

It will be interesting to see as time marches on how these numbers will change. They are also now tracking denial reasons so I suspect to hear more on that as well.

The purpose of a HAMP modification is not to provide “cushion”, it is to help families save their home. If you are filling out the hardship affidavit saying you want a cushion, you will be denied. You must be telling them something else???? Pardon the annoyance but there are people fighting to save their homes who are living a foreclosure nightmare and the system is bogged down with those who want a cushion.

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