Already Nearly 3 Months Behind in Payments but HAMP Modification Just Got Approved

by Deanna
(Blue Eye, Mo. 65611)

I was just informed that I qualify for modification at 2 1/2 percent which would decrease my payments from $1260 to $926. Will I also have to pay up the current overdue payments to be considered current when the new amount starts. Would I need to pay at the former rate?

Mortgage Modification Answer:

Congratulations on your HAMP loan modification approval!

As for your question regarding payment of the outstanding amount, it should be addressed by the loan modification agreement drawn up by your lender.

Please read your agreement carefully to see how they would like to take care of this issue.

There are different options that your lender could offer. Read this post where I recently addressed the same question from another visitor.

All the best to you!

Comments for Already Nearly 3 Months Behind in Payments but HAMP Modification Just Got Approved

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Nov 30, 2010
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Approved for Hamp Modification - 3 months bedhind
by: Dean

Is this a verbal modification that you submitted financial data over the telephone or have you submitted a hardship letter, financial statements, tax return, w-2 and bank statements?

If this is verbal saying you qualify, then it is a clerk saying that and the formal data has yet to be submitted by you and approved by underwriting. You did not say who the Loan Servicer was so I can not comment on the practices as each one is different.

If this is a formal approval through underwriting after having submitted financial data, then followup to see when loan modification paperwork will be sent. Normally it is an overnight letter from FedX or UPS. As Grace said read it carefully and question any figures you are unsure about. Also note that the return of the signed documents is time sensative.

Check the loan balance to see that it is correct. Read what they are proposing to do with the deliquent balance. They may forgive a part of the loan principal and the late charges in addition to the low interest rate. The interest rate may be tiered -- increasing over a five year period.
Check the escrow balance for taxes and insurance to see that it is correct and going to cover the amounts due. If not then there may be a paragraph explaining how any shortage will be handled. Look for this to state that the shortage will be prorated over the next 12 months in you escrow payments.

KNOW AND UNDERSTAND WHAT YOU ARE SIGNING!! I can not emphasis this enough.

Again Congratulations on staying in your home. If you have any questions, you may post further comments.

Dean
St Louis

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