Comments on: HAMP Conversion Drive – Pushing hard to sell homeowners the most exotic mortgage yet http://www.foreclosuretruth.com/blog/sean/hamp-conversion-drive-%e2%80%93-pushing-hard-to-sell-homeowners-the-most-exotic-mortgage-yet/ Tue, 27 Jul 2010 17:07:33 -0700 http://wordpress.org/?v=2.8.5 hourly 1 By: Sean O'Toole http://www.foreclosuretruth.com/blog/sean/hamp-conversion-drive-%e2%80%93-pushing-hard-to-sell-homeowners-the-most-exotic-mortgage-yet/#comment-8528 Sean O'Toole Sat, 17 Apr 2010 05:24:39 +0000 http://www.foreclosuretruth.com/?p=1082#comment-8528 Housing Counselor, here is a break down of points if you'd really like to discuss further: 1. LTV exceeds 100% in nearly all cases. Almost none of the worst subprime loans offered this. 2. Total debt to income after HAMP is at 60%, per Treasury's latest report, and that is based on the temporarily reduced payment. I'm not aware of any subprime lenders that allowed that. Only by lying about your income could you get a loan you couldn't afford before... now the government will give you a loan you can't afford without lying. Progress? 3. Payments DO go "back up". They absolutely do not stay at the temporary reduced payment. The reality is that the payment may be HIGHER than the customers current fully amortizing ARM payment given your statement of 5-5.875 fixed as some adjustable indexes remain quite low. 4. The "stable" income you claim is carefully reviewed isn't sufficient to make a fully amortizing payment today. Further no attempt is made to determine the likelihood that the borrowers income will increase to a level sufficient to afford the stepped up payments in the future. Isn't this exactly what "predatory lenders" have been accused of doing? 5. I'm not sure who you are, but it would be ridiculous to state that the administration isn't "hocking" this program given their push to hit artificial goals, announced conversion campaigns, etc. Let's get real. Making Home Affordable isn't about keeping people in their homes. It's about making people think there is help and getting positive press while robbing them of a few more payments before they inevitably lose the home anyway. Housing Counselor, here is a break down of points if you’d really like to discuss further:

1. LTV exceeds 100% in nearly all cases. Almost none of the worst subprime loans offered this.
2. Total debt to income after HAMP is at 60%, per Treasury’s latest report, and that is based on the temporarily reduced payment. I’m not aware of any subprime lenders that allowed that. Only by lying about your income could you get a loan you couldn’t afford before… now the government will give you a loan you can’t afford without lying. Progress?
3. Payments DO go “back up”. They absolutely do not stay at the temporary reduced payment. The reality is that the payment may be HIGHER than the customers current fully amortizing ARM payment given your statement of 5-5.875 fixed as some adjustable indexes remain quite low.
4. The “stable” income you claim is carefully reviewed isn’t sufficient to make a fully amortizing payment today. Further no attempt is made to determine the likelihood that the borrowers income will increase to a level sufficient to afford the stepped up payments in the future. Isn’t this exactly what “predatory lenders” have been accused of doing?
5. I’m not sure who you are, but it would be ridiculous to state that the administration isn’t “hocking” this program given their push to hit artificial goals, announced conversion campaigns, etc.

Let’s get real. Making Home Affordable isn’t about keeping people in their homes. It’s about making people think there is help and getting positive press while robbing them of a few more payments before they inevitably lose the home anyway.

]]> By: HousingCounselor http://www.foreclosuretruth.com/blog/sean/hamp-conversion-drive-%e2%80%93-pushing-hard-to-sell-homeowners-the-most-exotic-mortgage-yet/#comment-8526 HousingCounselor Sat, 17 Apr 2010 04:58:53 +0000 http://www.foreclosuretruth.com/?p=1082#comment-8526 Shame on you Marie, if you're a housing counselor. This is a terribly inaccurate article. 1. It does not go 'back up' after 5 years. It goes to a fixed rate based on the market rate at the time of permanent mod signing, which is like 5-5.875% at the most right now. 2. You can't get a permanent mod without showing good faith to pay the new mortgage and a stable income for at least 5 months. The review takes 2-4 months average, then the trial period takes 3-6 months. 3. We don't 'hock' the program as hud-certified non-profit counselors, we're not salesmen. Payments can go up surprisingly after the trial period, but servicers are no longer allowed to offer trials without verifying documents, esp. income. Break your argument up into pieces if you want to discuss this. Shame on you Marie, if you’re a housing counselor. This is a terribly inaccurate article.
1. It does not go ‘back up’ after 5 years. It goes to a fixed rate based on the market rate at the time of permanent mod signing, which is like 5-5.875% at the most right now.
2. You can’t get a permanent mod without showing good faith to pay the new mortgage and a stable income for at least 5 months. The review takes 2-4 months average, then the trial period takes 3-6 months.
3. We don’t ‘hock’ the program as hud-certified non-profit counselors, we’re not salesmen. Payments can go up surprisingly after the trial period, but servicers are no longer allowed to offer trials without verifying documents, esp. income. Break your argument up into pieces if you want to discuss this.

]]> By: H.A.M.P. Updated Documentation Requirement Makes Good Sense | Buying your First House http://www.foreclosuretruth.com/blog/sean/hamp-conversion-drive-%e2%80%93-pushing-hard-to-sell-homeowners-the-most-exotic-mortgage-yet/#comment-5398 H.A.M.P. Updated Documentation Requirement Makes Good Sense | Buying your First House Thu, 18 Feb 2010 04:36:49 +0000 http://www.foreclosuretruth.com/?p=1082#comment-5398 [...] might be more the result of homeowner’s resisting a program that leaves them in yet another exotic mortgage. Not just a paperwork-processing problem as the Administration suggests. Regardless, homeowners [...] [...] might be more the result of homeowner’s resisting a program that leaves them in yet another exotic mortgage. Not just a paperwork-processing problem as the Administration suggests. Regardless, homeowners [...]

]]> By: Marie Pham http://www.foreclosuretruth.com/blog/sean/hamp-conversion-drive-%e2%80%93-pushing-hard-to-sell-homeowners-the-most-exotic-mortgage-yet/#comment-4843 Marie Pham Wed, 03 Feb 2010 17:53:16 +0000 http://www.foreclosuretruth.com/?p=1082#comment-4843 Great comments everyone. I work for HUD counselors and also a big servicing company. We have seen many being declined on the Making Home Affordable programs. We suggest that people should try again. Many get declined more than 2-3 times. Consumers are getting frustrated, they turn to others who would charge them $3500 to $10,000, promise to do a forensic review of their loans, phantom BK to keep their homes from being foreclosed, the victims end up loosing their homes even faster. There are more frauds now than ever, I meet the victims everyday. The stories are all similar, trusting bad people wearing sheep clothing. Great comments everyone. I work for HUD counselors and also a big servicing company. We have seen many being declined on the Making Home Affordable programs. We suggest that people should try again. Many get declined more than 2-3 times. Consumers are getting frustrated, they turn to others who would charge them $3500 to $10,000, promise to do a forensic review of their loans, phantom BK to keep their homes from being foreclosed, the victims end up loosing their homes even faster. There are more frauds now than ever, I meet the victims everyday. The stories are all similar, trusting bad people wearing sheep clothing.

]]> By: Tracey http://www.foreclosuretruth.com/blog/sean/hamp-conversion-drive-%e2%80%93-pushing-hard-to-sell-homeowners-the-most-exotic-mortgage-yet/#comment-4292 Tracey Thu, 21 Jan 2010 19:54:30 +0000 http://www.foreclosuretruth.com/?p=1082#comment-4292 Great Post!! The big problem in our area that homeowners are so desperately trying to keep their homes that they don't realize that they are hanging on to a bad debt. It is the old " can't see the forest for the trees" scenario. It is very sad. Great Post!! The big problem in our area that homeowners are so desperately trying to keep their homes that they don’t realize that they are hanging on to a bad debt. It is the old ” can’t see the forest for the trees” scenario. It is very sad.

]]> By: Cindy in Orange http://www.foreclosuretruth.com/blog/sean/hamp-conversion-drive-%e2%80%93-pushing-hard-to-sell-homeowners-the-most-exotic-mortgage-yet/#comment-4290 Cindy in Orange Thu, 21 Jan 2010 18:07:22 +0000 http://www.foreclosuretruth.com/?p=1082#comment-4290 Thanks Tracy. Believe me I've TRIED, I also filed a COMPLAINT with the AG in TX. Get this Litton NOW shows an expected ESCROW SHORTAGE of OVER EIGHT GRAND!! I don't get why the will NOT refigure the modification TO KEEP THE PAYMENT affordable for me. Doesn't matter how high they jacked that principal up, because otherwise I will be on my way to court to file for bk ; ( Thanks Tracy.

Believe me I’ve TRIED, I also filed a COMPLAINT with the AG in TX.

Get this Litton NOW shows an expected ESCROW SHORTAGE of OVER EIGHT GRAND!!

I don’t get why the will NOT refigure the modification TO KEEP THE PAYMENT affordable for me. Doesn’t matter how high they jacked that principal up, because otherwise I will be on my way to court to file for bk ; (

]]> By: Sean O'Toole http://www.foreclosuretruth.com/blog/sean/hamp-conversion-drive-%e2%80%93-pushing-hard-to-sell-homeowners-the-most-exotic-mortgage-yet/#comment-3612 Sean O'Toole Sun, 03 Jan 2010 05:16:35 +0000 http://www.foreclosuretruth.com/?p=1082#comment-3612 Your friend should check out the Home Affordable Refinance Program. It allows refi's up to 125% of what the home is currently worth. More information can be found here including an online questionnaire to determine eligibility: http://makinghomeaffordable.gov/refinance_eligibility.html Your friend should check out the Home Affordable Refinance Program. It allows refi’s up to 125% of what the home is currently worth. More information can be found here including an online questionnaire to determine eligibility: http://makinghomeaffordable.gov/refinance_eligibility.html

]]> By: James Thompson http://www.foreclosuretruth.com/blog/sean/hamp-conversion-drive-%e2%80%93-pushing-hard-to-sell-homeowners-the-most-exotic-mortgage-yet/#comment-3571 James Thompson Fri, 01 Jan 2010 06:42:26 +0000 http://www.foreclosuretruth.com/?p=1082#comment-3571 I have a friend who is in dire need of refinancing his property but his property is being appraised at $30,000.00 less than what is owed to the bank. Then they will only refinance 80% of the appraised value. Can anyone give any advice as to how he can get the entire amount owed on the property refinanced? Thanks, God Bless! I have a friend who is in dire need of refinancing his property but his property is being appraised at $30,000.00 less than what is owed to the bank. Then they will only refinance 80% of the appraised value. Can anyone give any advice as to how he can get the entire amount owed on the property refinanced? Thanks, God Bless!

]]> By: Tracey http://www.foreclosuretruth.com/blog/sean/hamp-conversion-drive-%e2%80%93-pushing-hard-to-sell-homeowners-the-most-exotic-mortgage-yet/#comment-3238 Tracey Thu, 17 Dec 2009 20:02:32 +0000 http://www.foreclosuretruth.com/?p=1082#comment-3238 The previous comment was for Cindy. Shawn, you are so right. I talk to homeowners every day who are praying for a loan mod. and never consider the fact that they will owe more than their home is worth for many years to come. Is it that homeowners prefer to "live in the dark," or is it that our government is hoping that homeowners will not figure out that they have been taken advantage of once again. There is plenty of blame to throw around, but the housing market "is what it is." The HAMP program seems to ignore the proverbial "elephant in the room." A temporary reduction in a house payment does not solve the problem. The previous comment was for Cindy. Shawn, you are so right.
I talk to homeowners every day who are praying for a loan mod. and never consider the fact that they will owe more than their home is worth for many years to come. Is it that homeowners prefer to “live in the dark,” or is it that our government is hoping that homeowners will not figure out that they have been taken advantage of once again. There is plenty of blame to throw around, but the housing market “is what it is.” The HAMP program seems to ignore the proverbial “elephant in the room.” A temporary reduction in a house payment does not solve the problem.

]]> By: Tracey http://www.foreclosuretruth.com/blog/sean/hamp-conversion-drive-%e2%80%93-pushing-hard-to-sell-homeowners-the-most-exotic-mortgage-yet/#comment-3237 Tracey Thu, 17 Dec 2009 19:37:21 +0000 http://www.foreclosuretruth.com/?p=1082#comment-3237 You may be able to get some help from HUD. Go to http://www.hud.gov/hopeforhomeowners. There you can find a link that will lead you to a HUD counselor. Good luck and don't give up. You may be able to get some help from HUD. Go to http://www.hud.gov/hopeforhomeowners. There you can find a link that will lead you to a HUD counselor. Good luck and don’t give up.

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