Mortgage Loan Modification Answer:by Loan Modification Expert – Dan NorthSun Trust Mortgage is one of the best mortgage companies to work with on loan modifications. They are fast and will deal. You have a better chance at principal forbearance at Sun Trust Mortgage than any other bank.
I am guessing that the mortgage loan modification you arranged was not a HAMP mortgage modification. The 1st mortgage may have been HAMP but the 2nd mortgage interest was not reduced to 1% so is not a 2nd lien modification-2MP under Making Home Affordable. The 2nd Mortgage would have been modified automatically under 2MP if the the 1st mortgage modification was done under HAMP guidelines.
So Where Does Principal Forbearance
Come Into The SceneIf the current 1st mortgage modified payments are greater than 31% of your gross income you would apply the Standard Modification Waterfall.
Principal forbearance is the last step of the waterfall:
- First reduce the mortgage interest rate until the mortgage payment is 31% of gross income
- If Mortgage payment is greater than 31% of gross income after reducing interest rate to 2%, next extend the length of mortgage to 40 years
- If mortgage payment is still greater than 31% of gross income now begin to forbear principal until the monthly mortgage payment reaches 31% of gross income
- If the 1st mortgage lein has principal forbearance then under 2MP the 2nd lein mortgage modification would principal forbearance in the same ratio as the principal forbearance on the 1st mortgage lein
Principal forgiveness Rarely Occurs But Is An Option With Hope For Homeowners-H4HThere is one Making Home Affordable Program that is specifically designed to provide principal forgiveness for home owners that have upside down mortgages. Hope For Homeowners-H4H Principal Reduction Program never really caught on but the government has not given up on this program.
You should specifically ask your Sun Trust Mortgage representative that you are dealing with to please have you considered for the Hope For Homeowners H4H program.
This is a refinance program to an FHA guaranteed mortgage that includes principal reduction. If you have stayed current on your mortgage payments Sun Trust Mortgage may consider you for the program. It is worth trying.
To find out more about the HOPE For Homeowners-H4H Short Refinance and Principal Forgiveness program see the following articles:
HOPE For Homeowners H4H Government Principal Reduction Program
HOPE For Homeowners – H4H Principal Reduction Program: Was Principal Reduction With The Old HOPE For Homeowners – H4H Program A False HOPE?
Return to top of Will Sun Trust Mortgage Do Principal Forbearance?
Click here to post comments.
Ask Your Own Loan Modification Questions
Hardship Loan Modification – Do You Qualify?
Free pre-qualifying for FasTrac Hardship Loan Modification. No charge to find out if you qualify and what modification you qualify for.
See more Mortgage Loan Modification questions and answers like – Will Sun Trust Mortgage Do Principal Forbearance?
Stop Trying To Modify My Loan With Wells Fargo?”>When Should I Stop Trying To Modify My Loan With Wells Fargo?
answers.com/refinancing-after-a-loan-modification.html” title=”See the answer to the question – Refinancing After A Loan Modification”>Refinancing After A Loan Modification
Can Chase Still Foreclose While In A Trial Modification?
Where To Go From Here With PNC / National City
Modification Agreement Increases My Payment By $1300″>Chase Loan Modification Agreement Increases My Payment By $1300
Loan Modification Home | Mortgage Modifications | Homeowners, Government Mortgage Assistance a loan modification from your lender”>Loan Modification calculator
Ask Modification Questions | Loss Mitigation | Short Refinance
modification-answers.com/Mortgage-Foreclosure-Questions.html” title=”Find answers to mortgage foreclosure questions and ask your own mortgage foreclosure questions”>Mortgage Foreclosure Questions | Contact | Legal Notices | Site Map
The Home Mortgage Loan Modification Blog | DIY Loan Modification Kit
Pre-Qualify for FasTrac Hardship Loan Modification
Home And Commercial Modification Help Nation Wide
Offices Locations: Missoula Montana – MT and Los Angeles California – LA CA
Click here to post comments.
Join in and write your own page! It’s easy to do. How?
Simply click here to return to Ask Loan Modification Questions.
by Ethan Leak