In Depth Analysis: CalculatedRisk Newsletter on Real Estate (Ad Free) Read it here.

Tuesday, October 20, 2009

HAMP Modification Documents

by Calculated Risk on 10/20/2009 04:12:00 PM

For those interested, here are some Wells Fargo (America's Servicing Corporation) HAMP documentation (pdf) (ht Dave).

A few notes:

  • The borrower is delinquent and hasn't made a payment in about one year.

  • The trial modification plan (three months) calls for three payments of $1170.82 per month (includes an escrow account for taxes and insurance). This is about $1000.00 less than the borrower's previous monthly payment.

  • The borrower owes approximately $330,000 (including missed payments). Wells Fargo is waiving the late fees if the borrower completes the trial modification plan.

  • A similar house has recently sold for $150,000 (distressed sale), so the borrower is probably $150,000 to $180,000 underwater.

  • Comparable houses rent for close to $1,500 per month. So the borrower is paying less than the going rent on the modified loan.