HAMP Program help requested?
A close friend of mine has been approved for the HAMP mortgage modification program. The lender is PNC Bank. They have informed her of her new payment to avoid foreclosure. Her interest rate has gone down from 5,875% to 3.2%. They used last years tax return (which included overtime that she no longer gets) to calculate her payment (31% of Gross). They also added taxes and insurance on top of the 31%. They also say that after the three month trial payment period is over they will calculate her final payment, which will probably be even higher.
According to the .gov website, the 31% should INCLUDE taxes, insurance and Home Owners Association fees (if applicable). The 31% is supposed to be based upon current income not past income. After all an income reduction past to current is the whole reason for the HAMP modification process.
Her adjusted payment is only slightly less than the original payment. Theoretically, PNC has approved a loan which will have an adjusted payment higher that the original payment, which she was unable to pay. PNC representatives don’t return phone calls. None of this makes any sense.
Is there a Federal agency who monitors or audits these calculations? Where can she file a complaint? Can she just call her Senator’s office?