Loan 365

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.

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