Reviving an old thread that predates me. (Though back in the days of MHA/HAMP I was pretty knowledgable and helped quite a few people get excellent modifications).
It seems like now HUD is giving guidance on a Covid-19 Recovery Modification that uses a simpler formula than Obama's era Making Home Affordable modifications. There seems to be virtually no calculations needed on the borrower side to make things work and get a modification approved, it's all on the lender's side.
And while the guidance for the best modification would be 25% deferral, change rate to current PMMS (rounded to the closest .125%), and 360 months, vs. 30% deferral (with potential forgiveness), 480 month extension and step rates starting at 2% for 5 years and going up to PMMS that is current at time of modification, these are potentially excellent modifications (especially in a few scenarios of people I know who got modifications in the MHA days - One who got his deferral forgiven, could get a new deferral, bringing his payment as well as interest expense down; another got his rate stepped up to a rather high PMMS rates, wouldn't see much of a reduction in payment, but would get loan extended and lower the interest cost; and a third who previously got a modification without a deferral, might now get a deferral and an interest rate that is less than half his current interest rate).
Has anyone received a COVID-19 recovery modification or any other modification recently? Any experiences and tips?
