BK and the "Obama Plan"?

[IBroke]

Update:

According to our trial period payment plan, we would be required to make the 2nd and 3rd payment on 10/01 and 11/01. SPS called my mother today and requested an update on her verification of income. No problem.

Since SPS was already on the line, my mother wanted to schedule the 2nd payment for the trial-plan.

And guess what they said: "Oh, we see that you already made all trial payments. There is nothing due until 12/01. We are currently working on the paperwork on your loan."

My mother was thinking "WTF?!"

The only explanation is that they applied two prior forbearance payments - each in the amount of $2560 - to the trial plan. Our original forbearance was scheduled for 90 days (3 payments) but it was extended to due to the Obama-plan. Guess they used that money for the trial. However, that only works if they would have changed the dates of the trial so that it started 2 months earlier. I have no idea how that works..

If that's the case, we have already made the first two payments under the new modification without even knowing the actual payment amount after the trial...

Those are the payments we made, totaling $6,430:

06/25: Forbearance payment #4: $2,560
07/25: Forbearance payment #5: $2,560
09/01: Trial-payment #1: $1,310

That's what was due under the agreement and trial payment plan.
So according to SPS, the blue payments have already been taken care of:

06/25: Forbearance payment #4: $2,560
07/25: Forbearance payment #5: $2,560
09/01: Trial-payment #1: $1,310
10/01: Trial-payment #2: $1,310
11/01: Trial-payment #3: $1,310

Now IF they modified it like that, it would have required $6,290:

07/01: Trial-payment #1: $1,310
08/01: Trial-payment #2: $1,310
09/01: Trial-payment #3: $1,310
10/01: MODIFIED-payment #1: $1,180
11/01: MODIFIED-payment #2: $1,180

Well, THAT would last until December. Did anybody else experience such a "favor"? We were really surprised....

[IBroke]

My second modification is not being done through the hamp... it is their own and it is not permanent

Is the servicer of your second mortgage participating in the HAMP?

Again, if that's the case and your first mortgage is permanently modified under the HAMP, the second will be modified under HAMP as well.

If I understood your previous post correctly, you are currently in the trial-period of the MAMP for your first mortgage.

[Ann]

If your HAMP-modification is permanent on the first AND the servicer of your second is also participating in the program, it HAS TO be done on the second.

http://www.huntonfinancialindustryre...ing-servicers/

My second modification is not being done through the hamp... it is their own and it is not permanent

[mom2three09]

I really wish we could have gotten a mod from BofA before filing our Chpt 7 last month

Last winter when dh was laid off we called them to ask about a mod. Our interest rate is 7.25% so we were really hoping to get it lowered to about 5% or even less. In the end we were told that we didn't qualify because dh's unemployment check wasn't enough to cover our mortgage payment even with a lower interest rate (even tho we've NEVER even paid late).

I figured it up and we're right at 31% of our income (with our mortgage payment--now that dh is back to work) so I know they would not have helped us even once dh got back to work and had the income to support the mod. They likely would have said "Well, you can afford your payment now so the mod is denied"

So here we are... dh is back to work til winter (he's construction).. our Chpt 7 should be finalized in Oct... our escrow payment is going up 9/1... ofcourse we didn't reaffirm our mortgage so we're now considering walking away from our home Had we been able to lower our payment by $100-$200/ mo. we would not even be considering walking away because we would be paying less here then what we could rent for....

CW/BofA stink

[IBroke]

My questions is if it can be done on a first mortgage why not the second????

If your HAMP-modification is permanent on the first AND the servicer of your second is also participating in the program, it HAS TO be done on the second.

http://www.huntonfinancialindustryre...ing-servicers/

[IBroke]

IBroke,

Who is your mortgage servicer and did they do a BPO or other kind of appraisal of your mothers home yet?

.

Our servicer is SPS (Select Portfolio Servicing) but I can't tell if they did a BPO or other kind of appraisal yet because the servicer doesn't notify the borrower when that has/will happen.

[Ann]

I am on a trial mod thru the Obama plan. You have to go thru a 3 month trial period where you make payments that are 31% of you income, it took almost $600 off the monthly payment, they cut the interest rates from 6.7 to 5.1 and then after the 5 year payment plan is over the interest goes to 5.2 and locks in for the remainder of the loan. I was about to file CH7 in July and then I was told I was accepted in the program. My attorney said to hold off on filing until Oct 1st when the loan modification is locked in. You cannot get a loan mod if you are in the bankruptcy process. Dont tell the mortgage company that you are filing, they will stop working with you and it will stop any loan mod thats in process.

This is the EXACT situation I'm in right now! Waiting to complete this process and THEN file. I'm in the same boat as you are Dizzy, I want to file a 7 but need to get this done before I can do so. Every lawyer will tell you something different. My questions is if it can be done on a first mortgage why not the second????

[ItsJustMe]

We modified both our first and second. I 'negotiated' the 2nd on my own and dropped the payment $150 a month. I actually (stupidly) turned down a mod that would have dropped another $100. Live and learn. This was w/SLS and Bank of NY as he investor (who, so far as I can tell, is the shiznit in great modifications - people on another forum I'm on regularly get 2% interest for the remaining life of the loan!).

My 1st is CW. The mod has been a lot more work, but the final product turns out to be something that, supposedly, is based on the Obama plan. We do not get the $1K incentives, but we also don't have to live through a trial period. Our loan has been stretched to 40 years, and our interest is 3.25% step rate topping out (at 10 years) at 5.275%.

Oh, anyways, OP. I was told to mod before we filed. Our first mod payment for the 1st mortgage should be Sept 1st, so we're hoping everything goes smoothly (my mod info hasn't updated to CWs system yet!) and we can file ASAP. All and all, our mortgage payment dropped about $830.

[bf2bf]

IBroke,

Who is your mortgage servicer and did they do a BPO or other kind of appraisal of your mothers home yet?

.

[IBroke]

They sent me the paperwork in April, with payments being do April 30, May 30 and June 30. I sent in all the paperwork they asked for, even calling after month I wired the payment to them to make sure it was received, etc. I spent countless hours on the phone with them, many hours on hold, just to ensure I did everything right. I just don't know if it's worth the fight. Now that the modification is denied, we can proceed with a 7 vs. a 13 making this whole nightmare behind us instead of being under a trustee's scrutiny for the next five years. I'm just worried that I won't find a good rental, even though there are hundreds in my area, while they rent to us if we have bad credit? My house I live in now is like a model home. We take a lot of pride in where we live and would be excellent renters, if given the chance.

I know exactly what you're talking about!

So you started in April? Are you sure these trial-payments weren't forbearance payments? We had to provide documentation and a kind of hardship-letter to our lender as well just to get into a forbearance-agreement.

I'm asking because the current HAMP was launched April 28th...so how should they have been able to put you in the HAMP that fast (within 2 days)?

Usually, a Chapter 7 is much easier than a 13 but as you stated, considering the house, rent and future ability to by something similar anytime soon might be worth the extra trouble.

BTW, why do you think you might have to go over a 60 month CH.13 and not a 36 month BK? I'm asking because if your income is too high for a 36 month trial, you might not be qualified for a Chapter 7 in the first place (income above median).

As I said before: Call the help-hotline (those are very nice people) and ask them for assistance. They can also refer you to a free counselor. I wouldn't give up my home just because I got the wrong person in a bad mood on the other line....

[tkharvey]

They sent me the paperwork in April, with payments being do April 30, May 30 and June 30. I sent in all the paperwork they asked for, even calling after month I wired the payment to them to make sure it was received, etc. I spent countless hours on the phone with them, many hours on hold, just to ensure I did everything right. I just don't know if it's worth the fight. Now that the modification is denied, we can proceed with a 7 vs. a 13 making this whole nightmare behind us instead of being under a trustee's scrutiny for the next five years. I'm just worried that I won't find a good rental, even though there are hundreds in my area, while they rent to us if we have bad credit? My house I live in now is like a model home. We take a lot of pride in where we live and would be excellent renters, if given the chance.

[IBroke]

tkharvey,

When did you start the program/made the initial trial-payment?

[IBroke]

To reply to original thread....

I was just denied a Loan Modification under the MHAP. I did everything they asked for.....three trial months of "successful" payments, all necessary documentation in a timely manner, legitimate hardship, and I was still denied. I was shocked. When I asked the rep why were denied she just said "because you don't qualify, even if we bring your interest rate down it doesn't bring you to the 31%". When I asked her about the combination of the three, principal forbearance, extending term to 40 years, and lowering interest rate, all she could say very rudely is "Listen to me. You do not qualify". I was crushed since the other reps I spoke with during the trial period were very positive with me. I felt for sure I would get it. So, please, don't bank on it getting approved. I think some are approved, but very few... those are the lucky ones.

By the way, lender was Aurora Loan Services.

Fight for your home!

Their "excuse" sounds very fishy to me. What do they mean by "even if we bring down the interest-rate"? That is the INITIAL step under the waterfall, not the last straw. Unless the 31% of your income isn't even enough to cover escrow, I don't see a reason why they don't approve this modification.

If I were you and you want to keep the house, I would call 1-888-995-HOPE as soon as possible and ask them to discuss your matter in a phone-conference with your lender. I tell you - they won't be rude that time!

The guidelines are very strict and the reason they told you is NOT a reason to deny a modification.

Did they provide you with a fully executed copy of the Trial Period Plan and the Modification-Agreement? If so and you made all payments on time and nothing else changed, they CAN'T deny the modification.

Part 3 ("The Modification") of the Trial Period Plan says:

"If I comply with the requirements in Section 2 (the Plan) and my representations in Section 1 (requirements for HAMP) continue to be true in all material respects, THE LENDER WILL SEND ME A MODIFICATION AGREEMENT FOR MY SIGNATURE WHICH WILL MODIFY MY LOAN DOCUMENTS as necessary to reflect this new payment amount and waive any unpaid late charges accrued to date."

Part 2 G is also interesting:

"I further understand and agree that the Lender will not be obligated or bound to make any modification of the Loan Documents IF I fail to meet any one of the requirements under this plan."

[tkharvey]

To reply to original thread....

I was just denied a Loan Modification under the MHAP. I did everything they asked for.....three trial months of "successful" payments, all necessary documentation in a timely manner, legitimate hardship, and I was still denied. I was shocked. When I asked the rep why were denied she just said "because you don't qualify, even if we bring your interest rate down it doesn't bring you to the 31%". When I asked her about the combination of the three, principal forbearance, extending term to 40 years, and lowering interest rate, all she could say very rudely is "Listen to me. You do not qualify". I was crushed since the other reps I spoke with during the trial period were very positive with me. I felt for sure I would get it. So, please, don't bank on it getting approved. I think some are approved, but very few... those are the lucky ones.

By the way, lender was Aurora Loan Services.

[IBroke]

None of the above post has anything to do with HAMP, the HAMP guidelines or servicing policies.

The guidelines can be found here:

https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2009/0905.pdf

hereforinfo, what exactly were you trying to accomplish, learn, or contribute to this thread? If HAMP guidelines don't apply to you, great! No reason to start picking on another poster's personal situation after they tried to explain the guidelines to you. What exactly does your last post have to do with the HAMP guidelines?

Thanks, 2Bshinyandnew!

That hits the nail right on the head!