stop paying credit cards while in trial modification

[river147]

Need some advice. I'm currently in my 5th trial modification. I can no longer keep up with the minimums on my cc. My question is, if I stop paying my cc, will I be denied a permanent mod? I'm planning on filing bk as soon as my mod is finalized. It may be another 3-4 months before I file bk. Currently 2 months behind on cc pymts. When can the creditors garnish my wages or freeze my bank acct. I'm scare to death of what they can do.

[sunshinepa]

From all my reading here I have learned the following:

Move any bank account that is associated with any credit card accts.
Most people don't get any action when 2 mos. behind except alot of phone calls.


Keep reading the threads on the forum (do a search on stop paying cc's) and it will make you feel better I believe.

Good Luck

[momofthree]

I stopped paying my cc (and 2nd mortgage) for several months before my modification was finalized. It had zero effect on my mod. They expect you to do whatever it takes to pay your mortgage, even if it means your cc don't get paid. They don't care as long as you pay your house payment....

[freeatlast98]

Loan Mod Question

I stopped paying my cc (and 2nd mortgage) for several months before my modification was finalized. It had zero effect on my mod. They expect you to do whatever it takes to pay your mortgage, even if it means your cc don't get paid. They don't care as long as you pay your house payment....

I also stopped paying the cc months ago and now I'm in the application phase of the modification. I missed May's payment and now will miss June because I was told by the bank, they would not consider a modification unless I'm late. I called BofA on Friday for an update and they said the paperwork is with a negotiator. The lady also said no more documents have been requested. Is this a sign that BofA is considering a modification?

[momofthree]

I also stopped paying the cc months ago and now I'm in the application phase of the modification. I missed May's payment and now will miss June because I was told by the bank, they would not consider a modification unless I'm late. I called BofA on Friday for an update and they said the paperwork is with a negotiator. The lady also said no more documents have been requested. Is this a sign that BofA is considering a modification?

It's a sign that your info hasn't been reviewed yet. It's fairly common, upon review, for them to have lost or according to them "never received" quite a few of your documents.

I had to send at least 4 complete packages back to them because they continually lost my paperwork. Didn't matter that I had a fax confirmation or a UPS tracking # with their signature receipt.

Mine is with GMAC though, who are supposedly much easier to work with...

Bankruptcy is like a luxury vacation compared to attempting a loan mod...

[freeatlast98]

It's a sign that your info hasn't been reviewed yet. It's fairly common, upon review, for them to have lost or according to them "never received" quite a few of your documents.

I had to send at least 4 complete packages back to them because they continually lost my paperwork. Didn't matter that I had a fax confirmation or a UPS tracking # with their signature receipt.

Mine is with GMAC though, who are supposedly much easier to work with...

Bankruptcy is like a luxury vacation compared to attempting a loan mod...

Now I'm bummed. Anyway thank you for your reply. With them losing your paperwork 4 times, did they ultimately come through for you. Also, were you paying the mortgage to them during this time? How long did the process take?

[momofthree]

Now I'm bummed. Anyway thank you for your reply. With them losing your paperwork 4 times, did they ultimately come through for you. Also, were you paying the mortgage to them during this time? How long did the process take?

We began the process in Mar. 09. Entered the trial payment period in Aug. 09. Received our permanent modification in Nov. 09.

We were 30 days past due when we entered the trial mod and had been for several months--just barely keeping our heads above water.

I called them weekly to follow up with them on the status. Most of the reps would just tell me that it was "in review" and they had everything they needed. Then a couple weeks would go by and suddenly something else would go missing. I'd re-send it, be told that they had everything, only to be told 30 days later that something was missing. around-and-around-and-around....

That said, I applied the DAY that the modification program was rolled out so they didn't have any of the kinks ironed out yet. Hopefully the process is more streamlined now. But I would be prepared to keep on them with a great deal of vigilance.

[river147]

trial modification

It's my understanding that you can not be late making your trial payments or you will for sure be denied a permanent mod. When you call home retention, you get a different answer every time. This vicious cycle of faxing and resending the same documents that are required because they either have "lost it" or "never received it". I think they tell you what you want to hear and you really don't get all the facts. I'm in 5th month trial and have yet heard from a negotiator. Not sure how many more months of trial payments I have to make before I get confirmation that it will be made permanent. Had to quit paying cc cause I can't afford to save money for attorney and pay cc too.
Boa can come back after Ive made many trial payments and say sorry, we can't help you out. They got me by the balls.

[freeatlast98]

It's my understanding that you can not be late making your trial payments or you will for sure be denied a permanent mod. When you call home retention, you get a different answer every time. This vicious cycle of faxing and resending the same documents that are required because they either have "lost it" or "never received it". I think they tell you what you want to hear and you really don't get all the facts. I'm in 5th month trial and have yet heard from a negotiator. Not sure how many more months of trial payments I have to make before I get confirmation that it will be made permanent. Had to quit paying cc cause I can't afford to save money for attorney and pay cc too.
Boa can come back after Ive made many trial payments and say sorry, we can't help you out. They got me by the balls.

I'm sorry, this may be a silly question however, if you never heard from the negotiator, how did you know to send the trial payments? If they contacted by mail, how long did that part take from the time you applied? I'm just confused as to how the whole process is done. I missed my May regular payment and I hope BofA will contact me soon if they consent to give me a trial modification.

[river147]

I'm really not sure at what point in this process the "negotiator" steps in. Its my understanding a negotiator don't get involve until after your loan goes thru underwriting. I'm still confused about the whole thing. I'm told by home retention to continue making my trial payments until I hear otherwise. I call weekly to check on the status of my loan. Have you received the trial modification package in the mail by fed ex yet? If not , I would suggest you contact the Hope Hotline. Hopeforhomeowners.com
They will advise you on what you should do if you're struggling with your mortgage.

[JackBondLove]

Is this a question about Chapter 7 or 13? I've never heard any of a situation like this.

If it is Chapter 7, then, presuming you want to keep the house, you should remain current on the house note. You can quit paying your unsecured creditors because it doesn't matter - unsecured means they can't take anything away from you (other than non-exempt assets, of course, if you have any.)

[freeatlast98]

I'm really not sure at what point in this process the "negotiator" steps in. Its my understanding a negotiator don't get involve until after your loan goes thru underwriting. I'm still confused about the whole thing. I'm told by home retention to continue making my trial payments until I hear otherwise. I call weekly to check on the status of my loan. Have you received the trial modification package in the mail by fed ex yet? If not , I would suggest you contact the Hope Hotline. Hopeforhomeowners.com
They will advise you on what you should do if you're struggling with your mortgage.

No, I haven't received the trial modification package yet. I only formally applied on June 2nd. Maybe it's too soon. How long was it after you applied that you received yours? For now all I know is, it's been assigned a negotiator.
Also, was the reduced amount enough to make a difference in your budget? Thank you for the tip on the website, I'll check into it.

[LadyInTheRed]

Currently 2 months behind on cc pymts. When can the creditors garnish my wages or freeze my bank acct. I'm scare to death of what they can do.

The creditors have to sue you and get a judgment before they can garnish your wages or your bank account (unless there is a cross-collateralization clause in your cc agreement and you have a savings or checking account with the same bank). First you get a summons and a complaint. Then you file an answer or general denial. Then you go to court. If you don't file an answer or show up in court, they get a default judgment. If you answer or deny and appear in court when ordered, it will take longer for them to get a judgment. The details of the procedures vary by state, but will be pretty close to what I describe. It can be several months to several years after a missed payment before a creditor sues and then at least 30 days after that (and usually longer) before they get a judgment. You will know when you get sued and have time to file bankruptcy before they get to your wages or bank account.

You might want to check out the forums at loansafe.org to learn more about loan modifications.