Modification Malarkey (long)

[BROKEDED]

So I thought I would attempt a modification before filing CH7. I knew that it was probably in vain but could help with a little more time to prepare for a fresh start or might actually be an alternative.

So I checked on a new state rule that forced the foreclosure process to halt while applying for a modification. Well, that doesn't apply to my servicer nor Fannie Mae. Go figure! So I called my state's foreclosure help hotline on July 20th and after some consultation was connected via 3-way phone call with my servicer. The counselor helped me explain my needs and the service rep explained that I should have received a mod packet already but that she would re-send the packet and it would take about 5-7 days. (I got it 9 days later.) I was told that as long as I provided everything that was requested in the packet that I could request a suspension of the foreclosure sale date but only 5-7 days before the sale and that they could take up to the day of the sale to approve it. I was told that I still had plenty of time as it normally took them 2-3 weeks to receive, process, and "upload" my application

I later find a packet, not from my servicer, but from a mod center and called my servicer back to ask about that packet. I was told that the packet I had was fine and that the mod center was an approved business agreed upon between my servicer and Fannie Mae. I called the mod center to verify this info and they did. So I filled out all the requested and required info and called the mod center back to double verify everything. When doing so I find out that my packet did not include and did not list as required, "required" info to be included. Hmmm, so luckily this extra required info is a government form that I found, filled out, and DL'd online and I overnighted the package.

They didn't pick it up the day it was delivered of course so I called today to let them know it was at the post office, they did need to sign for it and while I was at it I just wanted to re-re-verify what was needed and what I had sent. SURPRISE! I now need two more "required" documents that were not mentioned in the first two phone calls nor were they mentioned in the packet.

So, I have to fax those documents tomorrow but to an arbitrary fax number with no "Attention to:". I wonder what the chances are that they won't be received, found, collected, etc...

When all is said and done and IF the application is accepted in full, I have to call and request that the sale date be suspended. That request has to go from the mod center to the servicer to Fannie Mae, back to the servicer, and then to the trustee according to the last info that I got which will probably change with the next person I speak with.

It's no wonder that more and more people are shoving their middle finger up to the mortgage industry. I do wonder sometimes if it's not an orchestrated takeover of private property.

I'm off to see the Wizard tomorrow to prepare for Plan B (the great escape).

[ryan]

It's no wonder that more and more people are shoving their middle finger up to the mortgage industry. I do wonder sometimes if it's not an orchestrated takeover of private property.

Thanks for your post. I think its important that people know what a screwed up mess these banks are, when it comes to modifications. I know exactly what you are talking about as I have gone thru it with BofA.

It is hard to know whether the chaos is on purpose or just because these banks are overwhelmed by applicants for mods. I personally know many people who have gone thru basically the same crap you have.

The banks stack the deal in their favor, anyway. "YOu can only request 5 to 7 days BEFORE the sale" - how stupid!
They bring everything right down to the wire and can still cancel you at the last moment.

I would like to shove more than my middle finger up the banks ***, if you know what I mean.

[BROKEDED]

I know exactly what you mean. I hate dealing with businesses particularly when it comes to financials where you have to ask the right question the right way to get the right answer.

Example: Do I have to fill out this form? Short answer: No! (You don't HAVE to do anything) A more helpful answer: Only if you want your application accepted or a simple yes!

It's like some professions withhold information until a question is posed in such a way that they have to answer it to keep from lying. And some of the same professions are hard put to offer any more information above and beyond what will answer the question.

No help, what so ever.

[researchnerd]

We went through the same thing for eight months with CitiMortgage, and I have a friend who tried to get a Wells Fargo modification for over a year. Neither of us got anything other than the runaround, having to re-fax the same documents over and over, and hours wasted on phone calls with people who knew nothing. We both ended up in foreclosure, there was just no way to get it to work. Mortgage lenders suck.

[SMinGA]

Is this a HAMP/federal mod you are working on? Just wondering, as my inhouse with BofA was a totally different story. Never had issues with missing info, faxes lost, etc. but then I did write the loan number on each and every page in the top right corner. Only time I had to 'refax' was because I sent only my 1040, and they wanted the supporting schedules as well.

I don't know if loan type, state of residence makes a difference. Don't really know exactly what type of loan mine is, though my note does reference Freddie/Fannie.

[BROKEDED]

The first call I made to LoanCare was to verify what they listed as "required" in their package that they sent to me. I asked if that was all and the answer was, "Yes."

After filling out their package I called again to double check. That's when I found out that I needed another form that they hadn't provided nor required according to their package. I asked again if that was all and the answer again was, "Yes."

After sending all of that to them is when I called to make them aware that it was sent and simply reverified again what the second person said was needed. That's when I was told of two more documents that again were not mentioned in the package they sent to me

All of my information was notated with pertinent info like loan number, names, etc. highlighted with neon yellow ink and a cover sheet was included listing all the forms that were sent and in the order they were sorted. That's about the limit that I can do. I can ask all day long if there's anything else but if I'm not told and it's not listed then I can't include it.

The deck is definitely stacked in favor of the mortgage company and my honest opinion is that it's by design. I'm sure that there are aggressive formulas and calculations that take everything into account from 12 month change in home values in your area to 12 month outlook to comp homes by radius and their cost to hold their hand as far as insurance and property tax or at what cost it will be to write off their losses. If your house is a good deal for them, you probably would need all your "i"s dotted and your "t"s crossed to keep them from taking it.

Of course, they have to let some homes go back to the owners to show that they're trying.

[Tommyboy918]

I have been through the process once already I delayed my bk7 to try for the mod with Chase. Was denied after 5 trial payments. I have now filed bk7 today and will retry after when my loans on 2 homes are not reaffirmed. Chase sucks

[tcreegan]

GMAC no-mod

Hello all,

I negotiated with GMAC for 6 months and never came up with a workable mod. They offered a mod, but it was still not within my means. Then they said b/c they had offered me a mod, they didn't have to offer a HAMP (which would have been w/in my means) and guess what.....they were right. FHA rules.

The kicker is, when I told them the probable loss on the house was 30K and that I would like to talk to the investor(s) that actually held my note, they said that didn't matter, the investors knew there was risk and didn't care. Never did find out who the investors were.....

go figure.....

Tom in Colo