[azdmsmith]

Today I was “preapproved” for a modification under the Obama plan over the phone with my trial period payment, a decrease of $1,000, being effective May 1.

I made my weekly call to 866-550-5705 and told them my mod paperwork was faxed on 3/5 and I was looking for confirmation of receipt and status update. I didn’t get the standard we are busy/still figuring things out/can’t confirm receipt info. I was on hold and transferred and rerouted, but I was able to verify my app was received and was told that it normally takes 90-120 days to review. However since my loan is through Fannie Mae, they have a streamlined process and area that mine is being handled through so I was directed to call 800-466-8939.

I waited about 20 minutes. The person that answered took my loan info and looked it up. She again verified they had received my packet but there was no new info. She then said she could take my info over the phone and see what I qualified for. She took my net income and some expense info (utilities, groceries, clothing, entertainment, medical, vehicle payment, insurance and gas). She put me on hold and 5 minutes later came back to say I was preapproved for the Obama plan. She said the paperwork would be mailed out and I would receive it within 2 weeks. The payment went down by slightly more than $1,000 and comes to 38.75% of my NET income. She never asked for gross income which I thought was strange since the Obama plan is to get to as low as 31% of gross income. The payment she gave me is 23% of my gross income? I sort of gathered that the info from our phone conversation is what will be used to get the trial period started and they will continue to work on the official file to put together the final modification that will be put in place.

She said I would be in forbearance for 4 months and to “keep in mind it may affect your credit”. I questioned her about that and she said they would be reporting that I was not making my full payment. NOW I get why some of the other people who are posting are so angry. They are telling me to make the reduced payment because the plan requires the trial period, yet my credit will be dinged for it? I’ve never made a late payment and my purpose in all of this is so that I could continue to make the payments on time. I wonder how badly it would screw things up if I continue to draw from my savings and make the full payment during the forbearance period so that I can keep my credit score? I sure don’t think that the government’s modification plan intended for the trial period to impact people like this.

I guess I’ll see what happens when I get the paperwork. I have her name and phone number so feel like I am miles ahead of where I was last week. I don’t blame Chase or the Federal government for the fact that my work hours were reduced and I can’t make the payment that I committed to so I am EXTREMELY grateful for the opportunity to get help. Although the modification is only for 5 years, I feel like that will be enough to get me through till my kids are close to graduating and the market stabilizes enough that I can sell and find something smaller/more affordable. If the worst thing that happens is my credit gets dinged, I guess I’ll let that happen but it sure would be nice if there was a way to prevent that.