Trial Payment $500 more than original loan

[californiadreaming555]

We've been trying to get a loan mod since January. After back and forth (faxing docs 3x), we just gave up and stopped paying our two loans. Well it's been 6 months of not paying. Great for us financially. It's wiped us free of debt and we have some savings. Still no foreclosure notice (only notice of intent).

So feeling better about our financial situation, we call to check loan mod status. They have us go through our financials again. (We have a car payment now that is similar to what we were paying in credit cards so financials equaled the same as before.) The call lasted maybe 5 minutes. Then they tell us that our 3 month trial payment will be $500 more than it was originally - for just our first loan. We have to call another office about our line of credit (2nd loan) modification.

They said that when we get our loan modification finalized, the monthly payment could go down. But we're thinking Yeah Right. Honestly, we don't think we'll pay the trial period cause frankly our house isn't worth 2x what a rental would be. And our house is 200K+ underwater. Our credit scores have already seen a 300 point drop each so what more damage can foreclosure do.

Just wondering if anyone else's trial period is significantly more. Seems like the guy just pulled the number out of a hat. I think it's all a stall for the bank so they don't have to show a foreclosure on their books this year. Come next year, all deals off.

According to my calculations: Monthly first loan mortgage payment + property tax + house insurance = not more than 31% of monthly income. Our first loan mortgage payment should be at least $100 less than what we were originally paying (with property tax/insurance included this time). We were barely getting by with our mortgage before due to less income - which is still a problem so why do they think we would be able to pay more?

[Evan Bedard]

Hi californiadreamin555 welcome and thank you for joining the forum.

They said that when we get our loan modification finalized, the monthly payment could go down. But we're thinking Yeah Right. Honestly, we don't think we'll pay the trial period cause frankly our house isn't worth 2x what a rental would be. And our house is 200K+ underwater. Our credit scores have already seen a 300 point drop each so what more damage can foreclosure do.

Most lenders are offering a trial period at this time before a permanent modification can be done. Most of the time your trial period payment will be lower then your normal payment, but since you are six months behind this may be the reason of the increase...

[Evan Bedard]

Sorry cut off short..

You should try to counteroffer this original offer and negoitate a lower amount if possible...

[Chased around and around]

dreaming55, I just rec'd two more intent letters today, these were just first class since I never go to the post office to sign for the certifieds.

Both letters one for my wife and one for me, state that due to our late fees and no payments on the first loan since Feb '09 our payments are now $2767.36 per month. The first loan was $2275.75 and was adjusting to $2940.47 in Aug '09. My second is $864.80.

We just rec'd a new tax assessor letter stating that our, or should I say the banks property is now worth $316,500.00. We bought in '06 at 535K.

I hired a mod company in March and so far we are not in foreclosure. I am doing the same as you, paying off CC and closing those accounts and putting money under my mattress.

I am not attached to this condo and will walk if they don't offer me something less than rent, why bother anymore. We will never come out ahead of this. chase could careless about us and so far I have not seen one single mod even after the trials were done...

[willywonka]

I called chase in Nov. 08 trying to get a loan mod . My mortgage payment was $1292.00 . They told me to stop making payments , they sent me a homeowners assistance package to fill out and return . I called them two or three times a week for any updates , I got put on a forbearance payment plan for the months of April , May, and June 09 at $980.00 . After that was done , they wanted some financial updates . I kept on calling them three times a week . In July , I got approved for the Making Homes Affordable program , trial mod. payments start Aug. 1 - Nov. 1 at $705 .00 . They told me that will be my permanent mortgage payment .

[CHANLY]

I applied for the MHA modification and was waiting on the package and when I received it the payment amount was much more than it was supposed to be and certainly not the 31% gross that the guidelines state. I called several times and was told that was my offer take it or leave it. I finally got through to someone after repeatedly telling them that this was NOT what the guildelines stated for this program and giving them my income and expenses again. I ended up getting a corrected packet the next day. Point being that you need to make yourself very familiar with the guidelines and then call again and be insistent with the rep that there must be a mistake.

[snapple candy]

Californiadreamin,
Doesnt sound like they offered you the HAMP trial program. Chase tried to give me a mod that was just slightly lower than what I was paying for one year and then going more the 2nd and 3rd year. I told them to take a hike and hadnt paid my mortgage in 9 mths. I demaned HAMP but I also had fannie loan and new the guidelines. They kept saying I couldnt get the HAMP program but I was firm. They served me notice of sale and I still remained firm. (I think they thought it would scare me-it did not) Low and Behold a few weeks later I did get the trial payment that was 31% of my gross. IN the end I still might walk away. I am waiting to see final terms. 100K underwater and it just does not pencil out without decent terms. I figue I could get a few more months of free rent if I decide to walk in the end. Chase also has my 2nd and they immediately cut payment by 50% once I got the HAMP trial program.
I talked to a HUD counselor today. He has had 2 perm mods just processed from HAMP. It appears those were step up interest rates starting at 2% and ending at 4.75% by the 4th year. I dont know if really in the long term getting the lower payment for 2-4 years is worht it. I will keep updated on how his perm mods continue to be processed. I make my 3rd trial payment this week and will see how it goes.

[Chased around and around]

Originally Posted by willywonka

Making Homes Affordable program , trial mod. payments start Aug. 1 - Nov. 1 at $705 .00 . They told me that will be my permanent mortgage payment .

I have not heard of this yet, did they give you this in writing? I can throw chase farther than I trust them.

So far I have only heard of 5 year terms at low interest rates...

[Evan Bedard]

Hi snapple candy,

talked to a HUD counselor today. He has had 2 perm mods just processed from HAMP. It appears those were step up interest rates starting at 2% and ending at 4.75% by the 4th year.

These modifications look very similar to many that I have seen in the past especially with Countrywide..

[shade]

A step us seems to be the norm - now I am curious if the steps ups are with Freddie or Fannie as the investors.

[californiadreaming555]

Thanks for the responses! I called Chase to negotiate a lower amount but they told me I had to wait until I received the original offer in the mail, then reject it and apply again. So I'll do that and mention the HAMP Guidelines next time.

I'm still not sure we'll ultimately take a modification. Having now realized the low interest rates would only be temporary, I'm not sure this will help us in the long run. I think our house is just too expensive for what it is.

But I'm wondering now about property taxes. Our taxes are due in November. If we know we are going to foreclosure but the foreclosure isn't finalized until January, can we get away with not paying?


Thanks again