Completed 3 months Trial Plan and Denied for Permanent Mod? Please post here!

[RAMD05]

Is your 3 months trial plan completed and you were denied for a permanenet Loan Mod, for any reasons? Please let us know.

[Evan Bedard]

It seems most of the homeowners who have completed this trial period are back in process...

It almost seems as if the process has started over after complete, hopefully this will change soon...

[Chased around and around]

I have heard a tow stories who were denied after the three trials were done but then they were told in both cases to keep paying the trial payments. The two I read yesterday on another blog and they are both on their 4th payment and they said now they were not denied.

I hope one day chase will get its act together and tell all their operators to answer with correct information instead and making it up as they go...

[tpenn2]

All -

I completed a 3 month trial payment: April, May and June of 2009. After submitting all three payments on time with certified checks, my file was then transferred to another department within the loss mitigation department. After discovering who my new negotiator was, customer service asked me to continue making trial payments: $2,147 from the original $2,903 that was my mortgage.

I made an additional trial payment and the new negotiator said that was not necessary. After reviewing my file for a couple of weeks, they transferred it to another negotiator on the West Coast - where I live. He gave me her name: Michelle Crawford and the same customer service number that I had originally had...At least before I could contact my loss mitigation person directly. After waiting a few weeks to here from Michelle, she finally called me on Friday the 28th of August, stating the she needed updated financial pay stubs to compete the final file. Keep in mind the last negotiator said everything looked fine, so long as my income hadn't changed from the time it left his office. I proceeded to fax her my updated pay stubs that same day. Then I waited again. After calling every week to get a status update, customer service kept telling me that she received the updated pay stubs and the file was still in "Work Out Status".

I thought everything was on track, even after reading countless new's reports that as long as you make the 90 trial payments, the modification would become permanent. Well last Saturday, I received a letter back from Washington Mutual stating the I do not qualify for the MHA or the Chase programs due to "Insufficient income for the Credit I was asking for"....That was it! Nothing else...I could get a free copy of my credit report that details what???

I soooo confused and don't know what to do next. I asked the customer service person to have Michelle contact me directly so she can explain the decision but it's now Wednesday and I have yet to hear from her. I asked if I could re-apply and they said "Yes" but what does that mean?

If there is anyone out their that has any answers, please let me know.

By the Way, my Income is $104K a year so I don't know what "Insufficient" means to them.

Thanks,

Trevor

[Evan Bedard]

Hi tpenn2 welcome and thank you for joining.

I soooo confused and don't know what to do next. I asked the customer service person to have Michelle contact me directly so she can explain the decision but it's now Wednesday and I have yet to hear from her. I asked if I could re-apply and they said "Yes" but what does that mean?

If there is anyone out their that has any answers, please let me know.

Next time you call in make sure you use the loss mitigation number like you were before. I do not know why they had someone from customer service take care of it because they seem to have no idea what they are talking about. Since you were denied they will more then likely make you submit updated financials once again. So I would give loss mitigation a call right away and see what they can do..

[dtap57]

tpenn2, Your 3 month trial payment is at 25% of your income. Do you have a lot of debt on the back end side? How did you get them to go to 25% for your trial payment? Were you behind when you got the trial payment?

[tpenn2]

Actually, when I first spoke with the loss mitigation person she thought my monthly gross was 7K (31%x7K)=2170. But when I faxed over my pay stubs they refleted 8K, so I should have been at around 2400. Either way, they sent a letter stating I was being denied after making 4 trial payments on time. I just spoke with a customer service representative and can't understand what Insufficent income relative to credit applied for is either and put me in touch with the supervisor - Stella Rey at Wamu.

[Kalvin09]

I was on trial payments for 6 months and got denied this week....but they still ask me to pay the same amount for November while they look into other options.....

[a2kman]

I have made 4 trial payments talked to them yesterday and they said "waiting on underwriting" today I recieved a certified notice to forclose and I have 32 days to bring my account current.

Has this happened to anyone else?

TIA

[rachel_p]

We received a NOD when we finished our forbearance plan with chase. The said to disregard it. We haven't received anything since.

[a2kman]

Hi Rachel,

Thank you, I have seen this before but it upset my wife which of course upsets me, just needed a little reassurance. I will be calling AGAIN Monday morning. I think I am going to change my screen name to Chase_BS_BS_Approved_BS :-)

[rachel_p]

Sorry, I misspoke a little bit...we received a notice of intent to foreclose, not a notice of default.
Just wanted to clear that up!

[tpenn2]

a2kman -

Thanks for the reply....What was the reason they gave you for the denial?

After receiving a denial documents from Chase/Wamu last Saturday, which completely bummed me out - I can reference five sites and countless news articles that claim once anyone has completed the 3 trial payments "On Time", the modification becomes permanent. Question - Why would it take 3 months after you complete the trial payments, 9 months after you start the whole process and paperwork, with nothing changing in you circumstance for them to realize based on their criteria that you are still a risk for a final modification. They don't check any of this during the trial modification? Why give you payment that they think you can handle? And if they think that you may need something higher for them to justify or feel comfortable that you can manage the payment, offer it upfront to not avoid any issue that may come as a result of the "Investor's" that ultimately make the decision on the loans they approve or not.

Just a thought....

Anyway, I contacted my old "loss mitigation" person who originally had the file...Go figure the guy called me back the same day after I left a message. For some strange reason, the first two folks that has my file, called me or answered the phone more than the person who had it last...By a 100%. He said that it is unusual for "insufficient income due to credit requested" to be the reason for the denial and his only excuse would be that when they originally got the loan, the "terms" or "Investor" criteria could've changed since they has the loan - "BS" and that's was th reason for their denial...

Either way, he said he would send an email to my negotiator and let her know that I want to speak with her - Let's see if she calls!

I will fax a message to her office, since it's my only form of communication at this point and see if I can't get her to respond. Still thinking of what I need to say to have her call me back....

[tpenn2]

Does anybody know what are the next steps after making your trial payments on-time, then denied for whatever reason? I'm trying to figure out who I need to contact since the person that denied me has yet to return a call.

[cleach]

I would suggest speaking to your Loss Mit representative. Or, look through the forums here and find one of the "higher ups" and contact them.

We did our trial payments, were denied and now we're in foreclosure. So my advice is: talk to anyone you can ASAP, don't wait, record your phone calls, and don't take what ANYONE from your lender says as gospel. Keep pressing, because they will tell you ANYTHING - it doesn't necessarily mean it's true (as you've already found out).

[tpenn2]

After you are then denied, is the Mortgage servicer required to sent you a notice informing you are now back in foreclosure? I haven't heard a word from them since they since me a notice that they denied my request for final Mod - under MHA and Chase. I just don't want to get home and see a "Bank Owned" sign on my door.

Has anyone seen this happen?

[c150000]

hi
you mean you that have already been denied have not been offered anything
like repayment plans, nothing?
were you already in foreclosure? and how may months behind?

[tpenn2]

Well,

This has been going on since last November - Yes, last November! I was offered the trial plan in April-May-June. Completed all the payments on time, then the Loss Mitigation person said I should make another payment in July because they were still finalizing the permenant Mod. Did that and they were still not completed with it in Aug and Sept. By the way, didin't make anymore trial payments because they transferred my file to another person within the dept. He said I should not have made the additional trial payment. Anyway, It was late September that I recieved the denial letter - It stated, Insufficient Income due to Credit requested. But they said to call and see if their were other options to foreclosure - Called but still got no definite answer....That's where I'm at right now.

[c150000]

tepenn2
how many months behind are you? were you already in foreclosure?

[tpenn2]

8 Months, no I was not in Forclosure because it was at the time of the new adminstration coming in and they hadn't figured out what to do with folks behind in thier payments.

[skyblue58]

Hi,
I am another one on a loan mod through Chase Home Finance and its been 11 months since I filed, back in November 2008. They keep misplacing or losing all the docs I fax over. I can say one important thing is you need to keep every piece of paper you send or recieve in regards to the modification because they will misplace your doc and request that you fax them again. I had to go through 2 different mods, the first was before the O'bama plan. Then after I did the forbearance on the first mod. they told me after paying for four months, that I had to reapply under the Obama plan. So I did and from March till now I make the payments and they still can not tell me anything. I too do not recieve any statements in regards to my account. Even my credit report does not show any activity since October 2008. Does any one else have activity on there credit report?

[tpenn2]

Hi Skyblue58,

Can't tell you what my credit reports says - That's the last of my problems at this point.

I just want to know what other options are as this has gone on way to long!

The customer service folks seem to be the only folks that answer the phone - Kinda left in the middle of trying to give advice, between Loss Mitigation & all this criteria...Bad problem to have!

I did read an article in the USA today back in September that details folks that recieved final modifications but are again at "Risk's" of ebing in default due to: Late Fees, Property Taxes and past due amounts being added back into the loan.

Either way, at least somebody got something other than a "Trial Mod" so far...Where are these people and what was different in thier circumstances.

[skyblue58]

tpenn2,
I am at whitts end with this company. The more you rage at them the longer it takes. Not that I rage at them, but that is what some of the reps tell me. I am very scared at what the outcome might be after seeing some of you being denied.

[tpenn2]

Skyblue -

It's amazing that you go through 11 months of submitting - re-submitting paperwork, Trial Mod's paperwork, more paperwork, a couple of Loss Mitigation folks transferring your file back and forth and then get denied with a one line snetence - AMAZING!

Then you try to call back to get an answer and nothing - I can't tell you what my situation is at this point!

How many more of ME's are out thier?

[Georgebow]

I just got denied today on the phone after working this modification for 11 months.

They said I could afford my current payments because I was current before starting the trial. This is after they calculated my gross income at $7,200 with my PITI at $4,800 a month....

BUT I do not qualify for Obama because of my ratios, seems a little backwards.