Trial payments being made but reported late

[kurtjones]

Hello everyone,

I am currently waiting to have my loan permanently modded. I have made the 4 trial payments they asked for and this is a mod under Obama's plan. We are still waiting to hear when we will get the final docs for our modification (just like everyone else).

My wife checked her credit report and found that the bank is reporting us as being behind 1 month on our payments and it is bringing down our credit score. I know it was mentioned on this forum that something would have to be reported against our credit since we are not paying the full amount, but is it OK for them to say we are behind on a payment?

We have NEVER been late on our payments and I am surprised to hear that they are reporting us this way. Anyone else with a similar situation?

[Evan Bedard]

Hi kurtjones welcome and thank you for joining.

My wife checked her credit report and found that the bank is reporting us as being behind 1 month on our payments and it is bringing down our credit score. I know it was mentioned on this forum that something would have to be reported against our credit since we are not paying the full amount, but is it OK for them to say we are behind on a payment?

We have NEVER been late on our payments and I am surprised to hear that they are reporting us this way. Anyone else with a similar situation?

I'm not sure why this is happening on some cases on not others.. There are quite a few people here who are being reported late as well while going through this trial period...

[kurtjones]

I have contacted the Executive number (888-310-7995) and they opened a case. I was told that it will take around 3 days for a response.

[Evan Bedard]

Good strategy Kurt!

Good luck and keep us posted!

[shade]

They will only send the request to loss mitigation who may or may not help. I would make sure you specifically state that the HAMP program says if you are current going in then you are to be reported as current. If they give you crap then let them know they are breaking the guidelines and they should then help you out.
I am one of those they are reporting late also (now showing a 90 day).
Once the mod is done I will have them fix it.

[rlhoneydew]

Hi,
Yes, I just checked my credit score... it is now horrible (in the high 500's! ), even though I have not EVER missed a payment with Saxon??! I approached them prior to missing a payment when I knew my loan would adjust and it no longer would be affordable (March '09), and have made three trial payments, 6/1, 7/1, & 8/1. Never was there a month that I was late, or missed a payment... The credit agencies are showing me over 60 days late on my mortgage.

At the beginning I received mixed info. Some Saxon reps. told me that if "this" happened it would be fixed after the mod. is completed. Other reps. at Saxon said that because I have never missed a payment, I would not be reported late. Not true...

I also thought that the HAMP guidelines said if you were current at the beginning of your mod, credit should not be affected??

This is stressing me out... I am still waiting for my final paperwork. Sometimes I wonder if it will really happen?

[shade]

What I am hearing is if they are reporting late they are fixing it when the mod becomes permanent, this is to satisfy the HAMP guidelines of if your curent going in (and continue to make the payments on time) then you are to be reported as current.
I will test this once my mod becomes permanent hopefully early next week.

[rlhoneydew]

Well "shade", I am hoping that will happen.... We will BOTH be testing this! Hang in there!

[CW California]

I could offer this information. The MHA plan does say if you are current going into the trial period that you should be reported as current but making a modified payment. So I would definately fight to get them to change this immediately. Because of universal default the stupid cc companies with start raising interest and lowering available credit.

[rlhoneydew]

Thanks "CWcalifornia", that is an excellent point... I have already had some of my credit cards lower my limit & raise my interest rate, even though I am also paying them on time... CAN'T WIN!

I will see what they say today....

[shade]

They may give you the run around and if they do let them know you will disputing it with the credit bureaus so they might as well save the time and fix it under the guidelines.

[bur342]

Hi,
I have a previous thread about receiving the MHA offer and then it being taken away for no reason. My husband went into a Chase Homeownership last Friday (8/14) and they were very nice and called Fiserv. Well, they said that the second offer was still valid as long as we sent the payment that day. We spent HOURS upon HOURS on the phone and they basically said, "sorry start over" prior to this. It is unbelievable because we were never notified of a second offer (Why am I not suprised?).

We sent the modified payment via FedEx and it has been received and it looks like everything is a go. My concern has been the credit issue. We are current, but when we spoke to the rep in Loss Mitigation yesterday she said that the 3 trial payments are held in an account and we WILL be reported as late each month even though we are current on a modified trial payment.

Also according to the MHA chase paperwork we received on the FAQ's under Credit Reporting it states:

Durning the Trial Period, we will report your loan as delinquent to the credit reporting agencies even if you make your trial period payments on tirme. However, after your loan is modified, we will only report the loan as delinquent if the modified payment is not received in a timely manner.

Prior to this I was under the understanding that we would be reported as current, but on a modified payment plan. Is Chase in violation? Right now my husband and I have credit scores in the high 700's, and know we will take a ding, but are trying to keep them as high as possible.

I am just so scared to ask any questions when I call because of having the offer ripped away from us the 1st time. I am glad we have been reinstated, but am unsure if they can take it away again mid trial period. We are following the rules, but I don't think it matters with Chase.

Any input would be appreciated.

Thank you.

[kurtjones]

I just finished talking to the Executive team. They stated the same thing that bur342 said:

Durning the Trial Period, we will report your loan as delinquent to the credit reporting agencies even if you make your trial period payments on tirme. However, after your loan is modified, we will only report the loan as delinquent if the modified payment is not received in a timely manner.

They will not correct this until my loan is modded permanently. I asked when that would be, they said that they did not know.

So I asked did they consider it fair that my credit is being held hostage until they catch up in the loan modification process. She said that she understood my frustration but could not help me.

Any other ideas?

[shade]

Kurt - I got the same answer about 15 minutes ago. They are fixing credit when the mod becomes perm. I know the guidelines say report current if current and I dont know why they arent.
My executive team rep said that they are hearing strong rumors of credit amnesty for borrowers, but for those of us who were current this shouldnt matter.
What the amnesty would involve I dont know but he just said that they are starting to get pressure from the top down at examining this issue.

Write your congressman, write tarp, etc to get our credit fixed! the more of us that do the better chances we will have to getting things squared away at the end of our mods.

[rlhoneydew]

Well, I talked to Saxon last week, the rep. indicated that there were thousands of loans that were reported late in error (computer error they say). They have identified the loans that this happened to (like mine!) and are working on "repairing" their mistake. Hoping this is true.

Still haven't received final mod docs. They said I could pay as late as the 30th of this month and would not be considered delinquent. I was told my modified loan grace period would be exactly the same as my original mortgage (Due 1st, Late after 16th) so... I have not yet made my "4th" trial payment as the modified payment should be less than the trial payments I have been making (they calculated my 31% incorrectly!)

[smit5454]

Kurtjones,

What ever happened with your mod?

[MyHAMP]

Originally Posted by rlhoneydew

I have not yet made my "4th" trial payment as the modified payment should be less than the trial payments I have been making (they calculated my 31% incorrectly!)

May I ask you by how much? In our case, 31% of our gross is about 10% less than what we are paying during the trial. Just curious if this is the standard "trial surcharge" (10%) since the trial payments are almost always a bit higher than the modified payment.

[rlhoneydew]

Hi MyHAMP,
Our trial payments were just above 38%.... (Plus we had to make 2 extra payments for a total of 5 at the higher amount ) The woman who initially took our info over the phone calculated 31% THEN added in our Escrow. I believe it was just an error.

I did send a letter indicating that it appeared to be calculated incorrectly. Also, when I talked to my contact rep., I asked her to note it in my file. She said it SHOULD be caught in underwriting, which looks to be true. She called last Friday with the proposed payment, and it is @ 31%.

We are suppose to receive our final docs this week. I will be able to "confirm" at that point.

[MyHAMP]

Originally Posted by rlhoneydew

Hi MyHAMP,
Our trial payments were just above 38%.... (Plus we had to make 2 extra payments for a total of 5 at the higher amount ) The woman who initially took our info over the phone calculated 31% THEN added in our Escrow. I believe it was just an error.

I did send a letter indicating that it appeared to be calculated incorrectly. Also, when I talked to my contact rep., I asked her to note it in my file. She said it SHOULD be caught in underwriting, which looks to be true. She called last Friday with the proposed payment, and it is @ 31%.

We are suppose to receive our final docs this week. I will be able to "confirm" at that point.

Thanks, rlhoneydew!

Yeah, that's a clear error. But good to know you are on the right track.
Hopefully, that doesn't cause a problem with the final NPV-test but I think you passed that point already when they told you your proposed payment..

However, keep us informed!

[rollertom]

I talked to Chase Exec person and after your loan is finished they will (and the have to) fix the reporting on the credit. It is part of the "fair credit reporting act" and if you were never late and pay by the date they said then Chase HAS to fix it by law now.

[Kalvin09]

What happens if the final modification gets rejected? Will they still fix the credit report. I was never late getting into trial payments and after 7 trial payments, Chase rejected my final modification. Can they fix it now?

Offered me a Chase in house modification at the same original interest rate of 7.25%, which I did not accept.

[kurtjones]

Originally Posted by smit5454

Kurtjones,

What ever happened with your mod?

Well, unfortunately my wife decided to have an affair. She has moved out and is refusing to help make payments. I cannot afford the house by myself. This is my first month that I have not made a payment.

The mortgage is at $260K and my neighbor just bought his house, which is a bit larger without a pool (mine has a pool) for $195K. Since I am underwater by about 60K, I dont see many options.

I would need for chase to reduce principal and the HAMP mod to be able to afford the house now. I just have to wait until I lose it. Not much else to do.

[nodackto]

Hello , the correct version is if you were current going in and you pay what they say then when you get the hamp mod they will continue to report you current but with a mod. The question is "how does fico count for (current with a mod) in its algorithim" so the what im told it is a hit but not sure how much a factor in score