3 month trial vs. Forebearance plan

[BudgetCutsinOC]

Are they the SAME? I was told they are very different.

[shade]

Much different - forbearance is just giving you time to come up with the money or they allow you to reduce your payment for the forbearance time period. It is not permanent.

[BudgetCutsinOC]

so forebearance would be the offer you do not want? right? Sounds like the 3 month plan moves you into the remod process.

[fla borrower]

Proceed with caution on both. Many people like myself were offered the three month trail justt to be denied after we paid everything. It 's kind of a damned of you do damned if you don't.

[Marie T]

The woman who called me today from WAMU said what they were offering me was a 3 month forbearance trial, it is $700 more than my payment before and does not include insurance or taxes. I am 3 months behind and my feeling is that they are just trying to get as much money as they can and they aren't going to offer anything better. She said I was "not required to accept this"...no kidding!....but if I did not accept it, I would have to start the process over.

[SwillerAlesbane]

That's just the low level collections department, tell them you have no money to make ANY payments anymore and need a loan modification.

Forbearance is simply the lender allowing you a time period to get "current".

I have not heard of anyone getting a 3 month trial modification w/o being late on their payments, meaning they would HAVE to grant you forbearance to get the loan modified. If they didn't grant you forbearance, all missed and late payments would be required to be PAID IN FULL before a modification could take place.

If people can PAY IN FULL, why would they need a modification? (I'm using BANK/usury logic here)

If I'm wrong and someone on this site has gotten a 3 month trial without missing a payment, then I would very much like to hear about it.

[azdmsmith]

I submitted my HAMP application on March 5, 2009. After hundreds of pages of faxes, countless phone calls, several denials for bogus reasons, and compaints to everyone I could think of, I was placed on a 4 month HAMP trial period effective Sept 1, 2009. Although I drained my savings, I remained current throughout the process. A 4 month trial period is required for borrowers who are current. I think I saw one or two other people in this forum who were placed on a trial mod while current. It is NOT easy, but it can be done.

I don't want to hijack this thread, but my entire story so far is in the thread "home affordable mod on a 40 year mortgage and navigating chase".

[sdeli44]

I tried to get a mod in Feb. of '09 and was given a 3 month trial that was $1400/mo. less than my original payment. I am current and have never been late and have excellent credit. Now after 4 months of trial payments I just received a letter saying that my hardship is not permanent. Now what are my options? They said i could call Loss/mit or forbearance. Should I hire an attorney? This year I have already made more than the avg. of my last 2 yrs. of tax returns, so they are saying that I make too much money now. I work freelance from job to job, sometimes I'm busy sometimes not. Any info would be much appreciated.

[SONORACADREAM]

I would say you forgot a few things that are affecting you, and thought if you lost your job you would qualify for help.
Stress causes illness, intensifies arthritus and that has almost disabled me.I am 46 and have inherited my Mom's Rehumatiod artheritus, I know it is there, I have my joints get swollen and ache. Building is slower than ever seen for me, and I am almost a broken human being from stress.Re-apply your letter of hardship, loss of a roomate,loved ones income?

Banks are the Hardship I my life,feed the pig ids the banks charging high interest.Ruining peoples hope's and dreams. I would take on the CEO in the ring with my dissability's and win! He has a tie on, it makes a great collar so he does not (Chase his tail) MR.Demon is his name.

[DenieLisa]

Originally Posted by sdeli44

I tried to get a mod in Feb. of '09 and was given a 3 month trial that was $1400/mo. less than my original payment. I am current and have never been late and have excellent credit. Now after 4 months of trial payments I just received a letter saying that my hardship is not permanent. Now what are my options? They said i could call Loss/mit or forbearance. Should I hire an attorney? This year I have already made more than the avg. of my last 2 yrs. of tax returns, so they are saying that I make too much money now. I work freelance from job to job, sometimes I'm busy sometimes not. Any info would be much appreciated.

I'm self employed as well.

Unfortunately, you do need to show that your income , this year, has had a substantial change and why from last. You should be providing them with last years tax return, past 3 months bank statements and a P&L for the last 3 months.
If you're making more this year, so far, then it's going to be hard to convince them you need to have a modification under HAMP

What you need to do is pursue your claim under the HARP program which gives you a good fixed rate....hopefully!! This is the gov's refinance program as apposed to the modification (HAMP) program.

[Riley18]

Originally Posted by SONORACADREAM

I would say you forgot a few things that are affecting you, and thought if you lost your job you would qualify for help.
Stress causes illness, intensifies arthritus and that has almost disabled me.I am 46 and have inherited my Mom's Rehumatiod artheritus, I know it is there, I have my joints get swollen and ache. Building is slower than ever seen for me, and I am almost a broken human being from stress.Re-apply your letter of hardship, loss of a roomate,loved ones income?

Banks are the Hardship I my life,feed the pig ids the banks charging high interest.Ruining peoples hope's and dreams. I would take on the CEO in the ring with my dissability's and win! He has a tie on, it makes a great collar so he does not (Chase his tail) MR.Demon is his name.

I have also just come to the conclusion that this stress is having a very detrimental effect on my health. In the past two months I have been out sick for 11 days due to a knee injury, and I really went back to work before I was ready. Yesterday I was diagnosed with Swine Flu which in the past I have always been able to avoid sickness. I think this situation has made my immune system very weak. I also have inherited arthritis which was diagnosed as the root cause of the knee injury. I had a simple fall at the gym and my knee blew up to the size of a softball. Seven weeks later and it is still not right. Oh, these illnesses have also added to my hardship because of the increased medical expenses.

[gordilox86]

I would just add. Although a forbearance is a temporary arrangement and the HAMP Trial Period Plan is the true path to a Permanent Modification. Chase sometimes uses the term "Special Forbearance" to describe the HAMP Trial Period Plan.

Just make sure you get yourself the HAMP "Trial Period Plan" (preferrably signed), before you let Chase off the hook.

Also, I was current and entered a 3 Month Trial Period Plan, but I got mine during infant stages of the program.

[nativelasvegan]

It is important to know who your investor is. I have been offered the forbearance agreement too and have declined. My investor is Fannie Mae. According to the Fannie Mae regulations, forbearance or other options of so-called help are in the form of repayment agreements, forbearance agreements, and offered ONLY when the borrower is NOT qualified under HAMP. I told my negotiator aka Bank Employee I was interested in this form of relief because I have always paid my bills including the mortgage, and I received a repayment agreement. After reading this bullshit agreement and understanding that the bank can do anything they want after it ends, I decided not to sign it. I am not able to make regular mortgage payments. Since foreclosure usually starts 90 days after delinquency, I have chosen to pay a full payment (kind of my own forbearance plan without the bank acting on its own without investor approval, WTF...still trying to decipher how a servicer can act on its own without investor approval) before the 90 day delinquency hits. Kind of my rationalization to stay off foreclosure. There is no guarantee of a modification after you have completed your "forbearance" payments. In my opinion, if you agree to a forbearance agreement, you give up certain rights, one that is extremely important is the bank's ability to call the full amount of the loan due. If you are considering forbearance, do it yourself. Save up enough money to make a full payment and make it before the deadline of the bank's right to call the full amount due or foreclose. Just my opinion. Do your own research. There is a lot of information here on this forum. Use the "search" feature and read, read, read.