Chase sent Fannie Mae mod offer, have some ???'s please

[bcabo]

We stopped paying our 1st and 2nd last August. We have an NOD filed on our property. Today we got, by UPS Next Day Air, a Fannie Mae mod offer. Our original lender is Chase. The payment is about $1300 less than our original payment. It says all we have to do is sign the paperwork and send it back, then start making the new payment on May 1 to accept the offer.

After reading through the paperwork, I had a couple questions.
1) Does Fannie Mae even do mods on non-owner occupied houses? We moved out of this house 3 years ago and started renting it out. Even with the rent we were getting, we were still paying $1500/month towards the mortgage.

2) The packet states that "Your new monthly payment will also include an esrow for property taxes, hazard insurance and other escrowed expenses, but your servicer will separately notify you of the escrow amount to include with your monthly payment." I'm reading that as the payment they list on the coupons they sent us do NOT include the escrow, which could easily add $500/month on to the payment. Plus, we currently have an escrow shortage in our account, so we would have to pay that back too.

3) It does not give any info or details on what the terms of the mod would be, only that AFTER making our trial payments we would be sent the Perm Loan Mod docs. It also says "you MAY be eligible" for this, and if there was an error in our "eligibility determination" this offer is void. So we are supposed to just pay this for 3 months and hope for the best? Um, I don't think so.

[bcabo]

I wanted to add, we have never applied for HAMP or any other mod. We have not sent in any info to them at all. So we would most likely have to submit financials before they would consider this for permanent modification, correct?

[Evan Bedard]

I wanted to add, we have never applied for HAMP or any other mod. We have not sent in any info to them at all. So we would most likely have to submit financials before they would consider this for permanent modification, correct?

This is very strange you received a modification offer on this property and I would not provide any money or accept the agreement until you verify it with Chase.. I do not know why or how they would send you an agreement on this property if you never even applied for a mod or sent in any of your financial information..

[bcabo]

That is what I thought. The name on the return address is listed as "MS ALT MOD", from my research the Fannie Mae Alt Mods were being offered to people who completed a HAMP mod trial period but were denied a perm HAMP mod because they didn't meet eligibility requirements. That is not us.
Even if it is legit, I have no idea how they arrived at the payment amount. We haven't given them any info since our last refi in 2006! They make it sound so easy, though. Just sign the paper, send it back and make the payments, and your loan is modified. If it is a scam, I hope no one falls for it.

[Evan Bedard]

That is what I thought. The name on the return address is listed as "MS ALT MOD", from my research the Fannie Mae Alt Mods were being offered to people who completed a HAMP mod trial period but were denied a perm HAMP mod because they didn't meet eligibility requirements. That is not us.
Even if it is legit, I have no idea how they arrived at the payment amount. We haven't given them any info since our last refi in 2006! They make it sound so easy, though. Just sign the paper, send it back and make the payments, and your loan is modified. If it is a scam, I hope no one falls for it.

Yes there are many scammers out there right now so do not believe anything you get unless it is straight from your lender and they verify it is accurate.. Do you know if Fannie Mae even owns the loan on your rental? You can check if they do through the link below. Also HAMP is only for primary residences so your rental would not qualify under it..

Does Fannie Mae Own Your Mortgage? Loan Lookup Tool

[bcabo]

Yes there are many scammers out there right now so do not believe anything you get unless it is straight from your lender and they verify it is accurate.. Do you know if Fannie Mae even owns the loan on your rental? You can check if they do through the link below. Also HAMP is only for primary residences so your rental would not qualify under it..

Does Fannie Mae Own Your Mortgage? Loan Lookup Tool

Well, apparently Fannie Mae does own our loan. I had no idea. I looked through all of our loan docs and there is no mention of FM anywhere.
We aren't going to do anything with the mod offer anyway, so I guess it doesn't matter. But so strange that FM owns our loan and we never knew.

[Evan Bedard]

Yes many people have no idea who the actual investor is on their mortgage until they begin researching.. A lot of people think the investor is the same as the one servicing the loan, when in fact it is not too common for the investor/servicer to be the same entity..

[mikretsam]

it seems like i got the exact same paperwork as you. boa sold my loan to fannie mae and i got a mod offer from them. I am thinking of accepting the offer as it is over 1k less. I guess its normal procedure, even though it blows my mind that they do not give details about the loan until the 3 month period is over.

[Evan Bedard]

it seems like i got the exact same paperwork as you. boa sold my loan to fannie mae and i got a mod offer from them. I am thinking of accepting the offer as it is over 1k less. I guess its normal procedure, even though it blows my mind that they do not give details about the loan until the 3 month period is over.

I do not think BofA transferred your mortgage to Fannie Mae.. Fannie Mae is an investor and they do not actually service the mortgage they own.. BofA should still be servicing your mortgage..

[bcabo]

mikretsam, be careful and read the fine print on that offer. The payment on ours did not include the escrow amount, which would bump it up quite a bit. Plus, they can still deny you even after you make the 3 payments. My brother and his wife went through this same scenario, their lender (Suntrust) told them they would mod their loan. Make these reduced payments for 3 months and then it will be permanent. The new payment was significantly less, so they jumped at it. After 3 months, Suntrust denied them, started foreclosure proceedings, then sold their loan to another company. Plus, the 3 months that they were making reduced payments went on their credit as being less than what was due, even though they were following instructions from the mortgage company. It was a mess, but luckily they ended up getting their loan modded with the new company.
I'm with you, I can't believe they won't give the details of the new loan until after the 3 months. Assuming it even gets approved. It just proves they know how desperate people are and how low they are willing to stoop to make more money.

[freedomwon]

I do not think BofA transferred your mortgage to Fannie Mae.. Fannie Mae is an investor and they do not actually service the mortgage they own.. BofA should still be servicing your mortgage..

Hi Evan, I understand your point about how the owner (investor of the loan) & the servicer are usually NOT the same and are in fact different entities.

I also recall back in August, BofA sold a portion of their loan portfolio directly to Fannie Mae. Perhaps that is what happened with poster Mikeratsam's loan. Although I just recently read that BofA will no longer any of their new mortgages to Fannie http://www.nytimes.com/2012/02/24/bu...-mae.html?_r=1

[mikretsam]

mikretsam, be careful and read the fine print on that offer. The payment on ours did not include the escrow amount, which would bump it up quite a bit. Plus, they can still deny you even after you make the 3 payments. My brother and his wife went through this same scenario, their lender (Suntrust) told them they would mod their loan. Make these reduced payments for 3 months and then it will be permanent. The new payment was significantly less, so they jumped at it. After 3 months, Suntrust denied them, started foreclosure proceedings, then sold their loan to another company. Plus, the 3 months that they were making reduced payments went on their credit as being less than what was due, even though they were following instructions from the mortgage company. It was a mess, but luckily they ended up getting their loan modded with the new company.
I'm with you, I can't believe they won't give the details of the new loan until after the 3 months. Assuming it even gets approved. It just proves they know how desperate people are and how low they are willing to stoop to make more money.

in the q& a section that they sent me with the mod offer it states "your trial period payments include escrow amounts to cover your property taxes, insurance premiums and other permissible escrow fees based on our current escrow analysis" .......

my rep got back to me and said my rate would be reduced from 6.125 to 4.625 ......... and the term would be 480 mo......... jesus

[freedomwon]

in the q& a section that they sent me with the mod offer it states "your trial period payments include escrow amounts to cover your property taxes, insurance premiums and other permissible escrow fees based on our current escrow analysis" .......

my rep got back to me and said my rate would be reduced from 6.125 to 4.625 ......... and the term would be 480 mo......... jesus

mikeretsam - You previously had a 20 year loan & now they will extend it to a 40 year loan? You will be paying another 20 years worth of interest at 4.625 percent. Is there no end in sight to the GREED?

[mikretsam]

mikeretsam - You previously had a 20 year loan & now they will extend it to a 40 year loan? You will be paying another 20 years worth of interest at 4.625 percent. Is there no end in sight to the GREED?

yeah, these fkers need to die......... im trying to figure out how long it would take if i could pay 1k more per month......

[freedomwon]

yeah, these fkers need to die......... im trying to figure out how long it would take if i could pay 1k more per month......

If you paid an additional $1,000 per month, you could have the loan paid off in 15 years. This is based on a current balance of 313k, interest rate of 4.625 & 480 month terms.

Your monthly payment including the extra monthly principal of $1,000 per month would be $2432.38, however; that does not include any escrow amounts required by the the bank.

If you have the funds, I wouldn't start making extra principal payments until a year or so after your mod has been finalized. That just shows Fannie you didn't need the mod to begin with. You can always stash the $ money away for a bit, then do a one-time principal payment to kick start your plan.

[mikretsam]

If you paid an additional $1,000 per month, you could have the loan paid off in 15 years. This is based on a current balance of 313k, interest rate of 4.625 & 480 month terms.

Your monthly payment including the extra monthly principal of $1,000 per month would be $2432.38, however; that does not include any escrow amounts required by the the bank.

If you have the funds, I wouldn't start making extra principal payments until a year or so after your mod has been finalized. That just shows Fannie you didn't need the mod to begin with. You can always stash the $ money away for a bit, then do a one-time principal payment to kick start your plan.

ty freedom....... i really appreciate your help, i have no idea how those threads got combined, i see that it kinda ends up the same if i can make what my previous payment was. I will take your advice and pay more on the loan about a year in, thats when i anticipate being able to catch up on things. Hopefully i dont get any bs from fannie mae after i make my three trial payments. Thank you sir for your help.