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.