Modification? Forebearance? I'll Flip a Coin! - Loan Modification Forum

Calli09 · 01-31-2009, 02:22 PM

Hello all! I found this forum, and finally got the guts to make the "call" yesterday to Chase about requesting a modification. I am not late with pmt yet, but have not worked in 8 weeks due to layoff, and borrowing from Peter to pay Paul. Good credit is allowing me this, and for the time being, I have an excellent credit score, would like to keep it that way, but with things how they are now I knew things were going to be tight this Feb, and made the call. My original loan 30 yr fixed at 7% was purchased by Chase. The rep asked me about my current situation, and when asked about pay, said he wanted net info not gross info. Also asked about utilities, grocerys, car pmts, credit card pmts, etc. I gave him what he asked for and then he put me on hold. He came back and mentioned something about a forebearance, 3 months no late charges, said it would go on the back of the loan, then i would have to be current, then chase does modification of terms later. And then 40 yr loan not 30. I asked him who the investor is on the loan and he said Fannie Mae. I then started to ask him to explain what he just said about the forebearance, as I did not understand then he said he sent my info over and an analyst from "homeowners assist" will call me in 15 - 30 days. I am confused. Also, I am sure in 40 years I will be dead, so the 40 year thing is not gelling with me. Does what he said make sense? I am not sure whether to pay this or not, as I know that by the time its due, I will not have spoken to the analyst, acccording to what I have been reading here. My pmt is due 2-15, then it will be late. I would like a modification of the interest rate, but the forebearance thing is making me wonder how that works? Do they do both forebearance and mod? Or if you do FB, you get no mod. Also, 40 years, him mentioning that right off the bat with my first call is strange not? Any insight would be helpful. Oh, and when all was said and done, the info I gave him had me in the negative money wise. Thank you.

Moe Bedard · 01-31-2009, 02:36 PM

Hi Calli09,

Welcome to the forum and thank you for joining.......

The streamlined modification is the only modification that FannieMae as an investor is offering at this time and they are currently only looking at the loans that are 90+ days in default...............hence the forbearance first.............in order to modify an already low fixed rate........the only thing they are able to do is to lower the rate a bit and extend the terms out.
here is the link for the info on this program............

Media: News Releases > Streamlined Modification Program (SMP) Now Available to Borrowers

Calli09 · 01-31-2009, 02:52 PM

Thank you for the answer. I went to the link. The part of the link that scares me is
Forbearing on a portion of the principal, which will require the borrower to make a balloon payment when the loan matures, is paid off, or is refinanced.
Balloon pmt is not a good thing.
So, do I have no pmts for 3 mos, then this, or pay until I hear from them. Things are getting tight. Also what are all of your opinions on forebearance vs. modification? Any thoughts?

Moe Bedard · 01-31-2009, 03:02 PM

this is the only type of workout that is in place currently for FannieMae backed loans..............so if you are in need of a modification........this is the option available...........

a forbearance is a short term solution for normally 3-6 months depending on its purpose.
a modification is a restructure of the current loan.

They would be trying to get the payment within an industry standard range........the balloon is only one option to do that..........they don't do all of those options at once on one loan................they will utilize the rate reduction and extend terms first.

You will need to speak to Chase again to find out how you are to pay the forbearance.

HopingtoFind · 01-31-2009, 03:40 PM

Hi Calli09,

We have a property we are trying to modify... AmTrust is the servicer and Fannie Mae is the investor... We are also current on that loan with fixed interest rate of 6.25%. We received a very similar offer.. forbearance for 3 months and then possibly a modification if approved by Fannie Mae.
They are not telling me at this point what the offer would be...
After 3 months of forbearance you'll be technically behind and therefore would possibly qualify for permanent modification.
One important thing to keep in mind is if at then end of forbearance period you're not approved for a mod you will possibly have two choices: 1) to repay what is due as a result of not making full payment... or 2) have them add that amount to your loan..
I believe if you're current there is no way to qualify for a loan mod with Fannie May without going through a forbearance.

Calli09 · 01-31-2009, 03:55 PM

Hi, thank you for answering. I will await to hear from homeowners assist. Hoping, did you already get your forebearance offer?

HopingtoFind · 01-31-2009, 05:18 PM

Yes... that was the offer... to do a forbearance for 3 months and then go to Fannie Mae for approval of a permanent mod... I guess the worst case scenerio is if Fannie doesn't approve permanent mod you just go back to the way things were.

chasepmt2hot-firefighter · 01-31-2009, 05:55 PM

Does the forbearance go on your credit report?

HopingtoFind · 01-31-2009, 06:12 PM

No, forbearance should not effect your credit..

chasepmt2hot-firefighter · 01-31-2009, 09:06 PM

Is it possible for anyone looking at your credit to view it? If anyone has noticed it reported I hope they speak up. If anyone knows of Fannie Mae skipping the forebearance and going to straight mod please also speak up. They change the rules so much that I hope this one is changed as well.

MollyM · 02-03-2009, 08:41 AM

Beware of Forebearance.

Forebearance agreements usually require that you "accept" all amounts they say are owed. So you would not be able to redress any issues where your payments are applied or how they are applied.

Forebearance DOES affect your credit- as you are technically in default. It does NOT stop a forclosure- only delays it. In cases like this- it is allowing you to go into default, so that you can qualify for a mod.

Forebearance agreements can alter the terms short term- so an inscrupulous company can raise the rate of interest, still charge late fee's on the origional amounts that are technically "late" & open the door for force placed insurances, corporate advances & escrow issues. Once you sign a forebearance- you are signing that you accept all charges that they deem are necessary. Good luck with trying to understand how your payments are being applied.

Forebearance allows the mortgage company to alter the terms- often in how they are applying your payments. So they could legitimatly SPLIT your payments to pay their fee's= leaving your P&I in further default. I have seen this happen more than once.

Forebearances can be very tricky- & usually are to the profit of the servicer- & nobody else (servicer's get to keep all fee's they deem necessary in the collection of the note) The investors & trustee only see that you are technically in default.

Please remember that servicers make more money on your loan when you are in default. Normally,They make only a small percentage of your loan payment for being a bill collector. The rest goes to the trustee for them to distribute to the investors. BUT- they get to keep all the late fee's, service fee's, property preservation/inspection fee's, Drive by photo fee's, & attorney fee's. If you sign a forebearance- or once you are involved with the mitigation department-you will start seeing some of these fee's appear. It happens with ALL the servicers.

They can be used to help one get to that "mod" qualification, but beware the small print. The devil is in the details. Beware.

HopingtoFind · 02-03-2009, 09:33 AM

I explicitly asked about any extra fees or charges during forberance and the analyst assured me that there wouldn't be any.

As far as escrow, they could force you into an escrow if you fail to pay taxes or insurance if you haven't paid them regardless if you're in forbearance or not.

Not to say that you shouldn't be diligent and ask all the questions before you sign anything...

Calli09 · 02-05-2009, 07:16 AM

Good morning all! Ok, now after reading the beware post about my "possible" forebearance, I am kind of concerned. Would it be better to just miss 3 payments, do no forebearance, then request a mod?

I have not spokent to an analyst yet, was going to call for an update today, and to ask a few more questions regarding the forebearance, like will they report it to credit bureau, and also ( most importantly) should I pay some or any of my this months pmt? Its due by 2-15. I am still out of work. But now, wonder if I should just call my atty, and let him sort this out.

I feel like if I agree to this "forebearance" I am setting myself up to be stuck with no chance of a mod, then also owing more than my current payment, to catch up, which I can not do, which would make me default anyway. I truly could use the int rate reduction a mod could provide me, in order for me to stay here. From experience, what do you think I should do regarding my 2-15 payment. I am current up to now, still no job.

Dan Bailey · 02-05-2009, 08:02 AM

Calli,
Moe has always suggested making all payments if possible on time. No-one here can tell you not to make a payment. That is soley your decision based upon your circumstances.

I do not know if getting a forebearance is put on your credit report...but I do know after talking to a mortgage broker friend on mine the other day, the broker CAN see that it was done at some point and it does affect their decisions in the future to obtain a re-finance or new mortgage..

HopingtoFind · 02-05-2009, 09:43 AM

Quote:

Originally Posted by Dan Bailey

Calli,
Moe has always suggested making all payments if possible on time. No-one here can tell you not to make a payment. That is soley your decision based upon your circumstances.

I do not know if getting a forebearance is put on your credit report...but I do know after talking to a mortgage broker friend on mine the other day, the broker CAN see that it was done at some point and it does affect their decisions in the future to obtain a re-finance or new mortgage..

Could you clarify as to what was done at some point that affected decisions in the future to obtain a re-finance of a new mortgage.

HopingtoFind · 02-05-2009, 09:52 AM

Quote:

Originally Posted by Calli09

Good morning all! Ok, now after reading the beware post about my "possible" forebearance, I am kind of concerned. Would it be better to just miss 3 payments, do no forebearance, then request a mod?

I have not spokent to an analyst yet, was going to call for an update today, and to ask a few more questions regarding the forebearance, like will they report it to credit bureau, and also ( most importantly) should I pay some or any of my this months pmt? Its due by 2-15. I am still out of work. But now, wonder if I should just call my atty, and let him sort this out.

I feel like if I agree to this "forebearance" I am setting myself up to be stuck with no chance of a mod, then also owing more than my current payment, to catch up, which I can not do, which would make me default anyway. I truly could use the int rate reduction a mod could provide me, in order for me to stay here. From experience, what do you think I should do regarding my 2-15 payment. I am current up to now, still no job.

I am still not seeing how it is better to just miss payments then to go into forbearance. If you miss payments you will still be responsible for them plus any late fees and anything else associated with going into default.

With forbearance, they should be able to freeze your credit and should not charge you any late fees or any other fees, that is the point of it... of course you should confirm this information with you analyst and possibly get it in writing.

dos81 · 02-05-2009, 01:50 PM

Like Calli09, I too experienced the same phone call as I spoke to Chase analyst today. I am in 30-yr. 6.25% fixed loan and have not been late on my payments. They told me that I would have to do forebearance and beasically not pay for 3 months while they work on my mod. As I have good credit standing, I am leary about taking the hit on my credit. I think that MollyM has good points indeed. If all Fannie Mae is doing is just stretching out the loan to 40 years with a slightly lower interest rate, doesn't that just cost the borrower more money through the long-term because they will be paying more interest. It appears that the banks have found a way to write even better loans for themselves at the expense of the struggling homeowners. Am I off base here?

Calli09 · 02-05-2009, 02:14 PM

Hi, I do not think you are off base at all. That is why I am leery about this whole forebearance thing. I am going to call them now, and get back here in a bit. I was thinking still stay within the 30 yr term, with a lower rate. I would think it would beat them getting the whole loan back no?

Calli09 · 02-05-2009, 03:05 PM

Just got off the phone with Chase Homeowners assist. Re-explained my financial situation to a new rep.

This one told me that since I am unemployed, they can do nothing for me as I am current. She also told me not to make a partial payment, as it will not post. Its 100% or nothing as far as the mtg pmt goes. She also told me that if I miss pmts they will report to my credit agency, until or unless I am in a forebearance, then and only then do they not report the non pmt of the mtg. She said my situation is "in the pipeline" and told me to keep looking for work, she said I would be contacted, but not for anywhere from 45-60 days from now. She said they are working on the "crisis" people that are set to foreclose any day now, like tomorrow.

So, what I "heard" was, if I am in need of a modification, and want to get any kind of serious help, I have to be late, 3 mos late. She also suggested calling the hope program. That is my update. (Still not sure on what to do about the pmts.)

dos81 · 02-05-2009, 03:50 PM

Tough situation Calli09. I sympathize completely. What you are saying is pretty much exactly what they told me also. So it appears that there is no 30 year offer right? Just 40 year loans for a lower rate, is that right? I really do think that there needs to be some type of legislation governing the process of loan modification. Otherwise the lenders can offer what they want, and we have no choice but to take it or walk away!

HopingtoFind · 02-05-2009, 03:55 PM

Quote:

Originally Posted by dos81

Like Calli09, I too experienced the same phone call as I spoke to Chase analyst today. I am in 30-yr. 6.25% fixed loan and have not been late on my payments. They told me that I would have to do forebearance and beasically not pay for 3 months while they work on my mod. As I have good credit standing, I am leary about taking the hit on my credit. I think that MollyM has good points indeed. If all Fannie Mae is doing is just stretching out the loan to 40 years with a slightly lower interest rate, doesn't that just cost the borrower more money through the long-term because they will be paying more interest. It appears that the banks have found a way to write even better loans for themselves at the expense of the struggling homeowners. Am I off base here?

A lot of these modifications are done for people with variable rate which is due to reset. While people might be comfortable paying at their current rate... it would change when the rate resets, so sometimes they are happy just to get their rate fixed.

As far as 40 year vs. 30 year loan.. you're right in that if you hold the house for a very long time, you will pay more in interest payments if your loan is 40 years.. Most people however do not hold their houses for 30 years. I think these modification is a short term solutions, most people hope that in 5 to 10 years the market will turn and they will be able to possibly sell or refinance and in the short term it is not a bad deal...

HopingtoFind · 02-05-2009, 04:01 PM

Quote:

Originally Posted by dos81

Tough situation Calli09. I sympathize completely. What you are saying is pretty much exactly what they told me also. So it appears that there is no 30 year offer right? Just 40 year loans for a lower rate, is that right? I really do think that there needs to be some type of legislation governing the process of loan modification. Otherwise the lenders can offer what they want, and we have no choice but to take it or walk away!

By the way I have heard of 30 year modification offers on this board. If that is the only offer you would consider then you should tell them that.. most likely it will not lower your payment as much....

dos81 · 02-05-2009, 04:01 PM

Good points HopingtoFind. I guess if you are having difficulty, these mods will give short-term relief which is probably what most people are looking for right now anyway.

HBKiwi · 02-06-2009, 01:55 PM

Hi Calli09 and everyone else on this thread. It's very frustrating. I have a mtg with Chase - owned by Fannie Mae. Eventually, after being told to phone several different numbers finally in a complete circle, several disconnects I eventually spoke to someone in Loss Mitigation.

I am current with my payments until this month. I have not paid Feb and am not planning to. Not able to actaully. Chase tell me that Fannie Mae are not participating any modification programs at the moment. Strange - check out the following news article.

Chase Mortgage Modification Help | Loan Modification & Home Loan News

It says that Chase can legally modify the vast majority of mortgages owned by their investors.

The following link is interesting too:
http://portal.hud.gov/fha/sf/svc/loanmodfact.pdf

It's from HUD and my understanding is that Fannie Mae is required to participate in loan modifications under certain conditions such as those outlined in the link above.

Disclaimer: I am just a home owner in trouble and not a reliable source of information. I'm just sharing what I've learned in the hope it may help others who ultimately may help me.

Good luck everyone and thanks.

HopingtoFind · 02-06-2009, 02:37 PM

HBKiwi... was it one rep that told you this? or are you consistenly being told by different reps that Fannie Mae is not participating?

01-31-2009, 02:22 PM	#1 (permalink)
Calli09 Senior Member Join Date: Jan 2009 Posts: 111 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Modification? Forebearance? I'll Flip a Coin! Hello all! I found this forum, and finally got the guts to make the "call" yesterday to Chase about requesting a modification. I am not late with pmt yet, but have not worked in 8 weeks due to layoff, and borrowing from Peter to pay Paul. Good credit is allowing me this, and for the time being, I have an excellent credit score, would like to keep it that way, but with things how they are now I knew things were going to be tight this Feb, and made the call. My original loan 30 yr fixed at 7% was purchased by Chase. The rep asked me about my current situation, and when asked about pay, said he wanted net info not gross info. Also asked about utilities, grocerys, car pmts, credit card pmts, etc. I gave him what he asked for and then he put me on hold. He came back and mentioned something about a forebearance, 3 months no late charges, said it would go on the back of the loan, then i would have to be current, then chase does modification of terms later. And then 40 yr loan not 30. I asked him who the investor is on the loan and he said Fannie Mae. I then started to ask him to explain what he just said about the forebearance, as I did not understand then he said he sent my info over and an analyst from "homeowners assist" will call me in 15 - 30 days. I am confused. Also, I am sure in 40 years I will be dead, so the 40 year thing is not gelling with me. Does what he said make sense? I am not sure whether to pay this or not, as I know that by the time its due, I will not have spoken to the analyst, acccording to what I have been reading here. My pmt is due 2-15, then it will be late. I would like a modification of the interest rate, but the forebearance thing is making me wonder how that works? Do they do both forebearance and mod? Or if you do FB, you get no mod. Also, 40 years, him mentioning that right off the bat with my first call is strange not? Any insight would be helpful. Oh, and when all was said and done, the info I gave him had me in the negative money wise. Thank you.

01-31-2009, 02:36 PM	#2 (permalink)
Moe Bedard Founder Join Date: Aug 2007 Location: Southern California Posts: 16,887 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Modification? Forebearance? I'll Flip a Coin! Hi Calli09, Welcome to the forum and thank you for joining....... The streamlined modification is the only modification that FannieMae as an investor is offering at this time and they are currently only looking at the loans that are 90+ days in default...............hence the forbearance first.............in order to modify an already low fixed rate........the only thing they are able to do is to lower the rate a bit and extend the terms out. here is the link for the info on this program............ Media: News Releases > Streamlined Modification Program (SMP) Now Available to Borrowers __________________ Moe Bedard Founder LoanSafe.org "America's #1 Home Loan Forum" LoanWorkout.org "America's # Loan Modification Blog" Get My FREE Loan Modification E-Book \| Please donate to LoanSafe.org \| Loan Modification Training For Attorneys \| Rate Your Mortgage Servicer The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. Most of the information you find here is easily available on the internet. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Please Read our Privacy Policy and Legal Disclaimer Here.

01-31-2009, 02:52 PM	#3 (permalink)
Calli09 Senior Member Join Date: Jan 2009 Posts: 111 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Modification? Forebearance? I'll Flip a Coin! Thank you for the answer. I went to the link. The part of the link that scares me is Forbearing on a portion of the principal, which will require the borrower to make a balloon payment when the loan matures, is paid off, or is refinanced. Balloon pmt is not a good thing. So, do I have no pmts for 3 mos, then this, or pay until I hear from them. Things are getting tight. Also what are all of your opinions on forebearance vs. modification? Any thoughts?

01-31-2009, 03:02 PM	#4 (permalink)
Moe Bedard Founder Join Date: Aug 2007 Location: Southern California Posts: 16,887 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Modification? Forebearance? I'll Flip a Coin! this is the only type of workout that is in place currently for FannieMae backed loans..............so if you are in need of a modification........this is the option available........... a forbearance is a short term solution for normally 3-6 months depending on its purpose. a modification is a restructure of the current loan. They would be trying to get the payment within an industry standard range........the balloon is only one option to do that..........they don't do all of those options at once on one loan................they will utilize the rate reduction and extend terms first. You will need to speak to Chase again to find out how you are to pay the forbearance. __________________ Moe Bedard Founder LoanSafe.org "America's #1 Home Loan Forum" LoanWorkout.org "America's # Loan Modification Blog" Get My FREE Loan Modification E-Book \| Please donate to LoanSafe.org \| Loan Modification Training For Attorneys \| Rate Your Mortgage Servicer The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. Most of the information you find here is easily available on the internet. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Please Read our Privacy Policy and Legal Disclaimer Here.

01-31-2009, 03:40 PM	#5 (permalink)
HopingtoFind Senior Member Join Date: Oct 2008 Posts: 633 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Modification? Forebearance? I'll Flip a Coin! Hi Calli09, We have a property we are trying to modify... AmTrust is the servicer and Fannie Mae is the investor... We are also current on that loan with fixed interest rate of 6.25%. We received a very similar offer.. forbearance for 3 months and then possibly a modification if approved by Fannie Mae. They are not telling me at this point what the offer would be... After 3 months of forbearance you'll be technically behind and therefore would possibly qualify for permanent modification. One important thing to keep in mind is if at then end of forbearance period you're not approved for a mod you will possibly have two choices: 1) to repay what is due as a result of not making full payment... or 2) have them add that amount to your loan.. I believe if you're current there is no way to qualify for a loan mod with Fannie May without going through a forbearance.

01-31-2009, 03:55 PM	#6 (permalink)
Calli09 Senior Member Join Date: Jan 2009 Posts: 111 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Modification? Forebearance? I'll Flip a Coin! Hi, thank you for answering. I will await to hear from homeowners assist. Hoping, did you already get your forebearance offer?

01-31-2009, 05:18 PM	#7 (permalink)
HopingtoFind Senior Member Join Date: Oct 2008 Posts: 633 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Modification? Forebearance? I'll Flip a Coin! Yes... that was the offer... to do a forbearance for 3 months and then go to Fannie Mae for approval of a permanent mod... I guess the worst case scenerio is if Fannie doesn't approve permanent mod you just go back to the way things were.

01-31-2009, 05:55 PM	#8 (permalink)
chasepmt2hot-firefighter Senior Member Join Date: Jan 2009 Posts: 228 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Modification? Forebearance? I'll Flip a Coin! Does the forbearance go on your credit report?

01-31-2009, 06:12 PM	#9 (permalink)
HopingtoFind Senior Member Join Date: Oct 2008 Posts: 633 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Modification? Forebearance? I'll Flip a Coin! No, forbearance should not effect your credit..

01-31-2009, 09:06 PM	#10 (permalink)
chasepmt2hot-firefighter Senior Member Join Date: Jan 2009 Posts: 228 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Modification? Forebearance? I'll Flip a Coin! Is it possible for anyone looking at your credit to view it? If anyone has noticed it reported I hope they speak up. If anyone knows of Fannie Mae skipping the forebearance and going to straight mod please also speak up. They change the rules so much that I hope this one is changed as well.

02-03-2009, 08:41 AM	#11 (permalink)
MollyM Junior Member Join Date: Jan 2009 Posts: 3 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Modification? Forebearance? I'll Flip a Coin! Beware of Forebearance. Forebearance agreements usually require that you "accept" all amounts they say are owed. So you would not be able to redress any issues where your payments are applied or how they are applied. Forebearance DOES affect your credit- as you are technically in default. It does NOT stop a forclosure- only delays it. In cases like this- it is allowing you to go into default, so that you can qualify for a mod. Forebearance agreements can alter the terms short term- so an inscrupulous company can raise the rate of interest, still charge late fee's on the origional amounts that are technically "late" & open the door for force placed insurances, corporate advances & escrow issues. Once you sign a forebearance- you are signing that you accept all charges that they deem are necessary. Good luck with trying to understand how your payments are being applied. Forebearance allows the mortgage company to alter the terms- often in how they are applying your payments. So they could legitimatly SPLIT your payments to pay their fee's= leaving your P&I in further default. I have seen this happen more than once. Forebearances can be very tricky- & usually are to the profit of the servicer- & nobody else (servicer's get to keep all fee's they deem necessary in the collection of the note) The investors & trustee only see that you are technically in default. Please remember that servicers make more money on your loan when you are in default. Normally,They make only a small percentage of your loan payment for being a bill collector. The rest goes to the trustee for them to distribute to the investors. BUT- they get to keep all the late fee's, service fee's, property preservation/inspection fee's, Drive by photo fee's, & attorney fee's. If you sign a forebearance- or once you are involved with the mitigation department-you will start seeing some of these fee's appear. It happens with ALL the servicers. They can be used to help one get to that "mod" qualification, but beware the small print. The devil is in the details. Beware.

02-03-2009, 09:33 AM	#12 (permalink)
HopingtoFind Senior Member Join Date: Oct 2008 Posts: 633 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Modification? Forebearance? I'll Flip a Coin! I explicitly asked about any extra fees or charges during forberance and the analyst assured me that there wouldn't be any. As far as escrow, they could force you into an escrow if you fail to pay taxes or insurance if you haven't paid them regardless if you're in forbearance or not. Not to say that you shouldn't be diligent and ask all the questions before you sign anything...

02-05-2009, 07:16 AM	#13 (permalink)
Calli09 Senior Member Join Date: Jan 2009 Posts: 111 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Modification? Forebearance? I'll Flip a Coin! Good morning all! Ok, now after reading the beware post about my "possible" forebearance, I am kind of concerned. Would it be better to just miss 3 payments, do no forebearance, then request a mod? I have not spokent to an analyst yet, was going to call for an update today, and to ask a few more questions regarding the forebearance, like will they report it to credit bureau, and also ( most importantly) should I pay some or any of my this months pmt? Its due by 2-15. I am still out of work. But now, wonder if I should just call my atty, and let him sort this out. I feel like if I agree to this "forebearance" I am setting myself up to be stuck with no chance of a mod, then also owing more than my current payment, to catch up, which I can not do, which would make me default anyway. I truly could use the int rate reduction a mod could provide me, in order for me to stay here. From experience, what do you think I should do regarding my 2-15 payment. I am current up to now, still no job.

02-05-2009, 08:02 AM	#14 (permalink)
Dan Bailey Loan Safe Moderator & Homeowner Guide Join Date: May 2008 Location: Wilmington NC Posts: 1,407 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Modification? Forebearance? I'll Flip a Coin! Calli, Moe has always suggested making all payments if possible on time. No-one here can tell you not to make a payment. That is soley your decision based upon your circumstances. I do not know if getting a forebearance is put on your credit report...but I do know after talking to a mortgage broker friend on mine the other day, the broker CAN see that it was done at some point and it does affect their decisions in the future to obtain a re-finance or new mortgage.. __________________ Loansafe saved my home!! I may be alot of things, but I do know the difference between reply and forward.

02-05-2009, 01:50 PM	#17 (permalink)
dos81 Member Join Date: Dec 2008 Posts: 29 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Modification? Forebearance? I'll Flip a Coin! Like Calli09, I too experienced the same phone call as I spoke to Chase analyst today. I am in 30-yr. 6.25% fixed loan and have not been late on my payments. They told me that I would have to do forebearance and beasically not pay for 3 months while they work on my mod. As I have good credit standing, I am leary about taking the hit on my credit. I think that MollyM has good points indeed. If all Fannie Mae is doing is just stretching out the loan to 40 years with a slightly lower interest rate, doesn't that just cost the borrower more money through the long-term because they will be paying more interest. It appears that the banks have found a way to write even better loans for themselves at the expense of the struggling homeowners. Am I off base here?

02-05-2009, 02:14 PM	#18 (permalink)
Calli09 Senior Member Join Date: Jan 2009 Posts: 111 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Modification? Forebearance? I'll Flip a Coin! Hi, I do not think you are off base at all. That is why I am leery about this whole forebearance thing. I am going to call them now, and get back here in a bit. I was thinking still stay within the 30 yr term, with a lower rate. I would think it would beat them getting the whole loan back no?

02-05-2009, 03:05 PM	#19 (permalink)
Calli09 Senior Member Join Date: Jan 2009 Posts: 111 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Modification? Forebearance? I'll Flip a Coin! Just got off the phone with Chase Homeowners assist. Re-explained my financial situation to a new rep. This one told me that since I am unemployed, they can do nothing for me as I am current. She also told me not to make a partial payment, as it will not post. Its 100% or nothing as far as the mtg pmt goes. She also told me that if I miss pmts they will report to my credit agency, until or unless I am in a forebearance, then and only then do they not report the non pmt of the mtg. She said my situation is "in the pipeline" and told me to keep looking for work, she said I would be contacted, but not for anywhere from 45-60 days from now. She said they are working on the "crisis" people that are set to foreclose any day now, like tomorrow. So, what I "heard" was, if I am in need of a modification, and want to get any kind of serious help, I have to be late, 3 mos late. She also suggested calling the hope program. That is my update. (Still not sure on what to do about the pmts.)

02-05-2009, 03:50 PM	#20 (permalink)
dos81 Member Join Date: Dec 2008 Posts: 29 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Modification? Forebearance? I'll Flip a Coin! Tough situation Calli09. I sympathize completely. What you are saying is pretty much exactly what they told me also. So it appears that there is no 30 year offer right? Just 40 year loans for a lower rate, is that right? I really do think that there needs to be some type of legislation governing the process of loan modification. Otherwise the lenders can offer what they want, and we have no choice but to take it or walk away!

02-05-2009, 04:01 PM	#23 (permalink)
dos81 Member Join Date: Dec 2008 Posts: 29 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Modification? Forebearance? I'll Flip a Coin! Good points HopingtoFind. I guess if you are having difficulty, these mods will give short-term relief which is probably what most people are looking for right now anyway.

02-06-2009, 01:55 PM	#24 (permalink)
HBKiwi Junior Member Join Date: Feb 2009 Posts: 2 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Modification? Forebearance? I'll Flip a Coin! Hi Calli09 and everyone else on this thread. It's very frustrating. I have a mtg with Chase - owned by Fannie Mae. Eventually, after being told to phone several different numbers finally in a complete circle, several disconnects I eventually spoke to someone in Loss Mitigation. I am current with my payments until this month. I have not paid Feb and am not planning to. Not able to actaully. Chase tell me that Fannie Mae are not participating any modification programs at the moment. Strange - check out the following news article. Chase Mortgage Modification Help \| Loan Modification & Home Loan News It says that Chase can legally modify the vast majority of mortgages owned by their investors. The following link is interesting too: http://portal.hud.gov/fha/sf/svc/loanmodfact.pdf It's from HUD and my understanding is that Fannie Mae is required to participate in loan modifications under certain conditions such as those outlined in the link above. Disclaimer: I am just a home owner in trouble and not a reliable source of information. I'm just sharing what I've learned in the hope it may help others who ultimately may help me. Good luck everyone and thanks.

02-06-2009, 02:37 PM	#25 (permalink)
HopingtoFind Senior Member Join Date: Oct 2008 Posts: 633 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Modification? Forebearance? I'll Flip a Coin! HBKiwi... was it one rep that told you this? or are you consistenly being told by different reps that Fannie Mae is not participating?

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