Credit Bureau Reporting for Trial HAM Modification (GSE Loans)

[Captwalter]

I have worked for years to get my credit rating up to the 800 area and now with one stroke of the pen my credit is shot. I am told that I will be restored in 2016 if I don't have any other problems. As I am now 71 yrs. old who knows if I will even be around in 2016.

I was up to date with my mortgage payments when Citimortgate instructed me to start the new payment and not pay the original payment that I could not afford.

So what is the obligation of the Servicer, in this case, Citimortgage regarding reporting during the trial period?

Any advice and help will be most sincerely appreciated.
Thanks, Captwalter

[Evan Bedard]

Hi Captwalter welcome and thank you for joining the forum.

I was up to date with my mortgage payments when Citimortgate instructed me to start the new payment and not pay the original payment that I could not afford.

So what is the obligation of the Servicer, in this case, Citimortgage regarding reporting during the trial period?

It seems like Fannie Mae's and Freddie Mac's guidelines suggest that if your loan was current at the begining of your trial period and you make the new lower payments on time, then your servicer should continue to report the loan as current. I'm not sure why they would be reporting you late..

Lenders may have some leeway in how they report the status of your loan during a trial period...

[Captwalter]

Thanks Evan: I called Citimortgage again yesterday afternoon. Was transfered 6 times until someone took an interest in my question and helped. After 1 1/2 hrs. on the phone Brian in the Homeowneers Assistance Dept. along with his Supervisor told me that they had "surpressed" all the incorrect information about my credit and that it will be back to normal within 30 days. I sure hope they are being truthful as I have gone through this type of thing before and at this point I don't think I can take another major disappointment.

Many thanks Evan for answering my post and giving me the great advice. It is sincerely appreciated. Capt Walter

[Evan Bedard]

Your very welcome captwalter and congratulations, Im hoping they will fix their and fix your credit right away!!

[Captwalter]

Evan: This is hard to believe but after my long talk with citi yesterday about my credit situation and their promise to fix it today they notified the credit bureaus that I am now behind 60 days on my mortgage payment.

I don't know what to do next except hire a lawyer which I can really not afford at the present time. But I'll be darned if I will allow them to destroy my credit when I have never been late on a mortgage payment in over 50 years.

Any Ideas? Thanks and God Bless, Capt Walter

[CW California]

Capt
Can you dispute it via the credit company? I think you can go online and do this.

[Captwalter]

I already tried this after the first late payment notice from Citi. I had to file a formal complaint which I did. They contacted Citi and then rejected my claim. On top of that they indicated that it would take until 2016 to re-establish my credit. What a bummer.

I am not sure what to do next. Will try that hot line number you folks have listed on this site and see how that works. Then maybe try to find a good Lawyer who can help. Again thanks for your support and interest with my situation and all the others that you support.
God Bless You, Capt Walter

[faith]

CaptWalter,
I am sorry for what you are going through. I have the same problems with these credit bureaus because Countrywide reported a negative statement on my credit report. I have gathered all my proof and evidence and wrote them a letter disputing all these negative remarks attaching all my evidences. They have removed that negative comments change the balance owed from $91k to 0 balance and put a remark paid in less than full balance. I;ve sold my house via Short Sale.

The following are the information I've found and I hope the links will be approved for you to read and get the information that might help you,

Negotiate Negative Statements on Your Credit Report
Your next area of negotiation should be your credit rating. Depending on how anxious the lender or collection agency is to collect on their debt, it may be possible to erase the negative statements on your credit report, and instead have a comment such as “paid,” or “paid as agreed” on it. Again, remind the creditor that the statute of limitations is approaching, and insist that this be part of the settlement. You might also tell them that if they won't negotiate with you on this part of the settlement, that you will use the money you have to negotiate with another creditor that will place a good mark on your credit report. Occasionally, there will be a lender who simply refuses to budge, but most times they will be open to doing whatever it takes to reach an agreement.

It is better to negotiate with the original lender for a good credit report rating, and here's why: On your credit report, there can only be one mark for any debt. In other words, if the loan has gone to a collection agency, you can only have one bad mark for both the original lender and the collection agency. Since the original lender has the control over what this mark says, you should strive to negotiate a good credit rating mark with them.

Above all, don't pay the lender or collection agency anything until you have everything that you have agreed upon in writing. Insist that they send you a letter outlining the exact amount that will be paid, and exactly what comment they will put on your credit report. Don't be fooled into doing anything before you have in on paper.

Your final step should be to insure that all three credit reporting agencies have updated your credit report. You should get a copy of the receipt after you have paid your settlement balance, and then mail it to all three of the agencies and ask them to mark the item as paid.

Tips when negotiating with your creditors:
-Let the creditor know you are trying to take responsibility for your past credit history and regain control of your financial situation.


-Explain your situation, but don't over-explain. Tell the creditor what you can do, rather than what you can't do.


-Start negotiating as soon as possible. Negotiating with the original creditor is much easier than dealing with a collection agency later.


-Most creditors are willing to negotiate a settlement for less than the full amount of the debt. Some creditors will accept as little as 70 percent of the debt.


-Don't ask the creditor how much it will accept. Tell the creditor how much you can pay. Never offer to pay more than you can.


-Create a budget before negotiating a settlement. Creditors may want to know your complete financial situation before agreeing to a settlement.


-If you can't afford to pay all creditors at once, negotiate a settlement with the creditor with the smallest balance. Once that debt is paid in full, negotiate with the creditor with the next highest balance. -Get all settlement agreements in writing. Keep copies of letters, statements, phone call notes and other papers for your files.


Some additional helpful hints:
Be polite. This will get you further than anything else when negotiating with a creditor. Creditors spend most of their time dealing with angry and difficult customers. Be courteous, and the creditor will be more likely to give you what you want.

Be specific. Always let the creditor know that your goal is to clean up your credit. Creditors cannot help you if they don't know what you want.

Be flexible. Let the creditor know that you are willing to compromise. Creditors need to meet their objectives, too. If you present a win-win situation, then the creditor can feel good about the negotiation.

Be realistic. Some creditors will refuse to negotiate. Don't take it personally. Wait a few months, then try again.

Above all else, don't give up. The credit repair process takes time. Remember that thousands of people resolve their credit problems every year. By being persistent, you can, too.
The links below may give you an idea of what to do.
http://www.creditinfocenter.com/repair/MethodOfVerification.shtml

http://www.creditinfocenter.com/debt/settle_debts.shtml

http://www.creditinfocenter.com/legal/FDCPA.shtml

http://www.creditinfocenter.com/forms/sampleletter9.shtml

[faith]

Here's more links for you:


How to find a Creditor link
http://www.creditinfocenter.com/repair/How2FindACreditor.shtml

http://www.1-800-serve-em.com/servicemap.html

File a suit
http://www.creditinfocenter.com/eBooks/PoorMansClassActionLawsuit.shtml >>


method of verification, http://www.creditinfocenter.com/repair/MethodOfVerification.shtml
http://www.llrx.com/columns/roundup14.htm

Notify the bureaus that you are suing them. You can use this letter. (see link below
http://www.creditinfocenter.com/forms/sampleletter12.shtml

The credit bureaus will call the creditors and find out that there is a question about whether the debt is legitimate. They should delete it immediately. If you want more legal ammo, you might also try looking up similar cases to cite.

http://www.creditinfocenter.com/legal/CourtLawReference.shtml>>

Hope this helps.

[kumar3245]

Hi,
Does going thru a lawyer or NACA for modification better than going directly to the bank, this 3 month trial perio d which they are subjecting us thru is putting the credit score of lot of people in real danger.Does NACA can avoid this 3 month trial period and get us to have one remark onour file as (loan is current - with modified terms) instead of having the above mentioned remark along with 60-90 days past due on the account(because your trial period payment was less than the original and you've been reported as past due to the credit agencies), I'm really confused and worried about this situation. The HAM program says (to be reported as current) leaving the trial period payment history for everyones interpretaion.

Thanks

[faith]

[quote=kumar3245
Does going thru a lawyer or NACA for modification better than going directly to the bank, this 3 month trial perio d which they are subjecting us thru is putting the credit score of lot of people in real danger.Does NACA can avoid this 3 month trial period and get us to have one remark onour file as (loan is current - with modified terms) instead of having the above mentioned remark along with 60-90 days past due on the account(because your trial period payment was less than the original and you've been reported as past due to the credit agencies), I'm really confused and worried about this situation. The HAM program says (to be reported as current) leaving the trial period payment history for everyones interpretaion.

Thanks[/quote]

Kumar3245,
We have a lot of successful homeowners in this forum that asked NACA's help for their loan modification and it's free. The problem with hiring a lawyer is they are very expensive and you can not be assured that they will give you the results that is in your favor. The best thing to do is to investigate first and arm yourself with a lot of information about the way your lender handles loan modification. Should you decide to hire a lawyer make sure that you check their license at State BAR Association to see if they are license to practice law.

As far as your credit report you can always file a dispute against your creditor to the credit bureau. Please see the post above about how to handle this matter. Make sure you keep all your papers and also make sure that when you sign a document especially if asked by the lenders notary public to read the documents slowly and carefully, ask if there is a question, when in doubt do not sign the papers be careful because there's a lot of crook lenders, brokers, notary out there that will force you to sign the documents that you don't understand or make a switch, meaning the documents that you signed is different from the ones they gave you, it's called Mortgage Bait and switch.

Please click the link below:
http://www.treas.gov/press/releases/...guidelines.pdf

Information and guidelines for the new modification program dated March 4^{th, check}your eligibility

Making Home Affordable - Home Affordable Modifications

The link below are successful stories of the homeowners regarding loan modification and short sale and this may help you:

http://www.loansafe.org/forum/success-stories-homeowners-who-fought-back-won/

http://www.loansafe.org/forum/success-stories-homeowners-who-fought-back-won/5488-success-ahmsi.html

Hope this helps

[kumar3245]

Thanks faith,
The problem I have seen happening is that in the MHA program they make you pay less than the original in the trial period and report the balance as past due (rolling 30-60 days) to the credit agencies which would ruin your score so bad. The initial paperwork the lender sends has the following in it
"Credit reporting... We may report you as past due during the trial period...." we would have to singn this and send back for getting into the program.but the govt MHA guidelines says the borrower is going to be reported as current but paying with the modified term.So my question is how can there be no clear guide line when it come to an all important matter like this? The hit you take in the credit can increase your interest on credit cards which would put more strain our budget(the reason you are asking for a mod is due to financial difficulty so any event which would increase your debt on other revolving credit is going to offset the releif you get from the lender and put you back in the same situation)....

Thanks

[faith]

Originally Posted by kumar3245

Thanks faith,
The problem I have seen happening is that in the MHA program they make you pay less than the original in the trial period and report the balance as past due (rolling 30-60 days) to the credit agencies which would ruin your score so bad. The initial paperwork the lender sends has the following in it
"Credit reporting... We may report you as past due during the trial period...." we would have to singn this and send back for getting into the program.but the govt MHA guidelines says the borrower is going to be reported as current but paying with the modified term.So my question is how can there be no clear guide line when it come to an all important matter like this? The hit you take in the credit can increase your interest on credit cards which would put more strain our budget(the reason you are asking for a mod is due to financial difficulty so any event which would increase your debt on other revolving credit is going to offset the releif you get from the lender and put you back in the same situation)....

Thanks

Kumar3245,
Good morning. You are right in so many ways. I have researched this topic for you and this is what I've found, it is called late payment secrets revealed

Please click the link below:

Late Payment Secrets Revealed - Credit.com

Hope this helps.

[CW California]

Originally Posted by kumar3245

Hi,
Does going thru a lawyer or NACA for modification better than going directly to the bank, this 3 month trial perio d which they are subjecting us thru is putting the credit score of lot of people in real danger.Does NACA can avoid this 3 month trial period and get us to have one remark onour file as (loan is current - with modified terms) instead of having the above mentioned remark along with 60-90 days past due on the account(because your trial period payment was less than the original and you've been reported as past due to the credit agencies), I'm really confused and worried about this situation. The HAM program says (to be reported as current) leaving the trial period payment history for everyones interpretaion.

Thanks

In regards to NACA, most of the loan mods are not trials. That said, lately, with those that have freddie and fannie backed loans, the lenders are having NACA do some sort of HAMP program. So far people have just had to fill out certain paperwork. I don't think anyone to my knowledge has been put on a trial thru NACA yet so it is kind of up in the air.

Personally I would not sign paperwork that said they could report me late if it is HAMP paperwork. I would probably try to report this to the TARP regulatoy people. This is not what the program intended. These lenders, I swear, they will do anything to have you over a barrel!

[kumar3245]

Is the HAMP and MHA the same program? Can someone point to the credit reporting requirements for MHA?

Thanks

[SillyWorld]

I think they want your credit destroyed in fear if it were good you could go to a real bank down the road and refinance, then big boys loose the Obomba write offs

[faith]

[quote=kumar3245;102715]Is the HAMP and MHA the same program? Can someone point to the credit reporting requirements for MHA?

Thanks

Kumar3245,

Making Home Affordable means it will offer assistance to as many as 7 to 9 million homeowners, making their mortgages more affordable and helping to prevent the destructive impact of foreclosures on families, communities and the national economy.


The Home Affordable Modification Program means it will help up to 3 to 4 million at-risk homeowners avoid foreclosure by reducing monthly mortgage payments. Working with the banking and credit union regulators, the FHA, the VA, the USDA and the Federal Housing Finance Agency, the Treasury Department today announced program guidelines that are expected to become standard industry practice in pursuing affordable and sustainable mortgage modifications. This program will work in tandem with an expanded and improved Hope for Homeowners program.

The Home Affordable Refinance program will be available to 4 to 5 million homeowners who have a solid payment history on an existing mortgage owned by Fannie Mae or Freddie Mac. Normally, these borrowers would be unable to refinance because their homes have lost value, pushing their current loan-to-value ratios above 80%. Under the Home Affordable Refinance program, many of them will now be eligible to refinance their loan to take advantage of today’s lower mortgage rates or to refinance an adjustable-rate mortgage into a more stable mortgage, such as a 30-year fixed rate loan.

GSE lenders and servicers already have much of the borrower’s information on file, so documentation requirements are not likely to be burdensome. In addition, in some cases an appraisal will not be necessary. This flexibility will make the refinance quicker and less costly for both borrowers and lenders. The Home Affordable Refinance program ends in June 2010.

With the information now available, servicers can begin immediately to modify eligible mortgages under the Modification program so that at-risk borrowers can better afford their payments.

The guidelines does not say if the homeowners credit will be affected and how it's going to be affected. The program only say this ABOUT CREDIT REPORT – THE SERVICER WILL COVER THE COST OF THE CREDIT REPORT

The lender considers loan modification for borrowers failure to fulfill their original terms of paying the amount that they agreed to pay and therefore will probably report it to the credit bureau in some type of negative reporting.


I will say that a a 30 day or 60 days late in payment is easier to recover from as far as your credit scores are concerned. They are going to hurt and you'll most likely see a small point taken - especially while it's being reported as 'currently late'. But it’s not as damaging as a 90-120 day late. Certainly not as damaging like a short sale or foreclosure. It will hurt just a little bit but it's not something that is going to ruin your credit for the next 7 years like foreclosure and bankruptcy.


I know Short Sale damaged my credit for the next two years and I was 10 months behind in payments. I am still thankful that my credit score went down from 750 to 677, I can always buy a home after two years if I want to. But no thank you, I finally realized that owning a house is just like renting an apartment. You see if you own a house, even if you paid off that house, you still have to pay the property tax ranging from $600 to $1000 a month, fire insurance ranging from $100-200 a month, if you have homeowners association and mello roose that’s about $400 a month. I am retired and on fixed income and I don’t have $1200 a month just to pay for these things, plus high electrical bills and water, cable. I pay my rent about $1245 a month and my cable, water and electric bill is half the price the amount I've used to pay when I owed the home that I sold.


Just a thought. God bless you and take care.

[CW California]

Kumar
The following link is for hamp guidelines and includes credit reporting. See question #28.

https://www.hmpadmin.com/portal/docs/sd0901faqs.pdf

[faith]

[quote= kumar3245;102715]Is the HAMP and MHA the same program? Can someone point to the credit reporting requirements for MHA?

Thanks

Kumar3245,
I've copied the questions and answer for easy access from the link that CW CA has provided. I feel guilty that I have given you a lot of links and not sure if I have answered your questions. I hope this one helps. Thanks CW CA.


Q28. How should borrower payments be reported to credit reporting agencies during the Trial Period?
Servicers should continue to report a “full file” status report to the four major credit reporting agencies while evaluating a borrower for program eligibility and during the Trial Period Plan. If a borrower is current when they enter the Trial Period, the servicer should report the borrower current but on a modified payment if the borrower makes timely payments by the 30th day of each Trial Period month at the modified amount during the Trial Period. If a borrower is delinquent when they enter the Trial Period, the servicer should continue to report in such a manner that accurately reflects the borrower’s delinquency and workout status following usual and customary reporting standards. >>
In both cases the servicer should report the modification when it becomes final.

Data required to be collected as specified below must be reported on a loan-by-loan basis starting on October 1, 2009. This document does not describe all of the data that the servicer must retain; it addresses only the data that must be reported.


Must be reported starting October 1, 2009 for transactions occurring before October 1, 2009

Race, ethnicity, sex of borrower and co-borrower (submission by borrower is voluntary)

Middle name of borrower and co-borrower
Date of birth of borrower and co-borrower
Credit score of borrower and co-borrower

[SillyWorld]

[quote=faith;102874]

Originally Posted by kumar3245

Is the HAMP and MHA the same program? Can someone point to the credit reporting requirements for MHA?

Thanks

Kumar3245,
I've copied the questions and answer for easy access from the link that CW CA has provided. I feel guilty that I have given you a lot of links and not sure if I have answered your questions. I hope this one helps. Thanks CW CA.


Q28. How should borrower payments be reported to credit reporting agencies during the Trial Period?
Servicers should continue to report a “full file” status report to the four major credit reporting agencies while evaluating a borrower for program eligibility and during the Trial Period Plan. If a borrower is current when they enter the Trial Period, the servicer should report the borrower current but on a modified payment if the borrower makes timely payments by the 30th day of each Trial Period month at the modified amount during the Trial Period. If a borrower is delinquent when they enter the Trial Period, the servicer should continue to report in such a manner that accurately reflects the borrower’s delinquency and workout status following usual and customary reporting standards. >>
In both cases the servicer should report the modification when it becomes final.

Data required to be collected as specified below must be reported on a loan-by-loan basis starting on October 1, 2009. This document does not describe all of the data that the servicer must retain; it addresses only the data that must be reported.


Must be reported starting October 1, 2009 for transactions occurring before October 1, 2009

Race, ethnicity, sex of borrower and co-borrower (submission by borrower is voluntary)

Middle name of borrower and co-borrower
Date of birth of borrower and co-borrower
Credit score of borrower and co-borrower

But you have to remember the banks seem to loose your file or say it was given in mistake, or you should have never been approved for the MOD, or there was an error, and then they start you all over again and now there is no choice but to make report that you are 90 days late because you just started in the trial at the 90 day of verbal trial...Thats why I say to peeps do not agree unless it is in writing before hand, if they send and you were suppose to have it sent back to bank the same day you received the DOCs then this is another issue which would make you start all over...

[Captwalter]

Many thanks to all you folks who responed to my post about Credit Bureau Reporting. I still have not received a positive response from Citimortgage on this subject. In fact, just the opposite.

In addition I would like to add one additional twist to this post. Citimortgage is requiring me to make 5 trial period payments on the HAM trial period plan. If that is what they require I have no choice but to make the five payments but what if I don't get the modification after that and also have lost my credit? I am then headed for that famous "under the bridge" place. Comments and Advice will be appreciated. God Bless, Capt Walter

[CW California]

Captain
The other thing the lenders do is send out trials which are not HAMP. I gave up and went with NACA.

[Captwalter]

CW California: Thanks again for your comments. I had not heard of NACA until you mentioned them. I have now signed up for one of their workshops and will see how I make out with them. I notice that they mention working with Citimortgage on their website which is good news. Maybe they can be successful where I haven't been. God Bless, Capt Walter

[kumar3245]

Captain,
What about the trial period you are in with CITI mortgage? Are you going to cancel the program with them before signing up with NACA, I think having two mods going on at the same time would be a problem. Also Can you talk to the citi folks and get your credit score fixed by paying the balance you owe to them?

Thanks

Kumar