Forebearance?? Yea or nay?

[Plans A-Z]

Now this last post has me confused. It sounds as if CW/BOA did not send the forebearance letter? Or the shady part is if I sign it, I have no chance of a modification? That's not the impression I got. I often am wrong, though!! But from what I've been reading here forebearance letters can be a kind of show of good faith payments before a mod is worked out. I don't see anywhere that it says I can't be considered for future modifications, in fact they do say at the end of the 6 month period an attempt is made to work something out. Not in those words but that was the "jyst" of it or however you spell it...

But the previous post before that discussed and praised NACA and now I have contacted them so hopefully I will get my phone appointment and the wheels can start turning for me with them.

But I'm glad to get an opinion on whether or not to sign these papers.

[ama125]

I got some clarification today on the forbearance plan and why I was offered this. Sadly, this all had to come from someone working for a third party servicer hired by BofA to handle all recipients of the forbearance letter.

I left a message last night with the Home Retention Team to have someone call me back regarding my questions. The lady I spoke to works for Stewart Title and after explaining all my confusion over my situation, she told me she was going straight to her manager to get me some answers...and she DID!

I got a call back a short while later and it was explained to me that based on the information regarding my husband's monthly gross income that I gave them in April, we did not qualify for the HAMP. He recently received a promotion and I had called BofA on June 10 to notify them of the change in income. They told me that they could not change the number but would note it on my file.

We actually ran our numbers using the NPV model on the FDIC's website and we knew we would fail based on what he was making prior to his promotion. Interestingly, on Fannie Mae's website, servicers are now being instructed to modify all Fannie Mae loans (with a few small exceptions: no FHA or VA, condemned properties, or properties subject to full lender recourse) REGARDLESS if the NPV result is pass or fail. It is clearly stated that servicers are to run the NPV test but not to use the outcome to determine who qualifies for the HAMP.

So, we now basically have to re-apply for the HAMP based on my husband's new income and wait another 45 days (at least that's what I've been told). Given the situation, I am still not accepting the forbearance. So, long story short, I guess they aren't being shady...just unclear. It was also explained to me that while under forbearance, borrowers will be reviewed for other modification options (it states so, I just misunderstood it from how it was written up). If anyone else has received the forbearance offer, I would encourage you to find out the reasoning as to why they are saying you are not eligible. If you have a loan backed by Fannie Mae, it seems to me almost anyone should get the HAMP.

Good luck!

[Melanie702]

Hi Plan A-Z, if you're collecting unemployment, most likely, NACA will submit you for a forbearance, but that's not always the case. I have seen one or two on this board who have gotten a MOD with unemployment, but most that collect unemployment, don't qualify for a MOD as they don't consider that permanent income. My husband is collecting unemployment, and we were submitted for a forbearance, and there is no way we are going to turn that down. NACA said they submitted it, which they don't always like to do, but in our situation, it is "buying" time and giving my husband time to look for a job, and when he does get a job, they will resubmit us for a MOD...so I don't think it's too bad. I'll take what I can get right now.

[Plans A-Z]

No, neither of us are collecting unemployment, not now or ever have we.

Nor are either of us going through medical problems and out of work etc as so many that have been offered forebearance are....that just seems like the best they could do.

I set up 3 appts with NACA 1 hour apart and as of now I am waiting on the third hour and no call. I did not fax any paperwork, I was thinking when I had a phone conference they would tell me what to send. It was confusing to me because I didn't know all the answers to the questions they asked. But I guess I will look back in other threads and see what I have to fax, send whatever papers that is, and set up another appt.

A couple threads here sound like NACA was not helpful. I did check to see if our loan was Fannie Mae backed and I did find out that it is...and some here have said that alone will qualify me for help?
This is confusing. I pay the bills in the house but unfortunately I don't know much else about them!!! But I will make it a point to learn!

I still may agree to forebearance if I don't get calls from NACA. I'm just not sure why I was offered this instead of mod.

[ama125]

Here is a link to the guidelines to servicers from Fannie Mae... https://www.efanniemae.com/sf/guides.../2009/0905.pdf all the items in bold are changes to the original guidelines that were previously announced. Pay particular attention to the eligibility criteria and the statements regarding the NPV test. Since you have confirmed that your loan is backed by Fannie Mae, I cannot see any reason that you would not qualify (barring any of the listed exceptions). Also check out the resources listed here (this is where I've found a great deal of useful information): https://www.efanniemae.com/sf/mha/mhamod/index.jsp

I filled out the hardship affidavit that is listed here: https://www.hmpadmin.com/portal/mod_docs.html

I had my local HUD office send this affidavit in requesting that BofA review my case a second time based on my husband's raise. I looked up my loan info online at BofA last night and under workout information, it does show another workout letter processed on 6/29 so it would appear that the HUD office did as promised. I am not working with NACA but rather my local HUD agency. If you don't have any luck with NACA, look up your local HUD office and see if they can assist you. Hope this information is helpful. Be persistent and don't give too much weight to anything the customer service people tell you (they really aren't all that informed).

Best of luck!

[Plans A-Z]

Wow thanks for the links and the encouragement.

After the third hour, I did get a call from NACA and they took all my info. Unfortunately, they need 4 weeks worth of pay stubs and I have to wait 2 more weeks for my husbands paychecks since I've only saved 2 so far...so I am pretty much on hold for 2 weeks. He doesn't want to ask his HR people for copies of his old pay stubs because they'll "know something is going on" but if it were me I'd do it anyway knowing it will help our situation sooner!! But I have to live with this person.
So I have to fax all the info they requested to them and have another call scheduled for July 11. That still gives me about a week before my forebearance offer expires.
Hopefully, NACA will provide a better solution for me. I continue to pay my mortgage, but I'm still behind 2 months.

[Plans A-Z]

I looked at the links and decided to do some math, which I am horrible at. If the goal is to make one's mortgage payment more affordable by targeting at 31% of the gross monthly income...well then ours will go up about $300.
Either I am misinterpreting the formula or the method or I have a really affordable payment now and won't get that lower payment thru NACA. I know my interest rate is good, but previous posters have said theirs has come back even lower than I have...like some have 2-3 % interest after NACA.
I guess time will tell.

[sandyg]

Originally Posted by ama125

I, too, have received this offer for the HomeSaver Forbearance Program. I am NOT signing on to this and here is why... BofA is not following Fannie Mae's loan workout hierarchy. See here: https://www.efanniemae.com/sf/servic...tfactsheet.pdf.

They are supposed to first determine if the borrower is eligible for the Home Affordable Modification Program (HAMP). If not, then determine if the hardship is temporary or long-term. If it is long-term, then they offer the HomeSaver Forbearance Program and within the first three months of the forbearance program, must explore alternatives in this order: Modification, Pre-foreclosure sale, Deed-in-lieu.

Furthermore, the agreement that I was sent for the forbearance program has the following statement "No Modification. I understand that the Agreement is not a forgiveness of payments on my Loan or a modification of the Loan Documents. I further understand and agree that the Servicer is not obligated or bound to make any modification of the Loan Documents or provide any other alternative resolution of my default under the Loan Documents". Now, I'm no expert, but it seems to me that if I were to sign the agreement for this forbearance program, I would be waiving my rights to any other further considerations for a loan modification. Fat chance!!!

The letter detailing this forbearance plan states that I am not eligible for a loan modification and instead offers me this plan. It does not state anywhere which loan modification program I am not eligible for and nowhere does it have the Making Home Affordable logo. I received a solicitation letter with Countrywide's logo on it back in April identifying me as someone who may be eligible for the Making Home Affordable Modification Program. I called the number and gave them my income data as requested. I was told to wait for another Fed Ex letter and this is the BS they sent me! And when I called to inquire about this, no one has any record of the solicitation letter that was sent to me in the first place and are telling me that they (customer service) have been instructed to tell people to sign up for forbearance and then they will be reviewed for the HAMP! I say to anyone who has received this offer, DO NOT SIGN it! They are being shady!

I was told today that Fannie approved me for a 3 mo. forebarance. But, I still think that the NACA proposal was on target at 31% of my income and affordable. Don't know anything else until paperwork comes.
Am I understanding that the Auction/sale date will be postponed during this 3 mo. forebearance? Or not?

[Rumor]

Sandy,

If you don't mind me asking. How long did it take from when it went to investor to hear this? I'm trying to keep track in my mind about how long it takes Fannie to get back. We're almost 3 months since Naca submitted to BofA and I'm sure that they're going to ask for updated pay and stuff as soon as 2 weeks rolls around.

[sandyg]

Originally Posted by Rumor

Sandy,

If you don't mind me asking. How long did it take from when it went to investor to hear this? I'm trying to keep track in my mind about how long it takes Fannie to get back. We're almost 3 months since Naca submitted to BofA and I'm sure that they're going to ask for updated pay and stuff as soon as 2 weeks rolls around.

Rumor,
BOA has had my file since March, finally sent Fannie my stuff 1st week in June. got this Foreb info. today.

[Rumor]

What exactly is forebearance? Is it tacking the past due amount to the loan and raising your payment? Sorry, It sounds dumb after being on this site for so long but I'm still unsure of what it is exactly.

[sandyg]

Originally Posted by Rumor

What exactly is forebearance? Is it tacking the past due amount to the loan and raising your payment? Sorry, It sounds dumb after being on this site for so long but I'm still unsure of what it is exactly.

Seriously raising your payment?

[Melanie702]

Originally Posted by Rumor

What exactly is forebearance? Is it tacking the past due amount to the loan and raising your payment? Sorry, It sounds dumb after being on this site for so long but I'm still unsure of what it is exactly.

Depends on the situation. Sometimes the banks will stop payments for 6, 8, 12 months, sometimes they cut the payment in half for a certain amount of months. After that time is up, they will add the back into the current payment. That's why lots are against forbearances, but in our situation, it is the only thing we can get as my husband is collecting unemployment, but once he finds work, NACA is going to submit our file for a MOD.
Hope that helps.

[Rumor]

Sandy,

I thought it might be the "mod" that they gave us back in march bringing us current and raising our payment.

Melanie,

Thanks for the info I'll make sure not to ask questions like that anymore on here in fear of offending someone.

[sandyg]

Originally Posted by Rumor

Sandy,

I thought it might be the "mod" that they gave us back in march bringing us current and raising our payment.

Melanie,

Thanks for the info I'll make sure not to ask questions like that anymore on here in fear of offending someone.

I sure hope not! You go for a mod cause paymts. are too high and then they give you a higher payment than your origional one. I do understand that it will stop my sale date though, hopefully.

The fannie sites states that "forebearance is a temporary reduction or suspension of pymts. which must be immediately followed by an arrangement-either a repayment plan or a Home Savers Advance to cure the delequency." A Home Savers is the crappy mod CW gave me origionally that raised my payments using a seperate loan for the past due balance. Rumor I think that's what you got too. Here is the site that Moe gave me.www.efanniemae.com/sf/servicing/pdf/loanworkoutfactsheet.pdf

Interesting that NACA told me they were offering a 3 mo. forebearance not a 6 like it mentions on the site. So I guess they can predict the future and they think this is atemporary financial situation.

I thought last night what Fannie might be thinking is that... I have a 2nd. mtg. And that if I file BK and that the 2nd goes away...that the origional 1st mtg. paymt. is close to the dollar amt. that NACA submitted for me on both loans. So I think they are trying to push me into BK so I only keep the 1st mtg at ahigher interest 7.25%. Because if I got a MOD for both loans and then filed BK that the 2nd mtg would go away and I would be sitting with one loan. And they don't want to mod me before that BK since they know I could afford the paymt. Hope you can understand that babble!!

[sandyg]

Originally Posted by sandyg

I sure hope not! You go for a mod cause paymts. are too high and then they give you a higher payment than your origional one. I do understand that it will stop my sale date though, hopefully.

The fannie sites states that "forebearance is a temporary reduction or suspension of pymts. which must be immediately followed by an arrangement-either a repayment plan or a Home Savers Advance to cure the delequency." A Home Savers is the crappy mod CW gave me origionally that raised my payments using a seperate loan for the past due balance. Rumor I think that's what you got too. Here is the site that Moe gave me.www.efanniemae.com/sf/servicing/pdf/loanworkoutfactsheet.pdf

Interesting that NACA told me they were offering a 3 mo. forebearance not a 6 like it mentions on the site. So I guess they can predict the future and they think this is atemporary financial situation.

I thought last night what Fannie might be thinking is that... I have a 2nd. mtg. And that if I file BK and that the 2nd goes away...that the origional 1st mtg. paymt. is close to the dollar amt. that NACA submitted for me on both loans. So I think they are trying to push me into BK so I only keep the 1st mtg at ahigher interest 7.25%. Because if I got a MOD for both loans and then filed BK that the 2nd mtg would go away and I would be sitting with one loan. And they don't want to mod me before that BK since they know I could afford the paymt. Hope you can understand that babble!!

Got Fed-X today from BOA on the forbearance!!!!!! The paperwork is also due today!!!!!!! Of course!!! Morans!!!

It is a 3 months forbearance without payments. Who knows why. I am waiting on the phone now with NACA.

It says the dollar amount that I am behind and all the late fees. I think that they are saying they will give me 3 months to come up with the behind payments. What a joke!

But the Fannie site does say that they will give you a forbearance and then it will be followed with a mod. I want the NACA mod so I can move on with my life with an affordable loan.
Pray for me, please!

[Melanie702]

Originally Posted by sandyg

Got Fed-X today from BOA on the forbearance!!!!!! The paperwork is also due today!!!!!!! Of course!!! Morans!!!

It is a 3 months forbearance without payments. Who knows why. I am waiting on the phone now with NACA.

It says the dollar amount that I am behind and all the late fees. I think that they are saying they will give me 3 months to come up with the behind payments. What a joke!

But the Fannie site does say that they will give you a forbearance and then it will be followed with a mod. I want the NACA mod so I can move on with my life with an affordable loan.
Pray for me, please!

OMG! Are you serious? What did NACA say? PLEASE let me know. That's just crazy! You know, I'm tired of all this crap, if I get a stupid forbearance or a MOD, that's not going to even matter. I will never be able to sell this house, it doesn't even seem like it's worth it anymore. The value went down almost 100k. I'm in Las Vegas. Thinking of just walking away to put all this sh!t behind me and try to buy a home in about 4 years (if ever). Start over. If there's one thing I have ever regretted is wasting my good credit on this house. We only purchased 10 months ago. My husband lost his job 2 months after we moved here. I'm the only one working, and he's collecting unemployment. As soon as we moved here, the value on these townhomes dropped! The sales office was selling them 60k below what we paid and for the same model 2 months later. They sold the model homes fully furnished for $170,000 last month! And left us with a half empty community (DR Horton). I wish I never became a homeowner, rather have still been renting. Never knew owning a home was such a pain in the @ss! First time homeowner here and we worked our butts off. Oh well, live and learn not to ever buy during a recession. But how were we to know poor husband was going to lose his job. UGH! Sorry, just needed to rant.

[sandyg]

OMG! Are you serious? What did NACA say? PLEASE let me know.

Mel,
Naca e-mailed my issues to my negotiator and has asked her to call me. But, I have not had luck with her calls. I do have the # of someone else and I have put a call into him.
We are asking for an extention on the date of the forbearance of course. And are expected to get one. But, I still want the naca mod of course.
I also noticed that this FB is only for my 1st mtg. and does not include the 2nd which is an interest only loan. So that has to be dealt with as well. And of course the ever looming auction date needs to be postponed until naca can renegotiate for us.
We are about -130,000 in our home in Az. so I feel your pain. However, we moved here to start a business about 3 yrs. ago and hope to retire here in the future. So we would like to keep the home it is modest enough and in a good neighborhood. We have not been in this position before, we have paid off 4 homes in the past and would just like to tough it out with a decent mod offer and move on with our life.
Good luck to you I know everyone's situation is different but just as painful and devestating. Keep in touch!
So we are praying for the naca mod so that we can recover.

[Melanie702]

Originally Posted by sandyg

OMG! Are you serious? What did NACA say? PLEASE let me know.

Mel,
Naca e-mailed my issues to my negotiator and has asked her to call me. But, I have not had luck with her calls. I do have the # of someone else and I have put a call into him.
We are asking for an extention on the date of the forbearance of course. And are expected to get one. But, I still want the naca mod of course.
I also noticed that this FB is only for my 1st mtg. and does not include the 2nd which is an interest only loan. So that has to be dealt with as well. And of course the ever looming auction date needs to be postponed until naca can renegotiate for us.
We are about -130,000 in our home in Az. so I feel your pain. However, we moved here to start a business about 3 yrs. ago and hope to retire here in the future. So we would like to keep the home it is modest enough and in a good neighborhood. We have not been in this position before, we have paid off 4 homes in the past and would just like to tough it out with a decent mod offer and move on with our life.
Good luck to you I know everyone's situation is different but just as painful and devestating. Keep in touch!
So we are praying for the naca mod so that we can recover.

Thank you, Sandy. I wish you luck too. This is a starter home for us. We wanted to get our foot through the door and upgrade in about 5 years, but that doesn't seem possible. That's why was thinking of walking away, like what a lot of people are doing here in Vegas (very sad, and trust me, I feel irresponsible) and hopefully IF we ever feel like buying again, we can get what we really wanted. A single family home, not a townhome to grow old in. Please keep me updated, I really, really, really hope you get that MOD from NACA. I will keep you informed as well. thank you for getting back to me

[sandyg]

Talked to naca about the FB. They said sign it and send it back to bide us time for them to renegotiate. They said that since we are self employed no taxes were figured into the naca loan mod proposal OOOOPS! Go figure.

And that's why Fannie says that we need to increase our income. So we need an additional $1000 a month before we can get a mod.

So all we can do at this point is to let our last full time employee go to part time or let um go!!!!!

Go Obama... keep the small business people like me straped to high taxes during this recession and give everyone else a tax break. Because what they will do to survive is what we are having to do and that is to let employees go so that we ourselves can survive instead of being the job creators that we need to be. This will be the 2nd person!!
SORRY to offend but I just had to rant!!!

[Melanie702]

Originally Posted by sandyg

Talked to naca about the FB. They said sign it and send it back to bide us time for them to renegotiate. They said that since we are self employed no taxes were figured into the naca loan mod proposal OOOOPS! Go figure.

And that's why Fannie says that we need to increase our income. So we need an additional $1000 a month before we can get a mod.

So all we can do at this point is to let our last full time employee go to part time or let um go!!!!!

Go Obama... keep the small business people like me straped to high taxes during this recession and give everyone else a tax break. Because what they will do to survive is what we are having to do and that is to let employees go so that we ourselves can survive instead of being the job creators that we need to be. This will be the 2nd person!!
SORRY to offend but I just had to rant!!!

Hi, no problem, not offending me. I hear ya. I called NACA today. They actually told me something different! They said they heard from BofA, and they are NOW working on our file and to call back in 7-10 days. Pfft! We shall see. I'll call them next week.

[sandyg]

---

Update:
BOA received my signed paperwork to accept the 3 month forbearance with zero payments due. i asked about the 8/1 sale date. They said that it was canceled. And I confirmed that info. with recontrust!!!!!!!!!!!!!!Yeah, no more notes on my door about the sale!

Kevin at NACA said to increase our income by $1000 a month and they would resubmit my origional mod. at the end of Aug. or Sept. If that goes down I will be happy. But, the single Mom of 3 boys that we have on staff will not be happy that she will be reduced by $1000 a month and going to part-time or she will have to quit or find another part-time job!

But, we have got to save our home for now and get this behind us. At our age we would not be able to qualify for another home in the future. Plus, being an owner of a business we cannot file BK personally without filing on the business. And they would sell our business assets for the bk and we would end up without anything like computers office furniture and inventory to run our business with. Plus my husband has state securities licenses and he would have to tell them about the bk and no one would bond him anymore. So we would be without his licenses to run the business.

What a mess!!!!!!!!!!!!!!!!!!!!!! Congrats to everyone who got their mod's! Have a great

[Melanie702]

Originally Posted by sandyg

---

Update:
BOA received my signed paperwork to accept the 3 month forbearance with zero payments due. i asked about the 8/1 sale date. They said that it was canceled. And I confirmed that info. with recontrust!!!!!!!!!!!!!!Yeah, no more notes on my door about the sale!

Kevin at NACA said to increase our income by $1000 a month and they would resubmit my origional mod. at the end of Aug. or Sept. If that goes down I will be happy. But, the single Mom of 3 boys that we have on staff will not be happy that she will be reduced by $1000 a month and going to part-time or she will have to quit or find another part-time job!

But, we have got to save our home for now and get this behind us. At our age we would not be able to qualify for another home in the future. Plus, being an owner of a business we cannot file BK personally without filing on the business. And they would sell our business assets for the bk and we would end up without anything like computers office furniture and inventory to run our business with. Plus my husband has state securities licenses and he would have to tell them about the bk and no one would bond him anymore. So we would be without his licenses to run the business.

What a mess!!!!!!!!!!!!!!!!!!!!!! Congrats to everyone who got their mod's! Have a great

Hi Sandy, good to hear...at least you have the forbearance for now. That will buy time. I talked to David Leighton today, and he said that they submitted us for a MOD. He said they will try for a mod first, then if that doesn't work, they will try for the special forbearance. He also said they are accepting unemployment as income as long as there are at least 5 months left. I'll keep you updated on my file.

[Melanie702]

[quote=Melanie702;105855]Hi Sandy, good to hear...at least you have the forbearance for now. That will buy time. I talked to David Leighton today, and he said that they submitted us for a MOD. He said they will try for a mod first, then if that doesn't work, they will try for the special forbearance. He also said they are accepting unemployment as income as long as there are at least 5 months left. I'll keep you updated on my file.

I was also going to say, I doubt they will give us a MOD. I haven't read anything positive at all about MODS. Especially FHA loans. David asked me to call him back in a week. I wish time would HURRY up and fly. I want to move on. I've been so stressed and full of anxiety. Trying to exercise to cope. Like I said, even if I get a NO! ...........fine! I can move on and rent a house for much cheaper and in the neighborhood I want, but if I get the MOD, great. I just want to KNOW! Will update again.

[sandyg]

[quote=Melanie702;105857]

Originally Posted by Melanie702

Hi Sandy, good to hear...at least you have the forbearance for now. That will buy time. I talked to David Leighton today, and he said that they submitted us for a MOD. He said they will try for a mod first, then if that doesn't work, they will try for the special forbearance. He also said they are accepting unemployment as income as long as there are at least 5 months left. I'll keep you updated on my file.

I was also going to say, I doubt they will give us a MOD. I haven't read anything positive at all about MODS. Especially FHA loans. David asked me to call him back in a week. I wish time would HURRY up and fly. I want to move on. I've been so stressed and full of anxiety. Trying to exercise to cope. Like I said, even if I get a NO! ...........fine! I can move on and rent a house for much cheaper and in the neighborhood I want, but if I get the MOD, great. I just want to KNOW! Will update again.

Good to hear from you Mel. I am with you I just want to know and move forward. I feel like I am in quicksand sometimes. Isn't there threads on the site were people got FHA mod? Surely! I know I can't keep this up. I started with BOA in Dec. 08 for a mod and Oct. is when we started missing payments. So we are coming up on a year now. I have aged tremendously and stressed out too. I wish I could exercise like you are doing.
I'll keep up the prayers, honestly soon we will hear some good new.