Forbearance?

[alikeith]

So how exactly does a Forbearance work? Has anyone had a succesful forbearance? I know that sometimes they will let you skip payments or pay reduced payments for 3 months. Then what? Do they request a lump sum?

I am wondering if this is what they may offer me since my NPV is negative under MHA. I cant get that type of mod. If it is negative, could they still offer me a different mod i wonder?

[ama125]

Originally Posted by alikeith

So how exactly does a Forbearance work? Has anyone had a succesful forbearance? I know that sometimes they will let you skip payments or pay reduced payments for 3 months. Then what? Do they request a lump sum?

I am wondering if this is what they may offer me since my NPV is negative under MHA. I cant get that type of mod. If it is negative, could they still offer me a different mod i wonder?

A forbearance can vary in its length and payment requirements. While under a forbearance, the servicer is supposed to explore other options that include other modification programs, short sale, or deed-in-lieu of foreclosure. If I had a choice, I'd pick door#1 as the other two mean you lose the home

I got turned down for a mod once (though it was never clear which one and no where did it say it was the MHA mod). I was offered a 6 month forbearance with reduced payments (but it only reduced my payments by a very small percentage, from $2635 to $2034). I opted to re-apply for the MHA since we had a 25% increase in income (I know, you'd think that would be great, but now instead of 100% of our income going to pay our two mortgage payments, now it is 75%).

I do know that they may be allowed to deviate from some of the guidelines and still get their incentive payments. At the very least, if you get turned down, I think it is likely they will offer you some kind of forbearance agreement. I am thinking they are just trying to buy the homeowner time to find more income. Oh what a tangled web!

[alikeith]

Yeah i am just wondering what they may offer if not an actual modification. I know they have other mod programs, besides MHA. The question is will they approve me..again

[Moe Bedard]

Once a forbearance is signed, it becomes a binding agreement. The things that sucks about them is that if there is just one missed payment, the lender can start foreclosure proceedings right away.

After the agreed upon time period ends, hopefully they will keep their side of the verbal bargain because nothing is guaranteed. But it is definitely in their best interest to offer a loan term mod at that time.

[alikeith]

IS that what they typically do is offer a loan term mod? thanks moe!

Luckily i am speaking with VP of Home Retention. I am not as worried about them not keeping their word.

[Fern714]

I would like to share my story and let me know what you think.

We own a house in CA. on the 1st we owe 321K (2254 mortgage payment at 5.6%)and on the 2nd we owe 87k(742 payment at 9.7%) with 43k credit card. I used the credit cards to pay most of the bills to stay current on my mortgage. I contacted BofA formerly Countrywide but since I am current they said they couldn't help me.

After contacting them again anf let them know that i was going to be delinquent they took my information and expenses, my husband and I gross about 7,000 a month. They averaged we spen 5,400 a month for mortgages, food, gas..etc... She said the best they can fo is forbeance payment (Spelled incorrectly) After noticing this site I email the president of BofA on 8/5/09 received a called from them on 8/7/09 to fax over paystubs, bank statements and list of expenses.

My question is that the figures they did said i have about 284 amount to spare which I do not see how they came up with those amounts. Do you think I might have a possibility of geting approved?

[Moe Bedard]

Originally Posted by alikeith

IS that what they typically do is offer a loan term mod? thanks moe!

Luckily i am speaking with VP of Home Retention. I am not as worried about them not keeping their word.

Oops, I meant long term loan mod.

Fern714 Re: Forbearance?

My question is that the figures they did said i have about 284 amount to spare which I do not see how they came up with those amounts. Do you think I might have a possibility of getting approved?

Hello and thanks for joining!

If those credit cards are getting paid, they may say no because they want you to pay them. It's hard to tell without actually seeing your financials and even hard on the phone. Maybe you should try a non-profit.

[helpsavemyhome]

alikeith, have you tried going thru NACA or have they said they couldn't help you?

[John12333]

Hi everyone, so I got a call from BofA today because I emailed to their president. I received 2 phone calls... they told me that since I haven't missed my payment, I will not be qualified for the modification (Man, i'm borrowing money to pay for the mortgage). However, they will try the 3 months forbearance and at that point will consider loan modification cuz i'll be deliquent. I'm completely confused.

[alikeith]

Originally Posted by helpsavemyhome

alikeith, have you tried going thru NACA or have they said they couldn't help you?

No i havent. I went thru the office of the chairman, and now i am in contact with VP of Home Retention. She assures me the worst case scenario is they add late payments to the loan.

[sandyg]

Originally Posted by John12333

Hi everyone, so I got a call from BofA today because I emailed to their president. I received 2 phone calls... they told me that since I haven't missed my payment, I will not be qualified for the modification (Man, i'm borrowing money to pay for the mortgage). However, they will try the 3 months forbearance and at that point will consider loan modification cuz i'll be deliquent. I'm completely confused.

We are in the 2nd mo. of a 3 mo. forbearance at $0 payments. They wanted us to increase our income or reduce our expenses. We will be updating our financials late this month to be considered for a loan mod.

If they don't accept naca's proposal we hope to get the MHA mod which we now can qualify for hopefully since our income increased a little. But, naca's proposal woould be the best!!

[hope67]

Originally Posted by Moe Bedard

Hello and thanks for joining!

If those credit cards are getting paid, they may say no because they want you to pay them. It's hard to tell without actually seeing your financials and even hard on the phone. Maybe you should try a non-profit.

Moe Bedard, would you please elaborate about the credit card situation and how would that impact their decision regarding modification? TIA

[John12333]

Thanks, Sandy. I'll let my ACORN counselor aware of this... hopefully she'll help me out since I'm so ignorant about loan modification. Please keep us updated about your status