Special Forbearance Agreement / Deferral of Loan Payments

[hsh011]

After working with a negotiator directly for a month (the office of the President referred me to negotiator), I received today the "Special Forbearance Agreement". The negotiator told me that this is a best that the supervisor and investor will agree to, because if my loan is modified they think I will not be able to keep up (if modified down to my target of 2.5% my monthly payment will be down $600, but together with escrow payment it will be $300 more than my current loan payment without escrow).

In the next three months, during the "Deferred Payment Period", I will agree to pay about $600 less than my current payments.
On Dec. 1, BAC Home Loans Servicing (read BoFA) will decide in its "sole and absolute discretion, either (1) you will be required to recommence your regularly scheduled payments and to make an additional payment, on terms to be determined by BAC , on or before the first of each month commencing on Dec. 1 until all past due amounts owed to BAC have been paid in full, or (2) you will be required to reinstate your Loan in full, or (3) BAC will offer to modify your Loan or will offer you some other form of payment assistance, on terms to be determined solely by BAC and/or the investors or insurers on your Loan. In any event, late charges will not be assessed during the Deferred Payment Period."

MY QUESTION IS - do I really stand a chance in three months to permanently modify my loan, or this is just a BoFA trick to get rid of me?

Thanks guys!

[ama125]

If they just wanted to get rid of you, then they wouldn't even offer you this...just my opinion. I would use that time to try and increase income or decrease expenses (look over lowering car insurance, homeowner's insurance, property taxes, anything you can use to trim your budget). I may be in this same situation, I likely won't hear anything for another week

[merev]

I received the special forbearance agreement yesterday. I have called Bank of America several times today and cannot get a straight answer from anyone. I am also with NACA. I tried calling them also, but their policies changed this morning. They are no longer allowed to go over documents with you. You have to wait for a negotiator to contact you.
I am conflicted on signing this document because I don't know that I can make the "normal" pymts after the 3 month period.

[Garry]

MY QUESTION IS - do I really stand a chance in three months to permanently modify my loan, or this is just a BoFA trick to get rid of me?

Thanks guys!

If the bank wanted to screw you they would simply foreclose. Give them time to help you. If they can't get you into the MHA program, they may be able to find another solution.

[florida1976]

Is Melissa Henderson your negotiator? she put me in the same plan. she assured me that after the payments I will be giving a modification. one can only hope. In my case I had no choice but to accept. i don't want to lose my home.

[hsh011]

Is Melissa Henderson your negotiator? she put me in the same plan. she assured me that after the payments I will be giving a modification. one can only hope. In my case I had no choice but to accept. i don't want to lose my home.

...it is not Melissa, but I got a similar message from my negotiator....

[stressedout1]

i think maybe this is a new thing they're doing to buy time if you go through office of the president. it seems like the office of the president is all b.s., created to fool and distract us all, like a puppet with no real power. i got the same thing and had completed my 3 months forbearance payment. after my last payment was received, i had called them (OOP, advocacy, home retention...)a gazillion time and never get a straight answer to what they are gonna do or planning to do. it's like my file is sitting in the twilight zone "under review", while i already completed to the 3 months trial. of course, conveniently, i got switch to a new negotiator. if i did not call many times, i would not have found out. and of course, can not get hold of the negotiator, new or old. i really don't know what those people are doing over there at the "negotiating dept". like someone had mentioned in this forum, i'm beginning to imagine a dark room, like a "sweat shop", with the negotiators crammed in...oh well, will keep fighting for my home, trying to cancel the sale date that's coming up in a few days, again. will let u guys know.
stressedout in CA

[jdubu2]

I hope this is a "real" plan, but like many I am a little more than paranoid that BofA$$holes are being just that a$$holes...

[JSal88]

Has anyone had any success with getting a mod after the 3 month forbearance? We were just put on one and I am VERY worried that once the 3 months has passed they are going to screw me into bigger payments again....my negotiator said that the 3 month trial is to see if we can afford the lower payments..then we will move on to a permanent modification.

Please let me know!

[helpsavemyhome]

JSall88, we just received docs for a Special Forbearance and I, too, am worried of what will come after the three months is up. I talked to a guy in Advocacy yesterday and he said they will try to get us a payment similar to the payment in the forbearance, if we can handle making the payments. I'm leaning toward signing the docs because I don't feel we have any other choice.

I am curious also, to see if anyone has actually been given a mod after the three months is up...

[jinksy]

I apologize if this has been posted already.

Moody's bearish on housing recovery. Analysts say it will take more than 10 years to recapture peak home prices

[jinksy]

Housing Agency's Cash Reserves Will Drop Below Requirement.

[jinksy]

Faber Report: Shadow Inventory.

[southFLgal]

Have any of you who previously posted received any positive results after your special forbearance? I was just offered one and would like to know your status. Thanks so much!

[snowbie]

Hi mpthomas,

I was offered a special forbearance back in August because even though according to the HAMP guidelines I qualified for HAMP, they told me I didn't qualify at the time. I was also current on my mortgage.

After making three special forbearance payments my negotiator reran the numbers and said I now was pre-qualified for HAMP. They told me more than likely the change was because making the smaller payments put me behind in my mortgage so I was past due.

I then was sent a trial modification that started January 1st. I will be making my second payment this week and my trial goes through March. So, I have my fingers crossed that I will get a permanent modification afterward but not getting my hopes up after reading other posts. I just take it day by day and try not to think about it while reading others experiences on here.

Hope this helps,

Snowbie

[southFLgal]

Snowbie,
Thanks for the info. It is nice to know that someone out there was current when starting a special forbearance payment plan. I hope you and I have positive outcomes. Please keep me posted.

I will say that my negotiator said that they are not trying to set me up for failure, especially since I am not delinquent. She said that the investors goal is to get to a more affordable payment.

Let's stay in touch. Thanks again!

[Malcon10t]

Have any of you who previously posted received any positive results after your special forbearance? I was just offered one and would like to know your status. Thanks so much!

I signed my paperwork last week. Melissa Henderson is my negotiator. Will know more when they get back to me this week.

[southFLgal]

Malcon10t,
What paperwork did you sign? The special forbearance papers or a final mod? If it was a final mod, what were your terms? Who is your investor?
Thanks for the info

[snowbie]

I just wanted to touch base regarding your special forbearance.

I made three payments then was told I was pre-qualified for a HAMP trial. I started my HAMP Trial in January and just set up my 5th payment.

I ran my credit report and scores last week only to be horrified that because I made three partial payments under the special forbearance when I wasn't late on my mortgage, they have reported me 90+ late to all credit agencies. That is unethical and I am trying to get it reversed.

What HAMP says is if you are current when you start the HAMP trial they are supposed to report you 30days for each month with a special code. To put me on reduced payments then report me late for each month I was on the special forbearance is just wrong.

Do you have any insight on this and have you checked your credit lately?

My scores were 788, 780 and 760 and now dropped below average at 640 because of my trashed credit. I expected a hit with the trial but nothing like what you get from showing a 90+ late mortgage.

Snowbie,
Thanks for the info. It is nice to know that someone out there was current when starting a special forbearance payment plan. I hope you and I have positive outcomes. Please keep me posted.

I will say that my negotiator said that they are not trying to set me up for failure, especially since I am not delinquent. She said that the investors goal is to get to a more affordable payment.

Let's stay in touch. Thanks again!

[Elora123]

Started forbearance with Citi/NACA Nov09 through Feb 10. Was told I would be modified in February, but it didn't happen. Put on special forbearance/repayment for March and April to be modded in April. Just sent in my April payment by certified funds(only accepted payment). Was told by negotiator that I needed to be 120 days late for Fannie and yes I would be modded in April. If I am not given a mod in April, the May payment would be my original payment of 1070 plus 540 special forbearance plus late fees if applicable. We are both on Social Security, husband has cancer and lost job in 09. I think they never seriously counted or considered our unemployment.
Our 2nd mortgage, Citi/Fannie was modified three weeks ago. It was not submitted by NACA and was only 16K. Final payment was 1/2 of original.

[southFLgal]

snowbie,
i haven't checked it lately, but after the first month, they reported me late and i called my negotiator and she fixed it immediately and "blocked" my credit reporting for 6 months...it has been fixed and my SF agreement states that my credit will be frozen.

i made my 3rd payment last Friday and on Monday, the contact who was assigned my file during the SF said that my agreement was complete and she was transferring my file back to my negotiator. she asked for updated info (pay,bk statements, etc) and I sent to her. i will call next monday for an update from my negotiator...will keep you posted...i'm curious, b/c she said i didn't qualify for HAMP, so i'm crossing fingers for an in house mod...

[yomann]

Been on a 4 month SBA with WFB and paid 3 payments todate.
As stated on previous threads, my take is the banks want to see if we can sustain reduced payments for 3-4 months, before they go thru the extra effort required to draw up modification documents.
I remain hopefull .........

[goldie]

I don't know folks. I'm skeptical. I was offered MHA package and made the required three payments. Then I made 2 additional payments. ALL on time. During this time B of A did absolutely nothing with my mod. When I called they told me everything was fine and looked good and they didn't need a thing from me. After the 5th payment, I contacted the office of the president. Turns out NOTHING had been done on the MHA/HAMP. I was assigned a negotiator who then told me I had to enter a special forbearance for three months, while they are still evaluating the MHA. I don't understand this. When I questioned it, I was told I needed to "prove" that I could make the payments. I said, "What do you mean prove?" I've made FIVE PAYMENTS of 2026.00. I've PROVED myself." She then stated the higher-ups insisted I enter this "special forbearance" for three months for 1250.00. Because they were concerned I "couldn't afford" the payments. NOTHING has changed income-wise or any other way since I applied.

[southFLgal]

goldie,
your situation is strange, i've never read anyone who was in a MHA trial, and then given Spec Forbearance...that makes NO sense at all...I would demand some sort of explanation as that does not go off of the MHA guidelines at all...in fact, there are additional guidelines on the fannie mae website for "alternative modification" for people who don't qualify for MHA after trial period...check it out - may be good info for you...
https://www.efanniemae.com/sf/servic...tmod/index.jsp
hope i've helped some...

[goldie]

goldie,
your situation is strange, i've never read anyone who was in a MHA trial, and then given Spec Forbearance...that makes NO sense at all...I would demand some sort of explanation as that does not go off of the MHA guidelines at all...in fact, there are additional guidelines on the fannie mae website for "alternative modification" for people who don't qualify for MHA after trial period...check it out - may be good info for you...
https://www.efanniemae.com/sf/servic...tmod/index.jsp
hope i've helped some...

Yes, I agree. It is VERY strange and I have YET to see another situation like it on ALL of loansafe, no matter who the servicer is! I have not been denied MHA though, either unofficially or officially. The negotiator, Janette Castillejos, said that they are still considering me for HAMP. I'm going to call her tomorrow and find out if there is any update. The online status (which we all know is 99% incorrect) says not to contact before 05/12/10, but as I get closer to that date I'm getting more anxious to know EXACTLY what the heck they think they are doing here.

[laststraw]

I received "Special Forbearance" paperwork from Chase. They wanted three payments of $1850 and a fourth of $5600. They gave me five days to sign and return the paperwork.

A couple of days after receiving the "Special Forbearance" I received a statement from their escrow dept. telling me my payment would be $2800 due to escrow shortage.

I called and the woman told me 1) the $5600 was not a payment but was the amount they would roll into the loan, although it was listed as "payment #4" on the paperwork; and 2) that she didn't know anything about the escrow statement and I'd have to call the escrow dept.

Too much conflicting information. I am not sending them a dime until I get a straight answer, which seems to be impossible.

[yomann]

You need to rethink the demand for escrow payments - this is not going into the bank coffers, they are merely paying property taxes and insurance to 3rd parties.
If the 3 payments for $1,850 are affordable and close to rental value of your house, I would consider paying them.
Sorry, that's just my take on the situation .........

[zander]

Yes, I agree. It is VERY strange and I have YET to see another situation like it on ALL of loansafe, no matter who the servicer is! I have not been denied MHA though, either unofficially or officially. The negotiator, Janette Castillejos, said that they are still considering me for HAMP. I'm going to call her tomorrow and find out if there is any update. The online status (which we all know is 99% incorrect) says not to contact before 05/12/10, but as I get closer to that date I'm getting more anxious to know EXACTLY what the heck they think they are doing here.

Goldie- I also made 6 payments under Hamp was told verbally that I was denied, never received anything in writing so this remains vague and then was told to make 3 Special Forbearance Payments. I was told that they needed to be sure that we could sustain the payments...I basically said the same as you "what the first 7 payments weren't enough to prove we could?" We had six months trial payments and assume the payment in between these two plans was sent of into space somewhere never to be seen again. I get a bad feeling in my gut this is just a stall tactic to get more money with no intention to modify. I really hope for both of our sakes this isn't true. I'll continue living on pins and needles for the next couple of months while my life hangs in the balance.

[laststraw]

Yomann, I am aware of what escrow is, however, they send me a forbearance agreement one day that lists payments as $1850 and an escrow statement the next that lists payments as $2800. Which am I to believe?? When I called the rep told me she didn't know what the escrow statement was and that I'd have to call the escrow dept. They want $6800 for escrow shortage and $960/month just for escrow. I fear it's been too long since I made a payment, making it impossible ever to catch up....

[advocate]

A day after I made my second HAMP payment, an SFP 'agreement' arrived by regular post. The payment amount was the same as the HAMP, and it came from BAC in Plano, Texas.

My immediate sense of this is that yet another left-hand/right-hand situation is occurring in the bowels of the bank. I will continue to pay the HAMP trial with the full expectation that after three months, I will get a permanent mod----after all, that is what the Treasury guidelines dictate.

[goldie]

Goldie- I also made 6 payments under Hamp was told verbally that I was denied, never received anything in writing so this remains vague and then was told to make 3 Special Forbearance Payments. I was told that they needed to be sure that we could sustain the payments...I basically said the same as you "what the first 7 payments weren't enough to prove we could?" We had six months trial payments and assume the payment in between these two plans was sent of into space somewhere never to be seen again. I get a bad feeling in my gut this is just a stall tactic to get more money with no intention to modify. I really hope for both of our sakes this isn't true. I'll continue living on pins and needles for the next couple of months while my life hangs in the balance.

I can't say I'm glad we're in this situation, but I am comforted to see I'm not the ONLY ONE where they are playing this game. I too have a bad feeling that this is just a stall tactic. My house is underwater and badly in need of MAJOR repairs. I do have an attachnment to it and would like to stay, but if they make it unworkable I have been combing the ads for rentals and have seen several where I could bring my animals (and that's really ALL that's important to me). I wanted to keep the house so my animals have familiar surroundings and I can't imagine living under a landlord's thumb again, but if B of A doesn't cooperate I will walk away. Do you also have Fannie Mae as your investor? I wonder if B of A is stalling because they KNOW they will be reimbursed by Fannie for any default and right B of A is just double-dipping us.

[zander]

You're are not alone! I understand how you feel...no animals save a rabbit, but I do have young children, this is the only home they've ever known and it would be such a blow if we had to uproot them, leave friends, neighbors and school. We are not underwater although we have lost at least 20% of our equity we put a lot of money down and have been paying for ten years. This is was to be our one and only home.

Fannie Mae is our investor, Chase is the servicer. BOA Chase, they're all the same.
I believe you're absolutely right that the longer they are able to keep us in default status without either foreclosing or modifying the more money they make.
I'm trying to convince myself that they are holding out on a Hard Denial to see if we may qualify for the new Alt. Mod. option that is being put into place.

I don't understand why I was put on a forbearance to begin with as I am not unemployed. I am self employed and maybe they are having issues with determining my income...wouldn't know getting info is like pulling teeth.
Please do keep me posted as I will you...really wondering how this will work out for all of us.

[jasanderson]

I can't say I'm glad we're in this situation, but I am comforted to see I'm not the ONLY ONE where they are playing this game. I too have a bad feeling that this is just a stall tactic. My house is underwater and badly in need of MAJOR repairs. I do have an attachnment to it and would like to stay, but if they make it unworkable I have been combing the ads for rentals and have seen several where I could bring my animals (and that's really ALL that's important to me). I wanted to keep the house so my animals have familiar surroundings and I can't imagine living under a landlord's thumb again, but if B of A doesn't cooperate I will walk away. Do you also have Fannie Mae as your investor? I wonder if B of A is stalling because they KNOW they will be reimbursed by Fannie for any default and right B of A is just double-dipping us.

This is my story exactly and I feel the same way you do. I made 5 trial period payments, was told for 3 months it was w/underwriting to only finally be told i was never approved and now I am at a negoiator again. We have decided we are not giving them any more money. They can either give me a workout or take my house in 6-12 months while I live rent free, go bankrupt and save my cash for somewhere to rent. God I hate them!!!

[peekasmomma]

Hi everyone new to this board, We are in a special forbearance agreement for 6 monthly payments of 930.00 which is half of our regular monthly payment. We have been working with NACA since august of 2009, we did received 2 modification packets in the mail but was confusion because they came days apart from each other when we called to ask questions about them we got the run around from bank of america and naca. When the modification packets were sent they were more that one our monthly payment was and we had just had a job lost and couldn't understand after talking with a negotiator from NACA letting Bank of america know that our income had dropped by half naca stated that a payment of 1100 would work we got the mod papers 1900. We finally got a very motivated negoitator with bank of america who actually called us and gave us his phone number with ext. We also have the number and email address of a naca rep in the esculation department. We are now on 3rd paymnt of 6 payment of a forbearance agreement, overnighted paymnt as of 12/4 payment not posted. Paymnt due 12/1 but Bank of american signed for payment on 11/29. Can someone share with us about the special forbearance agreement should these payments post to the account and what happens after 6 paymnts have been received. I am so frustated going on 2 years with bank and america and naca .

[advocate]

Here's another angle----after 18 months of frustration trying to negotiate with BofA, we were finally put on HAMP---8 months go by without a hitch--then, I am denied because of NPV----we are done, too. No more until a valid real estate contract is presented. Good luck to all.