Confused again???

[Housebroken13]

Sent the following email to my negotiator last night: Once again I am getting confused by BOA...

Hi Jennifer,

My wife made our 2^nd forbearance payment today over the phone. And were also changed a $20 payment fee (shouldn’t this be waived?)>>

·We paid our September Forebearance payment on its due date of 9/1/2009, but the date it shows posted to our account in 9/15/09. (I assume this is due to processing time)
·I paid my October Forebearance payment today as it was due on 10/1/2009

I received confirmation numbers for both payments and want to insure I am still on par with the Forebearance program as agreed.

Also I spoke to a representative on the phone late this evening about my account and asked if there was any update on my workout status. Reason I called was due to the most recent statement I got in the mail explaining that collection and other legal activities would begin if I did not pay my past due balance in full. I was told by the representative to ignore those messages as I was in a workout program and making payments on time.
They also told me that my loan was sent today 10/1/2009 for a modification review, are you able to confirm this?

I checked my online status and got the following message, so I am concerned:

Our records indicate there is no workout information associated with this account. To inquire about another account, please use the drop down menu above for a list of available accounts. If you would like to speak to one of our representatives about a workout plan please call us toll free at: 1.800.669.6650. For general information about programs offered, please visit our Financial Hardship Assistance page.

Can you please update me on the status of my workout/modification? It’s been an month since I talked with you on the phone and I want to insure things are still on track and/or if you need additional information from me.
I’m sure you are quite inundated with work and definitely sympathize. But I would greatly appreciate if you could follow with me on all of this at your earliest convenience.

Kind Regards,

[ama125]

I know from other reports that the online status is often inaccurate, but I would be concerned if it is showing this now and they are still asking for payment. Hopefully, you hear back soon. Good luck!

[Housebroken13]

Just talked to a rep in the retention department. Her name was Kim.

She said my loan still shows as in a workout.

As of yesterday the status is that it was referred for a modification.

She also said that my forbearance is now a HAMP trial modification, it will be approx. 45 - 60 days before being a final modification.

If this is true it means my payment will have gone from $2520 in my original loan with Countrywide, to $1950 with my 1st mod with Countrywide, and now to the present amount of $1072 in my most recent modification with Bank of America.

One thing though is the trial mod payment always a reflection of what the final modification payment will be?

[Garry]

Originally Posted by Housebroken13

Just talked to a rep in the retention department. Her name was Kim.

She said my loan still shows as in a workout.

As of yesterday the status is that it was referred for a modification.

She also said that my forbearance is now a HAMP trial modification, it will be approx. 45 - 60 days before being a final modification.

If this is true it means my payment will have gone from $2520 in my original loan with Countrywide, to $1950 with my 1st mod with Countrywide, and now to the present amount of $1072 in my most recent modification with Bank of America.

One thing though is the trial mod payment always a reflection of what the final modification payment will be?

It should be, I have read that one persons final mod turned out to be less than his trial payment.

[Housebroken13]

What exactly does "referred" for a modification mean anyways?

Still not sure how I can go from being in a forbearance into a MHA Trail mod in the 2nd month. But that's what the retention center rep. said, and what my negotiator referred to my program as in an email. My workout status previously was "in review". and now says no workout information available.

Also how long has it taken for your forbearance or trial mod payments to get taken out of your account when you've paid over the phone.

My 1st payment took 15 days. Wondering how long it will take for my 2nd payment, they did charge me the $20 fee that should have been waived BTW, that came out immediately.

I emailed my negotiator about all this but no response, even though I did get a read receipt.

[nativelasvegan]

If the process is a trial modification, I do not understand why it is not set up that way. If documents are sent to a borrower, should they reflect the actual agreement taking place - "forbearance" agreement or "trial modification" agreement? Are they one in the same?

According to Fannie Mae's guidelines, there are two types of hardship: temporary or Long-term. What standards are being used to differentiate the difference between these two types of hardships? Are the banks using written criterion?

Under a temporary hardship, the options are:
1. forbearance (a temporary reduction or suspension of payments which must be immediately followed by an arrangement - either repayment plan or homesaver advance to cure the delinquency.
2. A repayment plan - an arrangement in which the borrower agrees to pay past due amounts while still making regularly scheduled payments (yeah right, who can afford to do this?)
3. Homesaver advance - monetary advance to cure a delinquent loan resulting in separate unsecured loan for the arrearage amount.
I could be wrong on this one, but is the bank going to give someone a homesaver advance which would mean an unsecured loan to pay the amount past due? Doubt it.

Long Term Hardship
1. Homesaver forbearance - temporary six month reduction of payments to an amount the borrower can afford but no less than 50% of the borrowers contractual monthly payment including taxes, insurance and other escrowed items.
2. Other forbearance - temporary reduction or suspension of payments (subject to limits of MBS trust document under which mortgage loan was pooled, if applicable), which will culminate in a more permanent foreclosure prevention alterative.
ONCE A BORROWER IS ON HOMESAVER FORBEARANCE OR OTHER FORBEARANCE THE FOLLOWING PERMANENT LOSS MITIGATION OPTIONS SHOULD BE CONSIDERED IN THE ORDER LISTED BELOW. Note the word "Should" be considered here. Way to flexible. How about a MUST here instead!
1. Modification - any permanent modification to the terms of loan that would make it more affordable including changes to interest rate, loan balance or loan terms.
2. Pre-foreclosure sale. Is this "short sale."?
3. Deed in Lieu.

I could be missing something here. I do not see anything that is entitled Trial Modification ? I hope this helps someone who has a Fannie Mae loan. It has helped me when talking to my negotiator and discussing this process.

[Housebroken13]

Thanks for the reply. I can say that my loan is owned by Fannie Mae.

The HomeSaver Forbearance agreement I singed was for a 6 month term. I am 2 months into it.

I do believe they are proceeding with modifying the loan at this point. As I noted my status was previously "in review" for a Modification, now i've been told it's been "referred" for a modification. Not sure what the difference is their either...

[nativelasvegan]

housebroken, it would seem that you are moving along and you will be considered for the permanent modification. Yeah! I wish you luck. Please keep us posted. You are a few steps ahead of me. Congratulations on making it this far!

[Housebroken13]

We'll see I am highly skeptical of what I am being told, and what will happen in the end. Ideally, I would like a 2% interest rate, a cram down on my 2nd Lien through the 2MP program by BOA, and perhaps a principle reduction. I've already had my interested rate lowered on my 2nd from 13.75% to 2% wuth Greentree. But if I did not have to make a payment at all on the unsecured balance, I'd have more $$ to pay to my 1st Lien.

[pdsfoley]

Housebroken...I understand being skeptical....I am too. I hope you get through this mess along with the rest of us. I'm waiting for docs now...they said 48-72 hours...that was almost 2 weeks ago. I just don't understand what makes it so hard. Sometimes I feel like one of those hampsters on the sppinning wheel in its cage...I'm TIRED of spinning already!!! Good luck to you!!