Ok I am pretty confused here and I have found different opinions on the net. I want to understand this a little more to see if or how I should address this.
I received a Forbearance plan a few years ago when my wife was unemployed. The plan allowed a precentage of the normal payment each month for almost a year. The mortgage co. said we would then do a mod. at the expiration, prior to the plan ending with a balloon payment.
My wife went back to work right before the mod. papers were turned in. Therefore, we were denied due to household income being restored. The company demanded the entire past due amount immediately or they would forclose. Our only option it seemed was to accept a 24 month "Forbeance Agreement". The plan states in writing that we would pay the "regular monthly payment" ea. month from then on, and a specified additional amt. would pay off the arrearage.
Well, we have done this for the past 13 months and should catch up the arrears at the start of the new year (much earlier than the 24 months agreed uopn). So, I check our credit reports the other day and the mortgage co. has reported 120 days late for the past 24 months. I understand we owe an arrearage and can't dispute that. But, the repayment plan states in writing that our regular monthly payment will be made ea. month from the amount we send in, while the extra amount will be used to repay the arrears. Technically, this doesn't seem like we should be dinged as 120 days late, without some note showing we are paying as agreed upon.
I have read some sites that say companies can not report negatively during a Forbearance, and some sites say it is normal. Is this repairable or disputable? Or am I out of luck? Any dialog would be appreciated.
Thanks
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