Can someone explain some things to me regarding loan mods?

[Reese73]

I have some questions about loan mods, and reading through the other post, I just become more confused! Truthfully, this forum is a wonderful resource, but so many things I don't understand.

I do understand that during the loan mod process, a foreclosure can still progress. At the same time HAMP guidelines state that foreclosure must be suspended during trial payments, correct? I assume that is only for HAMP mods, not in-house mods, correct?

Its so confusing how some people are in the review process for months, and on trial payments for a lengthy amount of time, yet I've been informed that if we get a sale date before the loan mod request goes to underwriting there's nothing Chase can do about it. If the loan mod request is in underwriting before a sale happens, then they will ask the investor to postpone the sale.

Its all so confusing. Applying for Hamp does not halt the foreclosure process, correct? Only once it is approved does it halt it if a borrower makes the payments? Yet I know it always doesn't, because I have been reminded several times by Chase that foreclosure can still happen at any time. Why would a repayment plan not have been offered to us when it is so obvious that a loan mod isn't really in our best interest? Not that I really expect an answer-when I asked Chase this they said we couldn't do a repayment because our loan is already in active foreclosure and there's now an attorney (and fees) involved.

The lady from Chase today told me flat out that as of right now, our home isn't really our home anymore-not until a permanent loan mod takes place. I've been so upset, because if we get denied for a mod (which I'm sure we will) I feel like we will lose our home. Even needing additional documents could cause this-they told me that their "hands are tied" as far as the foreclosure process until the loan is in underwriting. Needing more documents would hold up the loan getting to the underwriter-and you can see where I am going with this. Chase said if we don't get a mod our only other choice is short sale/deed in lieu. I told her I wanted to keep the home-she rudely remarked "you people always do, but its not a perfect world and chances are you will lose your home".

My other post is here: Loan modification not submitted until it goes to underrwriter?

This whole process, and reading about everyone's struggles makes me so angry. Its like you read one thing, get told another thing, read something that contradicts all that, then hear some other representative tell you something different altogether. One says don't worry, one says worry, another says worry but not too much. I know many of you are experiencing the same things. I feel for you, honestly.

[LoanModHelpCenter.com]

I have some questions about loan mods, and reading through the other post, I just become more confused! Truthfully, this forum is a wonderful resource, but so many things I don't understand.

I do understand that during the loan mod process, a foreclosure can still progress. At the same time HAMP guidelines state that foreclosure must be suspended during trial payments, correct? I assume that is only for HAMP mods, not in-house mods, correct?

Its so confusing how some people are in the review process for months, and on trial payments for a lengthy amount of time, yet I've been informed that if we get a sale date before the loan mod request goes to underwriting there's nothing Chase can do about it. If the loan mod request is in underwriting before a sale happens, then they will ask the investor to postpone the sale.

Its all so confusing. Applying for Hamp does not halt the foreclosure process, correct? Only once it is approved does it halt it if a borrower makes the payments? Yet I know it always doesn't, because I have been reminded several times by Chase that foreclosure can still happen at any time. Why would a repayment plan not have been offered to us when it is so obvious that a loan mod isn't really in our best interest? Not that I really expect an answer-when I asked Chase this they said we couldn't do a repayment because our loan is already in active foreclosure and there's now an attorney (and fees) involved.

The lady from Chase today told me flat out that as of right now, our home isn't really our home anymore-not until a permanent loan mod takes place. I've been so upset, because if we get denied for a mod (which I'm sure we will) I feel like we will lose our home. Even needing additional documents could cause this-they told me that their "hands are tied" as far as the foreclosure process until the loan is in underwriting. Needing more documents would hold up the loan getting to the underwriter-and you can see where I am going with this. Chase said if we don't get a mod our only other choice is short sale/deed in lieu. I told her I wanted to keep the home-she rudely remarked "you people always do, but its not a perfect world and chances are you will lose your home".

My other post is here: Loan modification not submitted until it goes to underrwriter?

This whole process, and reading about everyone's struggles makes me so angry. Its like you read one thing, get told another thing, read something that contradicts all that, then hear some other representative tell you something different altogether. One says don't worry, one says worry, another says worry but not too much. I know many of you are experiencing the same things. I feel for you, honestly.

Hi Reese73,
Welcome to the Forum.
-Forclosure laws are different in each state but generally speaking, if you are in a trial modification, your servicer cannot foreclose on you. While a workout option is under review, they must make a decision and give you alternatives to foreclosure. Now days, as of June 1st, if you get a trial modification, it states in the HAMP guidelines that "as long as the homeowner fulfills their obligation in accordance to the TPP, the modification must go permanent." Therefore, as long as you make the payments on time and fulfill any other requirements per your agreement, you are good to go.

Sale dates are not to be taken lightly. You want to make sure you have all your ducks in a row and all documents updated and into your servicer. Have you found out what you qualify for, programs and terms? Also, who is the Investor on the loan? Email me direct and I can answer your questions in detail, and go over your numbers for you to make sure you are qualified for some programs. We have some contacts at Chase as well and can get some more information for you on that sale date.