Homecomings Mod trial period??

[newbiehere]

Hi there! Thanks in advance for all of the help, very informative forum!
I am trying to modify my first mortgage with Homecomings. My last payment I made was March 1st 2009. I immediately sent in paper work to modify. The loan is 203K on interest only for five years (ARM), the rate is at 6.5 I think with payment including ins., taxes is $1,159.
Homecomings just sent me a packet (6/16/2009) with a three month trial period saying I have to take this program they are offering while a permanent program is still being worked out... They also say that doesn’t mean I qualify for any modification. At the end of the three months they will let me know. The payment on the trial period is $734. They don’t tell me how they will be getting there just that that’s the payment.

Has anyone else had Homecomings or anyone else do this to them? It seems like this is just a way to jerk me around... I would like something set in stone and don’t want to make payments if at the end of the three months they are going to foreclose anyways. Maybe this is their first offer and I decline it they will come back with something even better? Any thoughts?>>
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Thanks!>>

[Moe Bedard]

newbiehere,



Welcome to the forum and thank you for joining.......................

The Trial Modification is a part of the program...............if nothing has changed at the end of the Trial Modification with your expenses or income they will verify this and offer a permanent modification..............

If you report a hardship, your servicer will:

• Determine whether your loan meets the minimum eligibility criteria (owner occupied, originated on or before January 1, 2009, unpaid principal balance equal to or less than $729,750). If yes
• Ask about current income, assets and expenses as well as the specific circumstances relating to the hardship to determine if you will be unable to make your mortgage payment. (Your servicer may initially accept verbal information about your income and expenses, but eventually you will need to provide proof in the form of tax returns, pay stubs and other evidence).
• Determine if your monthly first lien mortgage payment is more than 31% (approximately 1/3) of your gross or pre-tax monthly income. If yes:
• Add past due charges (interest, taxes, insurance and costs that your lender paid to other parties on your behalf – but not late fees, those must be waived) to the loan balance.
• Determine how much of an interest rate reduction will be required to get your first mortgage payment down to a point where it is no more than 31% of your gross monthly income.
• Apply a value test to determine if the cost of the modification (including the government’s incentive payments) is less costly for the investor than not modifying the loan (loans held by borrowers who have a lot of equity or whose incomes are very low in relation to the value of their homes probably will not pass this value test). If yes:
• Put you on a trial modification for three months at the new interest rate and payment level.
• If you successfully make the payments and are current at the end of the trial period, your servicer will execute a permanent modification agreement that will lower your interest rate to a fixed rate for five years, and then capped at a low rate for the remaining life of the loan.

NOTE: You will be required to sign the modification agreement and other documents and attest that all of the information you provided to your servicer was true and accurate.

Misrepresenting any information required for the Home Affordable Modification is a violation of Federal Law and has serious consequences.

[newbiehere]

Thanks for the speedy reply ***! What are the chances of them lowering the principal if I decline this offer? It really doesnt matter to me wether I stay in the house or not. Do they take into consideration what the house is worth and what I owe to try and get people to stay in? It seems this is what would be best for the investors that own the loan. Definitley wouldnt expect that they lower to what its worth but maybe a little to try and entice homeowners to keep their house and not damge the investor profits further. I owe $203k and the house on a good day would be worth $90K . I know you have seen a lot of these so, how often do they really cut the principal.

[Moe Bedard]

they are not doing principal reductions with the modification............I outlined the steps that they are following above..........


Home Affordable Modifications are designed to prevent foreclosures by making mortgage payments affordable for working homeowners struggling to retain homeownership. The plan is not intended to replace equity lost by home price depreciation.

[DannyP]

Hi Newbiehere,

I have the same proposal as you. They proposed the new payment to be 31% of our gross month income includs insurance & tax. I have spoken with GMAC and they are not willing to change anything. My going concern is that there is no concrete answer that they will modify our loan to meet our debt to income ratio's.

I would like to keep our home but this modification is not helping our situation and un willing to help either. Thanks GMAC !

So my question, have you tried to speak with an attorney ?

Anyone with good advise ?? Help

[newbiehere]

Hi Danny, I haven’t tried calling them yet or spoke with an attorney. That is the only reason I am hesitant to send my payment in is that they cannot guarantee there will be a mod at the end of the three months. My feeling is they already know whether or not I qualify, my situation is not changing and they are doing this just to get a little more money out of the people regardless of their intent to modify or not.
Has anyone gone thru with the trial period with the same situation and income as when they applied just to have GMAC decline a modification?

[DannyP]

Newbiehere,

My payment is due 7-1-2009. I feel the same way, i just don't want to send in my $1800.00 just like that.

I have all ready spoken with an attroney, they seem confident they can get me a better deal.

Anyone present that had this work for them, please reply.