Our Suntrust / Fannie Mae MHA Loan Modification Progress

[rickmc]

We have a Suntrust / Fannie Mae 1st mortgage, and we were struggling to make the repayments after the recession drastically reduced our business income. We have stayed current on our $385,000 mortgage that requires a monthly payment of $2603, but only because we have been borrowing money to make our mortgage payments for the last six months.

We decided to apply for a MHA Loan Modification on April 21, 2009.

We are astonished and appalled at the lack of progress these last three months, and at the miscommunication and stalling tactics employed by Suntrust, who seem determined to do anything EXCEPT arrange a Loan Modification.

This is the dated narrative of our progress (or lack of it) so far...

4/21/09 Completed and submitted Suntrust's online Home Retention Form

5/04/09 We called Suntrust Loss Mitigation, to be told process is taking 4-8 wks. Suntrust requested Business Profit/Loss for this year, 2008 Fed tax return, Hardship Letter & 2 most recent bank statements

6/05/09 As instructed, we mailed those documents to Rebecca Diacont at Suntrust in Richmond VA

6/29/09 We had heard nothing, and called Suntrust. They claimed not to have received documents, though USPS Tracking shows they delivered them to Suntrust in Richmond VA 3 weeks earlier, on 6/7/09

6/29/09 Suntrust asked us to fax the documents to their Maleah Maddox on 804-230-1359. We took the documents to our local Suntrust bank branch and asked them to fax them, which they did.

7/02/09 Maleah Maddox confirmed receiving the documents

7/20/09 We called Suntrust again, and spoke to Tracy. She said that, on July 3rd, our loan was sent to First American, a 3rd party company Suntrust hired to do loss mitigation. According to Tracy, FA has until

7/24/09 to process files sent to them. Tracy stated that 4-8 weeks for completion was 'not reasonable' or 'likely'.

7/20/09 We called First American, and spoke to Blanca. She stated that our loan has not been loaded into their system, but all cases sent on July 3rd have not been processed yet. As soon as they get our case into their system, "someone will contact us to go over our documentation, etc."
We told her we would call again on July 24th.

7/20/09 We called Suntrust again and spoke to Shanequa. We asked to speak to Maleah Maddox. Shanequa explained that a variety of individuals in loss mitigation were handling files, so no one person would have more information than any other. She further explained that First American has been hired by Suntrust to handled some portions of the processing of documents, etc. but that the actual loss mitigation was still being handled through Suntrust. She said they still need a copy of my paystub for the last 30 days, and to fax that to 804-745-8115 Attn: Loss Mitigation.
We were told that our loan status is: "In Review Process"

7/21/09 We faxed pay stub to 804-745-8115 Attn: Loss Mitigation.

So, after exactly three months of phone calls, faxes and mailings, we are apparently no further along than when we began.

This makes pretty sorry reading, but we feel sure that we are not the only couple struggling to get Suntrust to respond in either a timely or efficient manner.

We cannot determine if there is a watchdog organisation responsible for policing the MHA program, nor can we determine if there is any requirement for Suntrust to complete any action in any specified time-period.

Are we now at the point where we should:
a) Contact our Congressman
b) Contact the Attorney-General
c) Hire an attorney
d) Stop making mortgage payments to get Suntrust's attention
e) Take other action(s)?

Any input, any replies, will be avidly read and gratefully received. Thank you.

[Murray12]

I was told that while dealing with SunTrust that Hope Now is the central place to call for complaints.

I also agree that SunTrust is giving people the run around.

[Murray12]

PS Do a search for SunTrust for other threads

[rickmc]

Today, 7/23/09, I called HOPEnow.com on 1-888-995-HOPE (4673)

I spoke to a counselor, who was very helpful. We went through our financials, incl outgoings/income, and then she called Suntrust and we had a conference call with Susan of Suntrust.

Susan says that they await the paystub info that was faxed to them yesterday, and that there are thousands of files to be dealt with.

She says that First American Financial are not limited to 21 days for processing files, that the tool provided by Suntrust is hands-off software and no one can access the system to determine the status of a loan.

She does not know who told us that FAF have only 21 days to process a file (I told her that info came from both Tracey at Suntrust and Blanca at FAF). According to Susan, she is sure our case will have been processed by end August.

I asked about stopping payments on our mortgage and whether that would help expedite our case. Counselor advised against it, but had to admit that being in default would likely progress our case faster.

Suntrust supervisor told us that it was OK to miss August mortgage payment, as our case will be resolved before end August - seemed odd for the mortgage servicer to be telling us to default...

[Evan Bedard]

Hi rickmc,

She says that First American Financial are not limited to 21 days for processing files, that the tool provided by Suntrust is hands-off software and no one can access the system to determine the status of a loan.

She does not know who told us that FAF have only 21 days to process a file (I told her that info came from both Tracey at Suntrust and Blanca at FAF). According to Susan, she is sure our case will have been processed by end August.

I have not seen any lender have specific guidelines as to how long processing a modification should take. Most lenders are working on thousands of modifications and all of them are on a case by case basis, as that no two are the same..

I asked about stopping payments on our mortgage and whether that would help expedite our case. Counselor advised against it, but had to admit that being in default would likely progress our case faster.

Suntrust supervisor told us that it was OK to miss August mortgage payment, as our case will be resolved before end August - seemed odd for the mortgage servicer to be telling us to default...

Also I have personally seen some cases go through quicker while homeowners were deliquent. But there are still many homeowners out there who are behind on their payments and still they have to wait quite some time before any results. This process can take anywhere from a month to almost an entire year...

[rickmc]

Originally Posted by Evan Bedard

Also I have personally seen some cases go through quicker while homeowners were deliquent. But there are still many homeowners out there who are behind on their payments and still they have to wait quite some time before any results. This process can take anywhere from a month to almost an entire year...

I understand that the MHA Loan Modification Program for Fannie Mae loans was introduced in Apr 2009 - how then can it be said to be taking 'almost an entire year', if the program has only been in place for 3 months?

I realize it may have been a year for non-GSE loan modifications prior to the introduction of the MHA program, but results from that are not really relevant, given all that has happened since.

Indeed, having a Fannie Mae loan as we do, the steps to loan modification are clear, concise and thankfully few. It should be a much quicker process than it was prior to MHA.

[Evan Bedard]

Hi rickmc,

I understand that the MHA Loan Modification Program for Fannie Mae loans was introduced in Apr 2009 - how then can it be said to be taking 'almost an entire year', if the program has only been in place for 3 months?

I realize it may have been a year for non-GSE loan modifications prior to the introduction of the MHA program, but results from that are not really relevant, given all that has happened since.

Indeed, having a Fannie Mae loan as we do, the steps to loan modification are clear, concise and thankfully few. It should be a much quicker process than it was prior to MHA.

True it may be quicker, and I was also referring to hundreds of cases I have seen within the past year or so. This new program is great, but does not change the fact that lenders are completely overwhelmed with thousands of modifcaitonds currently in process.

[david123]

We have been dealing with Suntrust for 7 months now and still nothing! We haven't made a house payment since Dec. 08 and they still give us the run around. We call weekly and they say they are working on it and not to worry because they are doing great things for people everyday. If they have done anything for anyone I highly doubt it, I check these post weekly and still the same. Not one person can confirm that Suntrust has ever done a loan mod. I'm greatful our house sale date has passed and still nothing has happened. Atleast they tell us they arent going to forclose on anyone right now. By the way in 7 months we haven't recieved 1 phone call, we recieved a few noticesby mail but not 1 call from anyone.

[Evan Bedard]

Hi david welcome and thank you for joining.

Make sure you call suntrust at least once a week, maybe twice and stay on top of them like white on rice. Its good that most lenders seem to be putting foreclosures on hold and slowing down the collection calls once in the modification process..

[rickmc]

8/1/09 - We received a form letter from Suntrust explaining the Fannie Mae MHA Loan Mod procedure (we originally applied 4/21/09), and a package of forms with another letter, both letters dated 7/27. The second letter asks for forms/info we have already faxed and mailed twice.

We intend to call our HOPE counselor tomorrow, 8/3/09, to find out why we got these letters/forms and what to do with them.

Should we spend the time completing them and compiling all the info yet again, or should they be treated as the computer-generated form letters they are?

Hopefully our counselor can call Suntrust tomorrow and ask them.

[rickmc]

In post #10 above, I referred to a package of forms.

For info, two of the three forms in that package are specific to Fannie Mae loans, and they are not forms we have seen before.

In detail, they are:

1) Fannie Mae Borrower's Financial Statement, Fannie Mae Form 1020, 11/98
2) Home Affordable Modification Program Hardship Affidavit, Fannie Mae Form 1021, April 2009, 4 Pages
3) IRS Form 4506-T, Request for Transcript of Tax Return, Rev 4-2006

It would appear that, whatever info/forms one may have supplied to Suntrust previously, they require these specific forms if yours is a Fannie Mae loan, as ours is.

The only problem is that we are instructed to fax them back to 804 745 8115, a number we have faxed to previously, where documents mysteriously dematerialize or disappear.

The package also contained a pre-completed Fedex 3 Day Saver waybill that we can use to return the documents to 1001 Semmes Ave, Richmond VA. We already know, from a source at USPS, that that address is a 'dead-drop' where Suntrust have their overflow mail delivered, as they have no room for it in their offices.

So we can fax it to a number where it gets lost, or mail it to an address where it gets stacked in a mailbag in a warehouse...not much of a choice.

Let's see what our HOPE counselor advises tomorrow.

[Lhuynh]

Seems like a lot of lenders are turning their head hoping for the economy to get better so the borrower can get back on their feet. Than it'll be too late to do a loan mod. Its not the lender best interest to help the borrower!

I'm not recommending this, but I know some people who lived in their home w/o paying for their mortgage for a year due to the fact that the lenders have their hand tied. Its like they got stacks and stacks of files to go through.

I can email you how the processing progress goes from the first 30 days to 90 days that I've copy from an online source. Its might not be all correct but would give you some knowledge about how it process.

[rickmc]

8/3 - We called our HOPE counselor and she placed a conference call to Suntrust. We were told that our case has been 'pulled' and will be 'dealt with' by 'group' because we have gone through HOPE, a government-sponsored organization.

It seems that Suntrust are required to prioritize HOPE-referred loans, which we consider a bonus.

We had to provide all the documents requested again (third time now) vis:

1) Completed form 4506-T (1 page)
2) Completed Fannie Mae Hardship Affidavit (4 pages)
3) Completed Fannie Mae Borrowers Financial Statement (1 page)
3) Bank Statement for Personal Checking Account (6 pages)
4) Bank Statement for Business Checking Account (2 pages)
5) Credit Union Statement for Personal Savings Account (1 page)
6) Monthly Salary Paystub dated 7/31 (2 pages)
7) Misc Overtime Hourly Paystub #1 dated 7/31 (1 page)
8) Misc Overtime Hourly Paystub #2 dated 7/31 (1 page)
9) Letter from me explaining my pay arrangements (1 page)
10) Letter from my employer explaining my pay arrangements (1 page)
11) Part-Time Job Paystub #1 dated 5/4/09 (1 page)
12) Part-Time Job Paystub #2 dated 6/29/09 (1 page)
13) 2008 IRS 1040 Federal Tax Return (30 pages)
14) 2008 W2’s (2 pages)
15) Copies of our Driving Licences (1 page)
16) Business Profit & Loss Statement 2^nd Quarter 2009 on Company Letterhead signed by preparer (1 page)


It was suggested by our HOPE counselor that we fax the documents and Fedex the package to Suntrust, and that we call them in a week to ask if our loan has been assigned.

We will update this thread when we call them on 8/11.

[Murray12]

Good Luck, and stay on them. If they give you a denial reason, look into it and post it here if you are not sure. I am on about the 4th disputed reason for my denial, they continue to be wrong and it is obvious they are intentionally denying me.

[rickmc]

8/10 - Success!

Received our Suntrust MHA Loan Modification Trial Period Plan by Fedex Express this afternoon.

Repayments reduced from $2603 to $1250 per month.

Off to fill in the accompanying forms and return them with the pre-paid Fedex label.

[NotinPA]

HI RickMC

was your principle reduced? whats your new interest rate? do you now have a longer term?

how was your payment reduced by that much?

[aicnin]

You are really lucky. As I read all your posts, I thought, "OMG, we aren't the only ones!" We filled out our form on Feb. 14th and yet, nothing. I was told today that Suntrust was waiting for a "tool" from Fannie Mae and they have no idea when they're getting it.

[rickmc]

Originally Posted by NotinPA

HI RickMC

was your principle reduced? whats your new interest rate? do you now have a longer term?

how was your payment reduced by that much?

Hi.

As I stated in my last post, we received our 'Trial Period Plan', i.e. NOT our final modification, so there is no change in principal, interest rate or term length as yet.

Our new payment is fixed for the 3 months of the Trial Period, during which time the new permanent modified payment will be calculated.

The documents we received yesterday indicated that we should know the final permanent modified payment in about 20 days from returning the forms they sent us yesterday.

The ONLY advice I can give is to call the Home Ownership Preservation organization, HOPEnow, on 1-888-995-HOPE (4673) and ask to speak to a counselor.

It is partly government-funded and Suntrust are clearly required to prioritize MHA loan mod applications channeled through it. Until we did that on 7/23, just 18 days ago, we were getting nowhere.

After we called them and they got involved, things happened at the speed of light - Suntrust told us they HAVE to respond to all applications channeled through HOPEnow.

[rickmc]

Originally Posted by aicnin

I was told today that Suntrust was waiting for a "tool" from Fannie Mae and they have no idea when they're getting it.

We were told that our file had been sent out to a third-party for processing some weeks ago, and that Suntrust had supplied that third-party with a 'tool', whatever that was.

Notwithstanding what you are being/have been told, the ONLY advice I would give is to call the Home Ownership Preservation organization, HOPEnow, on 1-888-995-HOPE (4673) and ask to speak to a counselor.

It is partly government-funded and Suntrust are clearly required to prioritize MHA loan mod applications channeled through it. Until we did that on 7/23, just 18 days ago, we were getting nowhere.

After we called them and they got involved, things happened at the speed of light - Suntrust told us they HAVE to respond to all applications channeled through HOPEnow.