Loan forbearance or stop all payments?

[Riley18]

I have been trying to get a modification since they came about in March, and originally asked for mortgage assistance back in 2008. At this point I cannot pay the entire mortgage for September. Insurance costs rose more than $100 a month, and also had extra medical bills this month.

Anyway, I called and the bank told me I could pay 1/3 of the mortgage for the next 3 months while they reviewed my loan. No promises or anything. My question is should I pay the forbearance amount or just not pay anything. In the end if there is no modification I am prepared to ride out the foreclosure on the property rather than continue to pay 47% of my gross on the payment. My family and I have decided to live our life rather than just working for this house. So one way or the other, and I can't believe I am saying this, we have concluded that this is just not worth it anymore.

I apologize for sounding so negative, and I am not giving up just yet. Just not sure if paying the forbearance amount is just a waste of money.

[Lhuynh]

Only a few have paid the forbearance or "3 month trial" and was given a permanent modification after. I just think its another way for banks to squeeze more money out of the borrower and than say they do not qualify or just some bs excuse.

If you do not desire to live in the home no more, you can short sale it. After that you and your family can start saving money. Use one of your family member who could be a 1st time home buyer, so they can get into programs that are out there, build their credit during the mean time. Hope you understand what I'm trying to get at..

[B Stevens]

Tough one. What do you mean ride out the foreclosure? Fight it as long as possible or wait the 90 days and get kicked out? I have a family member that has not paid a dime to SunTrust or the county since January of this year. They have saved up over $30K while fighting the foreclosure.

If Wells Fargo does not come through for me this month, I will be taking the same road. 3 months, 6 months or more, I do not care. They have pissed me off that much. What do you need credit for when you are 40? Am I gonna go out and get that $50K car and make payments? Hell no. Do I need to buy a house? NOPE! My FICO score is over 800 right now. It hasn't gotten me anything but farther in debt.

I would save all I can. No partial payments with a big payment at the end for me. If I have to stop making payments, my new goal will be to stay here as long as it takes to get my $120K down payment back from Wells Fargo.

[mel239]

havent paid for a year,now Im fighting with an atty and I probably wont have to pay for awhile longer--Im not proud of this,but citi has nearly driven me to the brink and if living here for free for awhile hurts them or doesnt hurt them-I dont care-my little vengeance but I have provided our food bank with a nice stockpile-better they benefit from my money than citi right now

[tlbaker74]

I feel the same way here. Made our first forbearance payment without even having an agreement sent to us because we are scared of losing our home. Scared of the humiliation and shame from it happening. Scared of letting our kids down. But I think our kids would rather have their parents home with them at night and not working around the clock killing ourselves to keep this house. Our payment had went up to 1800.00 and something last year and did not include taxes or insurance. Know what they made our three payments for? $1587.00. What a help they are. We are walking from this nightmare. Back to renting.

[Hard Times]

tlbaker74-----You are right....not much help that was, from 1800 to 1600. Did you actually apply for a HAMP modification before they tried to stuff this forbearance plan down your throat?

Lyuhn----If people are paying a mortgage payment under a "forbearance plan", and expect a permanent mod with a few months.......well, I think that perhaps many are confused. The HAMP modification should get your payments down from 31-40% of you income, and after 3 months it should become permanent (if you qualify again). This forbearance stuff-----it is like giving aspirin to a critically-wounded patient. The HAMP plan is designed to be the morphine that is needed. The problem is that the "doctors" working in the banks apparently dont like to perscribe this medication, even though they were told to do so by the govt.

[tlbaker74]

We applied for a modification, and when my husband would ask about the HAMP program, they say they are not allowed to discuss it. And something to the affect of discussing those options when the trial period is over.

[aubie37]

I am facing this dilema also. I am in my second forbearance/repayment plan but the "normal payment" is not what is due now. I am due for a large balloon, nearly $8000, by 10/06/2009. CitiMortgage Loss Mitigation said I had to be on a plan to be considered for any claim or modification. When my account finally got reassinged to a negotiator (without NACA) the counselor denied me for a modification due to the age of my account and for currently being on a payment plan. I can't see how my regular payment is a forbearance.

The loss mitigation counselor that put me on this second repayment plan basically had the attitude I had to pay. From what I can tell---they want me to pay everything and then some. I am currently 5 months past due. I stayed in contact with CitiMortgage initially explaining what happened, sent in my first workable solutions, and then received a half payment forbearance for four months. Rather than being reviewed I was put on this new "repayment plan" and here it is---nearly time to pay, no one has contacted me, and I cannot pay this by 10/06.

[aubie37]

I think I have my answer, at least about October anyway.