Has anyone has success/experience with FHA loan mods?

[mriegs]

Hello All:

Has anyone had any success with FHA Loan Modifications with Wells Fargo? Here is our situation:

We currently have a FHA 6% fixed rate loan that, thankfully, is not underwater; as the home has held its value. The loan is being surviced by Wells Fargo. After both my husband and myself was laid off this last year, we were able to both get other jobs, but at a substanstial income loss. We contacted Wells Fargo when we were laid off and asked for a loan modification, but was denied because we were current. As I am sure a large percentage knows, state unemployment benefits do not cover much and we quickly got behind two payment. We again applied for a modification and was denied due to shortgage in income. As luck would have it, my husband found a job and we now have sufficient income to pay the mortgage.

I was advised that we should ask about a FHA Partial Claim; as we can pay the regular payment, but can not catch up the defaulted payments. So, again we asked Wells Fargo about this and they put us under review again and stated that the negotiator would look into all options. After waiting and getting further behind, I contacted the Executive Office and in one call I had with someone there, I received a package that everyone else has gotten, but with this time, HAMP Hardship Modification Affidavit. After completing all of the paperwork, I faxed it in and within 1 day, I received a call from the Executive Office stating that we qualified for a special forebearance for three payments beginning 10/15/09 with a final fourth balloon payment. Again, no guarantees, just the offer of further review after the third payment was made. I called the Executive Office and talked with someone else and they said that we were being reviwed for all options, including FHA Partial Claim and that basically we were being asked to prove that we could make the regular payments on time consistently. If we complete the three months trial period succesfully, we should receive a permanet modification.

I felt really confident that finally we have resolution and we could start sleeping at night, but after reading other posts on this site, I am not so sure. Any insight would be appreciated.

[shay01]

Originally Posted by mriegs

Hello All:

Has anyone had any success with FHA Loan Modifications with Wells Fargo? Here is our situation:

We currently have a FHA 6% fixed rate loan that, thankfully, is not underwater; as the home has held its value. The loan is being surviced by Wells Fargo. After both my husband and myself was laid off this last year, we were able to both get other jobs, but at a substanstial income loss. We contacted Wells Fargo when we were laid off and asked for a loan modification, but was denied because we were current. As I am sure a large percentage knows, state unemployment benefits do not cover much and we quickly got behind two payment. We again applied for a modification and was denied due to shortgage in income. As luck would have it, my husband found a job and we now have sufficient income to pay the mortgage.

I was advised that we should ask about a FHA Partial Claim; as we can pay the regular payment, but can not catch up the defaulted payments. So, again we asked Wells Fargo about this and they put us under review again and stated that the negotiator would look into all options. After waiting and getting further behind, I contacted the Executive Office and in one call I had with someone there, I received a package that everyone else has gotten, but with this time, HAMP Hardship Modification Affidavit. After completing all of the paperwork, I faxed it in and within 1 day, I received a call from the Executive Office stating that we qualified for a special forebearance for three payments beginning 10/15/09 with a final fourth balloon payment. Again, no guarantees, just the offer of further review after the third payment was made. I called the Executive Office and talked with someone else and they said that we were being reviwed for all options, including FHA Partial Claim and that basically we were being asked to prove that we could make the regular payments on time consistently. If we complete the three months trial period succesfully, we should receive a permanet modification.

I felt really confident that finally we have resolution and we could start sleeping at night, but after reading other posts on this site, I am not so sure. Any insight would be appreciated.

I have an FHA but not with Wells with BOA and so far no luck. They have denied me several times for the HAMP, but after reading the post emailed OOP and now i am suppose to be under review and waiting for a call from a neg. I dont have any faith they will give it to me as i ahve been denied several times. I ran into a harship in May and I am behind. I am asking for help to not fall any further behind. I need a MOD i can not afford the payment on one income. And i bought my house for 200K brand new in 06 and the house next day is the same and just forclosed and sold for 128K. this is not good. But i dont know if BOA will help and seeing all the stories here I really dont have hope...I would like to know who has with FHA and BOA have been trying? IF so has anyone been approved for FHA-HAMP??

[dtap57]

I also have an FHA loan with Chase. I haven't had any luck with them either. They offered me a 3 month trial but they only lowered my payment a 120.00 on a 2150.00 month payment. I have not heard of anyone who has gotten any kind loan mod with an FHA loan. I don't know maybe things will change over the next few months. There are 850,000 FHA loans behind on there payments right now.

The only good thing about having an FHA loan is that they don't like to foreclose.

[shay01]

Originally Posted by dtap57

I also have an FHA loan with Chase. I haven't had any luck with them either. They offered me a 3 month trial but they only lowered my payment a 120.00 on a 2150.00 month payment. I have not heard of anyone who has gotten any kind loan mod with an FHA loan. I don't know maybe things will change over the next few months. There are 850,000 FHA loans behind on there payments right now.

The only good thing about having an FHA loan is that they don't like to foreclose.

So maybe they will try to help?? Well I am now 5 months behind.. Can i ask are you behind if so how far?? All i want is some kind of decent MOD if they dont want to do the FHA-HAMP something decent. I guess i will wait for a call from neg and see what they say that is all i can do at this point.

[dtap57]

I am 3 months behind. Im just waiting to see what happens also at this point. All i need is some help andi would be ok but there doesn't seem to be any help out there so far.

OT: I think HUD should have set up an office just to handle FHA loan mods. If they would have done that a couple of years ago when things started getting bad we wouldn't see 850,000 FHA loans behind right now. They should have handle all loan mods themselves and not let the servicers handle them IMO. They should have handle each case on a case by case basis. Well there is my two cents!

[mriegs]

We are currently behind $8,053.20 and holding; as we make these trial payments. Also, I forgot to mention that when I asked why we were not being offered a Partial Claim, since we are not asking that the loan itself be modified, just the payments added to the end of the note, they stated that at this time we were not within investors guidelines (What???? - we now have the income to support the regular payment.) I asked what happens if we get to the end of the trial period and we still do not qualify? The brilliant answer was that we just go into another trial period, Silly me!

After reading some of the posts on this forum, I got worried and called back, getting another person, not the original person that sent me the information, but with the Executive Office. I asked again, why can't we be given a FHA Partial Claim and was told that we were still being reviewed for this and other programs, but we must prove that we can really make our regular payments and that our financial hardship is being remedied and if we make all our payments a loan mod would be no problem. Really, have they read any posts on this forum? I will say that this does follow the trial period requirements stated in the post by Moe regarding FHA-HAMP. The only problem is that I find it hard to trust them.

[mriegs]

One other thing.... I am worried about our surplus every month. It is $839.00 and I read in these forums that it needed to be around $250.00 to qualify. However, when they sent special forebearance papers, the payment was the same regular payment. Should I be worried?

[shay01]

Originally Posted by dtap57

I am 3 months behind. Im just waiting to see what happens also at this point. All i need is some help andi would be ok but there doesn't seem to be any help out there so far.

OT: I think HUD should have set up an office just to handle FHA loan mods. If they would have done that a couple of years ago when things started getting bad we wouldn't see 850,000 FHA loans behind right now. They should have handle all loan mods themselves and not let the servicers handle them IMO. They should have handle each case on a case by case basis. Well there is my two cents!

See i had a negatinve left over after my expenses and first they said no dont qualify then when they said i had a positive because they screwed up they still said no denied. So then they updated my fin again and sd i ahve a negative -350 so i guess i will just have to see what they say.

[mriegs]

OT: I think HUD should have set up an office just to handle FHA loan mods. If they would have done that a couple of years ago when things started getting bad we wouldn't see 850,000 FHA loans behind right now. They should have handle all loan mods themselves and not let the servicers handle them IMO. They should have handle each case on a case by case basis. Well there is my two cents![/QUOTE]

Boy, do I agree!! How much easier would all our lives be? I think this would certainly be months behind us all and we, for one, would not have gotten so far behind in the first place. I just wonder if a person could petition HUD for help?

[dtap57]

mriegs, How much did they lower your payment on the 3 month trial? or did they lower it at all? Thanks

[shay01]

Originally Posted by dtap57

mriegs, How much did they lower your payment on the 3 month trial? or did they lower it at all? Thanks

And I have not even been offered a trial or anything..Being trying to get help since June. And always told I am either denied or under review.

[mriegs]

Not one penny. It is the same regular payment.

[aubie37]

Please review my posts. I am on an FHA loan via CitiMortgage and have made my regular payments for the last three months on a payment plan. 10/06/2009 is a balloon due as they will not consider me for a partial claim, won't do a principal deferment (lost value), and will not consider anything for me but to go on yet another "forbearance". I am five months total past due now and the number's seem to change by the hour with Citi as to what I "owe" them. I am not asking for the payment NACA submitted but somewhere in the middle would be great and putting the past due behind. Guidelines say that lenders are to review and do this.

Citi representatives tell me I just need to make more money. I am making more than 5 times what I was in November and December last year (via two jobs though) and it is significantly less than what I used to make before being laid off last year.

[mriegs]

Originally Posted by shay01

And I have not even been offered a trial or anything..Being trying to get help since June. And always told I am either denied or under review.

If anyone should benefit from this new FHA-HAMP program, it should be you. After all, the HAMP program was created for homeowners that are now underwater or were victims of predatory lending. What amazes me, is that they are supposed to get incentative for placing homeowners on this program. It seems like this would be in their best interest to quit dragging their feet and get these loans modified and in good standing. Go figure?

[dtap57]

shay01, I know Chase had a division to help with FHA loans. Im not sure what other servicers have. All they did was lower my 6% mortgage down to 5.5% I was suppose to make the payment for 3 months then they would review it again. I told them that isn't going to help me so im waiting to see what happens.

Since the gov is backing our FHA loans they should have been able to do more for us than they have IMO. Heck, we gave hundreds of billions of dollars to help banks and other companies but we can't help the everyday guy. I just don't get it!

[shay01]

Originally Posted by mriegs

If anyone should benefit from this new FHA-HAMP program, it should be you. After all, the HAMP program was created for homeowners that are now underwater or were victims of predatory lending. What amazes me, is that they are supposed to get incentative for placing homeowners on this program. It seems like this would be in their best interest to quit dragging their feet and get these loans modified and in good standing. Go figure?

Thanks mrieg..
Well i will keep you updated and let you guys know if i find out any good info. But right now I am playing the waiting game too and gettig further behind. Just need a good MOD to lower payments.

[dtap57]

aubie37, Are they telling you that you have to come up with the balloon payment or else? Is there still away to put it to the back of the loan?

[mriegs]

Originally Posted by aubie37

Please review my posts. I am on an FHA loan via CitiMortgage and have made my regular payments for the last three months on a payment plan. 10/06/2009 is a balloon due as they will not consider me for a partial claim, won't do a principal deferment (lost value), and will not consider anything for me but to go on yet another "forbearance". I am five months total past due now and the number's seem to change by the hour with Citi as to what I "owe" them. I am not asking for the payment NACA submitted but somewhere in the middle would be great and putting the past due behind. Guidelines say that lenders are to review and do this.

Citi representatives tell me I just need to make more money. I am making more than 5 times what I was in November and December last year (via two jobs though) and it is significantly less than what I used to make before being laid off last year.

PLEASE! These people are rediculous! Like you are intentionally making less money because you are bored and like adding undue stress to you life???? How many hours a day do they want you to work? Obviously, these people do not understand the meaning of the word "recession".

[dtap57]

They are saying only 45,0000 out of the 850,000 FHA loans behind will be able to do the FHA/Hamp program. That is about 5 percent. It sure doesn't make me feel very good about any of our chances.

[shay01]

Originally Posted by dtap57

They are saying only 45,0000 out of the 850,000 FHA loans behind will be able to do the FHA/Hamp program. That is about 5 percent. It sure doesn't make me feel very good about any of our chances.

Well maybe we can be in that 45,000 although since i have BOA i doubt it. Might have to start preparing for plan B.

[dtap57]

I also hope you could one of the 45,000 this plan might help! Hang in there!

[aubie37]

Originally Posted by dtap57

aubie37, Are they telling you that you have to come up with the balloon payment or else? Is there still away to put it to the back of the loan?

DTAP

Last Monday I had the unfortunate pleasure of speaking with Diane Colley again at Citi who rejected me in August. She basically said I have to make more money as I have to be able to show that I can afford my house payment. There was no consideration by her. My actual year to date budget and income was within approximately $87 or so of what NACA sent in. I am not asking for the NACA payment but it would be nice. I just want them to honor what they started back in February and adjust my payments down some--even a $150 a month would be a break and put what I am past due on the partial claim.

[dtap57]

It sure is frustrating when some can get as low as 2% for the life of the loan saving them a lot each month.All we are just trying to do is save a few dollars a month on our payments and our loans are Gov backed. Does something seem wrong here?

[mriegs]

Originally Posted by aubie37

DTAP

Last Monday I had the unfortunate pleasure of speaking with Diane Colley again at Citi who rejected me in August. She basically said I have to make more money as I have to be able to show that I can afford my house payment. There was no consideration by her. My actual year to date budget and income was within approximately $87 or so of what NACA sent in. I am not asking for the NACA payment but it would be nice. I just want them to honor what they started back in February and adjust my payments down some--even a $150 a month would be a break and put what I am past due on the partial claim.

aubie37:

Do you know what your DTI is? I thought that the premise behind the FHA-HAMP was to determine what the payment would be at 31% and than partial claim the difference. Is that correct?

[dtap57]

OT: Here is another thing i wish HUD and FHA would have done. This could have help a lot of us. I wish they would have lowered our principle down to what our houses are worth right now. I would have no problem paying back the amount they lower to if i sell our refinance it. Here is how i would have done it. In the first 5 years you have to pay back 100 percent of the amount they lower your principle. In years 5 to 10 you would pay back 75% and in years 10 to 15 you would pay 50% and in years 15 to 20 you would pay back 25% of the principle. If you keep your house over 20 years then you would own nothing back. This would give people incentive to keep there houses. It also gives people incentive to keep there houses up. This would also help us lower our payments right now. I know if they would give me this deal i would keep my house for the next 20 years. I guess this is just a dream i have!