Will loan mod offer be negated by bringing account current?

[patrick0]

Supposedly I have been approved for a permanent modification as of 17 Sep 2009, supposedly the loan modification package was mailed on 22 Sep 2009, and supposedly I was to have sent back a notorized executed copy on 29 Sep 2009. I have not received the loan modification package. FEDEX, Express Mail have no record of any delivery to my address.

I did however receive a "breach of contract" letter threatening foreclosure, and I did also receive my most recent trial period/forbearance check returned to me (because it was a personal check / not certified funds).

I decided to bring my account current by paying all amounts due.

My question is, if indeed I was approved for a permanent modification, and if the loan modification package was simply "lost in the mail," then will the fact that I brought my account current negate the loan modification offer?

[Evan Bedard]

Hi patrick0 welcome and thank you for joining.

I decided to bring my account current by paying all amounts due.

My question is, if indeed I was approved for a permanent modification, and if the loan modification package was simply "lost in the mail," then will the fact that I brought my account current negate the loan modification offer?

Yes your permanent modification will bring your account current.

Most of the time they roll the past due amounts to the back of the loan and bring the account current once again..

[patrick0]

Evan --

Actually, I asked asked the opposite question. Yes, I understand that a permanent loan modification will bring a delinquent account "current." My question is the following. Given that I have already brought my account current before executing the loan modification (that is, it is no longer delinquent), can/will GMAC still offer me a permanent loan modification?

-- Patrick

[ama125]

Originally Posted by Evan Bedard

Hi patrick0 welcome and thank you for joining.



Yes your permanent modification will bring your account current.

Most of the time they roll the past due amounts to the back of the loan and bring the account current once again..

Evan, what Patrick0 is saying here is that he never received a loan mod packet to sign...he alone brought the account current, not the loan mod. So the question is, now that he is no longer in default, does that negate the loan mod?

I can only answer this based on my own experience and what I have been told. I have a Fannie Mae loan serviced by BofA. I have been trying to get a mod since April. I was also approved for an emergency mortgage assistance loan from the PA Housing Finance Agency (PHFA). This loan would bring my mortgage loan current and assist with future payments. I asked my negotiator what effect this would have on me getting a mod, and he told me that since I would no longer be in default and would be a performing loan again, Fannie Mae would not work with me on getting a modification.

So, I am hoping that since my husband just got a raise and company car, that we are now in a better position to get approved for a mod and hoping that PHFA will still assist us with the payments. We have a second loan and even if the first one is modified to 31% of gross income, we will still be too tight financially to swing it until we can also get a mod (or God willing an extinguishment) of the second.

My advise is to talk to your servicer regarding your situation or try NACA. Keep in mind though, that if you have more than 3 months worth of savings (an emergency fund), than the may not be willing to assist. The question for you is, how were you able to bring your loan current? Were you sitting on the money or did you borrow from somewhere else? Just defaulting when you have the funds to pay is not viewed favorably. I am going to assume that since they told you that you were approved for a mod, that you had to borrow the money to bring it current.

[patrick0]

I was able to bring the account current because
a) I've worked my *** off doing overtime (which is no longer available);
b) My payments had been reduced by 1/2 for 6 months;
c) I've borrowed from the future (my tax liabilities to IRS, State & Local will be much higher than what I've had withheld). This will come due on April 15, 2010.

My bank account is now even worse than it was when I applied for the program back in April 2009 because I've paid additional fees and late charges.

So bottom line, to answer the proverbial question, "are you better off?" I can honestly say, "No, I am now worse off for having entered the program." But, if a modification comes through and it is significantly better terms (I already have 5 3/8), I might break even in 6 months to a year.

[ama125]

Hi Patrick0, who is your servicer and who owns the loan? Some are obviously better to work with than others. If your bank account is looking worse now, than I would say you still have a good shot, but getting a mod while current is much harder than while in default (not that I'm having a breeze of it while behind!). I wish I could offer you some solid fool-proof advise to get you a mod, but I don't have any magic powers. I would definitely follow up on the last offer and find out the tracking number from the servicer (though it looks like you've already followed up as much as you can with tracking through the deliverers). It's clear that your servicer dropped the ball in not getting this mod out to you and should clean up on their end. I'll be following your story to see what happens. Best of luck!

[patrick0]

GMAC is servicer. Investor is probably Fannie/Freddie as it was a full compliant loan with 20% down.

GMAC reps said they had no tracking numbers.

I've confirmed with FEDEX that no package is destined to my address in that timeframe. Similarly, I've rule out USExpress mail (this was more difficult to ascertain).

It seems unlikely that this time-sensitive package would have been sent by snail mail (US Mail) but it is still a possibility at this point, although very unlikely -- unless one of my neighbors got it in their mail by mistake.

[surreal4me2]

What is your status....have you resolved the missing package? If not, it is time for all of us here to collectively swing into action. Let me know.

This does not sound like the NEW GMAC.

Another Homeowner Who Fought and Won!

[patrick0]

Status:
The "approved-by-investor-permanent-loan-modification package" (that was supposedly mailed on 22 Sep 2009) has yet to arrive as of 09 Oct 2009. As much as people complain about the U. S. postal service, I believe it to be very unlikely that the package was "lost in the mail."

Thus, this is another data point substantiating the skepticism by many that servicers are simply telling lies.

Of course, my payment to GMAC to bring my account current (including late fees) did arrive at GMAC by 1st class mail and was promptly deposited. I've been told that I am no longer eligible for the "approved-by-investor-permanent-loan-modification package" because my account is now current. The service rep simply states "Your account is current, how may we help you, sir?" Maybe next time my check will get lost in the mail too.

Meanwhile, I've borrowed against my future tax liabilities to get the GMAC loan current, and thus, I find myself even further behind (with the added burden of late fees to get my account current after the "trail period" fiasco), and, I am now projected to be behind the 8-ball with the IRS (coming due on 15 APR 2010).

So, I have re-applied for a loan modification on 08 Oct 2009. I called to verify receipt, and I was pleasantly surprised that they had indeed received my FAX and had begun a full evaluation of my account ... to be completed in 15 days ... I'll be calling to verify that statement in exactly 15 days.