SunTrust Mortgage Mod in Progress

[RRva99]

I am posting to document my experience with SunTrust in hopes that it may help others in need of a loan modification.

Here’s my situation:

Home purchased in 11/2006 with 1^st loan 7/1 ARM of $226,800 @ 6.125 and 2^nd loan 5/1 ARM of $56,700 @ 8.5% both with Suntrust. 1^st loan owned by FNM, 2^nd by Suntrust.
Current Value is around $280,000 (decent deal to start with + significant improvements).

Current Loan Balances: 1^st is $219,545 and 2^nd is $53,524.

Current Payments: 1^st is $1715 and 2^nd is $436.

When we bought the house, our monthly income was $8,700 Gross. That meant a DTI of < 25% (was actually a little lower at the time, but due to insurance increases and believe it or not tax assessment increases the payments are a little bit higher than they were).

I am losing my job, which leaves us with a gross monthly income of only $3,800. Based on $3,800 our DTI is 45% on the 1^st loan alone, and 54% on both combined.
This doesn’t consider that I will likely be able to draw unemployment of $1400/mo ( I think).

Anyway, I initially contacted SunTrust back in mid-June. They promptly sent me a letter requesting that I send them additional financial information (Past 2 tax returns including W-2s, Last 2 statements from all bank accounts and last 2 pay stubs.

I have assembled the information and will mail it tomorrow. I also wrote a letter explaining our circumstances, etc.

In the meantime, does anyone have any idea of what I can expect? It seems that Suntrust has a pretty bad reputation around here for dragging their feet on helping people. We have plenty of savings and are in no immediate danger of missing payments, but with the level of DTI and only 1 income, it could become a problem.

[SillyWorld]

Read around this site you will see that all BANKS have been dragging things on and on and on and on...Good Luck and Welcome to the Forum, you can spend hours and hours finding others in your same situation..

[Murray12]

You had my hopes up with your title (that you actually had a mod in progress

Your savings may disqualify you for the HMP program. If you have savings and aren't missing payments, I wouldn't expect help anytime soon from SunTrust, but that is just my personal experience/opinion. Don't give up, and make sure they hear from you.

As far as Unemployment income goes, I am going through that now as well. When I first applied I had a job and now I don't. They are refusing to take my unemployment income as income. I have talked to Fannie Mae and it seems now that I can use it as income, but waiting to hear back. See my post here in regards to unemployment income.

[RRva99]

Well, today I received a Fedex package from SunTrust. In it, were the documents needed to establish my trial loan mod in the amount of $727.60 on my first mortgage. That's a decrease of nearly $1000/month!

Since submitting my documents, I have begun receiving unemployment benefits of approximately $1600/month though--so I will have to disclose that. I'm not sure how it will impact the mod, but something is better than nothing.

I hope that my experience is encouraging to those who have been frustrated with SunTrust. I never called or anything, just sent everything they requested and waited for their response.

[RRva99]

Also, I just read through some of the information in the package. It says that income from unemployment benefits are only to be counted toward income IF they are expected to last 9 months or more. My benefit statement from the state says 26 weeks, so I guess that won't count toward my income for the mod? I have seen posts where people were upset about that rule, but it actually would work in my favor to have it not count.

[Murray12]

I am happy for you and a little jealous. Sounds like my exact situation, but they keep saying I do not qualify.

[Murray12]

According to my calculations, if you add your unemployment benefits your payment won't go down that much.

(3800+1600)*.31= $1674

[RRva99]

Yeah Murray, that's why I'm hoping that they won't include UI in income. It says on the checklist they sent me that UI would only count if it lasts > 9 months. My benefits go 26 weeks in VA.

I can't figure out how they came up with that payment amount. 3800 * .31 = 1178, not the 727.60. I have no idea how they came up with it, but it sounds good to me. Keeping fingers crossed for the trial & hoping it gets final approval.

[Murray12]

Perhaps the rest is taxes, insurance etc.

[SillyWorld]

Originally Posted by RRva99

Yeah Murray, that's why I'm hoping that they won't include UI in income. It says on the checklist they sent me that UI would only count if it lasts > 9 months. My benefits go 26 weeks in VA.

I can't figure out how they came up with that payment amount. 3800 * .31 = 1178, not the 727.60. I have no idea how they came up with it, but it sounds good to me. Keeping fingers crossed for the trial & hoping it gets final approval.

727.60 may be without Taxes, INS and MPI add that in and you may come up with the different number

[RRva99]

Nope, the documentation specifically states that the amount includes P&I plus escrow for T&I. I don't really care how they came up with it, I'm just happy to be moving a step forward in a process that has been a huge hassle for many...with a lender that has been an additional hassle.

[m4ckten]

Congrats, hopefully we will see similar results soon

[SillyWorld]

Wow yea thats good deal...Wish I had one like that then I could get dome """REAL FOOD""""

[RRva99]

I called SunTrust on Friday to ensure that they have all of the paperwork they need from me since my 3rd trial mod payment is due 11/1 (I will likely pay next week to allow time to receive/post to my account). They told me that everything appears to be in good order on my end and they are just awaiting a final decision on the mod. She said that they hope to have a decision prior to the due date of the 3rd mod payment, but that if it takes longer, just keep making the mod payment amount.

Call me negative, but I'm fairly certain this won't happen in the next 2 weeks...I have no faith in SunTrust or any of the other banks. I really need this to happen--I'm having NO LUCK AT ALL with finding a new job despite putting in a great deal of effort. From everything I've seen, we are perfect candidates for a mod under HAMP, I can't imagine that they can legitimately deny us.

[teddy]

I have been reading you comments. Be careful, sounds like they have given you the same as me its called a ForeBearance. It is not a modification, it is just giving them the time they need to make a decision of whether or not to modify. When they gave me mine they told me it was to give me time to hopefully make a change in my circumstances, which is I was laid off from my job. I am receiving unemployment benefits, they gave me the same story about the 9 months, I am in Oregon and guess what? I received a letter from Unemployment confirming my unemployment for a year. So I called them, the 9 month rule was the only issue I was having regarding receiving a mod, well guess what? Still don't have one. They just keep changing the rules to fit them, not us. I have been trying since November or 2008 to get a mod with no result. My forebearance is up in January 2009, at that point I will still be receiving unemployment for 10 more months, then what will be their excuse. So that payment...mine is for $727.15??? Sounds too familiar....you better check with them asap to see if your's is also a forebearance, if it is you better start calling them again for a mod.

[RRva99]

They haven't made any type of decision on mine. I sent in my 3rd Trial payment today, so I hope to hear something in the next week or two. If not, I will call again. When I called last, they told me they don't need any additional info from me at this point and that they hope to make a decision before another payment is due.

[Murray12]

Originally Posted by teddy

I have been reading you comments. Be careful, sounds like they have given you the same as me its called a ForeBearance. It is not a modification, it is just giving them the time they need to make a decision of whether or not to modify. When they gave me mine they told me it was to give me time to hopefully make a change in my circumstances, which is I was laid off from my job. I am receiving unemployment benefits, they gave me the same story about the 9 months, I am in Oregon and guess what? I received a letter from Unemployment confirming my unemployment for a year. So I called them, the 9 month rule was the only issue I was having regarding receiving a mod, well guess what? Still don't have one. They just keep changing the rules to fit them, not us. I have been trying since November or 2008 to get a mod with no result. My forebearance is up in January 2009, at that point I will still be receiving unemployment for 10 more months, then what will be their excuse. So that payment...mine is for $727.15??? Sounds too familiar....you better check with them asap to see if your's is also a forebearance, if it is you better start calling them again for a mod.

Wow, this is exactly what happened to me! I did get a mod in addition to the forbearance, but my situation is a little different. They added all the interest to the end. The payment difference is great but not exactly what the HAMP promises.

I am not in a state that allows taping phone calls (I don't think) or I would start taping the calls.

I don't understand why SunTrust flies under the radar. Know the facts, and counter everythign they say with the TRUTH and have proof.

Use different tactics. Make sure they hear you!

[juskilentime]

Originally Posted by RRva99

They haven't made any type of decision on mine. I sent in my 3rd Trial payment today, so I hope to hear something in the next week or two. If not, I will call again. When I called last, they told me they don't need any additional info from me at this point and that they hope to make a decision before another payment is due.

Any update RRva? You and I are on the same schedule (I made my 3rd trial on Oct. 24 and just waiting)

[RRva99]

Yeah, basically just waiting as well. Was happy to see your thread--that looks promising and gives the rest of us some hope. I called them today for a status update and was told that they are working overtime to try to get these done now. Not sure that actually means anything, but it's nice to hear. I just want to know something one way or the other so that I can move on with my life. I will fight as long as I can to make it happen, but I just want to know something for sure.

[treyy]

I am also in a similar boat as you guys. Made my 3rd trial payment which was due Nov 1, made a 4th trial payment days ago which was due Dec 1. Just waiting. Looks like the government is increasing pressure on the mortgage servicers to get these done:

Gov't increases pressure on mortgage industry - Yahoo! Finance

[juskilentime]

That sounds good and all, but I'll believe it when I see it. I've submitted income/asset docs several times. The servicers have incompetent staff and are completely unorganized. I'm still waiting...

[RRva99]

Yeah, the government doesn't have the authority to do anything. They will continue to cater to the banks--just as they've always done. I just completed my 4th trial mod payment with no end in sight. Every time I call, it's the same thing--"just be patient, we're working hard" yada yada. Meanwhile, my life is in limbo as I wait in trial mod purgatory.

[juskilentime]

I'm going to make my weekly call tomorrow and will update the forum with the latest.

[juskilentime]

Nothing new. Still in review

[HAMP What?]

I have been dealing with Suntrust since April, 2008 to get a loan modification. It was in this month that I had to have surgery which caused me to be out of work without pay. I had to place my children on the state health insurance and was placed on food stamps. I did go back to work, too quickly due to my financial stiuation and ended up in financial disaster. I first started with calling the MD Hope hotline, just to learn that I did not qualify because the worth of my home was over the program limits. In addition, I still had a rental property that I could not sell due to the poor market. I ended up selling this in a shortsale right before I filed BK. In the mean time I was falling more and more behind on my payments. I contacted Suntrust to work out some kind of refi or modificaiton to my loan which did not happen. So, after talking with family, I decided to contact a BK Lawyer (the worst decision I ever made). I filed a Chapter 13 because I wanted to keep my home. By this time, it was in active foreclosure. After working on my budget with the Lawyer, he decided that I was not eligible for a Chapter 13 because with my decrease in income, I would not qualify for the re-pay plan. He then transferred the BK into a Chapter 7. He also told me to leave my property because I was just putting "good money to bad" and it would soon be foreclosed on. I am a single mother of 2 children, so naturally, I was now operating off of sheer fear for the safety of my children. I found that my neighboor was renting his home so I moved in next door. Two months after moving in, I received a package from Suntrust offering some kind of plan which would reduce my mortgage by like $100 and they wanted me to pay $3000 up front. They did not even mention the 2nd mortgage. This did not make since to me, especially after being denied any intervention from them prior to the BK. I just kept hearing my lawyer say just move on, you have already lost your home. The BK was discharged in 11/08. They also sent a letter advising me to contact a HUD counselor to learn of how I could save my home. I did, and they help me submit a loan modification package to Suntrust. This was in June of 09, I called them on a weekly basis until I received a letter in Aug. of 09 stating that my application was under review. Just recently, I missed a weekly call (Last week), called them on Monday to learn that my mortgage was removed from mitigation because they could not contact me (WTF!). I had moved back into my property per the Housing Counselor's advice and updated my file. I have been receiving mortgage statements the whole time, so I think it's a crock of SH** that they could not reach me. Now the Loss Mit. Dept. is requesting that I send my financial info. all over from Sept. and Oct. of this year. They also want to know how much money I have to contribute prior to the loan modification. I am currently 22 months behind and they will not accept any payment from me because the property is in active foreclosure. The loss mit. dept. told me to keep watch for a sale date and get the new info. in ASAP. They said that if a new sale date is posted to let them know, so they will have the sale postponed to review the loan mod. My loan is backed by Residential Funding Corp so I am not eligible for the Obama program. (I think) I am leary about dealing directly with Suntrust because of all the bad info. I have found on them regarding loan mods as well as thier predatory lending practices. The housing councelor who reviewed my loan docs told me that I sealed my foreclosure the day I signed my settlement papers. UGH! How was I to know? I trusted the Mortgage Broker and Suntrust.

I am an Occupational Therapist who earns a good income, I have always made good decisions with my money and can not believe the mess that I am in. When I purchased the home I was an active duty Officer at the rank of LT. I decided to go inactive when I did not have the proper network set in place for the care of my children if/when I was called for a tour of duty. I have since then been called back for duty, but am still working on resolving some medical issues. I should be back by end of Jan. 2010 at the rank of LCDR. My children are older and I am now more comfortable with leaving them if need be. The income earned as a LCDR would be more than enough to cover the mortgage, but I am not sure how to keep my home until then. I have depleted my savings and my Roth IRA, I am at my wits end.

Since joining this website, I have contacted the NACA. Then after reading further about them am not so optimistic. Has anyone heard of USA Legal Funding? They claim to offer funding for homeowners to get caught up on mortgage to avoid foreclosure. There is some educational piece involved? Does anyone have any experiences with a loan mod. for a Suntrust mortgage backed by RFC? Any comments are welcome, be gentle, I am very fragile right now. Be Blessed!