Loan Mod Question?

[mirage740]

Hello,
I am currently 6 months behind on my mortgage. I was dealing with Naca for a while but it looks like my bank(Franklin Bank, Tx) refused to work with them. Anyway, I contacted my lender directly and they sent me a financial package where I filled out expenses and reason for harship, along with faxing in tax returns & paystubs. Loss mitigation informed me that I would hear back within 30 days. She also stated that my loan will be sold to a new lender within the next few months, so if Franklin cant help then the new lender might have better options.
- Now, one of the forms I signed acknowleges that this mod does not entitle the borrower to the $1000 for 5 years as detailed in the HAMP program, nor is this modification part of that program. The investor on my loan is Fannie Mae. Im confused with the whole process. Since Fannie Mae is the investor, wouldnt I automatically be put under the MHA plan? Or its still the banks choice with what they want to do? I definitely qualify as my 1st mortgage PITI is at 40% of my monthly gross.
Im also getting more stressed as I just received papers from attorneys here in CT as forecloseures have to go thru the judicial system. I need to return an Appearance form along with a Foreclosure Mediation Cert by 11/3 to the court. Ill defintely wait till the last minute to by more time.

Thanks for the help

[ama125]

No, you will not automatically be put into MHA with Fannie Mae as investor. They (Fannie) will consider whatever proposal was sent to them. You would think since Fannie is the Treasury appointed administrator for MHA, that they would get nothing but MHA mods, but such is not the case. Furthermore, my negotiator at BofA told me Fannie isn't approving those MHA mods on a permanent basis, just the trial plans. I know something about this whole thing smells rotten and I am at a loss on what to do about it. Have you checked to see if MERS is the one trying to foreclose? You may be able to get it thrown out based on that, but I cannot guarantee anything. Good luck to you! I hope it all works out!

[mirage740]

Thanks! What is MERS? Also, just today I received a letter from my bank that I was placed on a 4 month forebearance to allow the borrower time to gain more income or cut expenses. At the end of the forebearance they will take another look a the loan. Any payments during this time will be placed in a suspense or unapplied status. Now, has anyone had success getting modifications after the forbearance period? Hopefully, whatever lender my loan is sold to will offer some options.

I will still file the forms with the court by the return date indicated as I dont trust the bank/attorneys to stop anything. Maybe if a mediation with the court is scheduled I can get a permanent offer from the bank that way.