Do all modifications have a trial period? - Loan Modification Forum

feellost · 10-30-2009, 11:00 AM

I just got approved for a modification with BofA, done through NACA. The documents I received from the bank don't say anything about a trial period, but my NACA file says I have a 3 month trial period before the mod becomes binding on the bank. It is not a HAMP modification. So I am wondering: Do all modifications have a trial period? Do modification documents usually mention that there is one?

Evan Bedard · 10-30-2009, 11:46 AM

Hi feelost,

Quote:

I just got approved for a modification with BofA, done through NACA. The documents I received from the bank don't say anything about a trial period, but my NACA file says I have a 3 month trial period before the mod becomes binding on the bank. It is not a HAMP modification. So I am wondering: Do all modifications have a trial period? Do modification documents usually mention that there is one?

No, only if you were to apply for the HAMP program will you enter the trial period. What are your new terms?

feellost · 10-30-2009, 11:56 AM

2% interest for the remaining 26 years of the first mortgage, and 2% interest for the remaining 12 years of the second mortgage. The missed payments on the first mortgage were added to my principal. Nothing added onto the second mortgage principal because it was current. I am very happy, especially because my credit remains intact (only the second mortgage was in my name, the first was in my ex-husband's name). Thanks for the info on the trial period. That means I'm done and my mods are permanent. It's unbelievable! By the way, I have lender placed insurance which is very expensive. When do you think would be a good time to replace it with my own homeowners insurance without affecting the modification agreement? I'm worried about doing anything that could jeopardize this.

skymang · 10-30-2009, 11:57 AM

Working on the remod process myself right now....how necessary is the forensic loan audit? We don't have much money and i really have no idea how to do the audit myself....

Evan Bedard · 10-30-2009, 12:05 PM

Quote:

2% interest for the remaining 26 years of the first mortgage, and 2% interest for the remaining 12 years of the second mortgage. The missed payments on the first mortgage were added to my principal. Nothing added onto the second mortgage principal because it was current. I am very happy, especially because my credit remains intact (only the second mortgage was in my name, the first was in my ex-husband's name). Thanks for the info on the trial period. That means I'm done and my mods are permanent. It's unbelievable! By the way, I have lender placed insurance which is very expensive. When do you think would be a good time to replace it with my own homeowners insurance without affecting the modification agreement? I'm worried about doing anything that could jeopardize this.

Wow that is an amazing modification and definitely the best anyone can possible get!!! Congratulations!

Evan Bedard · 10-30-2009, 12:06 PM

Skymang welcome and thank you for joining.

Quote:

Working on the remod process myself right now....how necessary is the forensic loan audit? We don't have much money and i really have no idea how to do the audit myself....

An audit will be useless if there is no attorney working with you...

feellost · 10-30-2009, 01:07 PM

Thanks, Evan. It's much better than I could have ever dreamed of. NACA came through in my case, and it was all very smooth.

lasvegash · 10-30-2009, 01:54 PM

I thought that NACA only worked on getting HAMP loan modifications...does the 2% make the payment 31% of your gross income?

skymang · 11-02-2009, 07:43 AM

Hi Evan, thank you for responding to my inexperienced questions! Mainly, i guess i wanted to know if you can complete a successful loan remodification without a loan audit? Or is it a ncessary step?

feellost · 11-05-2009, 07:42 PM

lasvegash, NACA does non-HAMP mods as well. They worked wtih me, although I didn't qualify for HAMP because my first mortgage was under 31% of my income. The 2% makes the two mortgages, along with insurance and property tax around 31% of my income. I will be changing insurers from the one the bank obtained to one that I obtained and is about half the cost. At that point, everything together will be slightly under 31% of my gross income. I live in an expensive part of the country, so that will make things bearable for me. I am happy with the mods. It is really beyond my expectations. The only thing better would have been to settle my second, which would allow me to sell the house in a couple of years when my kids are out of high school. I am still under water and won't be able to sell and move until the market turns around. But nothing is perfect, and I'm not complaining at all. I am happy that I can stay in my house, my kids can stay in their school, and we can start living again.

yomann · 11-05-2009, 07:51 PM

That is an amazing modification !
Perhaps the banks are under pressure to get these mods done, at terms homeowners can afford.

BadBobMo · 11-05-2009, 08:15 PM

In house is called, are you ready any thing they want it to be, but the real name is called "Self-Cure" meaning they hope you win the "Latto" or find a job, so you won't need their help!

heidi79 · 11-05-2009, 10:27 PM

you could still settle the second but would probably wreck your credit in the process, your mod terms are better than the hamp mod terms, congratulations to you!

antomax · 11-13-2009, 02:45 PM

feellost can you please tell me how much was your surplus?

10-30-2009, 11:00 AM	#1 (permalink)
feellost Senior Member Join Date: Aug 2009 Posts: 63 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Do all modifications have a trial period? I just got approved for a modification with BofA, done through NACA. The documents I received from the bank don't say anything about a trial period, but my NACA file says I have a 3 month trial period before the mod becomes binding on the bank. It is not a HAMP modification. So I am wondering: Do all modifications have a trial period? Do modification documents usually mention that there is one?

10-30-2009, 11:56 AM	#3 (permalink)
feellost Senior Member Join Date: Aug 2009 Posts: 63 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Do all modifications have a trial period? 2% interest for the remaining 26 years of the first mortgage, and 2% interest for the remaining 12 years of the second mortgage. The missed payments on the first mortgage were added to my principal. Nothing added onto the second mortgage principal because it was current. I am very happy, especially because my credit remains intact (only the second mortgage was in my name, the first was in my ex-husband's name). Thanks for the info on the trial period. That means I'm done and my mods are permanent. It's unbelievable! By the way, I have lender placed insurance which is very expensive. When do you think would be a good time to replace it with my own homeowners insurance without affecting the modification agreement? I'm worried about doing anything that could jeopardize this.

10-30-2009, 11:57 AM	#4 (permalink)
skymang Junior Member Join Date: Oct 2009 Posts: 3 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Do all modifications have a trial period? Working on the remod process myself right now....how necessary is the forensic loan audit? We don't have much money and i really have no idea how to do the audit myself....

10-30-2009, 01:07 PM	#7 (permalink)
feellost Senior Member Join Date: Aug 2009 Posts: 63 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Do all modifications have a trial period? Thanks, Evan. It's much better than I could have ever dreamed of. NACA came through in my case, and it was all very smooth.

10-30-2009, 01:54 PM	#8 (permalink)
lasvegash Member Join Date: Oct 2009 Posts: 24 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Do all modifications have a trial period? I thought that NACA only worked on getting HAMP loan modifications...does the 2% make the payment 31% of your gross income?

11-02-2009, 07:43 AM	#9 (permalink)
skymang Junior Member Join Date: Oct 2009 Posts: 3 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Do all modifications have a trial period? Hi Evan, thank you for responding to my inexperienced questions! Mainly, i guess i wanted to know if you can complete a successful loan remodification without a loan audit? Or is it a ncessary step?

11-05-2009, 07:42 PM	#10 (permalink)
feellost Senior Member Join Date: Aug 2009 Posts: 63 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Do all modifications have a trial period? lasvegash, NACA does non-HAMP mods as well. They worked wtih me, although I didn't qualify for HAMP because my first mortgage was under 31% of my income. The 2% makes the two mortgages, along with insurance and property tax around 31% of my income. I will be changing insurers from the one the bank obtained to one that I obtained and is about half the cost. At that point, everything together will be slightly under 31% of my gross income. I live in an expensive part of the country, so that will make things bearable for me. I am happy with the mods. It is really beyond my expectations. The only thing better would have been to settle my second, which would allow me to sell the house in a couple of years when my kids are out of high school. I am still under water and won't be able to sell and move until the market turns around. But nothing is perfect, and I'm not complaining at all. I am happy that I can stay in my house, my kids can stay in their school, and we can start living again.

11-05-2009, 07:51 PM	#11 (permalink)
yomann Senior Member Join Date: Oct 2009 Location: Northern Calif. Posts: 87 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Do all modifications have a trial period? That is an amazing modification ! Perhaps the banks are under pressure to get these mods done, at terms homeowners can afford.

11-05-2009, 08:15 PM	#12 (permalink)
BadBobMo Senior Member Join Date: Feb 2008 Posts: 194 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Do all modifications have a trial period? In house is called, are you ready any thing they want it to be, but the real name is called "Self-Cure" meaning they hope you win the "Latto" or find a job, so you won't need their help!

11-05-2009, 10:27 PM	#13 (permalink)
heidi79 Senior Member Join Date: Jan 2009 Location: Miami, Florida Posts: 250 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Do all modifications have a trial period? you could still settle the second but would probably wreck your credit in the process, your mod terms are better than the hamp mod terms, congratulations to you!

11-13-2009, 02:45 PM	#14 (permalink)
antomax Senior Member Join Date: Jan 2009 Location: NJ Posts: 34 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Do all modifications have a trial period? feellost can you please tell me how much was your surplus?

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