Home Loans and Support

Fall behind on mortgage or not for modification

Discussion in 'Stop Foreclosure and Tell Us Your Story' started by leelawson2000, May 4, 2011.

  1. leelawson2000

    leelawson2000 LoanSafe Member

    The question is should i fall behind on my mortgage payments for 3 months or not, to get a modification from HSBC Bank, i have a freddie mac loan and should try and get the HAMP Modification.
    One person said don't wait apply right away and other people tell me i have to be behind a few payments before they will consider a modification.

    Any answers for me.

    Thanks,
  2. cahomeowner

    cahomeowner LoanSafe Member

    every situation is different. based on my own experiences the banks will not even consider you for a loan mod unless you are behind and can show a hardship.
  3. leelawson2000

    leelawson2000 LoanSafe Member

    Thank you for the information
  4. SurfwhenUcan

    SurfwhenUcan LoanSafe Member

    Hi Lee,

    Falling behind does not necessarily mean you'll get a mod and is a slippery slope. The banks act stupid, but it's an act mostly (at least by the work out analysts - they're pretty sharp, many times the people you talk to on the phone though really are as stupid as they seem).

    When claiming hardship and purposely missing payments, make sure that a foreclosure sale is on your list of potential outcomes, because it is a real possibility (less so for Loansafe members but still a possibility that warrants some contemplation). It is true that most lenders, HSBC included, don't feel that loans with current payments are a priority and in many cases won't consider a file until it's late. The pitfall that catches many homeowners using this strategy is that 1) the bank reviews everything about you financially - tax returns, bank statements, assets and of course income; 2) they aren't really interested in saving your home, they're interested in protecting their interest in your property - sometimes this means modifying but generally it means they need to repossess the asset; 3) the bank isn't going to tell you what it is that's preventing you from getting approved (at least they won't tell you straight) - and for the uninitiated, many times you supply plenty of information that tells the bank that you could really afford the payment if you wanted to and you're just putting them on by missing payments. The result is a long and agonizing process where the bank seemingly can't seem to approve you, when they're actually just waiting out the hardship or playing a game of chicken and waiting for you to blink. Financial Hardship is the most common hardship story, the other Big Three are Death Divorce and Medical. If you are just going on financial hardship, it's a tough sell usually.

    If you go down this road, make sure you sock away every payment - stick it in a safe deposit box. Then after 18 months if they deny the file and want to take the house, you'll have a nice chunk of cash play with. Most people I see in your situation become disenchanted with the whole thing after a year or so and walk, just make sure you walk with a boatload of cash. Good luck!
  5. leelawson2000

    leelawson2000 LoanSafe Member

    Thank you for the information

    I do want to modified but if not they can help this house, no problem. I can made the payment but so up side down i don't care. Just sock away payments until i lose the house.
    Although i am barely able to make the payments, i do have to do with out a lot of things to make the payments and they are a hardship.

    People are telling me to go direct to Freedie Mac and skip HSBC, but how do i skip the service bank.?????????????????????????????????????????????????
  6. billycuda

    billycuda LoanSafe Member

    Be VERY careful this is the trap I fell into they told me that I needed to be two months behind. So I did. Two years later I'm still fighting them with no end in sight. First make sure you know who your investor is. This is very important. I spent two years under "review" of different modifacations that my investor "approved" to be apart of but actually was not. DEMAND to know who owns the note. This is a very complex procedure. They are the ones who hold the cards for a mod not the servicer check out HARP if it is still available. You don't have to be behind for a mod. If they put you through hamp make sure you have the money to become current again. Or you will start racking up late fees and service fees. This is where they get you. Please look at theposts on here their are a lot of helpful threads but try to avoid going late at all costs. Do a lot of research before you do. It will only help you. GOOD LUCK!

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