Home Loans and Support

Must foreclosure be suspended during the Trial Period?

Discussion in 'Making Home Affordable' started by Moe, Sep 8, 2009.

  1. Moe

    Moe Call 1-800-779-4547 Staff Member Loan Safe Mortgage

    Except in “foreclosure restart states†as described in Q54 below, any foreclosure sale must be suspended and no new foreclosure action may be initiated during the Trial Period, including any period of time between the borrower’s execution of the Trial Period Plan and the Trial Period Plan effective date. Foreclosure actions may not be initiated or restarted until the borrower has failed the Trial Period Plan and the borrower has been considered and found ineligible for other available foreclosure prevention options.

    Q55. What rules apply to loans that were in active foreclosure in foreclosure restart states prior to initiation of the Trial Period Plan? Will borrowers be considered to have failed the Trial Period Plan if they are not current at the time the foreclosure sale is scheduled? How could such borrowers be current if foreclosure was already in process?

    Due to unique foreclosure law requirements in Georgia, Hawaii, Missouri, and Virginia, borrowers in these states who were in active foreclosure prior to executing a Trial Period Plan will be considered to have failed the Trial Period Plan and servicers may proceed with the foreclosure if either

    (a) the servicer determines that the borrower made a misrepresentation under Section 1 of the Trial Period Plan

    (b) the borrower has not made all required Trial Period payments through the end of the month preceding the month in which the foreclosure sale is scheduled to occur.

    Q56. When a borrower is placed in a Trial Period Plan, does the loan information need to be changed on the servicer’s system and the investor’s system to reflect the Trial Period terms?

    No, scheduled loan terms in servicing systems should not be modified during the Trial Period. However, servicers must follow the requirements for reporting to the credit reporting agencies during the Trial Period as set forth in Supplemental Directive 09-01 and discussed below in
  2. G.gordon

    G.gordon LoanSafe Member

    What happens to back payments, penalities, interest in a MHA loan modification?
  3. ama125

    ama125 LoanSafe Member

    The back payments and interest are to be rolled back into the loan. Late fees/penalties are to be waived.
  4. ama125

    ama125 LoanSafe Member

    Also note that at least one person (Garry) who is actively in the MHA trial got two trustee sale notices on his door on Monday (Labor Day). So, even though it should not happen, it can if the servicer is not notifying the proper departments of your trial. You have to stay on top of them, even if you are on the trial!
  5. G.gordon

    G.gordon LoanSafe Member

    Does MHA apply to conventional and government loans?

    What is hope for homeowners and does it apply to conventional and government loans?
  6. ama125

    ama125 LoanSafe Member

    MHA has two programs, HARP is the refinance program and only applies to Fannie Mae and Freddie Mac backed loans. HAMP is the modification program and can be backed by other investors, not just Fannie and Freddie. If the loan is FHA, they have recently included their own set of HAMP guidelines. As for hope for homeowners (H4H), that is a program initiated under the Bush administration that had only helped one borrower. It has or is being revamped and borrowers being reviewed for HAMP are to also be reviewed for H4H. You can read more about it here: Renewed HOPE for Homeowners - May. 20, 2009
  7. davephx

    davephx LoanSafe Member

    I have had huge issues with CitiMortgage of Fannie Mae owned loan.

    I was told was modified in May but they never sent any paperwork and they started foreclosure.

    Than approved again in July but no paperwork.

    The problem I am told is they can not reverse the foreclosure (which should have never happend to begin with per Fannie Mae directives) but have it on "hold" till the sale date.

    At the sale date I am at their mercy to extend the sale date. There are many reports that servicers are selling properties contrary to HAMP requirements. You get no notice, no chance to try and get a Temporary Injunction of file Chap 13 to save your home.

    This is being widely reported in the media and one lawyer put out a warning calling it a "end run" or "sneak" foreclosure. They tell you all is well and the next day your home is sold and you get an eviction notice.

    CitiMortgage is one that is reported to be doing this and many others.

    I will post more in the CitiMortgage section about my six months of lies, misinformation, in capable of solving admitted internal paper work messes I have been dealing with a now fear they want me to be a sneak foreclosure victim.
  8. Hope4aNewDay

    Hope4aNewDay LoanSafe Member

    Dear Moe,

    I am with Wells Fargo backed by Freddie Mac. I am in Florida and have made my 1st of 3 trial payments but am still being sued and have foreclosure actions up to final summary judgement breathing on my neck. What should I do who can I contact? Does anyone have any Phone numbers or email, addresses for Freddie Mac contacts . I have been told by Wells Fargo loss mitigation and the lawyer suing me on behalf of Wells Fargo that though I am in the HAMP trial program, Freddie Mac will still not suspend foreclosure actions. I thought under HAMP they had to suspend forclosure actions. Again, Does anyone have any contact info or otherwise for Freddie Mac so I can try to get them to at least suspend the foreclosure actions during the trial period as I thought they were required to under HAMP?

  9. Hope4aNewDay

    Hope4aNewDay LoanSafe Member

    I have a Wells Fargo loan owned by Freddie Mac .

    I was told was approved for a trial modification on August 20,2009 sent package back.

    Was told by Wells Fargo Aug 26 all foreclosure actions suspended

    Paid 1st Trial period payment as told October 1, 2009

    The problem I am told is they can not reverse the foreclosure per Freddie Mac directives. No sale date yet or supposedly during trial according to Wells Fargo, but still being sued and foreclosed on.

    At the sale date I am at their mercy to extend the sale date. There are many reports that servicers are selling properties contrary to HAMP requirements. You get no notice, no chance to try and get a Temporary Injunction of file Chap 13 to save your home.

    Please who can I contact What can I do?
  10. Hope4aNewDay

    Hope4aNewDay LoanSafe Member

    10/9 Called Freddie Mac at 1800-Freddie, received no further information from the call center representative as to why I am still having foreclosure actions taken against me even though I am in the HAMP trial program. Does anyone have an executive Number for Freddie Mac to question this? On October 2 I received a motion for a for a final summary judgement. I have 12 days to figure out how to respond to this! Anybody have any info?
  11. davephx

    davephx LoanSafe Member

    Exactly which is what we need pressure on. In my case was told all was well and wait for a processor in the system with all the docs from back in March.

    After the all is well call I got a foreclosure notice. Seems they only postphone sales the day before the sale so you have no time to do anything else and at their mercy. And they do screw up the paper work and folks have lost homes even after being told the day before the sale would be delayed.

    If its delayed its only fof 30 days and we have to go thru it all again. Why can't they just lift the foreclosure status or permenantly delay the sales date and if soment goes wrong give at least a weeks notice.

    As it is now if they deem your not eligible for anything they can sell your home the next day (if beyond the 90 days in AZ) and don't even have to let you know until after the home is sold.

    This is so utterly bad and against the entire purpose to save homes
  12. jbocklage

    jbocklage LoanSafe Member

    Why do servicers not count food stamps as income for MHA? Thats money you do not have to spend on food! BOA told me they do not count them as income, I think they should, especially when your real underwater.
  13. jdonovan

    jdonovan LoanSafe Member

    Net present Value is still the main tool. Congress is setting up a bill that will provide; if it is one cent positive to modify a loan, the investor must.

    If they do not Congress should order the liquidity drained from the reserve system, resinstitute "mark to market" and push these garbage loans into the aisle, thus resulting in the collapse of all the Federal Reserve Banks.

    Couldn't happen too soon in my book!
  14. homesweethome

    homesweethome LoanSafe Member

    Moe, this is my situation;
    Had sale date of June 6, 2009
    Entered into modification through attorney, sale suspended
    July, August, September made trial payment the first of every month via western union
    October 1st, made fourth trial payment per Litton while waiting for permenant mod.
    October 13th realtor showed at my door to see property, says it was sold at 10:30 that morning.
    I have been told by my attorney that Litton states they sent a denial letter via certified mail to the office of attorney, attorney denies they ever recieved it and Litton is not producing a sighed return reciept.
  15. homesweethome

    homesweethome LoanSafe Member

    In the mean time, I am getting offers of cash for keys to move out by the 31st of October. I also have two renters in the property
  16. desertgirl2010

    desertgirl2010 LoanSafe Member

    Am on 5th month Trial Plan.. no answer.. still have sale date..

    What can I do to get One West Bank to cancel the sale date? All they do and their attorney's office is postpone it to another 60 days out.

    Trustee Corps, their attorney's office, has told me it is not required under the HAMP program to stop my foreclosure and to send him a copy of my trial plan. I made a copy of where it states they cannot puruse foreclosure and circled it. Right after he got it, my sale date was postponed 60 days out until the 26th of April.

    I still have not received word on a permanent mod and obtained NACA on February 3rd. They have not responded to them either with a proposal. I am becoming frustrated with NACA.

    Since I became involved with NACA, my lender says they can no longer speak to me.

    What can I do to enforce One West Bank and Trustee Corps to enforce this issue? They need to cancel the sale date and stop "postponing" it.

    I also had a loan forensic audit completed and have spoken to an attorney who is willing to take my case and sue the lender for numerous things.

    However, what can I do on my own to stop the sale?
  17. carla59

    carla59 Guest

    You have to pay it or give them your house. What a racket. A group of crooks in a corporation getting rich at the expense of the little guy trying to do the right thing. Email me at chilgert@aol.com.
  18. warzie

    warzie LoanSafe Member

    What about during the HAMP application period - before trial is offered? Can foreclosure proceed?

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