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special forbearance agreement

Discussion in 'Loan Modification' started by nicolas, Feb 27, 2012.

  1. nicolas

    nicolas LoanSafe Member

    Hi All,

    I received a "special forbearance" agreement for three payments due in 03/01 04/01 05/01.
    Is this an In-house Mod??? is this the terminology they use for an in-house mod??

    what confuses me is that it states "upon successful completion of the agreement, your loan will not be contractually current. this does not make any sense.

    Also what is the average range for in-house mod DTI??
    Can they give you an loan mod that is between 31-38% of your monthly income??
  2. RyanJP

    RyanJP LoanSafe Member

    Are the forbearance payments less than your normal loan payment? If so, at the end of your agreement, you will not have made your regular payment for three months, which is why you will NOT be current on your loan.
  3. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    Do NOT get this confused with an in-house modification. A special forbearance does not always end up being a permanent modification, and personally I haven't seen too many people approved for a permanent modification after making the forbearance payments.. A forbearance is generally only for those who are unemployed or do not make enough to support a modified payment..
  4. nicolas

    nicolas LoanSafe Member

    Hi Ryan, yes they are less than the regular monthly payments.
    The home preservation specialist said that if I make all 3 payments on time they would grant me the in-house mod.
  5. nicolas

    nicolas LoanSafe Member

    Hi Evan,

    This is what I was told by home preservation specialist that if I make all 3 payments they would then send me the final paperwork
    for signature and this is supposed to be the last step to finalize the in-house mod.
  6. RyanJP

    RyanJP LoanSafe Member

    This is usually what the paperwork will say.

    I'm sure Evan didn't mean to imply that you WON'T get a modification at the end of the forbearance period. However, you should be prepared for the possibility that it won't be made permanent after only three months. Often, it takes far longer.
  7. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    Yes I did not mean that you will not be offered permanent assistance after the forbearance is complete, it is most definitely a possibility.. If you type in special forbearance in the "google search" engine tool at the top of the page you will find many members here who have went through a special forbearance..
  8. nicolas

    nicolas LoanSafe Member

    Thanks for the reply Evan/Ryan JP, I thought you guys meant that they would keep at this "special forbearance"and not offer you an in-house mod. I guess I have to give it a shot and hope for the best. the home preservation specialist did inform you that this is how they do it and once I make the 3rd payment they will review me and issue the loan mod. I hope that is the outcome.

    Evan, if is indeed an in-house why do not they bring to 31% of your monthly income??
    The home preservation specialist said this is not HAMP and the investor has his own guidelines and your payment could be in the 31-38% range of your monthly income.
  9. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    In-house modifications do not have this 31% stipulation so your permanent payment can vary.. Only HAMP requires the payment to be 31% of your gross monthly income.
  10. nicolas

    nicolas LoanSafe Member

    Thanks Evan, I guess I will have to sign the "Special forbearance agreement" and see how this thing plays out.
  11. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    I wish you the best nicolas, keep us posted on how it plays out..
  12. nicolas

    nicolas LoanSafe Member

    Hi Evan,

    I asked the Bank today and they said that a "Special forbearance" is actually what they call for in-house modifications.
    I just hope that this is true and that at the end everything works out.

    The papers do say that after the 3rd payment they are going to evaluate the account a Loan mod so we will see.
  13. nicolas

    nicolas LoanSafe Member

    Evan,

    I forgot to add that although the papers I received do not mention what interest rate I will get, the home preservation
    specialist did informed me over the phone what my interest rate will be for the first 5 years and then after that it will increase by half a point for the duration of the loan. Is this a good sign??
  14. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    Sounds like he is giving you an example of what they may offer.. In-house modifications are generally only a fixed rate loan that does not adjust (ie 4.5% for the life of the loan), but after HAMP came into play some in-house modification mirror results with a step-rate loan that may be 2% for the 1st five years, 3% year 5-7, 4% for the life of the loan... At this point they cannot give you an exact estimate of what you may be offered.
  15. BigBlok502

    BigBlok502 LoanSafe Member

    Hi nicolas, I hope I'm not clouding the issue here. I got an in-house with B of A, not sure who your servicer is, and no way did they mention forbearance. They did talk about three trial payments though. I have been under the impression a forbearance is a temporary solution, not long term.

    My paper work definitely stated it was for an in-house Fannie Mae modification. It did not mention the final interest rate which turned out to be fixed at 5 percent on the final mod papers.
  16. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    Yes many times in-house modifications will require no trial period what so ever..
  17. nicolas

    nicolas LoanSafe Member

    my servicer is ASC, the loss mitigation rep said that this standard terminology for "in-house mods" at ASC.
    I'm hoping this is not some type of game where after you make the 3rd trial payment they foreclose on you or keep delaying the mod
    for soem bogus reason.
  18. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    Unfortunately, you just never know exactly what is going to happen with these servicers.. Even those who enter HAMP trial period are at risk of not receiving permanent assistance after the trial period is complete.. That is one thing I have learned these past few years that nothing in this process is ever guaranteed..
  19. nicolas

    nicolas LoanSafe Member

    I hear what you guys are saying but I'm hoping for the best so maybe this is the way they issued in-house mods these days.
  20. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    I would strongly suggest reading others members experiences going through the special forbearance as well, if you have not done so already..

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