Home Loans and Support

Successful mod without going delinquent

Discussion in 'Loan Modification' started by olderbae, Apr 19, 2011.

  1. olderbae

    olderbae LoanSafe Member

    Has anyone gotten a successful loan mod with BOFA or any bnak without going delinquent on the mortgage? I have been told countless times that the bank has no reason to give me a mod without us missing payments. I am not delinquent and applied for a mod over a year. They have sent me a letter that said I am denied, but then told me that was a mistake because of misplaced documents. Do I keep my hopes up or move on to other options?
  2. Cat Damiano

    Cat Damiano Mortgage Wars

    It is very tough to do but has happened to some on the forum. You would have to show a hardship, imminent default and also have a payment that is more than 31% of the gross household income.

    According to HAMP guidelines:
    A borrower that is current or has only one payment due and unpaid by the end of the month in
    which it is due and who contacts the servicer to request HAMP consideration must be evaluated
    to determine if he or she is at risk of imminent default. Each servicer must have written standards
    for determining imminent default that are consistent with applicable contractual agreements and
    accounting standards and must apply the standards equally to all borrowers.
    When making an imminent default determination, the servicer must evaluate the borrower’s
    hardship as well as the condition of and circumstances affecting the property securing the
    mortgage loan. The servicer must consider the borrower’s financial condition, liquid assets,
    liabilities, combined monthly income from wages and all other identified sources of income,
    monthly obligations (including personal debts, revolving accounts, and installment loans), and a
    reasonable allowance for living expenses such as food, utilities, etc. The hardship and financial​
    condition of the borrower must be verified through documentation.
  3. Erik Sandstrom

    Erik Sandstrom Mortgage Expert - Call 1-800-779-4547

    Understanding that the modification is all based off hardship, Let's step in the investors shoes for a second. As the investor, I see a homeowner that's current on the mortgage that's asking for help - what would motivate me to modify the loan? Nothing... If you're remaining current on the loan you're basically telling them that you can afford the mortgage payment. Being the investor, I would take a look at the non-performing loans and work with those first before the borrower that is current on their mortgage.

    By the way, I have seen Bank of America loans modified when being current through their imminent risk of default department. You must be able to prove that something has happened or will be happening with your ability to repay the loan within the next few months.

    Now let's step back a couple steps, I'd like to explain one of my biggest pet peeves with the bank which I see ALL the time and your scenario is a perfect example.

    You call in to Bank of America and say you need help (being proactive knowing that you wont be able to afford the mortgage), the representative that you speak to takes a quick look at your scenario and says in a matter of minutes "OH, We can't help you because you're current on the mortgage." As the homeowner, what do you think you would do after that? Probably miss a couple payments, right? So let's say you miss a couple payments, then go back to the bank and they ask for all your financial information and documents needed for underwriting. After underwriting with the bank, come to find out you make too much money, don't make enough or even have excessive obligations!? Then you get denied for that! So the homeowner went and took the banks instructions, went late, ruined their credit and now come to find out they don't qualify for the modification.

    Once again, I HATE the banks for doing this. No Morals, what-so-ever!

    Hope this helps? If you want, feel free to contact me - i'd love to take a look at your scenario.
  4. CCCali

    CCCali LoanSafe Member

    I have never been late on my BofA mortgage loan until I started the trial payment.
    I am assuming they granted me MHA due to my hardship letter and my debt to income ratio. I do have an HOA monthly that is creeping up annually. (Never buy into a HOA)!!
  5. lisasxr

    lisasxr LoanSafe Member

    We received a PERM HAMP MOD while remaining current until the time the trial period started.
  6. Jeffrey L. Shurtliff

    Jeffrey L. Shurtliff LoanSafe Member

    I was current at the time of my request. My lender was Wells Fraudster. Make these three payments and then you are approved. As soon as you sign up for this bait and switch routine, you are doomed. You better plan your exit stragedy also.
  7. roseabella

    roseabella LoanSafe Member

    I received a loan mod from CitiMortgage and was current, even though I had been told that I needed to be delinquent for a trial mod. I kept contacting them until I found a rep who took my info (even though current) and qualified me for a trial mod. This was in 2009 and I received my loan mod in July 2010. Maybe the need to be delinquent rule changed somewhere along the line. However, your trial payments in effect make you delinquent because you are paying less than the mortgage amount. But after I got my permanent mod, thanks to advice from forum members, i wrote to Citi and asked that the delinquency be removed from my credit report and they promptly complied. So all worked out well - but it took hard work, persistence, lots of research, this forum and a couple of knowledgeable reps who gave me the courage to plow through this mad pursuit.
  8. Cat Damiano

    Cat Damiano Mortgage Wars


    Thank you for coming back and sharing your experience. Congratulations on your modification.
  9. dianne

    dianne Senior Member

    I don't think it would be hard to find a hardship. Your gas bill has certainly gone up. How much does it cost to get to work each day?Hasn't your electric bill gone up? Medical insurance? If you want to keep your home, then you need to persist and fight. Do not PAY anyone for help. You can do this yourself, with help from NACA, or other non-profit home save programs. If the bank says they lost your documents, well....that is just a game they play. File complaints, everywhere. You can do most of these on-line and you can do these yourself.
  10. facha

    facha LoanSafe Member

    We were current when we applied for HAMP in '09 with Citi (not one time did anybody mention that we had to be late), made our trial payments Aug., Sep., Oct., than could not get an answer on the status. We stopped apuying the loan in April '10 and received our perm papers in June. Been current ever since.
  11. Hallvalla

    Hallvalla LoanSafe Member

    lisasxr - any other details? Which bank?
  12. Hallvalla

    Hallvalla LoanSafe Member

    What if you over-pay your trial to your current loan amount? Has anybody tried this?
  13. Hallvalla

    Hallvalla LoanSafe Member

    I'll be in the same situation soon, unfortunately.

    I'll be trying to get a FHA-HAMP loan mod thru BofA. Looks like we have until October before our savings runs out. I think we qualify for all of the criteria; over 31% (way over), hardship = wife losing high paying job, and a ticking timebomb in our savings account = immenent default. Our house is underwater approx 560,000 with 580,000 owed.

    I'm just trying to figure out the best time to approach them - probably September since we'll be short in November at this pace. Also trying to figure out the back-end debt ratio. My wife has taken on some freelance, so I can probably make the numbers work out pretty well. It's now a race between if my wife can find another high paying job (we need it for mortgage + childcare) and applying for a loan mod.

    I noticed FHA-HAMP has different eligibility requirements between an Imminent Default and a Default: Imminent - Imminent Default Mortgage is NOT eligible for FHA's HOme Retention Loss Mitigation Options - Special Forbearance, Loan Mod and Partial Claim.

    Does this actually make it easier to get approved, less hoops to jump through?
  14. Cat Damiano

    Cat Damiano Mortgage Wars

  15. lisasxr

    lisasxr LoanSafe Member

    BAC is our servicer. It took 11 months of remaining current to get approval of the trial period. We did our best to set aside the difference between trial payment and normal payment during the trial period just in case. It took 7 trial payments before PERM docs came and another 4 payments until our account was actually updated and the PERM docs signed by BAC returned to us.

    I have lots of notes from phone calls, email correspondance etc. I treated this like a part time job (I think the first few months I spent 12-15 hrs a week on this) Towards the end, I was so drained I spent about 2 hrs per week.

    I had to request credit corrections every month during the trial period. Our credit rating now is the same as pre-HAMP.
  16. Hallvalla

    Hallvalla LoanSafe Member

    Thank you - guess it makes sense in a strange way. Lisa's tip about correcting the credit report (EVERY MONTH!) seems like the best route to save your credit score. Crazy world we live it - thanks to you too Lisa.
  17. OregonRain

    OregonRain LoanSafe Member

    We are current on payments, never ever late; we have the income; we have perfect credit. We put 20% down on our house in 2006; it's worth 20% less now than we paid for it(per an appraisal), so we are not underwater because of the improvements we've made but that means we've only got about 20K equity now with $155K into it. There must be millions of us who thought we went into this with our eyes open and the bottom fell out and today because we have jobs and a means to keep paying, the banks think we should just keep it up although every month the value keeps dropping. Although they're the ones selling the foreclosed houses around us for nothing and causing our values to drop like a rock. There is no incentive for us to keep paying unless they will lower our interest rate or lop off a chunk of the mortgage balance to equate to what we've lost. Banks raked in the bucks when I bought my house but now they don't want to share in the loss. The only way out is to walk that I can see and stop paying $3200 for a white elephant. Are the banks or the government considering any sort of help for those of us in this situation?
  18. lisasxr

    lisasxr LoanSafe Member

    You would most likely qualify for a HARP - refinance to a lower rate.

    Investments go south and people lose money - it's been a cycle for lots of years - usually felt more strongly by investors.
  19. OregonRain

    OregonRain LoanSafe Member

    Nope, balance is $452K.
  20. OregonRain

    OregonRain LoanSafe Member

    We're at 29% so don't qualify for that either. See what I mean...if you're a responsible sap we have to just keep paying. Right now we're stuck; if we sell and move there's three problems: 1. No market for selling our house right now-suburban prop on 1 acre, a move up house-no ones doing it; 2. No money for a down payment; 3. If we leave and just rent somewhere we're at a breakeven point for the rent payment plus the tax writeoff we'd lose without the mortgage interest. I've had perfect credit since I was 18 (55 now). I bought my first house at 28 being a single woman. My husband & I have bought and sold 8 houses all in the same area but taking baby steps to roll the equity into a little better house each time. We didn't just jump into something over our head but in 2006 if any of us could have known what would happen to our equity, no one would have invested their hard earned money in real estate. The banking industry created our losses by giving unqualified people mortgages and then when they couldn't pay, selling those houses for rock bottom prices. We legitimately qualified for our loan with income; jobs and 20% down payment. Now our dreams are ruined by those who didn't have any skin in the game. So what if you put -0- down or even 3 or 5%. They lost nothing. My husband and I have been thinking of different scenerios in walking. We're down $155K, so your idea of finding a great place like ours that someone else is losing may be something to look at. Although I have no emotions involved in walking, business is business, I have some emotions to get over buying someone elses lost dream. But find the right place and I can get over it!!! One problem with that is that we don't have the down payments that banks are now requiring (now they get morals!). Perhaps a private real estate contract...hmmmm Any input?

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