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What happens after 2mp trial payments are done?

Discussion in 'Bank of America Mortgage Help' started by vml3615, May 16, 2011.

  1. vml3615

    vml3615 LoanSafe Member

    Hello All,

    I just finished my 3rd and final trail payment for 2mp in April. I have yet to hear anything from BofA and my account online reflects the same terms. Not sure if i should be calling them or just wait? So far this month i have not sent any payment. I have keept my first current.
  2. facha

    facha LoanSafe Member

    You should call BOA as soon as possible to make sure that your file is not falling through the cracks. Not sure if not making this month's payment will negatively effect the mod. They may ask you to make the May payment over the phone. Don't risk being dropped.
  3. Cat Damiano

    Cat Damiano Mortgage Wars

    Hi vml3615,



    You would need to keep up with the 2mp trial payments in accordance with the trial plan documents to keep in good standing as the duration of the trial plan can vary. As facha recommended, definately call BofA to make sure that they are on track with your permanent modification. Below are the guidelines to the 2mp program, I have highlighted some sections that may pertain to your situation.



    6.1 Duration of 2MP Trial Period
    The 2MP trial period must be three months in duration (or longer if necessary to comply with
    applicable contractual obligations). If the 2MP servicer does not service the first lien, the 2MP
    trial period may only begin after the HAMP modification becomes effective. In cases where the
    2MP servicer services both the first and second liens, at the servicer’s option in accordance with
    investor guidelines, the 2MP trial period may run concurrently or overlap in time with the HAMP
    trial period for the related first lien. The 2MP trial period for the second lien may be longer than
    three months if it overlaps with the HAMP trial period. If this occurs, the borrower must continue
    to make timely 2MP trial period payments throughout the 2MP trial period regardless of its length.
    Timely payment by the borrower of the first 2MP trial period payment is evidence of the
    borrower's acceptance of the terms of the 2MP trial period. If the 2MP trial period is not accepted
    by the last day of the month in which the first trial period payment is due, the 2MP servicer may​
    permanently withdraw the 2MP offer and will not be obligated to modify the second lien.


    6.2 2MP Trial Period Payments
    2MP trial period payment due dates may be any day of the month. However, the 2MP
    modification agreement must require that payments are due on the first day of each month. If the
    final 2MP trial period due date is not the first day of the month, then the 2MP servicer may, at its
    option, extend the trial period by one additional month. If the 2MP servicer elects this option, the
    borrower will not be required to make an additional trial period payment during the month in
    between the final trial period month and the month in which the modification becomes effective.
    A 2MP servicer must treat all borrowers the same in applying this flexibility by developing and
    applying a written policy.

    The borrower must make each trial period payment no later than 30 days from the date such trial
    period payment is due in order to receive a 2MP modification, though 2MP servicers may use
    business judgment in accepting late payments when there are mitigating circumstances and must
    document that decision in the servicing file. Although the borrower may make scheduled
    payments earlier than expected, the early payments do not affect the length of the trial period or
    accelerate the 2MP modification effective date.

    If the borrower does not pay the final trial period payment on or before the last due date of the
    trial period, then the 2MP servicer may, at its option, extend the trial period by one additional
    month. If the 2MP servicer elects this option, the borrower will not be required to make an
    additional trial period payment during the month in between the final trial period month and the
    month in which the modification becomes effective. A 2MP servicer must treat all borrowers the
    same in applying this flexibility by developing and applying a written policy by which the final trial
    period payment must be submitted before the servicer applies this option (cutoff date). The cutoff
    date must be after the due date for the final trial period payment.

    In addition, the 2MP servicer must inform the borrower in writing about (i) the delay of the
    modification effective date by one month and (ii) the effects of the interim month and the delay in
    the effective date of the modification, including, but not limited to, the delay in the effective date of
    the modified interest rate and the increase in the delinquent interest capitalized if the borrower
    does not make an additional trial period payment.

    If a 2MP servicer entered a borrower in a second lien trial period prior to executing the SPA and
    the corresponding first lien has been converted to a permanent modification, that trial period will
    satisfy the 2MP trial period requirements if the trial period is at least three months in duration and
    the second lien modification follows the modification steps set forth in Section 5.1. However, the
    2MP servicer must have executed the SPA prior to the effective date of a permanent 2MP​
    modification in order for the modification to be eligible for any 2MP incentives.
  4. one1luv629

    one1luv629 LoanSafe Member

    Hi Vml,

    Can you please tell me which servicer your 1st mortgage is with? And how long it took you to get the 2MP trial through BOA after you are fully modified on your first mortgage? Thanks!
  5. vml3615

    vml3615 LoanSafe Member

    UPDATE: I received the final ppwk to sign and return for the 2mp. My payment is going to be almost the same as my trial payment for the first 5 years at 1%. I did not call them after making my final trail payment, and i was mistaken, i did send in another payment after my last trail payment, about a week later i got the package. In total after my last trail payment it took about 30 days to get the final mod agreement to sign and return.

    It took about a month to receive the trail package for 2mp after i received the singed final 1st loan HAMP agreement back from BofA. My loan was from Freddie MAC with BofA.
  6. Cat Damiano

    Cat Damiano Mortgage Wars

    Hi vml3615,


    Thank you for the update and Congratulations on a successful completed final modification!
  7. megabyte70

    megabyte70 LoanSafe Member

    Hi Vml3615

    did you call and ask for a 2mp or did they offer a trial via mail?
    Did you miss any payments before the 2nd trial began?
    was your 1st hamp w/ BOA/freddie?
    do you know if the 1st is modified @ .31 of income how do they determine payment for 2nd?
  8. bionicle

    bionicle LoanSafe Member

    Hello Cat
    what if i don't sign a permanent 2mp doc.? do I still have chance to re-apply it?
    i decide to settle with my 2nd.



  9. Cat Damiano

    Cat Damiano Mortgage Wars

    bionicle,


    The trial payments do not need a signature to be accepted. Making the first payment is an acceptance of the plan, and if you do not accept the trial plan, then the lender will not be obligated to modify the second lien. So they may or may not offer to modify if you go back after not accepting the plan.

    According to the guidelines;

    Timely payment by the borrower of the first 2MP trial period payment is evidence of the
    borrower's acceptance of the terms of the 2MP trial period. If the 2MP trial period is not accepted
    by the last day of the month in which the first trial period payment is due, the 2MP servicer may
    permanently withdraw the 2MP offer and will not be obligated to modify the second lien.

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