I am new to this site and responding to threads, but I am taking a shot at this because I am in the position you all are talking about. I am educating myself on the Wells Fargo Trial Payment Plan & request for a loan mod that I received a few weeks ago. I meet the requirements for HAMP, Home Affordable Mod Plan. I also have never been late in paying my mortagage, and my husband and I are concerned about the clause in the paperwork talking about declaring us late or in default for three months while making the trial period payments. I went to the Freddie Mac site, http://www.freddiemac.com/sell/guide...df/bll0910.pdf and found the info below. Also, the details and questions regarding my situation follow the Freddie Mac info. I plan on contacting Wells today with concerns about the default reporting referred to in the paperwork during the trial period payments. It seems that I have been lumped into the default crowd when I have been using savings money to stay current and hope for a reasonable loan mod soon.
Credit Bureau reporting requirements
has been updated to reflect that Servicers must continue to report a "full-file" status report to the four major credit repositories based on the following:
For Borrowers that are current when they enter the Trial Period, the Servicer should report the Borrower current but on a modified payment if the Borrower makes timely Trial Period payments by the 30th day of each Trial Period month, as well as report the modification when completed
For Borrowers that are delinquent when they enter the Trial Period or who fail to make timely Trial Period payments by the 30th day of each Trial Period month, the Servicer should report in such a manner that accurately reflects the Borrower’s delinquency and workout status following usual and customary reporting standards, as well as report the modification when completed
More detailed information on these reporting standards will be published by the Consumer Data Industry Association.
This is my story: Financial hardship struck as I was laid off in July 09 and some investment income dried up earlier in '09, but my husband is still working. I am upside down estimating a 60% loan to value (LTV). I have a 10/20 loan, interest only for 10 yrs. & P&I for the balance of the loan term. When the loan adjusts in 7 years to the P&I payment, my husband and I will be hard pressed to pay the new amount that doesn't include tax & ins. I pay our taxes and insurance now--no escrow.
I contacted Wells in July and found out through a recording that the house loan was Freddie Mac, and called about three times before I reached someone to take my information by phone as I told the rep that I would not be able to continue making my regular payments for long. She asked for the household NET income and I believe that HAMP is based on the 31% of gross income?
I waited about 2-3 weeks to get the info packet & must have it back to WF by Oct. 1st. QUESTIONS:
Should I go with the Trial payments and just monitor my credit, or as one person suggested in this forum, make my regular
payments for the three months that Wells has proposed as the Trial period thus avoiding negative credit reporting? There is about $500 diff. between my int. only pymt. and the trial period payment which includes a newly established escrow acct. According to Wells, I made my Oct. 09 pymnt. on Sept. 15th with the regular payment, and they are telling me to skip Oct. 1 payment, pay $850 for Nov. 1 due to making my regular payment in Sept., then the full $1289 trial payment for Dec. 1. My husband is concerned about this process, and I am hoping for some advice and info to make sense of this crazy situation. Any comments from those who have made it through this maze? Also, what is involved with the financial counseling? Anyone experienced that? Thanks.