Are you making more than 3 trail payments?

WTF2010

LoanSafe Member
Mar 27, 2010
209
1
0
Home Affordable Modification Program Guidelines

Length of Trial Period: Found this on PAGE 9
The Trial Period will last 90 days (three payments at modified terms) or longer if necessary to comply with investor contractual obligations.

I was just reading through the government program guidelines for the 100th time. Look what I found. Notice the last sentence says "Or longer if necessary to comply with investor contractual obligations." BOA seems to be exploiting this loophole to their advantage.
flip side, if you stop making payments they can also say you broke the contract and kick you off the program because it states it could take longer due to your investor. IMHO!
 

OWhatAThrill

LoanSafe Member
Apr 17, 2010
31
0
6
I just made my 3rd trial payment and plan to make my regular payment from here on out because all I am doing while making these "trial" payment is to get further and further behind. I am one where they are asking that I provide 9 months of unemployment benefits documentation and I cannot do this so I figure I will not be bend over any longer for them while they continue with the loan modification string-along.
 

pandacb

LoanSafe Member
Nov 15, 2009
273
4
0
oregon
Whatever they presented to you, that you signed, is your contractual agreement. For no apparent good reason, we do not all have the same documents.

Ours is called "Home Affordable Modification Trial Period Plan." It calls for three trial payments and goes so far as to say ..."If prior to the Modification Effective Date, (i) the Servicer does not provide me a fully executed copy of this Plan and the Modification Agreement...the Loan Documents will not be modified and this Plan will terminate." In a separate section, the "Modification Effective Date" is defined as "the first day of the month following the month in which the last Trial Period Payment is due."

Very clearly, there is no allowance for fourth, fifth, etc. trial payments in our signed agreement. Even so, BofA is now saying they want a fourth payment from us. If we pay it, we are voluntarily ammending the document we signed.
 

WTF2010

LoanSafe Member
Mar 27, 2010
209
1
0
Coolfriend 786, congradulations on your mod. after nine months. Would love to hear a bit about your situation and how you ended up getting approved.
 

Citified

LoanSafe Member
Nov 19, 2009
102
0
16
I think 3 payments (or 3 months) is what the plan was for the servicer's to be done with your modification. That was the ideal timeframe, and those were form letters and contracts the government program put out for HAMP, however we all know that the servicer's are understaffed and underqualified to be able to complete a modification in those 3 months. I paid 4 trial payments before I was modified. I would've still continued to pay my trial payments until I was permanently modified just because I wouldn't want to confuse the situation for them more.

Thankfully, I was completed, but it was not after many, many phone calls and emails.
 

Garry

LoanSafe Member
Aug 7, 2009
3,973
24
38
Home Affordable Modification Program Guidelines

Length of Trial Period: Found this on PAGE 9
The Trial Period will last 90 days (three payments at modified terms) or longer if necessary to comply with investor contractual obligations.

I was just reading through the government program guidelines for the 100th time. Look what I found. Notice the last sentence says "Or longer if necessary to comply with investor contractual obligations." BOA seems to be exploiting this loophole to their advantage.
flip side, if you stop making payments they can also say you broke the contract and kick you off the program because it states it could take longer due to your investor. IMHO!
Very informative post 2010, thanks for posting.
 

pandacb

LoanSafe Member
Nov 15, 2009
273
4
0
oregon
I'd like to hear your opinions about our situation...do you think the guidelines supercede the written agreement we were sent to sign for beginning trial payments? It clearly says no more than three (see my previous post) or the signed agreement is cancelled.
 

azpro

LoanSafe Member
Mar 8, 2010
16
0
0
3 trial payment was their offer but we have already made 7th trial payments on our 2nd loan with balance of $80,000. I guess BofA is waiting for our 1st loan to be modified before.
 

bnrbnsn

LoanSafe Member
Dec 16, 2009
198
1
0
My Fed exed trail plan is called,

Home Affordable Modification Trail Period Plan.

May 1st will be my 4th payment as per signed agreement. Definitevly states 4 payments needed to be made before maded permanenet.
 

WTF2010

LoanSafe Member
Mar 27, 2010
209
1
0
Well just had dinner, had taco salad it was good, yum yum. Husband and I starting talking about some of these posts. We think of BOA like a freight train. You have two choices, you can stand in front of the train or you can get on for the ride. Like Yoda once said, make your choices wisely you must...lol
 

johngor

LoanSafe Member
Nov 12, 2009
367
3
0
Dearborn MI
Mine stated 3, and I've made many more on top of that, but I'm still in my home and that's all I was ever asking for.:)
Garry I grumble about my trial payment plan ect frequently however , I like your point of view and making me realy sit down and think about this.
My trial payment would reflect a 3% intrest rate right now saving me over a 1/3 of my orginal payment I would almost say 5/8 to be exact. I still have my house, with a lower payment for now If I get screwed for a permanent modification I will fight but probaly walk away from this mess. But if that option comes its the bank that will choak on a 100k loss.
 

pandacb

LoanSafe Member
Nov 15, 2009
273
4
0
oregon
Garry, our situation has nothing to do with being hard-headed and if you paid any attention to my post series, you would know that.

Bank of America reported us late when we were not. As a direct result, a credit card that we owe alot of money to "called" or accellerated the debt, requiring that we pay the whole amount immediately (some 20k that was used to keep us current on our mortgage. That credit card is acting in a manner nobody has ever heard of...accellerating on a current, never late account. As a result of that action, we have to file chapter 7 bankruptcy.

Our attorney, and many of the folks here, confirm that we will lose our mod in a Chapter 7 - BofA reps say so, too. But, we have completed the trial period and could reaffirm a finalized modification if we could get BofA to move toward completion as their contract with us states that they will do.

Sometimes you really make me mad with your inconsiderate statements.
p.
 

OWhatAThrill

LoanSafe Member
Apr 17, 2010
31
0
6
The way I see it...and I freely admit, I just got into reading all these threads just last week, but the longer you continue to make these "trial" payments, the further behind you are getting in your mortgage. If you are lucky enough to get approved for a modification, that's awesome and you will be fine, but in my case, if I continue to make this trial payment, which is $202 less than my original house payment, each month I am getting $202 dollars further behind and if I don't get approved for a modification, then I'm probably screwed.

If I had to made up the $606 shortfall from three trial payments, that would be doable, but if i waited 9 months and finally got turned down after making 9 "trial" payments, I am THEN $1800 behind in my mortgage that I could not catch myself up.

Is there anything in the paperwork that says what happens to the shortfall of these trial payments if you are not approved?
 

OWhatAThrill

LoanSafe Member
Apr 17, 2010
31
0
6
Garry, our situation has nothing to do with being hard-headed and if you paid any attention to my post series, you would know that.

Bank of America reported us late when we were not.
It's my understanding when you are making trial payments, it will show up on the credit bureau as late because you are, in fact, not making you FULL mortgage payment. So you're saying you aren't late but you've been making trial payments that were less than your original loan payments? How is this BoA's fault?
 

johngor

LoanSafe Member
Nov 12, 2009
367
3
0
Dearborn MI
Garry, our situation has nothing to do with being hard-headed and if you paid any attention to my post series, you would know that.

Bank of America reported us late when we were not. As a direct result, a credit card that we owe alot of money to "called" or accellerated the debt, requiring that we pay the whole amount immediately (some 20k that was used to keep us current on our mortgage. That credit card is acting in a manner nobody has ever heard of...accellerating on a current, never late account. As a result of that action, we have to file chapter 7 bankruptcy.

Our attorney, and many of the folks here, confirm that we will lose our mod in a Chapter 7 - BofA reps say so, too. But, we have completed the trial period and could reaffirm a finalized modification if we could get BofA to move toward completion as their contract with us states that they will do.

Sometimes you really make me mad with your inconsiderate statements.
p.
pandcab-
ouch! your credit card is demanding 20k right now. I know we where current on our mortgage but now we have seen our scores drop from the 700's to low 600's even transunion has me down at a 589. I would of been nice if they would of been up front in honest with us on how they would ruin our credit. The reps and on how they have it documented in writing dose not speak to major delequency status, they say it will be reported at "current but on a modified payment". Then when a person challenge there credit reporting practices you get told though shit. In the meantime my credit cards all have rebuttled with slashing credit limits and slamming me with the universal default rate. I have one card with Chase with a 15k balance with a 30k limit, with a fixed rate until the balance is pd in full of 4.99%, min due was affordable at 2% $300. Now thanks to Bank of America reporting me deliquent Chase took my limit to 15k, raised my intrest rate to 29.99% AND raising my min due 5% thats $750 a month. YES I have been working with Chase too, but they are just A-holes just like BoA. We are talking to an attny for a potential suit on BoA damanging our credit, my attny is holding out for the result of this permanent modification, but lately my attorney is lacking urgency!

The biggest result of this damaging credit has really caused friction between me and my wife, as my wife was admit about protecting her good credit. She took my word as I took BoA's word, when she found it was not a pretty sight. We have had some counseling and both seem to be on the same page right now:) In refrence to my attorney lacking we are now considering bankruptcy aswell as we have about 35k in personal loans and credit card debt. Before this we had excellent rates with our CC's and would be able to get out of this bind, but with now its not worth it. We are just ready to start over.

Sorry for the long post.
 

WTF2010

LoanSafe Member
Mar 27, 2010
209
1
0
OWHATATHRILL,
From my understanding all the late fee's and the difference between trail and regular mortgage payment will be due when turned down for the mod.! I see a lot of people that have been turned down for HAMP but was then offered a inhouse. In that case they would add all the arrearage to the back end of your loan.
 

OWhatAThrill

LoanSafe Member
Apr 17, 2010
31
0
6
OWHATATHRILL,
From my understanding all the late fee's and the difference between trail and regular mortgage payment will be due when turned down for the mod.! I see a lot of people that have been turned down for HAMP but was then offered a inhouse. In that case they would add all the arrearage to the back end of your loan.
But if also turned down for an in-house...one would find themselves much deeper in a whole and less likely to be able to crawl out of it if they don't qualify for any program, right? What a gamble...