Credit Ruined by HAMP. Help!

treyy

LoanSafe Member
Nov 20, 2009
147
2
18
I was current on my mortgage and started this atrocious program in August 2009. I was under the impression from the guidelines on the fannie/freddie sites that they (Suntrust Bank) would not report me as delinquent while in the trial program. Fast forward a few months, I have made 5 trial payments now. Still no resolution, I have lost over 100 points on my credit score. I just pulled a credit report and found they have reported me delinquent for my FULL mortgage every month since the beginning of the trial. I am absolutely furious and don't know what to do. My credit card rates are being jacked up, the limits on my cards have been lowered. This is an absolute disaster.

When I signed the trial paperwork it did say that they would report my account delinquent during the trial, when I contacted Suntrust about this at the time they said they would not and the paperwork we received is standard paperwork that they send to everyone. I bought their BS story because I also looked at the guidelines for the program on the govt web sites and it said I would still be reported as current.

I'm really at a loss, had I known what I know now I would have never done this. Can anyone point me in the direction of what to do. There are other people in my shoes too.
 

Clearing

LoanSafe Member
Dec 25, 2009
33
1
0
I have been trying to understand what the HAMP guidelines are regarding credit reporting and this is what I have found so far.

The Trial Period Plan Cover Letter (found here) had this:

"<meta http-equiv="Content-Type" content="text/html; charset=utf-8"><meta name="ProgId" content="Word.Document"><meta name="Generator" content="Microsoft Word 11"><meta name="Originator" content="Microsoft Word 11"><link rel="File-List" href="file:///C:%5CDOCUME%7E1%5Crmarhic%5CLOCALS%7E1%5CTemp%5Cmsohtml1%5C01%5Cclip_filelist.xml"><!--[if gte mso 9]><xml> <o:OfficeDocumentSettings> <o:RelyOnVML/> <o:AllowPNG/> </o:OfficeDocumentSettings> </xml><![endif]--><!--[if gte mso 9]><xml> <w:WordDocument> <w:View>Normal</w:View> <w:Zoom>0</w:Zoom> <w:punctuationKerning/> <w:ValidateAgainstSchemas/> <w:SaveIfXMLInvalid>false</w:SaveIfXMLInvalid> <w:IgnoreMixedContent>false</w:IgnoreMixedContent> <w:AlwaysShowPlaceholderText>false</w:AlwaysShowPlaceholderText> <w:Compatibility> <w:BreakWrappedTables/> <w:SnapToGridInCell/> <w:WrapTextWithPunct/> <w:UseAsianBreakRules/> <w:DontGrowAutofit/> </w:Compatibility> </w:WordDocument> </xml><![endif]--><!--[if gte mso 9]><xml> <w:LatentStyles DefLockedState="false" LatentStyleCount="156"> </w:LatentStyles> </xml><![endif]--><style> <!-- /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:12.0pt; mso-bidi-font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman";} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} --> </style><!--[if gte mso 10]> <style> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} </style> <![endif]-->CREDIT REPORTING. During the trial period, we will report your loan as delinquent to the credit reporting agencies even if you make your trial period payments on time. However, after your loan is modified, we will only report the loan as delinquent if the modified payment is not received in a timely manner."

Now there is a new "streamlined" process with a new Trial Period Plan Notice (found here) which only states that "
<meta http-equiv="Content-Type" content="text/html; charset=utf-8"><meta name="ProgId" content="Word.Document"><meta name="Generator" content="Microsoft Word 11"><meta name="Originator" content="Microsoft Word 11"><link rel="File-List" href="file:///C:%5CDOCUME%7E1%5Crmarhic%5CLOCALS%7E1%5CTemp%5Cmsohtml1%5C01%5Cclip_filelist.xml"><!--[if gte mso 9]><xml> <w:WordDocument> <w:View>Normal</w:View> <w:Zoom>0</w:Zoom> <w:punctuationKerning/> <w:ValidateAgainstSchemas/> <w:SaveIfXMLInvalid>false</w:SaveIfXMLInvalid> <w:IgnoreMixedContent>false</w:IgnoreMixedContent> <w:AlwaysShowPlaceholderText>false</w:AlwaysShowPlaceholderText> <w:Compatibility> <w:BreakWrappedTables/> <w:SnapToGridInCell/> <w:WrapTextWithPunct/> <w:UseAsianBreakRules/> <w:DontGrowAutofit/> </w:Compatibility> <w:BrowserLevel>MicrosoftInternetExplorer4</w:BrowserLevel> </w:WordDocument> </xml><![endif]--><!--[if gte mso 9]><xml> <w:LatentStyles DefLockedState="false" LatentStyleCount="156"> </w:LatentStyles> </xml><![endif]--><style> <!-- /* Font Definitions */ @font-face {font-family:Calibri; panose-1:2 15 5 2 2 2 4 3 2 4; mso-font-charset:0; mso-generic-font-family:swiss; mso-font-pitch:variable; mso-font-signature:-1610611985 1073750139 0 0 159 0;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:""; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:12.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman";} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} --> </style><!--[if gte mso 10]> <style> /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} </style> <![endif]-->Your credit score may be affected by accepting a trial period plan or modification."

This change in verbiage is explained in the
Supplemental Documentation—Frequently Asked Questions Home Affordable Modification Program , Question Q60:

https://www.hmpadmin.com/portal/docs/hamp_servicer/hampfaqs.pdf"Q60 What should a servicer do if its servicing system will not report to credit bureaus based on the due date of the trial period payment as stated in the Trial Period Plan cover letter, but instead reports based on the contractual due date? If the servicer cannot follow the process, can it delete the specific language in the cover letter regarding credit reporting?
As outlined in Supplemental Directive 09-01, if a borrower is current prior to entering the trial period, servicers are required to report to the credit bureaus that the borrower is current but on a modified payment if the borrower makes timely trial period payments by the 30th day of each trial period. If the servicer’s servicing system will not allow them to report in this manner, servicers may edit the Trial Period Plan cover letter to accurately describe the servicer’s practice related to credit bureau reporting. Note: The new Trial Period Plan Notice does not contain detailed language related to credit bureau reporting practices."

If I am reading this correctly, servicers are required to report the borrower current, unless their system will not allow them to do so, in which case they can do whatever they want??
Question Q67 is more straightforward:

"Q67.How should borrower payments be reported to credit reporting agencies during the trial period?
Servicers should continue to report a “full file” status report to the four major credit reporting agencies while evaluating a borrower for program eligibility and during the trial period plan. If a borrower is current when they enter the trial period, the servicer should report the borrower current but on a modified payment if the borrower makes timely payments by the last business day of each trial period month at the modified amount during the trial period. If a borrower is delinquent when they enter the trial period, the servicer should continue to report in such a manner that accurately reflects the borrower’s delinquency and workout status following usual and customary reporting standards.
In both cases the servicer should report the modification when it becomes final."

So Suntrust should have reported you "current but on a modified payment". Sounds like Suntrust is not following the HAMP guidelines. If I were you I would first try to have this corrected with Suntrust. If you don't get result, I would contact the HOPE hotline and see what they can do. They even have an escalation process in place.
 
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timmywit

LoanSafe Member
Nov 23, 2009
1,263
7
0
Las Vegas
Ok your documents stated it was, then you got told diffrently. Well guess what the verbage from BoA was
if you are delinquent when you enter the trial period we will continue to report your loan as delinquent to the credit-reporting agencies during the trial period even if you make your trial peeriod payments on time, however after your loan is modified, we will only report the loan as deliquent if the modified payment is not received in a timely manner.

Well guess what 3 months into my trial payment I was reported 30, 60 days late. I called them up at first they where defensive but I think the rep dint know his head from his as$. So I got a sup.
This needs to be fixed according to the guideliness and if it dose not my attorney will be contacted and I will sue for greif and dispare. It was fixed that day- they even gave me a free credit monitoring code for the remainder of this period.
The OP stated the credit reporting rule right on the Dot.
 

treyy

LoanSafe Member
Nov 20, 2009
147
2
18
I just called suntrust, they said they will fix the issue and send letters to each of the credit bureaus. I really should have pulled the credit immediately following starting this trial to see what they were doing. I advise anyone else to do so 30 days after they start the trials. The damage has been done to me as far as my credit card limits being slashed and interest rates jacked up. Oh well, I guess the main thing is the score will be improved a bit once they get this delinquent stuff of there.
 

johngor

LoanSafe Member
Nov 12, 2009
367
3
0
Dearborn MI
you can get this fixed with your apr's as this was the case of your arp increase its part of the truth in lending act. unfortuneally your limits are not part of this
 

flscc

LoanSafe Member
Nov 18, 2009
10
1
0
treyy,

I am in the exact same position. Started the program the same time as you and just made my SIXTH trial payment - still no news.

My checking account comes with a credit monitoring service... needless to say, I received an alert when they first reported me delinquent. One of the employees at my local branch told me to dispute it with the three credit bureaus which I did. To my surprise, all three removed the negative marks. In the explantation for each, I just typed "part of President Obama's Making Home Affordable plan, have made all payments on time and am current."

Just a little FYI incase you want to get the issues fixed on your credit reports. Good luck, please keep me up to date with your progress with Suntrust..............
 

Garry

LoanSafe Member
Aug 7, 2009
3,978
24
38
They can shove my credit score up their ass, who really cares? I thought we needed help? Maybe not? Credit score more important? F*ck, it's just a number man.
 

flscc

LoanSafe Member
Nov 18, 2009
10
1
0
They can shove my credit score up their ass, who really cares? I thought we needed help? Maybe not? Credit score more important? F*ck, it's just a number man.
The coborrower on my mortgage lost their job. I entered the program current and have made all the trial payments on time, six total. Credit scores are important if you business relies on credit cards like myself. So even though it is just a number to you, it can be a lifeline for someone else.

Keep in mind, those out of work are also affected by a hit on their credit score as many employers run credit checks and a low score could mean a no-go for a dream job for someone.
 
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flscc

LoanSafe Member
Nov 18, 2009
10
1
0
You're not supposed to use personal credit for business, I'm sick of hearing about credit scores. We're supposed to be trying to save our homes, top priority, the credit score is irrelevant, secondary. So, how bad off are we? Not so bad?
Well, since it seems you are so offended that someone does not agree with you, I will fill you in on my PERSONAL situation. We went from a household of $80k year with a house payment of $1,950/mo to a $30k year household income with a house payment of $1,950/mo. This is why we applied for the Making Home Affordable Plan. Furthermore, if you were business savy and wanted to start a new business within the last couple years, you would know that business credit is impossible to get for NEW businesses. So, if you would like to continue this bickering like I am someone who is taking advantage of the program, think again. Sorry you are in your situation and ruined your credit. Others like me have focused on keeping our score high by doing what we can to stay current, depleating all of our savings to keep it that way, and then were blessed to have a program such as Making Home Affordable come along during these hard times to help us since the co-borrower on my loan lost their job in hopes of modifying our loan so we CAN KEEP our house.
 

Garry

LoanSafe Member
Aug 7, 2009
3,978
24
38
Well, good luck to you! Maybe if the house doesn't work out you can charge one on your card.
 

Clearing

LoanSafe Member
Dec 25, 2009
33
1
0
Many employers check the credit history of people applying for a job, especially if the position involves managing the company's money. So if you find yourself unemployed with bad credit trying to compete for jobs with other unemployed with good credit, guess who is gonna stay unemployed the longest?
 

Garry

LoanSafe Member
Aug 7, 2009
3,978
24
38
P.S. Now that I know your PERSONAL situation, I'll tell you how it's going to play out. First you deplete your savings, then you max the cards. When you get to that point, and you will, I'll tell you the rest of the story. You may think you're special, but you're just another statistic to me.
 

MyHAMP

LoanSafe Member
Oct 5, 2009
2,201
16
38
Florida
Others like me have focused on keeping our score high by doing what we can to stay current, depleating all of our savings to keep it that way, and then were blessed to have a program such as Making Home Affordable come along during these hard times to help us since the co-borrower on my loan lost their job in hopes of modifying our loan so we CAN KEEP our house.
The idea of keeping a spotless credit AND keeping your house/getting HAMP-approval often only exists in theory.

Many lenders wouldn't even consider you for a mod unless you are behind - just like many employers wouldn't consider you for a job based on a 3-digit score.

I - for myself - wouldn't consider working for a company who is picking their employees by a credit-score in the first place. An employer should know the economic situation as well. Most of us lost their job because the emloyer's business collapsed - not because the employee simply walked away. So who screwed up? And THEY are demanding a spotless credit-file? Well, not with me....:D
 

MyHAMP

LoanSafe Member
Oct 5, 2009
2,201
16
38
Florida
P.S. Now that I know your PERSONAL situation, I'll tell you how it's going to play out. First you deplete your savings, then you max the cards. When you get to that point, and you will, I'll tell you the rest of the story.
Oh yeah, Garry, I know what you mean. We followed that "carrot on a stick" far too long. And if you don't find a job based on "the score", start your own business. THAT'S the American way. My mother (61) started her own cleaning-business a year ago with $50 and she's 61. No credit-score needed!:)
 

Garry

LoanSafe Member
Aug 7, 2009
3,978
24
38
You know the end of the story well MyHamp, you saved your house! Better than a pocket full of plastic isn't it.:D With an asset like a house, plastic comes easy. ;) And you're right, to make money you need to be the man hiring.
 

anna17

LoanSafe Member
Nov 11, 2009
21
3
3
I have done contract work since I was laid off over a year ago, and all the contractor agencies I've worked through run a background check that includes info from credit reporting entities. I don't know whether any of them deny anyone employment because of bad credit (my credit is still good), but this type of background check seems to be pretty standard.

I think it is wrong and unfair...you can't fix your credit if you don't have a job, but if no one will hire you because of bad credit, whacha gonna do? However, I am not prepared at this time to protest that practice by refusing to work for these companies. If I had doggedly stuck to my guns on that, I probably would have been unemployed this past 16 months vs working all that time at decent jobs and keeping my family afloat. My ideals aren't so important that I would sacrifice my family's well-being for them.
 

anna17

LoanSafe Member
Nov 11, 2009
21
3
3
There's little good to be said about paying for anything with credit cards...I'll agree with you there. But here's something going on with me: my 5-year-old developed an unusual oral-dental infection (despite regular tooth-brushing, limited sweets, etc) and major decay. She can't eat without pain and sometimes cries during meals. We are getting all this fixed ASAP (this week). We have decent dental insurance, but even the "Cadillac" policies are pretty stingey on dental procedures, and we'll owe almost $2000 out-of-pocket. Guess what...we're whippin' out the ol' plastic. And we're glad to have that option.

It's not the first time I've used credit cards in this way. Sometimes there are things you need and you just don't have the cash on hand. I'm not talking cool stereo systems or high-techy toys, but medical/dental treatments not covered by insurance, car repairs so you can get to your job, etc. Of course, you need to put together a plan for how to pay these things off so you don't keep bumping up the balance, but credit cards are a reasonable emergency fund when you really really need it.
 

Garry

LoanSafe Member
Aug 7, 2009
3,978
24
38
I agree Anna, plastic can have it's good points. But if you watch people around you while you're out, you'll most likely see people charging everything, food, gas, stupid shit that they should be using cash for. On the credit check for a job thing, What are they really looking for? Stability, they want you to be well grounded, you know, like own a house.
 

auroraproblem

LoanSafe Member
Apr 23, 2009
355
3
0
I am sorry your credit score took a hit. Some of the hostility you received though could be towards the fact that your original post appeared more like you were worried about the credit score dropping 100 points than the perspective that you may save your home.

Please remember that you are not posting on an investor website here. You are posting among people, many of which, have yet to even be offered something permanent that will allow them to have a place to live. They can become very offended at the prospect that someone has indeed saved their home and then b*tched about the cost of getting there.

There are many of us here who were current going in, many who saw credit card interest rates spike and credit caps (myself for one). You are indeed not alone, nor alone in the prices paid to get the modification and be back on track.

But we should be perfectly clear here. You were in financial peril according to your post and to expect that your FICO score not represent help you received to get out is just incredible. Folks to enter into bankruptcy take a hit for the relief. I am not trying to compare this to bankruptcy; but you did ask for financial help and have received it. In the long run, you received that financial help at the expense financially of another (in this case the investor). Simply put, your FICO is going to represent that somewhere.

Be happy you have saved your home and try to fix one thing at a time. Wish the best for you and your family.
 

Esteban1901

LoanSafe Member
Apr 30, 2009
28
0
0
What I can tell you is I was six months delinquent when I pulled out my FICO score and it wasn't bad at all, it was 50 points lower than when I was current. Also, none of my credit cards but GE lower my credit limit and none of my CC increased the interest rate. Now I am 12 months behind, and the same for my CC, I have not checked my FICO lately. FICO score depends on different factors, not only the mortgage payment.