Loan Modification with PHH Mortgage

lmg9512

LoanSafe Member
Mar 12, 2020
14
3
3
Hi All...

Thank you kindly for any help you can provide. A little background here. We fell behind on our mortgage last year due to a large medical expense. (Surgery deductible for our son) I was always careful never to fall 3 months late as I was told that is when the nastiness happens. I continued to rack up late fees so I asked them for a loan mod. I thought that is what they gave me. But unfortunately it was a forbearance plan which is only temporary. I didn't know this at the time.

So the forbearance plan required me to make half our payment $895.47 for 6 months. To be honest I didn't want to do that because at the end of the 6 months I would owe even more. So I paid that payment every 2 weeks. My intentions were to catch up. After 6 payments I was kicked from the FP because it was set up to take 6 payments not 6 months. So now I am right back where we started at 2 months behind.

My question is how hard will it to get a loan mod? I don't want to go through months of back and forth paperwork only to be denied. Our financial situation has not changed since we were given the FP. What I really wish for is them to push the 2 months we owe to the end and have us start fresh. But that is something they don't seem to do. I have asked several times only to be ignored.

Anyone have any advice for us? This situation is causing great stress. Thank you very much.
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
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Southern California
www.loansafe.org
Hello,

Please remember they are debt collectors and are there to collect the debt regardless of your personal situation, they simply do not care and will do what is best for them, every time. With that said, they have probably identified via their software programs and analysis that you have the ability to pay and this assessment does not worry for you or take into account that you are struggling and may lose your home.

When you paid those payments, you showed the system you can pay. Also, they are trained to ignore requests and not give you help when you are not in severe distress or several months behind on your mortgage.

With that said, you have to just keep asking and if it gets too much of a burden, you might want to consider strategically defaulting on your payments to invoke them to give you the help you need.
 

lmg9512

LoanSafe Member
Mar 12, 2020
14
3
3
Thank you for your reply. I will just keep asking I guess. They did appoint a case manager finally but only after I left a nasty review on the consumer affairs website. It was then they finally decided to start trying to assist me. I really don't want to default as my house has 200k in equity. I don't think there will be any incentive to work with me. I am so afraid of them taking it. Over the last 2 weeks I have had strangers texting and calling me to buy my house in cash. It's scaring us. I have no idea how they even know we are late on our payments. Makes me think someone from PHH/New Rez is working with someone outside or something.
 
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Jeffrey L. Shurtliff

LoanSafe Member
Dec 4, 2010
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If you have people contacting you for short sale or sale of your home your home is in the foreclosure stage. What state are you in?
 

lmg9512

LoanSafe Member
Mar 12, 2020
14
3
3
We are in California. It was never in foreclosure. Several of my neighbors got the same call. It is investors begging to buy up properties in cash since there are very few homes on the market. One guy in particular has been calling everyone in my neighborhood offering cash. Calling people not even behind on payments. We have nearly 350k equity in our home. Probably gone now due to Covid. So it makes sense but we did request him not to call and that we will not be selling.

We have only ever been 60 days late. To my knowledge foreclosure doesn't even start until 90 days late.

If you have people contacting you for short sale or sale of your home your home is in the foreclosure stage. What state are you in?
 

Jeffrey L. Shurtliff

LoanSafe Member
Dec 4, 2010
3,823
139
63
You are correct but you are late. There is a list investors get and they will try to buy the property because it is distressed . However foreclosure does not just consist of a sale or notice of sale. The bank believes you will default and is ready to move. They have probably already sent an agent to take pictures to verify occupancy. I would put a no trespass sign in the window.
 

lmg9512

LoanSafe Member
Mar 12, 2020
14
3
3
I don't think this will be necessary. We are working on getting a forbearance plan. I have a case worker and all the paperwork is in place. She said she would have something drawn up next week. Until then I will make sure never to go more than 60 days past due. Right now we are only 38 days. We paid Feb. And just owe March and now April. What I really hope for is for them to push the 2 months we are behind to the end of the loan. We fell behind because of an unexpected medical expense last year. We had to pay our deductible.