Modification to extend maturity date

dksnj

LoanSafe Member
The maturity date on my loan is Feb 2021. There will be a balance due of ~$18K. I have been in contact with my mortgage company for the past six months inquiring about extending the term of the loan. I was initially told back in June to submit the online hardship form. I was denied because my loan was current and I was experiencing a financial hardship at that time. I followed up in early November and spoke to an account manager who was confident the maturity date would be extended out 5 years. He told me to resubmit in December (closer to maturity date), which I did a couple of weeks ago. Today in the mail, I received a copy of a BPO they did. I'm curious what this means? Is this a normal step in the loan modification/underwriting process?

If the modification is denied, any other options other than refinancing? I feel like I am cutting it close. Thank you in advance for any advice!
 

isisis

LoanSafe Member
Ok, I'm a little lost here with the reference to your maturity date. In my state maturity date means the date of your last payment. So I'm not sure what you're talking about.

But I do understand the concern you feel about a modification being denied. An option you would have in that event is to reapply or to contest the denial. If they doesn't work and the refi doesn't work then you can contest their right to foreclose.
 

dksnj

LoanSafe Member
Ok, I'm a little lost here with the reference to your maturity date. In my state maturity date means the date of your last payment. So I'm not sure what you're talking about.

But I do understand the concern you feel about a modification being denied. An option you would have in that event is to reapply or to contest the denial. If they doesn't work and the refi doesn't work then you can contest their right to foreclose.
Yes, February 2021 is when my loan matures and my last payment is due. There will be a balance of approximately $18K, which is why i submitted paperwork to request my loan be extended so I can continue making monthly payments to pay off the $18K. I am wondering if the lender doing a bpo is a normal step in the loan modification process. The bpo showed market value 'as is' at $259,000.
 

Jzone

LoanSafe Member
Yes, February 2021 is when my loan matures and my last payment is due. There will be a balance of approximately $18K, which is why i submitted paperwork to request my loan be extended so I can continue making monthly payments to pay off the $18K. I am wondering if the lender doing a bpo is a normal step in the loan modification process. The bpo showed market value 'as is' at $259,000.
So this must be a mortgage loan with a balloon payment at the end? This just could be the normal process with your lender, but now you are just 60 days away from that payment. If this doesnt work out with your current lender in the next week, I would look to refinance with another lender. If you have equity, it should not be a problem.
 

dksnj

LoanSafe Member
Did you have to do all the financials and whatnot?
I had to fill out their hardship request form, which included itemizing my monthly expenses and income. I did not have to provide any documentation (payslips/bank statements/etc).
 

OneHugeMess

LoanSafe Member
To the OP, it would make a lot of sense to simply refinance this loan. You should be able to get a HELOC or Home Equity Loan from a National Bank like PNC Bank, or Bank of America with great ease. You have a solid income, the house is at an incredibly low Loan To Value -- and I'm sure your credit is fine.

With today's rates -- you could get a HELOC in the low 3's, and most banks will pay your closing costs. If you have any other credit card debt, you can roll that in as well. I wouldn't continue paying your existing loan at 8.75%. There's no reason to. I, do, understand that you probably had trouble finding a lender willing to write a loan for such a low balance, but, you can definitely get a Home Equity Loan while paying off the first in this situation.

I would look into it -- if I were you. And I'm sorry I missed your original post back in December. I wish I would have gotten to you than.
 

dksnj

LoanSafe Member
To the OP, it would make a lot of sense to simply refinance this loan. You should be able to get a HELOC or Home Equity Loan from a National Bank like PNC Bank, or Bank of America with great ease. You have a solid income, the house is at an incredibly low Loan To Value -- and I'm sure your credit is fine.

With today's rates -- you could get a HELOC in the low 3's, and most banks will pay your closing costs. If you have any other credit card debt, you can roll that in as well. I wouldn't continue paying your existing loan at 8.75%. There's no reason to. I, do, understand that you probably had trouble finding a lender willing to write a loan for such a low balance, but, you can definitely get a Home Equity Loan while paying off the first in this situation.

I would look into it -- if I were you. And I'm sorry I missed your original post back in December. I wish I would have gotten to you than.
Hi, sorry for not responding, I missed this post. Unfortunately, my mother passed on March 6 of this year. Once probate is settled in next few months, I'm paying my mortgage off.

Another question, I just made the 6th and final trial loan modification payment, however none have been reported to the CRAs. Is this normal not to report during a trial period?
 

dksnj

LoanSafe Member
Reviving this because something odd just happened. As mentioned above, none of my trial payments from 3/21 - 7/21 were reported to CRAs. Always coded as No Data. I just paid off my mortgage last month. Today I receive a credit notification that I have a recent late payment. I pull my Experian and is shows:
3/21: 30 days late
4/21: 60 days late
5/21: 30 days late
6/21: 60 days late
7/21: 30 days late

I can't pull my online mortgage statements due to the fact that my loan is paid off and I have limited account access. However, because these were trial payments, I was told to call them in. Fortunately, I kept detailed notes on the day/time I called, who I spoke with and the date & confirmation of payment. I matched up with my bank statements and everyone of these payments was made on time. I also have the email I sent in March 2022 asking why the trial payments weren't reported since they were on-time and they responded 'we reviewed your loan and no corrections will be made at this time".

My credit score did drop 24 points after loan was paid off but I assumed it was due to my updated length of credit history since this was my longest tradeline.

I guess I'll be on the phone first thing tomorrow morning!
 

Survivor_IN

LoanSafe Member
I think I know what happened.

They paid your loan according to the original payment due and your (lower) modified payment was suspended until it was enough to make a full payment. This is how trial period plans work. Every other month they apply a full payment, even though you ARE paying monthly as agreed.

You can request they (credit bureau) update this reporting. You did in fact make monthly payments as agreed according to the (trial) modification. Unfortunately this does little for your credit report until the modification takes effect. It's industry standard to do it this way. I don't know about six month trials now as a course of conduct or not. HAMPs were supposed to be three months and they (servicer/lender) took over 12 months to send a final. The math definitely works in their favor the longer the trial goes.

Now if this modification was actually an extension without any reduction in payment, then they did wrong by misapplying as every month was paid in full. In this case, you have receipts and can dispute the credit account reporting.

I'm glad you got to pay it off.
 

dksnj

LoanSafe Member
Thanks, they did reduce the payment by $100/month, even though I had no problem making the full payment. I did end up disputing with all 3 credit bureaus and they reversed it back to 'data unavailable'. This was towards the end of November, but my scores haven't gone up. Hoping they will after the monthly update.
 
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