Special Forbearance the same as Trial Period for Credit Reporting?

erm01930

LoanSafe Member
Mar 5, 2009
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I just checked my credit reports to see the Citimortgage has been reporting me as "past due" since March 2009. That is when I entered into a 3 month Special Forbearance agreement with Citimortgage. At that point I had never been late with a mortgage payment but was told it was the ONLY way I could be considered for a modification. I started my "official" Modification Trial plan in August. My loan was finally modified in January 2010. I was never late with a payment during the entire process (even accidently paid extra one month during the transition between programs).

I know the Fannie Mae servicing guide states that "if a borrower is current prior to entering the trial period, services are required to report to the credit bureaus that the borrower is current but on a modified payment...". Does anyone know if making payments under a Special Forbearance agreement should also be considered as being current? When I initially started the Special Forbearance, the woman I spoke with ASSURED me it would not affect my credit scores. Unfortunately, I don't have anything in writing to reflect that.

I tried disputing the errors with the credit bureaus but they did not remove the negative reporting. I have just sent an email to Citimortgage asking them to correct the errors. Has anyone else had to argue with Citimortgage over Special Forbearance credit reportings errors? Any advice would be much appreciated.

Thanks!
Erin
 

Citified

LoanSafe Member
Nov 19, 2009
102
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16
I recently sent an email to Citimortgage about my credit score and also referenced the servicing guide as well as the HAMP guidelines, and am waiting to hear a response or see a correction on my credit report.
 

snowbie

LoanSafe Member
Nov 12, 2009
25
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0
Los Angeles
I am with Fannie Mae but the same thing happened to me. I am livid. I was told the same thing. I went on a special forbearance while they were working on qualifying me for the HAMP trial period. I made three partial payments and was told I was now qualified for the HAMP trial plan. I ran my credit last week and they have reported me 90+ days late because I was only making partial payments under the forbearance plan

So, since I started the trial mod they didn't consider me current. I had never had a late payment of any kind in my life and was also current on my mortgage before starting the forbearance.

This is very sick and unethical. Why would the people who were not late be penalized more than others that were?

And, I contacted the credit agencies and they came back with the response it is correct according to the lender.

And of course, now my credit fico scores have dropped from 788, 780 and 760 to below 640.

Did you get any feedback or numbers on whom to call?
 

lrl1010

LoanSafe Member
Apr 21, 2009
28
0
1
Same situation here. Was in the forebearance from June through August (never late before), then the HAMP until December when I was permanently modified. Citi marked me 90 days late for Sept, Oct and Nov. I disputed this twice with Citi, and both times received letters stating that they cannot change the reporting to the credit agencies. If anyone has success with this, please post ASAP. I am livid over this.
 

snowbie

LoanSafe Member
Nov 12, 2009
25
0
0
Los Angeles
So you were marked late during the actual HAMP trial mod not the forbearance. There are new guidelines that they are supposed to put in specific codes. Do the codes exist in your report?

I called several times to BofA customer service yesterday and finally got someone that understood and was sympathetic. The others as usual just read from scripts and cannot think outside the box to help you out.

She said she saw in my notes from my negotiator that put me on the special forbearance that my credit was supposed to be frozen during that time so the partial payments would only be seen by BofA on the inside. I asked if there was a credit department I could be transferred to and she said no, it is just a form that she fills out and submits. Now I have to wait 60 days to find out the decision and if it is corrected.

I would escalate yours and send letters/emails to upper management. And perhaps report to the FTC. That is my next step if this doesn't resolve the situation.


Same situation here. Was in the forebearance from June through August (never late before), then the HAMP until December when I was permanently modified. Citi marked me 90 days late for Sept, Oct and Nov. I disputed this twice with Citi, and both times received letters stating that they cannot change the reporting to the credit agencies. If anyone has success with this, please post ASAP. I am livid over this.