Obama 'home affordable program' and CH7

[gophermn]

Just an update. I am now in the trial period and it seems my payments during this trial have dropped $300/month. I have until October and then they will re-negotiate my interest and either keep my payments as they are now or perhaps lower them. Just don't know what you get until after the trial period.

I did ask if my loan is revived after the CH7 BK and they said no. The BK on the home is suppressed and nothing will be reported to the credit agencies.

[Flowers]

gophermn,
who is the lender? And what kind of time-line did they give you?

[gophermn]

Lender is Homecomings and timeline is 3 months trial period which they will contact me to go over new payments & interest. Thats about all I know right now.

[WC Nurse]

Anybody have any new news with their modification after the trial period? My mortgage is with Chase and we just made our first payment ($1860) of the 3 month trial period, which saves us over $700 a month!

Flowers, since you are with Chase also and have been on the trial for more than 5 months...did they finally approve a permanent modification? If so, what interest rate did they give you? My current interest rate is 6% fixed, but I need it dropped to 2 or 3% to be able to afford the payment. I'm crossing my fingers that they'll give us that. I don't want my mortgage extended to 40 years!

[Flowers]

Still no final paperwork.
I made payment number 6 for October 1.

The program is very vague. This is how it was explained to me most recently.
The first 3 months are trial payments, I suppose getting you into and part of the program.
Then you are on a "test-period", proving to the lender that you can make the payments. All of this going on while the paperwork is with the underwriter. Once that is done, it then goes on to a Senior Underwriter.

In my case the representative was not promising anything but thought Jan/Feb. timeframe would be in order.

[relief13035]

I am a Obama Making Home Affordable Program loan modification SUCCESS!

We were never late and were not required to be late. We did have to provide our discharge paperwork.

This is the process we went through with CitiMortgage:
1) TONS of paperwork - many of which we had to fax over the same document numerous times.

2) Then we were approved for the "trial payment period". We made our trial payments July, August & Sept.2009 (which were $364 less).

3) After I made the Sept. 1st payment, I called CitiMortgage and asked them what I am supposed to do next. They required me to fax over to them our most current paystubs.

4) Sept. 28th I received a UPS delivery of my new paperwork and my new terms. The paperwork spells out everything and even stated to skip my Oct. payment and to begin my new payments Nov. 1st. (Which I confirmed via telephone call) WooHooo

Years 1-5 @ 2% interest (so my payment went down another $263 from my trial pmt)
Year 6 @ 3% interest
Year 7 @ 4% interest
Years 8-17 @ 4.875% interest

So for the first 5 years my interest is at 2% which totals $627 less per month, which helps us tremendously. PLUS - the Making Home Affordable plan has what is called "Borrower's Incentive". This is included for everyone that is approved for this plan. If you make your monthly mortgage payments on time, you will accrue a monthly benefit up to $1000 per year toward your principal reduction for the first 5 years. My paperwork shows that I will see a payment of $83.33 going straight to my principal each month.

My loan was originally a 15-yr loan that had 12 years remaining. In order to meet the guidelines of Making Home Affordable you have to reach the 31%, so they had to stretch my loan back out to 17 years.

I can say that it was a frustrating process, but now that it is done we are thrilled!

[HHM]

Glad it worked for someone, most people are getting on the 3 month trial mod are going to be denied once they reach the 3rd month and will have wasted that 3 months worth of payments (which are used to pay the servicer to start foreclosure).

[gophermn]

Glad it worked for someone, most people are getting on the 3 month trial mod are going to be denied once they reach the 3rd month and will have wasted that 3 months worth of payments (which are used to pay the servicer to start foreclosure).

I dont understand this comment HHM? We have been on BKForum for some time so can you explain what you mean when you say "going to be denied once they reach the 3rd month and will have wasted that 3 months worth of payments"

Why would the lender use your 3 month trial period a stepping stone to begin the foreclosure process when the 3 month trial period is a requirement. Perhaps this is new to me but I have yet to hear the 3 month trial period being a backlash, hence, allowing the servicer to begin the foreclosure process.

[IBroke]

I dont understand this comment HHM? We have been on BKForum for some time so can you explain what you mean when you say "going to be denied once they reach the 3rd month and will have wasted that 3 months worth of payments"

Why would the lender use your 3 month trial period a stepping stone to begin the foreclosure process when the 3 month trial period is a requirement. Perhaps this is new to me but I have yet to hear the 3 month trial period being a backlash, hence, allowing the servicer to begin the foreclosure process.

HHM didn't like the plan from the beginning...

You know what? Even IF you're denied after 3 months, it's still not a "waste of money" since our trial payments are far below what a comparable property would cost us every month if we would have to pay rent. It's very strange that some people think once they give up their home they will be living for free...

[sammyt74dp]

I agree with HHM completly, thats exactly what they are doing. Thats why some banks are taking 4 and 5 trial payments. Program simply calls for 3. Banks are abusing this opportunity to benefit themselves

[Flowers]

sammyt, then who is monitoring the banks and how can I push them into final paperwork as you can imagine it is stressing me out. How do you know that this is what the banks are doing.

It is now almost mid-October. I may want to sell and get out in the early Spring. I need to know I am free and clear on this mortgage, meaning I know I own the home and I am in a legal modified mortgage so I can move on with my life.

This is what is keeping me up at night even after discharge in 3/2009.

[tkharvey]

Yeah, I hate to be the bearer of bad news but the modification process didn't work for us either. I agree with HHM. We did everything right, trial payments on time, required paperwork, had a legitimate hardship, etc. etc. and we were still denied a permanent modification. I know that this program is working for some, but unfortunately, not for enough of us. As our lender explained to me, it is still at the discretion of the "investors" that are holding your loan. They don't "have" to do anything (as my lender put it). When we were denied, they did say and I quote: "If you are able to send in three more trial payments at your original monthly loan amount, there is a program out that you MIGHT qualify for." NO THANK YOU VERY MUCH. That money would be better spend saving for a rental for when we have to move out.

I hope you are one of the "lucky ones". As a result of our mod being denied, we are surrendering our house in bk....

[tkharvey]

As a follow up to HHM post, when I received my last statement during my "trial period" it had a breakdown of where my monthly payment was going. The majority of my payment went toward "attorney costs and fees". Fees, I'm assuming, are associated with the foreclosure process. Again, I don't wish you all any bad luck. I hope it works out for you, just have a "Plan B" in case it doesn't get approved.

[sammyt74dp]

As a follow up to HHM post, when I received my last statement during my "trial period" it had a breakdown of where my monthly payment was going. The majority of my payment went toward "attorney costs and fees". Fees, I'm assuming, are associated with the foreclosure process. Again, I don't wish you all any bad luck. I hope it works out for you, just have a "Plan B" in case it doesn't get approved.

This pretty much sums it up. They blame it on the "Investor" not approving it most of the time. I'm on to their game. They are using the trial payments to cover Legal Fees and just want you out of there so they can cut their losses and move on. Some of the local smaller banks that carry their own portfolios might actually want to modify it and keep you in. But the big banks (Wells Fargo, Bof A, Countrywide, Chase, Gmac Etc, Etc) They are all doing the same thing. Legal fees cannot be written off, but your bad loan can be. It's very,very unfair. And puts people through unbelievable stree.

[Flowers]

what happened to the rationale that 'the bank does not want to be stuck with your house'.