Modification taking forever

[upstream]

I applied for the MHA Plan with BOA in December of 2010. I was accepted into the trial payment part of the program. I made all three trial payments on time. Well, it's now July and I am STILL making trial payments per BOA's instructions. They tell me they are backlogged and that I may not hear back from them for several more months. The trial payments are significantly lower than my P&I payment. If the trial payments become by actual new loan payment I could keep the house.

Here are my questions: is this typical of how long it takes to get approved or denied? It's been seven months so far. Once BOA approves your trial payments does it stand to reason that you have a good chance of being approved?

Right now things are very unstable. I call BOA every week as to an update and they tell me the same thing.....wait.

[Pandora]

Did you get something in writing before making those trial payments, i.e., the actual trial documents that you had to turn back in? That would be my first concern as many are told "just make 3 trial payments and we'll get the paperwork out to you" - and it NEVER happens (paperwork). Then you'll get the runaround later on that you were never "officially" under the trial because you didnt have a notarized signed trial document to the bank.

Modifications can take anywhere from 8-18+ months if doing HAMP - it seems those that started last year when it first started to summer time, got approved faster than they are now. It does take quite a while.

As far as if you get approval for a perm. modification and the payment staying the same as the trial - its not likely, but it can be close. It all depends on how much you owe to what they need to get you to all-in with all areas applied (waterfall rate, extension of terms, and balloon/forebearance). If they cant get it to reasonable amounts, its not do-able for the bank if your income wont support the payments. However - please know that if they manage to get you into a perm. mod - the first 5 years the rate is the same, this is true - but it does adjust up every year thereafter until it locks in at the specified year. Even within the first 5 years your payment can go up based upon taxes for your property as escrow is required. Also if you have any PMI, that is in addition to the 31% guideline and is outside of the PITI and HOA fees that can be rolled into the perm. payment amount. If you cannot afford the house past the first 5 years when the rate adjusts, then you need to seriously consider if you can really afford to stay.

[nervous1]

I applied on June 2010 - foolishly thought it would actually take the 15-45 days processing that BOA promised.

I've given up hope on loan modification and decided to quit paying the mortgage. I wish I had quit paying months ago. Could have saved several thousands of dollars.

The loan mod is "officially" still in process.

From what I've read, you have to be careful with these trial payments because some ppl have said that they're not really being applied as mortgage payments?? Is this true?

[SMinGA]

My limited understanding - since I didn't do trial payments is very limited indeed - is they hold them in a pending account. Can't apply them as partial payments, but once the mod is done they straighten it all out.

In my situation (inhouse BofA mod, no trial payments) I had to send in certified funds = 1 new payment w/ my paperwork by June 1st & start making the new payment as of July 1st. The payment that I sent in w/ my paperwork didn't post anywhere until June 9th (they received it by FedEx on May 28th) because I kept calling. It did not lower the balance or get applied to interest right then. (Was supposed to be $129.50 in fees, the rest to interest.) When I first made the July 1 payment, it didn't show anywhere. I called, was told it was in a holding account while they finalized the mod.

Around the middle of July they fixed everything. Moved both payments to the 'regular' account? Applied what was supposed to go to interest & fees from the certified funds, and did the escrow & principal & interest w/ the July 1 payment. To date there is still $15 unaccounted for on the July 1st payment. (My escrow amount changed from the initial mod paperwork.) I really have not had the energy to fight/fix that.

Now though all is well. When I made the August payment it posted right away - as it used before all this mess started - to escrow, principal, interest.

[Flowers]

upstream - I did a modification with Chase. It took 7 months. This was last year - May thru December. Singed the paperwork first few days into January and then the payments bagan March.

You are smart to keep calling each week.
Make sure they have all the paperwork each week for what they are working on.

[upstream]

Did you get something in writing before making those trial payments, i.e., the actual trial documents that you had to turn back in? That would be my first concern as many are told "just make 3 trial payments and we'll get the paperwork out to you" - and it NEVER happens (paperwork). Then you'll get the runaround later on that you were never "officially" under the trial because you didnt have a notarized signed trial document to the bank.

Modifications can take anywhere from 8-18+ months if doing HAMP - it seems those that started last year when it first started to summer time, got approved faster than they are now. It does take quite a while.

As far as if you get approval for a perm. modification and the payment staying the same as the trial - its not likely, but it can be close. It all depends on how much you owe to what they need to get you to all-in with all areas applied (waterfall rate, extension of terms, and balloon/forebearance). If they cant get it to reasonable amounts, its not do-able for the bank if your income wont support the payments. However - please know that if they manage to get you into a perm. mod - the first 5 years the rate is the same, this is true - but it does adjust up every year thereafter until it locks in at the specified year. Even within the first 5 years your payment can go up based upon taxes for your property as escrow is required. Also if you have any PMI, that is in addition to the 31% guideline and is outside of the PITI and HOA fees that can be rolled into the perm. payment amount. If you cannot afford the house past the first 5 years when the rate adjusts, then you need to seriously consider if you can really afford to stay.

Yes, this an official trial payment program. I have all the paperwork from B.O.A. Thanks for the other information.

[midnight]

I finally got approved with Wells Fargo for an in-house loan mod. Denied for HAMP once hubby got a job for almost same salary as previous job. However, we made trial payments for almost a year, and are about 12 months behind becuuse of them. Mod offer was for practically the same payment and interest which was a disappointing. Still, they are rolling past due and extending it, so we can start over and get on the road to a better credit rating then maybe in a couple years we can refinance. This has been a 14 month process, never thought it would end.