Has anyone received a PERMANENT modification following the 3 month trial?

[cb2cb]

It seems that some people are being denied a mod under the (Obama) HAM Program after they have paid the 3 trial payments.

 

Has anyone here got the final mod approval under the HAM program and is making permanent modified payments?

 

 

 

.

[Move4ward]

It hasn't even been 3 months since the program was announced on April 28th. It's too early. If the trial mod was started before April 28th, it would be their bank's own program and not a Making Homes Affordable modification.

 

Some of the guys on loansafe.org got trial mods from their banks, but it didn't follow the Making Homes Affordable guidelines. They were mods customized to the bank's own guidelines that included some similiar attributes to the offical mod that was released later.

 

It was a way of keeping the federal governments from pressuring the banks into using the federal guidelines, and therefore under the federal government's control and restrictions.

Edited July 18, 2009 by Move4ward

[cb2cb]

So I guess we will be hearing from those who got a permanent mod under the HAMP sometimes at the end of July or August.

 

 

.

Edited July 18, 2009 by cb2cb

[Move4ward]

End of August is likely.

 

If the servicer signed up and added the HAMP requirements within a few days from April 28 and began accepting applications in the early May, then the 1st trial mod payment would be June 1st.

 

The 3rd trial mod payment would be August 1st. The first payment for the permanent mod would be September 1st.

[rainbow_nerds]

I was in a different program with my mortgage company and couldn't make the full payment - so they just started the new Obama program and enrolled me in it. They said it would take two weeks to a month to get approved and then you make 3 payments so I am thinking November or December.

 

I am extremely curious as to what will happen then. I have not really been offered anything that long term I can work with. Is there any guideline that tells how much interest they can charge??

 

If I had a decent interest rate I could afford my payment - I am in the 31% gross payment bracket already and because of unemployment of family members and health issues (I spend about 15-20% of my net income on healthcare) I can not met the 31% guideline without bumps in the road.

 

I missed this last payment because the air conditioner broke down - out of warranty of course and besides my health problems my grandson has asthma. Texas has been 100+ all summer so there wasn't any agrument about what would happen - we fixed the air-conditioner.

 

I need a payment on my house with a 6 % rate not 9 or 10 which is where I am now.

[Gryffindor]

I was in a different program with my mortgage company and couldn't make the full payment - so they just started the new Obama program and enrolled me in it. They said it would take two weeks to a month to get approved and then you make 3 payments so I am thinking November or December.

 

I am extremely curious as to what will happen then. I have not really been offered anything that long term I can work with. Is there any guideline that tells how much interest they can charge??

 

If I had a decent interest rate I could afford my payment - I am in the 31% gross payment bracket already and because of unemployment of family members and health issues (I spend about 15-20% of my net income on healthcare) I can not met the 31% guideline without bumps in the road.

 

I missed this last payment because the air conditioner broke down - out of warranty of course and besides my health problems my grandson has asthma. Texas has been 100+ all summer so there wasn't any agrument about what would happen - we fixed the air-conditioner.

 

I need a payment on my house with a 6 % rate not 9 or 10 which is where I am now.

Under the Making Home Affordable Loan Modification Program: http://www.makinghomeaffordable.com/borrower-faqs.html#b7

 

Is the interest rate subject to change during the term of the HAMP modification?

 

If the modified rate is below the market rate as determined from the Freddie Mac Primary Mortgage Market Survey rate on the date the modification agreement is prepared, the modified rate will be fixed for a minimum of five years as specified in your modification agreement. Beginning in year six, the rate may increase no more than one percentage point per year until it reaches the market rate at the time the modification agreement is prepared. Your rate can never be higher than the market rate as indicated in your modification agreement. If the modified rate is at or above the market rate at the time the modification agreement is prepared, however, the modified rate is fixed for the life of the loan.

 

And

 

How low can my interest rate go?

 

Treasury is providing incentives to your servicer to write the interest down to as low as 2 percent, if necessary to get to a payment that you can afford. Each borrower's interest rate will only be reduced to a point sufficient to get the modified payment to equal 31% of the borrower's gross monthly income. Not all borrowers will need a rate reduction to 2 percent in order to achieve a monthly mortgage payment that is affordable.

 

And...

 

What happens if that is not enough to get to an affordable payment?

 

If a 2 percent interest rate does not result in a payment that is affordable (no more than 31 percent of your gross monthly income), your servicer may:

 

* First try to extend your payment term. At the servicer's option the term of the loan could be extended up to 40 years.

* If that is still not sufficient, your servicer may defer a portion of the principal amount you owe until the maturity of the loan. This is called a principal forbearance. However please note that with a forbearance, you will still owe the principal; but repayment is deferred until a later date. See Question 11 for more information on principal forbearance.

* A portion of the principal could be also be forgiven. This is optional on the part of the servicer. However there is no requirement for principal forgiveness and there is no guarantee that your servicer will offer principal forgiveness.

 

Hope that helps.

[Matt G.]

there are a lot of companies out there that do these modifications and know how to fight for you. Sure, there are some grimmy companies out there trying to take advantage of people's hardships and most of them are the ones that caused these problems in the first place!

 

There are also a lot of great companies out there that are very experienced with doing modifications at a reasonable price (not the $7000 that a lot are asking). Make sure you find a company that will pre-qualify you before asking for any money.

[Gryffindor]

there are a lot of companies out there that do these modifications and know how to fight for you. Sure, there are some grimmy companies out there trying to take advantage of people's hardships and most of them are the ones that caused these problems in the first place!

 

There are also a lot of great companies out there that are very experienced with doing modifications at a reasonable price (not the $7000 that a lot are asking). Make sure you find a company that will pre-qualify you before asking for any money.

 

Since the OP is asking about the Making Home Affordable Loan Modification program, if ANYONE asks for ANY money they'd be in violation of the law.

 

The FTC, Dept. of Tres, State Govt's, etc. have been actively prosecuting companies that are doing this. http://www.makinghomeaffordable.com/pr_040609.html

[cb2cb]

I was in a different program with my mortgage company and couldn't make the full payment - so they just started the new Obama program and enrolled me in it. They said it would take two weeks to a month to get approved and then you make 3 payments so I am thinking November or December.

 

I am extremely curious as to what will happen then. I have not really been offered anything that long term I can work with. Is there any guideline that tells how much interest they can charge??

 

If I had a decent interest rate I could afford my payment - I am in the 31% gross payment bracket already and because of unemployment of family members and health issues (I spend about 15-20% of my net income on healthcare) I can not met the 31% guideline without bumps in the road.

 

I missed this last payment because the air conditioner broke down - out of warranty of course and besides my health problems my grandson has asthma. Texas has been 100+ all summer so there wasn't any agrument about what would happen - we fixed the air-conditioner.

 

I need a payment on my house with a 6 % rate not 9 or 10 which is where I am now.

 

If your mortgage payments (including principal, interest, taxes and insurance) are already at 31% (or less) of your gross income, then you do not qualify for the MHA or any other modification (as far as I know).

 

However, you may qualify for the MHA refinance program if you meet their eligibility. Check it here: http://www.makinghomeaffordable.gov/refina...ligibility.html

For the above refinance, it is important to be current on your payments.

 

If you don't meet the eligibility at the above link, then you should discuss with your lender if they have their own refinance programs that they can offer you.

 

 

.

[llenod]

Was denied by SPS today - now they say I make too much, even though the entire agreement made it sound like it was approved... 3 month trial my flowers.... this was a "get the gov't off our backs then we'll deny you payment plan"

 

Which is what happened....

[NaturalLove]

Was denied by SPS today - now they say I make too much, even though the entire agreement made it sound like it was approved... 3 month trial my flowers.... this was a "get the gov't off our backs then we'll deny you payment plan"

 

Which is what happened....

 

 

That makes me very nervous. We just sent in our 2nd payment last week. The third one is due August 8th. Citimortgage called me and said that I have missing docs and they can't continue working on me until I send it in. Two things missing: one - I did not answer yes or no to question number 4 (lol) and two- they need my most recent bank statement. A bank statement was not required when they sent me the package, but now they want one. I hope they don't look at my positive balance based on that time period and think I'm raking in the dough! LOL. We'll see. Just read that other forum that talked about the lenders approval rates for the loan mods are pretty miniscule. If they don't approve us at the rate we're paying for our trial, I don't know what we'll do.

[NAN101]

Well, just as I was getting ready to make my 3rd trial payment, I received a call from Aurora. The nice man telling me it looks like I'm eligible for the gov't plan and did I want to apply. He figures the trial payment again and tells me I'll be receiving the "real" gov't package in the mail in a couple of weeks. I have the feeling this is nothing more than a stall tactic because they are behind where they should be.

 

So... apparently I'm moving on to the NEXT 3 trial payment plan. Very disappointing as I had hoped this would all be settled before the end of summer. Now it looks like it's going to be going into the new year.

 

The gov't numbers that came out the other day show that very few modifications or trial plans are under way. Amazingly, these lenders didn't stall or let anything get in their way of raking in their bailout funds.

 

It also makes you wonder - are lenders holding out in hopes the market will somehow miracously turn around before they have to modify and they'll make more money then.

 

I'm kind of getting the feeling that by the time I ever complete the "real" trial period, the interest rates will have risen above what I'm at now. Maybe that's the object? LOL

[Gryffindor]

I'm kind of getting the feeling that by the time I ever complete the "real" trial period, the interest rates will have risen above what I'm at now. Maybe that's the object? LOL

That's my concern too. I've been keeping a close eye on the Freddie Mac index.

[Move4ward]

Well, just as I was getting ready to make my 3rd trial payment, I received a call from Aurora. The nice man telling me it looks like I'm eligible for the gov't plan and did I want to apply. He figures the trial payment again and tells me I'll be receiving the "real" gov't package in the mail in a couple of weeks. I have the feeling this is nothing more than a stall tactic because they are behind where they should be.

 

So... apparently I'm moving on to the NEXT 3 trial payment plan. Very disappointing as I had hoped this would all be settled before the end of summer. Now it looks like it's going to be going into the new year.

 

The gov't numbers that came out the other day show that very few modifications or trial plans are under way. Amazingly, these lenders didn't stall or let anything get in their way of raking in their bailout funds.

 

It also makes you wonder - are lenders holding out in hopes the market will somehow miracously turn around before they have to modify and they'll make more money then.

 

I'm kind of getting the feeling that by the time I ever complete the "real" trial period, the interest rates will have risen above what I'm at now. Maybe that's the object? LOL

 

The interest rate drops are based on making the total mortgage payment, 31% of gross monthly income. It's not based on the market rates.

[Gryffindor]

The interest rate drops are based on making the total mortgage payment, 31% of gross monthly income. It's not based on the market rates.

 

Actually, it is at a point. For 5 years you pay whatever interest rate they had to reduce to in order to get you to the 31%.

On years 6+ your interest rate will raise by 1 percentage point per year until you reach what the Freddie Mac Index rate was on the final loan modification documents (what you receive after completing the trial period).

 

Of course this is only if you are obtaining a mod through the Making Home Affordable Loan Modification Program (HAMP).

[NAN101]

The interest rate drops are based on making the total mortgage payment, 31% of gross monthly income. It's not based on the market rates.

 

Well, the interest certainly does play a factor here because at the end of 5 years, your rate starts increasing, although capped at the rate that was in effect the day your modification was finalized.

 

As an update - I actually received the "package" in the mail yesterday. It has the making home affordable logos all over it, includes the gov't affidavit of hardship, etc. and describes the program in exact detail. It says if I wish to accept the offer of modification trial period to return everything by 8/28.

 

So.... it appears I'm entering into the "real" trial period now - the prior 3 trial payments were apparently just "practice?" Maybe they've finally gotten their act together now that the gov't has the transparency and reporting up and running?

 

We shall see I suppose. According to the paperwork, after the 2nd trial payment is made, I'll receive the firm, exact details of the modification and will sign and return that with my 3rd trial payment, at which time the modification will be complete and in effect.

 

Here I go again ... LOL

[Gryffindor]

Nan: Try to make that 3rd payment prior to the 15th of the month. It gives the bank less time to fiddle with the mod per the MHA guidelines.

Edited August 8, 2009 by Gryffindor

[NAN101]

Nan: Try to make that 3rd payment prior to the 15th of the month. It gives the bank less time to fiddle with the mod per the MHA guidelines.

 

LOL - I tried that with the first "practice" trial payments - making the last one earlier hoping it would speed things up. It speeded things up alright, it speeded me past the practice trial to the real trial to start over again.

 

According to the timeline of events in the paperwork (and much of it is direct from the MHA language that is available), as soon as they verify income a permanent modification will be prepared and sent out (est. 60 days). You then return that with your 3rd payment and the modification will become permanent beginning with the 4th payment.

 

The paperwork even includes the phone number to call to register complaints, with the gov't, etc. Hopefully, this is the real deal this time.

[Gryffindor]

The paperwork even includes the phone number to call to register complaints, with the gov't, etc. Hopefully, this is the real deal this time.

 

If it has the MHA logo all over it then it should be legit.

 

Hmmm. I guess I received my paperwork prior to them listing a phone number for complaints. It doesn't surprise me considering the feds recently had a required meeting with all of the major servicers on the 28th of last month wanting answers as to why they were dragging their feet on the MHA programs.

 

Here's what mine looks like (personal info blanked out of course):

[NAN101]

If it has the MHA logo all over it then it should be legit.

 

Hmmm. I guess I received my paperwork prior to them listing a phone number for complaints. It doesn't surprise me considering the feds recently had a required meeting with all of the major servicers on the 28th of last month wanting answers as to why they were dragging their feet on the MHA programs.

 

Gryff - that's what my paperwork looks like and consists of - the complain number was a separate page insert along with the gov't certification re everything submitted is truthful, blah, blah and the penalities for submitting false information.

 

Mine is dated July 29th

[cb2cb]

The latest "wrinkle", it seems, is that now the servicers are pushing the trial mod dates forward.

 

Some people were told they were pre-qualified in July, yet the paperwork they received states that they should return the signed forms and the first payment by 9/01 but that their first payment is actually counted on 10/01

 

Another deviation from the Fannie May guidelines is that some people are now told that they need to make at leat 4 trial payments before their final mod determination instead of 3.

[Gryffindor]

The latest "wrinkle", it seems, is that now the servicers are pushing the trial mod dates forward.

 

Some people were told they were pre-qualified in July, yet the paperwork they received states that they should return the signed forms and the first payment by 9/01 but that their first payment is actually counted on 10/01

 

Another deviation from the Fannie May guidelines is that some people are now told that they need to make at leat 4 trial payments before their final mod determination instead of 3.

 

Here's how it's supposed to work. If you are not current you get 3 trial payments. If you are current you get 4 trial payments.

[zpcsc]

I have been debating wether to file or not, right now I am struggling to pay but I know things will get better. I just don't like the interested rate hike because the rates are going up & if you sign your MOD at a rate above what you have now it's just a quick fix that might hurt in the long run. I have my interest rate at 6% fixed for 30 yrs, but my DH is unemployed not collecting & I work on commissions, when I don't sell I don't make anything, this is why I am considering. I got the package from Wells Fargo to submit my info. My office works on MOD's & before the OBAMA plan, I did see files that offered a fixed rate on MOD's.

 

Oh one more thing, the package states that on the 3month trial your account will show delinquent under your CR then once you pay on time it will no longer be reported. By what I am understanding, 3 months you will be delinquent on your mortgage so how long will that stay on your credit, the 7 years as usual until it erases?

Edited August 11, 2009 by zpcsc

[zpcsc]

I just spoke to Wells Fargo, they say that the 3 month trial period delinquencies will stay on your credit as any other late debt, 7yrs to erase. Another thing they said is that the interest rate they offer is different on every file, not everyone gets that 5yrs fixed then rate hike. Also, that once the trial period is over they evaluate your file to see if you qualify, I know many of you know this but that really stinks because why go thru the trial period cause even if you pay on time you might not be qualified.

[NAN101]

Another thing they said is that the interest rate they offer is different on every file, not everyone gets that 5yrs fixed then rate hike.

 

If it's a making home affordable modification, the rate will stay for 5 years. You'd only see an increase at year 6 and beyond if you start at a very low (i.e. 2%) interest rate. After year 5, the interest rate increases 1% per year and is capped at the interest rate in effect on the day the modification was complete. If the interest rate is 6% on the day your modification is complete and you are modified to 6%, then that would be the interest rate for the remainder of the loan and the 5 year timeline wouldn't come into play.