Loan Mod under the Obama plan

[trebein]

Originally Posted by Mighty__Quinn

I was told the same thing by my lender. (CCO Mtg) Mine is a Fannie May.

I inquired about a modification last month. They finally got back to me this week. I only spoke with someone briefly and she didn't seem to know the in's and out's of the program. For example - she wasn't sure if they would include my unemployment income or not!? (I was laid off in Feb) She said it sounds like we qualify but someone will have to call me back in 2-3 weeks.

The first 4 months is a "trial period". In that time, when you are making your mortgage payment (I didn't catch if it was the original payment or the modified payment) it is going into an escrow account. After the trial period is over and the modification is in place, they apply those payments to your mortgage. However, your mortgage payment is going to show as late for that period. I asked if there was any way around the hit on our credit or if we could make double mortgage payments in that time to avoid the late pays. She said "I'm not sure but I don't think so." I also asked if a letter of explanation to the credit agencies, after the modification, would erase the late pays and she didn't know that either.

The girl I spoke with really didn't have many answers to questions I would think are pretty common. From here, I'm just waiting for the next person to call me and hoping they can offer some more info.

How does the loan modification work. Are they changing your rate to reflect the current rates? Will the principal be lower? Will there be a ballon payment at the end of the loan term? Please shed some light on how this works. Thanks.

[Minz]

I have w/ loan serviced through countrywide. I was laid off in Jan 09 and have not found a job yet. Even at this point I have never paid my mortgage late.

Today they told me I don't qualify for the Home Affordable Modification program because fannie mae is the investor on my loan and Fannie Mae bought insurance on my loan and this disqualifies me. I have no idea what that means and why this should disqualify me.

[sablebaby]

Originally Posted by Debsi

I have some guidelines from Freddie that say "Suspend delinquency reporting to credit agencies for current borrowers while they are in the trial payment period."

This is Publication #800 "Home Affordable Modification Program" from Freddie Mac, dated March 2009. I'm sure there have been other updates since then, but I haven't heard anything about changes regarding credit reporting.

Wow, I will have to look into this.

I started the loan mod this week and found once again that the original person I talked to screwed me over big time. She told me to call at the end of the month and I would still get the reduced payment starting May 1. Well, that's not the case, I guess it was supposed to be in by the 15th, so now I have to find an extra $800 for May. I was pissed!