Please call Stephine concering a "Trial Modifiation" on your home mortgage.
Trial Modification - not the panacea you think it is
Yeah! You've finally waded through the morass of the initial review and been notified you were approved a trial modification. Your troubles are over, right? Wrong. The lenders have managed to subvert this part of the proces, too. Under HAMP, the procedure seems simple enough. Your bank assigns you that lower mortgage amount you have been hoping for and just requires that you pay the amount on time for three months. It's touted as the bank's way of ensuring you can afford your modified mortgage. What it really is, is another way for them to jerk you around. Here's the common story - you make your reduced payment on time for three months, but at the end of that period your bank decides, without telling you why, to extend the trial modification beyond the three months specified in HAMP. You make those payments - two or three more - on time, too. Then your bank notifies you that you haven't qualified for a permanent modification, even though you have met all the stated conditions. (That's called, I believe, breach of contract and is the subject of a whole bunch of class-action lawsuits, including this one against Wells Fargo.) If they give you a reason, it's probably that old chestnut, "you failed to provide the required documentation on time." Never mind that they didn't ask for any documents or set a timeline for any to be submitted. You're kicked out of the program. And, oh, by the way, you have 10 days to pay your back mortgage payments - the amount you originally owed minus your "modified" amount along with late fees for all those months (even though you were paying the amount the lender told you to pay.) And you have to come up with it in one lump sum or, you guessed it, you'll be foreclosed on in 21 days (thanks to modification-concurrent foreclosure processes.) Yep, one more piece of the scam. Then, you find out that all the while you've been dutifully paying the reduced mortgage amount set by the bank, that very same bank has been reporting to credit agencies that you are delinquent on your mortgage. Nice touch, huh?
CASH IS KING! Thanks Dave Ramsey and FPU... Be glad to send these puds out to pasture!
Please call Stephine concering a "Trial Modifiation" on your home mortgage.
Trial Modification - not the panacea you think it is
Yeah! You've finally waded through the morass of the initial review and been notified you were approved a trial modification. Your troubles are over, right? Wrong. The lenders have managed to subvert this part of the proces, too. Under HAMP, the procedure seems simple enough. Your bank assigns you that lower mortgage amount you have been hoping for and just requires that you pay the amount on time for three months. It's touted as the bank's way of ensuring you can afford your modified mortgage. What it really is, is another way for them to jerk you around. Here's the common story - you make your reduced payment on time for three months, but at the end of that period your bank decides, without telling you why, to extend the trial modification beyond the three months specified in HAMP. You make those payments - two or three more - on time, too. Then your bank notifies you that you haven't qualified for a permanent modification, even though you have met all the stated conditions. (That's called, I believe, breach of contract and is the subject of a whole bunch of class-action lawsuits, including this one against Wells Fargo.) If they give you a reason, it's probably that old chestnut, "you failed to provide the required documentation on time." Never mind that they didn't ask for any documents or set a timeline for any to be submitted. You're kicked out of the program. And, oh, by the way, you have 10 days to pay your back mortgage payments - the amount you originally owed minus your "modified" amount along with late fees for all those months (even though you were paying the amount the lender told you to pay.) And you have to come up with it in one lump sum or, you guessed it, you'll be foreclosed on in 21 days (thanks to modification-concurrent foreclosure processes.) Yep, one more piece of the scam. Then, you find out that all the while you've been dutifully paying the reduced mortgage amount set by the bank, that very same bank has been reporting to credit agencies that you are delinquent on your mortgage. Nice touch, huh?
CASH IS KING! Thanks Dave Ramsey and FPU... Be glad to send these puds out to pasture!