A loan modification can save your home.
Are you in loan modification darkness? It still takes awhile to get a permanent loan modification, but that darkness should be clearing some, as on June 1 the new Home Affordable Modification Program (HAMP) guidelines came into play. But before the final mortgage modification, new HAMP guidelines state that there must be a required 3-month, trial-period modification.
Once you’ve submitted the required HAMP documents and been approved for a loan modification, the lender must mail (usually by FedEx), the trial-period paperwork for your signature, which you will then return by overnight courier to the lender (a postage-paid envelope is included). This paperwork will spell out the trial-period payment amount, dates due and other specifics of the trial modification. Make a copy for your files before mailing back, as you probably won’t get a fully signed copy from the lender.
Track the package to be certain it got to the lender. Then, call them to be certain it is in their system and ask any questions you may have regarding the process. Take notes of whom you spoke with, date, time and what was discussed.
Make your trial payments as stated on the trial documents giving it time to post into their accounting system. Call to be certain each payment was received. Keep copies of each cancelled payment check and date mailed. Don’t be late or, worse yet, miss a payment, as your permanent modification will most likely be denied. Remember, the trial payments are to see if you can meet the modification commitment while letting the lender complete their document analysis.
You will be considered in default on your payments during the trial period, as the full payment under the original loan is not being made. The trial modification documents are not thought of as permanent. It is yet unclear how the delinquency will show up on your credit report, as how this is reported is up to the lender.
Although the new guidelines state that if you are in a trial-period modification, the lender cannot foreclose on your home, it is extremely important that you constantly check to be certain the lender is in compliance. Keep the foreclosure notice you received and make note of the sale number. Call the attorney on that notice or check their website using the sale number to make sure your home sale is suspended. Verify with the lender, as well.
Follow up with the lender after the trial period to have them send the permanent loan modification paperwork for your signature. Final modification may differ some from trial.
If you are not happy with the permanent modification payment amount or the lender is not in compliance with the new HAMP guidelines, complain online to the Comptroller of Currency.
Photo Credit: Barbara L. Slavin on www.flickr.com
