Have you completed a loan modification under the Making Home Affordable Plan?

If you've been successful in completing a loan modification under the Making Home Affordable Plan, we want to hear from you! The way your lender reports your loan modification will determine how your credit scores will be affected. Did your lender report the loan as a rolling 30 day late during the trial period? Did they report it as current but with a notation of 'partial payment" ? Did your credit scores drop?

We’re looking for consumers that have gone through a home loan modification to share their stories about the experience and the process so that we can help others that are looking into this option. Share your story below or if you'd like to speak to a reporter about your experience, please email us at tidbits@credit.com!

I am in the middle of a loan modification with Freddie Mac and my servicer. The service has now placed both a 30 days past due and a more than 2 months past due on my credit report, and all 3 credit reporting agencies have picked it up.

My wife and I had a 720-750 credit score until this happened. I am contacting them with the the Making Home Affordable Supplemental Directive 09-01 which I found on this web site. I will ask them to properly report my credit as follows:

Credit Bureau Reporting (page 22 of the Directive) is quoted as follows:

"The servicer should continue to report a “full-file” status report to the four major credit repositories for each loan under the HAMP in accordance with the Fair Credit Reporting Act and credit bureau requirements as provided by the Consumer Data Industry Association (the “CDIA”) on the basis of the following: (i) for borrowers who are current when they enter the trial period, the servicer should report the borrower current but on a modified payment if the borrower makes timely payments by the 30th day of each trial period month at the modified amount during the trial period, as well as report the modification when completed, and (ii) for borrowers who are delinquent when they enter the trial period, the servicer should continue to report in such a manner that accurately reflects the borrower’s delinquency and workout status following usual and customary reporting standards, as well as report the modification when completed. More detailed guidance on these reporting requirements will be published by the CDIA.

“Full-file” reporting means that the servicer must describe the exact status of each mortgage it is servicing as of the last business day of each month."

I let you know how I fair in this David vs Goliath war. One thing they have not counted on. They picked the wrong person to mess with!

Johnnyrio

This message was edited 1 time. Last update was at 08/03/2009

I "was" in the loan modification program but now I'm not sure what to do now.....i received a letter the other day stating that I had cancelled the loan modification. When I called, they told me they had not recieved the payment for july 1st until july 13th. I sent the payment june 26th and it took 3 weeks to get there???
They told me I could reapply but we are about 6 months behind on payments since my husband was working part time and then laid off for 4 months. He has recently gone back to work but could get laid off again due to the industry in which he works. I don't know if we would still qualify for the program and I had just sent the last payment in just 3 days ago, thinking that we were done.
I'm not sure what to do now and it is thru our lender. they told us we could reapply but if me and my husband are both working full time, would we qualify??

***UPDATE***
I discovered that they had recieved my payment earlier than the 13th. The stamp on the back of the check says the 7th! Would I just call the 1-800 number they gave me and ask to speak to a supervisor or do I need to speak to someone in a local branch? They sent another letter saying if we don't get it taken care of before the 25th that they would go forward with action against us. We are the ones in the wrong since we didn't make our payments but our house is worth about 40,000 less than what we owe, it is very disheartening!
Thanks for your advice and I appreciate any feedback!

That is terrible!

I've gripped about the US postal service and reliability for years!! It's one of the reasons i use online banking and auto bill pay to this day. I hate to hear that this happened to you... The problem is that during the trial phase, it's absolutely imperative that the modified payments be on time to show that the new payment terms are maintainable. Unfortunately, your bank is the only one that can help. I have a strong feeling that unless you can show proof that the payment was mailed out two weeks ahead of time, the bank is probably not going to make an exception. Even then, they may not be able to make an exception under the plan guidelines. (It still wouldn't hurt to try going up the corporate ladder to plead your case. Don't settle for the first person you talk to. In situations like these, the customer service channel won't have the authority to make an exception if it's an option, so the higher up you go, the more likely you'll get someone with enough authority to make an exception.)

I wish I had some helpful advice or a solution for you but if the bank refuses to make an exception then your only option is to reapply. If you DO reapply and are accepted again, I would strongly advise setting the payments up for automatic payment or using online bill pay.

For everyone else considering (or currently going through a loan mod under the MHA program), don't let this happen to you. Safeguard yourself and use automatic billing or online bill pay for these payments so this doesn't happen!

We have applied to Wells Fargo for a loan modification under the 'Making Homes Affordable' program. I has been over 2 months and we were told we qualified and were expecting to begin our 3 month trial period this month.
However, the lender has decided our monthly deficit is too great and have approved us for a 3 month 'Moratorium' situation instead. During this period, we will not pay our mortgage at all, and will be reported to the credit bureau under a 'reduced payment plan'. They could not tell us definitively whether or not this would/ will impact our credit scores. Has anyone else heard about this?
And, is the bank just looking for a means to prolong the final modification? Should we just continue to pay our regular payment until we can show our deficit is lower and essentially start the process all over again. Which we can't really do, but are very concerned about the impact on our credit and can't seem to get a straight answer anywhere.
I had read somewhere that the program ended in June of 2010- is that true?

First forgive me please for my english

second I dont know if anybody still is looking into loan modification, if the answer is YES I have good news for you, I have succes story!!! We just completed Making Home Affordable program and starting Feb 1st we will have new rate and new payment. If anybody is interested just let me know and I will tell you our story. We are so happy and relifed, it took us a little over 4 months but it was worth it. I can say that people working at Wells Fargo know less then I about the whole program and process

We were just declined after six months on a trial payment plan and being told "everything looks good". The reason for exclusion, our house payment did not exceed 31 percent of "gross" monthly income. We have a loan with a fixed rate, but an option to pay interest only for the first ten years. Our loan was first through National City, then purchased by PNC ad when they did debt to income ratio, they didn't include any principal in with the loan payment, just interest.

When we contacted the bank about the MHA program, our payment status was on time and never late. The outreach was to prevent a late payment, and avoid foreclosure. I was told if I entered the trial period that a negative report would not be sent to the credit bureau, which was true until now. Keep in mind I always asked for information in writing and each time was told the same thing, "there isn't really any details to send, you are just going to need to trust us." What a mistake!

This afternoon I just found out after repeated calling regarding next months payment amount what I needed to pay, that we were supposedly sent a letter on Feb. 17th and the message is clear, you were declined, call Loss Mitigation. Now I need to pay the old house payment and until I come up with the $7000 thousand dollars not paid during the trial period, my mortgage will be reported past due to credit bureau.

I am amazed that two departments in the same bank can be so different. I am now being treated like a criminal and the folks in Loss Mitigation spoke to me horribly when I called for internal assistance from the bank. They spoke to me horribly and then told me despite paying my trail payment on time and requested in January, I was reported late to the credit bureau because I was declined. Had I read this story from someone else I would have thought there was more to the story. However, my nightmare is real and an honest account of what has happened. Stay away from the Making Homes Affordable Program and PNC as a lender. If anyone has suggestions, let me know I am desperate.

Irishboy -

What a nightmare! I would encourage you to contact your elected officials in Washington. Someone in either your Senators or Representative's offices should help you try to straighten this out. Be persistent - tell them what you've been going through and that you need their help to cut through the red tape at the lender. Let me know what you find out.

Please also read the more recent posts on this thread:

http://www.credit.com/forum/posts/list/152.page

You may find some advice there as well.

best2goos - We would love to hear more about your success story! Do tell!

This report could help people....I found it interesting

http://www.housingwatch.com/2010/03/02/web-site-cuts-through-hamp-redtape/