Posted on: 15th Nov, 2009 01:51 pm
I have been in constant contact with our 1st and 2nd mortgages regarding a Loan Modification. Each has offered a "special forebearance plan". In short, the 1st mortgage company states that "We will instruct our foreclosure counsel to suspend foreclosure proceedings once the initial payment has been received, and to continue to suspend the action as long as you keep to the terms of the Agreement. Upon full reinstatement, we will instruct our foreclosure counsel to dismiss foreclosure proceedings and report to credit bureaus accordingly".
It further states that "Upon successful completion of the payments outlined in this plan, your loan will be reviewed for a Loan Modification. Based on investor approval, this may satisfy the remaining past due amount on your loan." Furthermore, the lender states that "...at its option, may institute foreclosure proceedings according to the terms of the note and security instrument without regard to this special forebearance agreement".
However, I am EXTREMELY concerned that with no written agreement that the loan modification will take place at the end of the 3 month period, that we will lose everything. The 3 month payment plan is MORE than our current loan payment. It seems that some of the language is contradictory in nature.
Is this an attempt to "get what they can" before they foreclose on us? or is this fairly standard?
It further states that "Upon successful completion of the payments outlined in this plan, your loan will be reviewed for a Loan Modification. Based on investor approval, this may satisfy the remaining past due amount on your loan." Furthermore, the lender states that "...at its option, may institute foreclosure proceedings according to the terms of the note and security instrument without regard to this special forebearance agreement".
However, I am EXTREMELY concerned that with no written agreement that the loan modification will take place at the end of the 3 month period, that we will lose everything. The 3 month payment plan is MORE than our current loan payment. It seems that some of the language is contradictory in nature.
Is this an attempt to "get what they can" before they foreclose on us? or is this fairly standard?
Hi bgoudeau!
Welcome to forums!
I guess once the Special Forbearance Plan is over, the lender would give you a trail modification plan. Once you pay off the dues as per the trail modification plan, then the lender would consider giving you the loan modification. However, if you are unable to pay the dues as per the payment plan offered to you in the trail modification, you won't qualify for the modification program. That's the reason, I guess, the lender is not giving the details in writing.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
I guess once the Special Forbearance Plan is over, the lender would give you a trail modification plan. Once you pay off the dues as per the trail modification plan, then the lender would consider giving you the loan modification. However, if you are unable to pay the dues as per the payment plan offered to you in the trail modification, you won't qualify for the modification program. That's the reason, I guess, the lender is not giving the details in writing.
Feel free to ask if you've further queries.
Sussane
Look, Wells Fargo did the same thing with us here in MD, They collected form us sum a little bit over what we use to pay which they say bring our acct back to life. Sfter four months, we should pay $30k for the second payment plan. After this, they will then take a look at what they can do for modification... are they crazy? I am surely going to continue to talk to them I suppose...