Mortgage Modification

[tov hashem]

Finishing forbearance now.. should I look at what they offer for loan modification? The rep told me they have 40 year options, but she wouldn't know if I'd get to keep my current interest rate (2.875).. she said it's up to the underwriter.

why wouldn’t they keep the current IR. You could ask for modification and no need to accept if not satisfied

[12HRS]

Update: Got my PennyMac statement for August. Says "Disaster Forbearance Plan" & "Forbearance Plan" & "Suspense" but don't see any covid language on the statement, not sure if that means anything. So far FICO Score / Credit report (Chase/VantageScore® 3.0 - Experian & Citi/Equifax) looks like it hasn't been effected, but I'm not sure it would until after the august payment date passes...

anything hit your CR?

[dm123]

anything hit your CR?

Thanks for the reminder.

I see through chase my payment history with PM has a check - paid for august even though I didn't pay, and they have on 8/9 my score dropping 11 points (I assume for that, not sure what else I did to effect it, maybe heightened CC usage that period?) but then today 9/2 it jumps 17 points.
On citi my FICO score is showing A.O. 8/23/22 higher than it's been in the last 6 months, and over that period looks like it's only been growing no drops... Went up 6 points from Jul-Aug

[Lurker]

Finishing forbearance now.. should I look at what they offer for loan modification? The rep told me they have 40 year options, but she wouldn't know if I'd get to keep my current interest rate (2.875).. she said it's up to the underwriter.

With a loan mod, there are no obligations until you sign off on the new terms. Worst case, you don't like their offer and you keep your current mortgage.

[dm123]

Thanks @ExGingi for pointing this out!

Just called our mortgage servicer PennyMac and asked for a loan mod due to covid hardship - inflation etc. Rep said needed to go into forebearance first, so I figured if they're offering 3 months forebearance why not take it and hope to get a mod extending later?

Plan on calling in sometime in the next few weeks iyh to see what the options are for moving out of forbearance/mod options. Any advice?

Worst comes to worst I imagine they'll move the missed payments to the end of the loan and keep everything else as is. IINM the missed payments are not interest bearing?

[ExGingi]

Plan on calling in sometime in the next few weeks iyh to see what the options are for moving out of forbearance/mod options. Any advice?

Worst comes to worst I imagine they'll move the missed payments to the end of the loan and keep everything else as is. IINM the missed payments are not interest bearing?

Correct.

I wonder/doubt whether any good modifications can happen now with interest rates at multi year highs.

[dovy2]

Correct.

I wonder/doubt whether any good modifications can happen now with interest rates at multi year highs.

I was told no way when I asked about keeping the same interest rate.. so I took another 6 months forbearance...

[dm123]

Plan on calling in sometime in the next few weeks iyh to see what the options are for moving out of forbearance/mod options. Any advice?

Worst comes to worst I imagine they'll move the missed payments to the end of the loan and keep everything else as is. IINM the missed payments are not interest bearing?

Opened email from PM with "monthly check in" and as clicking through the site it offered another 3 months no doc requested, so I took it, guess I won't have an update here until Dec at least...

From the "Covid Extension Letter":

This letter is to confirm that your forbearance plan is now effective through January 31, 2023. The terms of your
forbearance plan as described in your Forbearance Plan letter otherwise remain the same.

Your initial forbearance started on August 1, 2022. Your maximum forbearance protection is expected to expire
on July 31, 2023. However, federal agencies (e.g., FHA, VA and USDA) have extended their forbearance
protections beyond the 360 days provided under the federal CARES Act, and other owners, insurers and lenders
for which PennyMac services loans may do the same. Federal and state laws also continue to develop to
address impacts of the COVID-19 pandemic on struggling homeowners. It is important that you continue to stay
in contact with us so you are aware of the options available for your loan.

Credit Reporting: Under the federal CARES Act, PennyMac is required to report your loan to the credit bureaus
as current on a forbearance plan if your loan was current as of January 31, 2020. We must report your loan as
delinquent on a forbearance plan if your loan was past due as of January 31, 2020. If your loan was delinquent
as of January 31, 2020 and you bring your account current before or during your forbearance plan, we will then
report your account as current on a forbearance plan as of the date you bring your account current. We
encourage you to reach out to the major credit bureaus, such as Equifax or Transunion, to understand how forbearance and post-forbearance programs may impact your credit.

We are required to treat your forbearance plan request as an incomplete application for payment assistance, so
as you approach the end of your forbearance period, we will work with you to find the best program available to
you to repay any missed payments. The full amount of unpaid payments will not have to be paid immediately in a
lump sum if you are unable to do so. The programs available to you after your forbearance plan ends will depend
on the requirements of the owner or insurer of your loan and what you are able to afford. We will provide you with
detailed instructions at that time on how to complete your application to help you get your loan back to a current
status.

[Kobe Bryant]

No. Sounds like your loan is a Fannie or Freddie. So you get the Flex Modification. No need to put into forbearance at this point, though one never knows what the future will bring. For all we know we might be looking at 2% (or lower) PMMS rates a year or two from now.

Lol

[dovy2]

Lol

why not? all labs were shut down in Wuhan?

[Lurker]

why not? all labs were shut down in Wuhan?

He quoted a post from a year ago. Rates are over 7.

[pointer]

I have a loan with BOA. Anyone know what they offer? Hurts your credit score?

[tov hashem]

I have a loan with BOA. Anyone know what they offer? Hurts your credit score?

no. Just call and ask

[Sammyonetwo]

Unknowingly made a double payment back in march towards mortgage got a letter the payment is in limbo and called up to apply it to principal, the rep mistakenly took our last payment and moved it towards principal.

We now have 33 day late payment will this be reported to credit bureaus?

The rep today reversed the last payment back into regular Monthly payment vs principal that was mistakenly applied

[Euclid]

Unknowingly made a double payment back in march towards mortgage got a letter the payment is in limbo and called up to apply it to principal, the rep mistakenly took our last payment and moved it towards principal.

We now have 33 day late payment will this be reported to credit bureaus?

The rep today reversed the last payment back into regular Monthly payment vs principal that was mistakenly applied

Even if it gets reported, the bank should have the ability (and responsibility) to rectify it with the credit agencies.

[dm123]

they actually told me no note on the credit report while in forbearance. my hesitation is if thats wrong it would mess up other things for me.

Not sure what your other things are or what happens after forebearance, but I applied and got approved for chase business cash and citi premier while in forebearance.

[BP11219]

Have Fifth Third delinquent loan, asked for modification, they only want to consider it if I fill out full income documents, will I be able to receive modification even if I have now low income?