Author Topic: Mortgage Modification (Read 26489 times)

ExGingi · « **Reply #160 on:** July 07, 2022, 06:47:47 PM »

Quote from: dm123 on July 07, 2022, 04:17:54 PM

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?

current term is: 2.375% 20 year mortgage.

Do you know who owns your loan? Is it a Fannie or Freddie?

I don't know if they are still operating under the COVID guidelines where there is no reporting to credit agencies. If there is no reporting then it is a no-brainer to take the forbearance, as there is absolutely nothing to lose.

dm123 · « **Reply #161 on:** July 07, 2022, 06:53:15 PM »

Pretty sure it's Fannie. They said they report loan as regular with a note in covid forebearance.

ExGingi · « **Reply #162 on:** July 07, 2022, 06:54:05 PM »

Quote from: dm123 on July 07, 2022, 06:53:15 PM

Pretty sure it's Fannie. They said they report loan as regular with a note in covid forebearance.

Beautiful! Good luck. If nothing changes, forbearance can go as long as 18 months. I would think that somewhere between now and then long term interest rates will come down (if they modify by just extending to 40 years without changing the rate, then I don't see a real reason to wait beyond the first 3 month forbearance).

12HRS · « **Reply #163 on:** July 07, 2022, 07:20:58 PM »

Quote from: dm123 on July 07, 2022, 04:17:54 PM

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?

current term is: 2.375% 20 year mortgage.

If you do this please report back, i was very hesitant to jump into it the way they were describing, im also with penny mac.

dm123 · « **Reply #164 on:** July 07, 2022, 07:38:59 PM »

Quote from: 12HRS on July 07, 2022, 07:20:58 PM

If you do this please report back, i was very hesitant to jump into it the way they were describing, im also with penny mac.

That's the plan, report back for another dp. Over the phone it sounded like I needed to at least be in forbearance before they can apply any mod. Didn't sound like anything to lose on forbearance (other than a note on credit report, but I got this penny Mac refi after 6 month of wells Fargo loan covid forbearance, they just wanted to see 3 months of payments before refi approval), and once we're ready to begin repayment the bank and I can discuss options (lump sum - but I think for covid they can't force this option, lump sum moved to the end, or loan modification, may have been an additional option of additional monthly payment for X period for forbearance amount, don't remember this second.)

@12HRS whats your hesitation?

whacked1 · « **Reply #165 on:** July 07, 2022, 07:40:50 PM »

I'm with penny mac as well. They put me on hold for a while last time i called and i forgot to call back

ExGingi · « **Reply #166 on:** July 07, 2022, 07:43:34 PM »

Quote from: dm123 on July 07, 2022, 07:38:59 PM

That's the plan, report back for another dp. Over the phone it sounded like I needed to at least be in forbearance before they can apply any mod. Didn't sound like anything to lose on forbearance (other than a note on credit report, but I got this penny Mac refi after 6 month of wells Fargo loan covid forbearance, they just wanted to see 3 months of payments before refi approval), and once we're ready to begin repayment the bank and I can discuss options (lump sum - but I think for covid they can't force this option, lump sum moved to the end, or loan modification, may have been an additional option of additional monthly payment for X period for forbearance amount, don't remember this second.)

@12HRS whats your hesitation?

Interesting situation. So you got a COVID deferral in the past, refinanced into a new loan, and now trying at a new deferral. Hey, if it works - Kol Hakavod!

TBD · « **Reply #167 on:** July 07, 2022, 08:03:50 PM »

Quote from: ExGingi on July 07, 2022, 07:43:34 PM

Interesting situation. So you got a COVID deferral in the past, refinanced into a new loan, and now trying at a new deferral. Hey, if it works - Kol Hakavod!

Its called "Long Covid"

12HRS · « **Reply #168 on:** July 07, 2022, 08:24:20 PM »

Quote from: dm123 on July 07, 2022, 07:38:59 PM

That's the plan, report back for another dp. Over the phone it sounded like I needed to at least be in forbearance before they can apply any mod. Didn't sound like anything to lose on forbearance (other than a note on credit report, but I got this penny Mac refi after 6 month of wells Fargo loan covid forbearance, they just wanted to see 3 months of payments before refi approval), and once we're ready to begin repayment the bank and I can discuss options (lump sum - but I think for covid they can't force this option, lump sum moved to the end, or loan modification, may have been an additional option of additional monthly payment for X period for forbearance amount, don't remember this second.)

@12HRS whats your hesitation?

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.

yesitsme · « **Reply #169 on:** July 07, 2022, 08:26:48 PM »

any monkeypox news here?

dm123 · « **Reply #170 on:** July 07, 2022, 08:31:41 PM »

Quote from: 12HRS on July 07, 2022, 08:24:20 PM

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.

Ah got it. Hope to report back in a few weeks once I see what actually happens.
Not sure if this helps you but iirc a year and half ago under the Wells Fargo mortgage forbearance the credit score said something like good standing with a note about covid forbearance and I was able to refi into a new penny Mac loan with the only condition being 3 months of payments. Also pretty sure applied and was approved for chase sapphire preferred during that period.

12HRS · « **Reply #171 on:** July 07, 2022, 08:33:49 PM »

right but in this case i asked about 30 times for the covid forbearance and they kept avoiding it and saying its just a forbearance. made me nervous.

dm123 · « **Reply #172 on:** July 07, 2022, 08:49:02 PM »

Quote from: 12HRS on July 07, 2022, 08:33:49 PM

right but in this case i asked about 30 times for the covid forbearance and they kept avoiding it and saying its just a forbearance. made me nervous.

I basically straight away asked for loan mod - they said no we only have covid forbearance, they told me once you do covid forbearance then mod is an option. But they kept saying if you're asking for covid hardship that's first a special covid forbearance not mod. Then I asked about credit score and got the above answer: good standing with a note about covid forbearance. But like I said in a few weeks I'll see what happens and at least you'll have another penny Mac dp, but as always I'm sure ymmv.

mgarfin · « **Reply #173 on:** July 08, 2022, 07:42:37 AM »

Does a loan modification to 40 years have any impact on the ability to take a loan in the future?

With other banks say you had a hardship recently how can you be applying for a mortgage on a different property

dm123 · « **Reply #174 on:** July 08, 2022, 11:13:21 AM »

Update: I got a letter from PennyMac today, titled "COVID Plan". On the footer of each page it's titled Covid-19 Plan Letter:

Otherwise most of the letter seems like the regular forebearance with only some sections referencing covid/cares act.

@12HRS this section may be of interest to you (looks like a standard template but disclaimer: I have no idea as I've only seen my letter):

zagguru · « **Reply #175 on:** July 09, 2022, 10:54:20 PM »

Quote from: zagguru on July 07, 2022, 10:13:52 AM

Just to update everyone. The modification has been completed, was switched from 30 to 40 years, lowering my monthly payment by about $800. I set up an automatic withdrawal for Schwab Robo Investments for that amount of $800 each month.

If it helps anyone, i was not in any forbearance, I had on time payments up until the point the modification was approved. So you do not need to be in forbearance in order to get a modification.

tov hashem · « **Reply #176 on:** July 10, 2022, 12:39:24 AM »

Quote from: zagguru on July 09, 2022, 10:54:20 PM

If it helps anyone, i was not in any forbearance, I had on time payments up until the point the modification was approved. So you do not need to be in forbearance in order to get a modification.

it depends on certain things but by me I had to be in forbearance

zagguru · « **Reply #177 on:** July 12, 2022, 03:41:56 PM »

Does anyone know if Citizens bank does modifications? I have a friend who has been having a hard time getting a hold of anyone with Citizens that knows what to do

dm123 · « **Reply #178 on:** July 17, 2022, 12:22:11 PM »

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...

dovy2 · « **Reply #179 on:** September 01, 2022, 09:07:03 PM »

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.