deferral agreement of past due payments

Vavouna1

LoanSafe Member
Hello, after being impacted by covid and job loss, I was put into a forbearance plan that ended with my financial situation still being the same. I tried numerous times to see if the bank would help and kept on being denied and asking for all payments owed. I received a letter over the weekend congratulating me on an offer for a deferral of past due balance which would bring my loan up to date. I am asking if this is a good offer or should I still wait for a better one like a trial modification. I hope someone will be able to give me some advice. Thank you in advance. They didn't lower the payments which was what I was hoping for.
 

Survivor_IN

LoanSafe Member
Send a request in writing requesting that the loan be modified and the payment be reduced due to covid hardship and couch this as a "legal request," See what happens.

(If they haven't already, they will likely request a mound of papers for documentation and typically require 3 months bank statements before they will start a trial plan or modification.)
 

Vavouna1

LoanSafe Member
Send a request in writing requesting that the loan be modified and the payment be reduced due to covid hardship and couch this as a "legal request," See what happens.

(If they haven't already, they will likely request a mound of papers for documentation and typically require 3 months bank statements before they will start a trial plan or modification.)
Thank you so much for answering. I will try that now and keep you posted.
 

Vavouna1

LoanSafe Member
Send a request in writing requesting that the loan be modified and the payment be reduced due to covid hardship and couch this as a "legal request," See what happens.

(If they haven't already, they will likely request a mound of papers for documentation and typically require 3 months bank statements before they will start a trial plan or modification.)
I wanted to give an update regarding the "legal request" I asked for. They wrote me and said
Unfortunately, the account is ineligible for one or more
resolution options or it is ineligible for the option you selected on the RMA. However, they have denied me assistance in the past and as I mentioned recently offered a deferral agreement. Should I accept this? I have until August to decide or should i continue to pay as I can and hopefully they will reach out to me to modify my loan instead of deferring the payments? Thank you for all your thoughts.
 

Survivor_IN

LoanSafe Member
Hopefully others will chime in with some thoughts. It appears you have a forced choice and no options where "the account is ineligible for one or more resolution options or is ineligible for the option you selected on the RMA." I'm not sure how the government is handling mortgage servicers that are adamant about creating more debt these days. You really have no choice but to take the deferral. It's a possibility that once the deferral is "so many months" they will capitalize it and then offer a modification with a balloon payment. (another take it or leave it option) Currently, this servicer appears to be creating/wanting a balloon payment of a certain size. I'm a little suspicious but this could be in your favor if the pandemic rages another year and hits your finances again.
 

Vavouna1

LoanSafe Member
Hopefully others will chime in with some thoughts. It appears you have a forced choice and no options where "the account is ineligible for one or more resolution options or is ineligible for the option you selected on the RMA." I'm not sure how the government is handling mortgage servicers that are adamant about creating more debt these days. You really have no choice but to take the deferral. It's a possibility that once the deferral is "so many months" they will capitalize it and then offer a modification with a balloon payment. (another take it or leave it option) Currently, this servicer appears to be creating/wanting a balloon payment of a certain size. I'm a little suspicious but this could be in your favor if the pandemic rages another year and hits your finances again.
Survivor you are so knowledgeable and I sincerely thank you so much for taking the time to respond. I've received the same exact letter in the past when I have reached out for help and was told the exact same thing that my account was ineligible. I have until August to make a decision. I am going to mail in a payment today and see what happens to my balance. I agree, the banks are really not trying to help people especially if it's not in their favor. I will definitely keep this forum updated on my situation...especially if it will help someone else going through the same stressful situation. My only concern is if I don't accept this offer...what will happen to my home :( I'm waiting and watching this post like a hawk for some more insight.
 

Survivor_IN

LoanSafe Member
Survivor you are so knowledgeable and I sincerely thank you so much for taking the time to respond. I've received the same exact letter in the past when I have reached out for help and was told the exact same thing that my account was ineligible. I have until August to make a decision. I am going to mail in a payment today and see what happens to my balance. I agree, the banks are really not trying to help people especially if it's not in their favor. I will definitely keep this forum updated on my situation...especially if it will help someone else going through the same stressful situation. My only concern is if I don't accept this offer...what will happen to my home :( I'm waiting and watching this post like a hawk for some more insight.
Now wait a minute, you didn't say this denial was on a monthly basis! That is eerily familiar of past HAMP programs. (I actually had that work after a year of denial letters.) At least you documented a legal request for when they try to bundle and collect a huge amount, plus interest, at a later date. I'm not sure if the government has made time (or law) to monitor the banks over this during "the great pandemic" as of yet. You might try following CFPB press releases to see if anything happens on these potential modifications.
 

Vavouna1

LoanSafe Member
Now wait a minute, you didn't say this denial was on a monthly basis. That is eerily familiar of past HAMP programs. At least you documented a legal request for when they try to bundle and collect a huge amount at a later date. I'm not sure if the government has made time (or law) to monitor the banks over this during "the great pandemic" as of yet.
I've been making payments....late...but making them and they have been accepting them. I just put February's payment in the mail and will see what happens because they are basing this deferral balance with February's payment owed. If they take it, then I think that might be in my favor. I will keep you posted.
 

Survivor_IN

LoanSafe Member
I've been making payments....late...but making them and they have been accepting them. I just put February's payment in the mail and will see what happens because they are basing this deferral balance with February's payment owed. If they take it, then I think that might be in my favor. I will keep you posted.
That sounds good. It's called a "rolling late." I do believe current law prevents foreclosure action for 6 months (past due), in order to resolve or offer solutions. At least on FHA loans. Private lenders typically use 3 mo benchmark. Currently I believe there is a moratorium thru either Sept or Dec??? which prevents hasty action by the banks. Edit - also possible they wont modify until 6 mo past due... you might not want to risk that though.
 

Survivor_IN

LoanSafe Member
Also, you don't have to make your payments based on their accounting(s) because it is their JOB to post and apply payments once received! ... but do keep records of all communications, letters, etc and proofs of payments. I would recommend scanning all the documents on this in your spare time (and include proof of mailing/receipts on legal requests).
 

Vavouna1

LoanSafe Member
Also, you don't have to make your payments based on their accounting(s) because it is their JOB to post and apply payments once received! ... but do keep records of all communications, letters, etc and proofs of payments. I would recommend scanning all the documents on this in your spare time (and include proof of mailing/receipts on legal requests).
Thank you Survivor for all your helping me to survive this horrible situation that I wish on no one.
 

Vavouna1

LoanSafe Member
Also, you don't have to make your payments based on their accounting(s) because it is their JOB to post and apply payments once received! ... but do keep records of all communications, letters, etc and proofs of payments. I would recommend scanning all the documents on this in your spare time (and include proof of mailing/receipts on legal requests).
Yes, I've kept all the letters I've asked for help in a secure file and have all my proof of payments. Once again, thank you so much for your input...it is being well received. Stay safe and well my friend.
 
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