Has Anyone Ever Gotten A Second Modification On A Usda Guaranteed Loan?

jwa81

LoanSafe Member
Jun 23, 2014
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We are currently in the process of trying to get a second modification on our loan and it's getting pretty stressful. We received a modification 2 years ago in the fall of 2012, which reduced our interest rate from 6.5% to 3.75% and lowered our payments by almost $200 a month. Unfortunately, earlier this year, we encountered a temporary financial hardship that caused us to fall behind. At the time, we were with Bank of America and they had us apply for assistance again, which they ultimately denied twice in a row and then sold our loan off to Carrington Mortgage. Now, we are in the process of trying to get a modification through Carrington. We have a USDA guaranteed loan and they said that they have to follow USDA guidelines, which are quite strict compared to other types of loans. We are currently about 5 or 6 payments past due. Today, the loan servicing supervisor I am working with told me that most likely, based on her experience with USDA loans, all we would probably qualify for is a 2-month repayment plan, which we would never be able to afford as that would be more than twice what our normal payment is. It would only be for 2 months, but that would also mean that we wouldn't be able to eat or pay any other bills for those 2 months, so that's just not possible. :( She did say that wasn't 100% certain because the review hasn't been completed by underwriting yet, but that has just been her experience in the past with these types of USDA loans and we have to wait for the review process to be completed. She did tell me not to get frustrated as they are doing everything they can to work with us. I also asked her twice about a Mortgage Recovery Advance, which I found out USDA offers by doing some research on my own, but she ignored both of my emails asking about that, which I find kind of strange.

We are more than capable of affording our normal monthly payment. It's getting our loan current that we need help with from when we fell behind. I'm hoping and praying that they will be able to come up with a way to just defer the payments that we are behind to the end of our loan, but I'm not feeling too positive at this point that will be able to happen. I've made it very clear to Carrington that we have every intention of keeping our home and that we are more than capable of affording our payments and that we just need help getting current. I'm just wondering if anyone who has a USDA guaranteed loan has ever had any success in obtaining a second modification, or any sort of assistance at all after falling behind.
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
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Hello,

I could not locate another USDA story on the forum where a member has got a second loan modification. From what I have heard, many government loans are strict when it comes to a 2nd loan modification because I assume they think that if you cannot keep the 1st one, a second loan mod will not help. I know how these bankers and business people work. It is all business to them.

Here is the USDA guidelines: https://usdalinc.sc.egov.usda.gov/docs/rd/sfh/lossclaim/RD Special Loan Servicing Job Aid.pdf

Based on my research, there is no guidelines saying that you cannot get a 2nd loan modification.

Hopefully this all works out for you. I will keep you in my prayers.
 

jwa81

LoanSafe Member
Jun 23, 2014
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Thanks. Yeah, that's the same USDA web site I was on earlier. I'm prepared to play hardball with these people if that is what it will take, although I'm really, really tired of all of this and today I just felt like throwing in the towel and giving up on it all. We've been dealing with this since May, so going on 6 months now and I'm beyond sick of it at this point. It started with Bank of America and now it's Carrington. All that we want to do is to make our regular payments. They are completely affordable for us. We can start making payments again right now and can even afford to pay a little extra each month until we get caught up. Our payments are actually supposed to go down by about $65 next month due to a decrease in property taxes, so they'll be under $1000, which lower than ever before. We have shown them that we can afford it by sending them my profit and loss statement (I'm now self-employed working for a company as an independent contractor), my husband's pay stubs, and our bank statements. My husband is still trying to get me to stay positive, but it's getting very hard. Hopefully something will work out somehow, but today didn't give me a ton of hope. :(
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,840
466
1,000
48
Southern California
www.loansafe.org
My pleasure and I understand. This process is by no means easy for almost everyone and I have seen countless people fight for a loan mod 2-3 years.

I know it is hard, but controlling our emotions is key not only to dealing with this stress, but all life. I know it is easier said than done, but you might as well practice and tell yourself to remain calm no matter what. Flow like water. Take the path of least resistance.

Life is like the weather. There are sunny day, cloudy, stormy and even hurricanes and tornados. In the end, the sunny days ALWAYS return and it is how you weather the storms that help you enjoy the clear weather ;)

OK, enough philosophy from me.
 

jwa81

LoanSafe Member
Jun 23, 2014
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I got in touch with the customer advocate yesterday because I was having some issues with the supervisor I was working with taking forever to answer my emails, not answering all of my questions, and almost never answering her phone when I called her. The advocate said she will make sure that supervisor doesn't contact me anymore and I will be working directly from the advocate from now on. The advocate confirmed that they now have all of the documents they need from me and I am in underwriting. She hopes to have an answer by the end of the week, but told me that I can contact her at any time and she can get me almost immediate answers and she gave me her direct extension. It's just so frustrating waiting and not knowing. We are more than ready to start making payments again, so I'm praying that they will be able to come up with a plan on how to handle the past due payments that will work for both us and them. I wrote a very good hardship letter explaining very clearly what caused us to fall behind in the first place and that our hardship has resolved and we are now in a much better financial situation and that we are now more than capable of making our payments, but just need help getting current again. I really hope that will help. To make thinks even worse, I found out on Monday that our house is now worth about $10,000 less than what we owe on it, but the supervisor at Carrington told me that they "don't offer principal reduction" and "have to follow USDA guidelines." I think this wait is going to kill me. :confused: