Is it possible to get a Loan Mod from SPS?

[BusterCajun]

I used up my savings to keep paying my mortgage during the pandemic. I scraped and made it through 2020 and 2021. My loan servicer is SPS and I'm in CA. Has anybody here ever had any luck with SPS? The only thing they did for me was give me 3 months without payments in 2020....the missed amount added to the end of my loan. I then drained my savings to pay monthly so I can keep my home. I haven't been able to come up with payments yet in 2022, so have missed the Jan and Feb payments and don't have it in a week to pay for March. On the SPS Website it says: We offer three types of home retention options: modification, payment deferral, and repayment plan. Anybody here know anyone who has actually been offered a modification? What is the criteria needed to qualify for one?

 

[OneHugeMess]

I have dealt with SPS several times for friends, family, and others... and I can tell you, they are very forgiving.

Almost all their servicing portfolio is loans made from 2002 to 2007, and were apart of Wall Street Mortgage Pools, or RMBS packages. THEY DO NOT OWN THE LOANS, they are just a glorified bill collector (official name is Loan Servicer). This part is important, because... some investors, allow modifications, while others... if your loan has insurance against loss (like PMI) do not allow Mods -- because they will get reimbursed any loss upon foreclosure.

Home Retention Options Process

The criteria varies, depending on the investor for the box your loan sits in, but, generally speaking, you will need to send in copies of your pay stubs, and your most recent tax return, and depending on the investor, your last three months of bank statements, and a itemized sheet of your expenses. Most of the New Modifications have been recently streamlines, and they ask for a LOT LESS documentation than before. You can also scan the documents, and upload them to the website, instead of mailing them in, or faxing, which is a big improvement.

Anyway... lastly, in order to get the modification, you are going to need to be at least two months behind in payments, and they are going to try to find a way to get a payment that is about 40% of your current income. They will likely reduce your interest rate to around 3%, and extend out the principle balance to 40 Years, re-amortized.

I hope this helps.

 

[BusterCajun]

I have dealt with SPS several times for friends, family, and others... and I can tell you, they are very forgiving.

Almost all their servicing portfolio is loans made from 2002 to 2007, and were apart of Wall Street Mortgage Pools, or RMBS packages. THEY DO NOT OWN THE LOANS, they are just a glorified bill collector (official name is Loan Servicer). This part is important, because... some investors, allow modifications, while others... if your loan has insurance against loss (like PMI) do not allow Mods -- because they will get reimbursed any loss upon foreclosure.

Home Retention Options Process

The criteria varies, depending on the investor for the box your loan sits in, but, generally speaking, you will need to send in copies of your pay stubs, and your most recent tax return, and depending on the investor, your last three months of bank statements, and a itemized sheet of your expenses. Most of the New Modifications have been recently streamlines, and they ask for a LOT LESS documentation than before. You can also scan the documents, and upload them to the website, instead of mailing them in, or faxing, which is a big improvement.

Anyway... lastly, in order to get the modification, you are going to need to be at least two months behind in payments, and they are going to try to find a way to get a payment that is about 40% of your current income. They will likely reduce your interest rate to around 3%, and extend out the principle balance to 40 Years, re-amortized.

I hope this helps.

Thank you Sincerely for this reply!! Oh how much I would learn if I could read 'details without names' from those SPS modifications you dealt with for friends, family and others. Did all of them actually get a modification? You say SPS is "very forgiving"...how so?
I am a personal assistant and all work dried up for me here in CA during the pandemic. I've found work the last few months but been selective which people/assistance jobs I've worked. (I already have a computer...the only expense I occasionally incur in performing my current PA work is the cost of gas when I run errands for neighbors.)
I recently notice that lots of people are seeking personal assistance help, so if need be I can stretch myself thin and take on all the assistant opportunities if doing so would enable me to actually qualify for a modification. What range of self employment income are you aware of that's needed to pay a mortgage when a little under $500k is owed on the home? (I think in my file I have a paper from SPS in which they informed me the name of the investor for the box my loan sits in. Maybe you've dealt with this one...) I am not experienced with number crunching...I wonder what monthly payments could come out to at 3% and with principal balance extended out. I think the way it currently is I'm 15 years in to the 30 but there's a looming balloon payment. Thanks for any reply!!