Usda Mortgage Recovery Advance?

jwa81

LoanSafe Member
Jun 23, 2014
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Hello,

I know I've been very active on this forum over the past few weeks as we are going through the process of trying to get some sort of mortgage assistance from when we fell behind on our mortgage payments due to my husband being injured and out of work for several months this year as well as a drastic pay cut at my previous job. We were told on Monday by our mortgage servicer (Carrington) that they now have all of the documents required to send our request for assistance to underwriting. I am not sure if we will qualify for a second modification (we received a mod from Bank of America 2 years ago) as I'm fairly certain that our payment is already at 31% of our income. Our home is currently underwater by approximately $10,000, but we can't get a principal adjustment on a government loan. However, I was just reading about this program that USDA has (we have a USDA guaranteed loan) called a Mortgage Recovery Advance. This is what I read:
  • Mortgage Recovery Advance: Mortgage Recovery Advance is a one-time payment from the USDA to help bring the loan current. This is available even if a foreclosure has been filed. No interest will accrue on the Mortgage Recovery Advance. Repayment of the Mortgage Recovery Advance is not due until the earliest of (i) the maturity of the modified mortgage, (ii) the borrower transfers title to the property (by sale or by other voluntary or involuntary means) or (iii) a pay-off of the mortgage occurs. Under some circumstances, a Mortgage Recovery Advance can be combined with an extended term modification.
I have sent my point of contact at Carrington an email asking about this, but she didn't respond. Has anyone ever received a Mortgage Recovery Advance before? Is it possible that we could qualify for this? I actually just started working with a local housing counselor today, who is very, very nice and is more than willing to help us work with Carrington. I actually just faxed her the authorization form to speak with Carrington our behalf. I just got off the phone with her and she said that Carrington would be crazy not to work with us because our income can now more than support our mortgage and she will be glad to step in if we're not making any progress with Carrington or if they don't come up with a reasonable plan for us, such as a repayment plan. She also said that she has a direct contact at the local USDA office that she can get info from if needed, but I am now very, very curious about this Mortgage Recovery Advance and how to go about seeing if we would qualify for this. If anyone has any further information on this, I'd greatly appreciate it!!
 

pennygram

working for consumers
Sep 29, 2010
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I can't answer your question about the mortgage recovery advance... sorry.

BUT I did want to say that getting another loan mod is possible so hang in there.
 

jwa81

LoanSafe Member
Jun 23, 2014
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Thanks! The housing counselor I talked to yesterday wasn't sure if we'd be able to get another mod or not. Currently, our total monthly gross household income is about $6500 and our current mortgage payment is $1046 per month, but going down to $990 this month due to a drop in escrow (property taxes) and our current interest rate is 3.875%. We received our first modification exactly 2 years ago in 2012. The housing counselor thought our income would probably be too high to receive another mod, but we don't even need our payment lowered. If they could just somehow defer the payments we are behind to the end of our loan, that would be perfect. I'm hoping for some good news next week!