Mortgage Transferred During Three Month Trial Period

by Anonymous

I requested,submitted proper documentation and was approved for a HAMP Loan Modification with First Franklin in June 2010. I made my first payment due for July at the end of June. My loan was transferred to Residential Credit Solutions (RCS) in July with my first payment due to them in August. I called to verified with First Franklin that RCS would honor the trial modification and was assured they would. I made my second and third payment to RCS. Initially, they did not honor the trial period because they said they never received any documentation of the modification from First Franklin. RCS decided to honor the trial modification but required me to resubmit documentation to finalize the permanent modification. I was notified today that my new payment was $1100 more than my trial modification payment which is less than $300 than my pre-modification monthly payment amount. How can they increase the permanent monthly payment by $1100 when my gross income only increased $341 and my monthly household expenses increased by $903? And is the same calculation of a monthly payment (including taxes, insurance and HOA) not to exceed higher than 31% of our monthly gross income used for the permanent modification? Who can I get to assist me in understanding how exactly they are suppose to use to calculate the final payment? RCS states that the monthly payment does not include our taxes when calculating the 31% and added my taxes after they calculated 31% of our gross income. What can I do to get they to honor the trial modification agreement?

Mortgage Loan Modification Answer:

The RCS rep who reviewed your file clearly is misinformend about HAMP guidelines. You are correct in that your payments (which should be a total of your first mortgage principal, interest, property tax, and insurance) should be reduced to a minimim of 31% of your gross income under HAMP.

You have to take a copy of the HAMP guidelines from the Making Home Affordable government website and recite to the RCS rep the official guidelines that they are supposed to follow.

You are not alone in being misinformed by bank reps. They are often ill-trained for the job that they are supposed to do.

Please come back and post your results so others may benefit from any information you can share.

All the best to you.

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Nov 08, 2010
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Mortgage Transfered During Trial HAMP Loan Modification
by: Dean

I am assuming that you are HAMP eligble - ie your loan was before Jan 2009 and was not a refi after Jan 09.

Hopefully you have a letter or some documentation that you were approved for the Trial Mod. In the early days they were done over the phone, but not now. If you have not been keeping a log or date, time, phone extension, name, employee id and summary of conversion, do so immediately. Just keep a pad by the phone and list the calls in order they take place.

Submit the documentation where the Trial Mod was approved to RCS and I believe they have to honor the Trial Mod Approved. I have heard of this happening before - transfer the mortgage in the middle of a HAMP and the new servicer pleads ignorance. I have not done a HAMP Mod with RCS so I am not familiar with them. You did not give your State, but you should contact the Federal Reserve via their web site and file a consumer complaint, stating what you have said here. The link is at the top right of this web site.
http://www.federalreserveconsumerhelp.gov/index.cfm?nav=9600

Also see my comment at this blog post -- "THIS ALWAYS GETS RESULTS"
http://www.foreclosure-help-center.com/hamp-denied-by-gmac-because-they-did-not-receive-my-package-on-the-deadline.html

You can contact HOPE For Homeowners hot line. They are very helpful. 888-995-HOPE.

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