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Permalink Reply by Kimberley Kelly on August 14, 2011 at 6:50am

So right on Harry!  The job of the Lenders is to GET MONEY from the borrowers.  That's all it is about.  There is no "good will" here...ever!  If your Sellers need to get out, help them do it WITHOUT giving the Banksters another cent.  They are still going to be in default so why give them any more money???  We cannot council our Sellers to stop making payments, we can council them about the odds that anything here will change..except a lower amount in their checking account.

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Permalink Reply by Sandra Allen on August 14, 2011 at 8:32am

Very surprised at the comments regarding this post.  First short sale has been around for way more than a couple of years.  Second, advising the borrowers against a loan mod program is unethical based on your personal opinion.  It is protocol for the loan servicer to go the route of home retention first.  Is the percentage skewed on who qualifies and who does not after the trial period, yes.  But that does not mean it does not work at all.  I went through the trial periods, and a whole lot of nonsense for 2+ years during my recent divorce.  I never missed a payment( or late) in 13 years of being a homeowner, but I my financial picture did change with one income. Especially being in a commission only household and paying tuition for multiple kids.  But after 2 years of fighting, I got the Congratulations letter, You Did It!  My loan is modified hundreds of dollars for 5 years.  So please don't knock the program.  It has serious flaws, but has been a blessing for many.  It depends on each person's situation and if they truly want to stay in the home.  Remember, short sales, getting a buyer and closing prior to a foreclosure sale is not guaranteed either.

Best of luck on their situation.

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Permalink Reply by Enrique Vasquez-Plaza on August 15, 2011 at 4:10pm

Trial Payments are part of STEP 1 OF 2 of the Making Home Affordable Modification Program, introduced in 2009.  

Trial payments are not just granted by BofA, but by all lenders participating on HAMP mods, after that particular borrower has qualified for a new modified payment.  Instead of granting such modification at first, the lender will set you in a 3 month trial, where the amount will be equal to the modified payment if you comply with the 3 payments on time.  After that you will be granted the mod (at least that is the theory)

 

On the other side, let me explain the "3 payments which are not applied to their loan and then BOA will decide if they will modify the sellers loan"  Whoever said that, does not know what is talking about, or its taking what knows very lightly.

 

ALL Trial modification payments are not applied directly to the unpaid balance, BUT instead they get collected into a "suspense account" which will continue to accumulate this payments until a modification is reached and then this sum will be directed towards the unpaid delinquency or balance.  If no modification is granted, ussually the lender keeps the money and applies it towards the unpaid balance, but in some "EXTREMELY RARE OCCASSIONS" lenders send the trial payment money back.  I have seen this happen several times, in what I estimate in lower than 5% of the times...

 

I hope this works.  And yes, it is worth to go trough the trial, but with bank of america... mm... I just dont trust them, but its worth to try and comply.   When I have cases with BofA, I rather go trhough NACA website and do all the process there.  Is effective, accurate and FREE!!!

 

Good luck!

 

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Permalink Reply by TOP END Properties on August 26, 2012 at 9:54pm

The trial is a period to see if they can actually sustain a loan modification. However I was unaware that the payments were not being applied to the mortgage. :X

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