Mortgage Company did loan modification on behalf of borrower?

[conflict101]

What is the name of your state (only U.S. law)? PA

Off topic but I went a little crazy shortly after I had an IUD placed and bounced all over. As a result I fell behind in payments. I was depressed, erractic and the sort, I ignored mail for weeks.

Today my mortgage company calls me and I answer and says that we just sent you a package and that you were approved for a loan modification. I have to review the terms but I never applied for a modification. I attempted a few times to fill out the forms but got distressed, I am now at least 90 days late, they sent me an Act 91 notice which I disputed for deficiencies and now instead send me modification terms. I spoke to someone and they said they Never heard of a lender agreeing to a mod without the borrower applying for it. Any thoughts?

 

[TheGeekess]

What is the name of your state (only U.S. law)? PA

Off topic but I went a little crazy shortly after I had an IUD placed and bounced all over. As a result I fell behind in payments. I was depressed, erractic and the sort, I ignored mail for weeks.

Today my mortgage company calls me and I answer and says that we just sent you a package and that you were approved for a loan modification. I have to review the terms but I never applied for a modification. I attempted a few times to fill out the forms but got distressed, I am now at least 90 days late, they sent me an Act 91 notice which I disputed for deficiencies and now instead send me modification terms. I spoke to someone and they said they Never heard of a lender agreeing to a mod without the borrower applying for it. Any thoughts?

You'd do better to ask your questions of the mortgage company.

 

[conflict101]

I just hear that a lot of people get their mod apps rejected or denied and found it to be unusual considering I never applied. just looking for thoughts or possible scam?

 

[TheGeekess]

I just hear that a lot of people get their mod apps rejected or denied and found it to be unusual considering I never applied. just looking for thoughts or possible scam?

You'd do better to ask your questions of the mortgage company.

I'm sorry I wasn't clear the first time.

 

[conflict101]

I'm sorry I wasn't clear the first time.

There may be others who would like to chime in. I thank you for your suggestions.

 

[quincy]

You'd do better to ask your questions of the mortgage company.

 

[conflict101]

You'd do better to ask your questions of the mortgage company.

I can't call them till tomorrow now but I am entertained here nevertheless. I pray that maybe just one person would have something to add other then "ask the mortgage company" there has to be someone out there with a theory.... They know where to find me.

 

[Ohiogal]

I can't call them till tomorrow now but I am entertained here nevertheless. I pray that maybe just one person would have something to add other then "ask the mortgage company" there has to be someone out there with a theory.... They know where to find me.

If you don't want the loan modification, walk away from the house and give it to the bank. Find yourself a new place to live. There you go.

 

[conflict101]

If you don't want the loan modification, walk away from the house and give it to the bank. Find yourself a new place to live. There you go.

I was just sharing my experience. If I came on hear crying about how i was denied a modification and felt entitled to one I would get my a** ripped. I am just trying to say here "whoa, they went ahead and did it on my behalf" It appears unusual and I wanted to share. I am so sorry not a single person here has ever a positive thing to add.

 

[Zigner]

I was just sharing my experience. If I came on hear crying about how i was denied a modification and felt entitled to one I would get my a** ripped. I am just trying to say here "whoa, they went ahead and did it on my behalf" It appears unusual and I wanted to share. I am so sorry not a single person here has ever a positive thing to add.

Alrighty then

 

[Ohiogal]

Alrighty then

Z, did you think this was a sharing site? What shall we share if it is? And do we have to be tested before sharing?

 

[quincy]

I was just sharing my experience. If I came on hear crying about how i was denied a modification and felt entitled to one I would get my a** ripped. I am just trying to say here "whoa, they went ahead and did it on my behalf" It appears unusual and I wanted to share. I am so sorry not a single person here has ever a positive thing to add.

The responses you received were neither positive nor negative.

You asked for "thoughts." You received "thoughts." I am not sure what else you expected.

You posted your question at 9:22 last night and you only had a few hours to wait until you could get an accurate answer about the loan modification from your mortgage company.

Yes, we could have guessed. We also could have been wrong with our guesses and this would not have benefited you or anyone else. That said, it is generally less costly for a lender to modify a loan than to foreclose on a loan, so I imagine that could have played a role? Did it? What did your mortgage company say when you called them this morning?

 

[conflict101]

The responses you received were neither positive nor negative.

You asked for "thoughts." You received "thoughts." I am not sure what else you expected.

You posted your question at 9:22 last night and you only had a few hours to wait until you could get an accurate answer about the loan modification from your mortgage company.

Yes, we could have guessed. We also could have been wrong with our guesses and this would not have benefited you or anyone else. That said, it is generally less costly for a lender to modify a loan than to foreclose on a loan, so I imagine that could have played a role? Did it? What did your mortgage company say when you called them this morning?

The mortgage company representatives could not answer my question either. Nevertheless they put me on a 3 month trial and if I make the payments on time it will convert to a perm modification. That is all the details I have even from the paperwork. No mention of a new rate, no mention of if there will be an extension of years etc...

 

[quincy]

The mortgage company representatives could not answer my question either. Nevertheless they put me on a 3 month trial and if I make the payments on time it will convert to a perm modification. That is all the details I have even from the paperwork. No mention of a new rate, no mention of if there will be an extension of years etc...

The "package" with loan modification papers that you received earlier, that you did not fill in and send back to the mortgage company - these had the modification terms and conditions with the new rate noted, correct? If you had been in discussion with the mortgage company on your loan previously, or if you were you simply notified by your mortgage company that you were in foreclosure, the mortgage company is probably trying to assist you in keeping your home in any way they can. As I said earlier, modifying an existing loan tends to be less costly for the company than having to foreclose on a home.

It sounds like your original loan was moved from one department to another and, when another department takes over the loan, the first department no longer follows it or has information on it.

The "loss mitigation" department of the mortgage company could be the department handling your loan now, if you were past due on your payments and facing foreclosure. Contacting this department could lead to answers to any of your remaining questions. Your loan number should be the same as it has always been.

If the new payment amount and the new terms of the loan fit your budget better and will allow you to keep your home, or at least allow you additional time to market your home for sale, this sounds like a good thing.

While I don't believe any of this is a scam, but rather just a mortgage company doing what it does (and often ineptly ), you are still smart to check it out. You can have an attorney in your area look over any of the documents you received earlier, to see if your interests are protected by agreeing to the new loan terms. In the meantime, I suggest you make all payments agreed upon until you receive clarification on the modification loan being offered.

Good luck.