Remember the bank loan modification nightmare that cost millions their homes? BOMBSHELL:

[mzmolly]

156. It's criminal. I posted some HAMP advice in Oct of 2010 on DU.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x9318881

In a nutshell I said ...

As a person who has worked in the financial industry for years, and who has gone through the HAMP process, I have a few bits of *advice for anyone going through the HAMP process, today:

1. Most importantly, make full payments vs. the reduced "trial payments" until your loan modification is finalized, in writing. ~ IMO, some banks use a "reduced trial payment" as a means to a nefarious end. If you're making a reduced monthly payment, you're not meeting the terms of your original, signed, mortgage agreement. As such, you can be a victim of foreclosure if/when the bank fails to finalize a modification.

When I insisted on making full payments until our lender finalized our modification, I was asked "if you can afford the full payments why are you applying for a modification?" I told them the truth, we rob from Peter to pay Paul. I went on to say that it wasn't any of their !@#* business, given technically, we qualified for a modification and have been honest about our financial situation.

2. Prepare to have your tax documentation lost. ~ For some reason, I've heard several stories about lost tax documentation. The bank we dealt with lost our documentation three or four times. Get a name and a fax number of a person who is responsible for handling such documentation, and demand that bank personnel call you when they receive faxed copies. Make sure that someone takes ownership and you follow up.

3. Correspond by email or mail vs. phone so you have legal documentation regarding what you're being told. ~ Keep all correspondence (emails) until your loan is finalized and beyond. Saying "I spoke to Bob and he said..." will not be enough. Get everything you're told, in writing.

4. If you're told delays in finalization are due to Fannie Mac or Freddie Mae, not the bank, get Fannie or Freddie involved ASAP. Make a three way phone call, if you have to. Or, email a rep from each company and ask that they properly coordinate to resolve your issue.

5. Follow up on your final modification for at least three months. Make sure your due date and payment amounts are correct etc. Our lender tried to change our due date, so we were a month behind after we finalized. I have no idea why. But I insisted they make it right and I monitor monthly.

*I'm not an attorney and not in a position to legally advise anyone. I am merely a person who worked in finance for years, who has completed a successful modification. Best of luck to anyone seeking relief through HAMP.