Modifications affecting credit ? Need advice feel tricked

[Anonymous]

About a year and a half ago we signed up for a Obama supported modification loan, under the impression it was there to assist people who currently had a bad loan on their homes. Our percentage rate was almost 10% and the modified loan promised a new % to assist in our loan. The " modified " amount was much less than our payment we monthly had currently... our payment was automatically deducted from our checking count....always on time. We never received any letter stating that The payment was delinquent or that we were late or any notice at all until year later when indeed that letter stated we were marked delinquent on our credit. Due to the difference of our modified amount and original amount not paid. Now obviously in our large 50pg packet we signed away to this...I feel it was hidden, I feel tricked, they weren't straight forward it was a grey area. We all along could in fact make our payment, we thought this was a program for those under bad loans who needed a new rate. I feel any loan after a month, 2 or even 3 you would get some sort of notice or call? Conviently they say nothing until the very end....Now we are looking to buy a new home and our credit shows for that year that we didn't even make a payment? I would love any advice as to where to go from here...or any options to solve my problem? Thank you in advance for taking the time to read my frustration

[Anonymous]

I wanted to add that we have no debt and this modification is our only bad mark... Our score is 640.... Thanks again!

[thankfulheart]

I apologize, but I do not have a clear picture of your situation.  You signed a modification?  Where did the payments go if not to the lender?  Do you have proof of the payments?  Do you have anything from the lender that they never received them? Were you foreclosed on?  I'm not understanding what you are saying...

[p-]

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@Anonymous wrote:
About a year and a half ago we signed up for a Obama supported modification loan, under the impression it was there to assist people who currently had a bad loan on their homes. Our percentage rate was almost 10% and the modified loan promised a new % to assist in our loan. The " modified " amount was much less than our payment we monthly had currently... our payment was automatically deducted from our checking count....always on time. We never received any letter stating that The payment was delinquent or that we were late or any notice at all until year later when indeed that letter stated we were marked delinquent on our credit. Due to the difference of our modified amount and original amount not paid. Now obviously in our large 50pg packet we signed away to this...I feel it was hidden, I feel tricked, they weren't straight forward it was a grey area. We all along could in fact make our payment, we thought this was a program for those under bad loans who needed a new rate. I feel any loan after a month, 2 or even 3 you would get some sort of notice or call? Conviently they say nothing until the very end....Now we are looking to buy a new home and our credit shows for that year that we didn't even make a payment? I would love any advice as to where to go from here...or any options to solve my problem? Thank you in advance for taking the time to read my frustration

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Something sounds fishy here - Did you make any payments at all, and if so to whom?  Someone besides your mortgage lender?  Did you not receive any bills from them at all?

[Anonymous]

Just curious...did you not set up the new payment to be deducted from your account?  Didn't you notice the extra money in your checking for a full year?  That adds up to a lot of surplus cash.  It is strange that you didn't receive any notice of a missed payment.  I can't imagine any lender letting a year go by without any payments at all.  Have you contacted them to find out exactly what the issue is?  Sorry, I'm just confused by the details you gave.

[Anonymous]

The OP was doing what looks like a "trial mod". They lowered her interest rate which lowered her payment. What they didn't tell her was that until she was approved or denied, the difference between the trial payments and her regular payments went unpaid and that becomes arrears, and that affects her credit score. They may have explained it in the paperwork you have received, and you might have not read it through or misunderstood something. Most banks that do modifications from the Obama plan have an overlay guideline that requires you to be delinquent on your payments before they can consider you.

The thing is, from what I have read, if you don't fall within their income limit guidelines you can't qualify. And it sounds to me like you don't have a problem paying your mortgage, you just want a better interest rate. So they may have denied because of your DTI and are now sending you requests for the balances that you have outstanding from paying the trial mods.

I'm no expert on this by any means but I have been reading articles and blogs on this and I think it's sad how this program that is supposed to help those in need has become one of disorganization. I hope you find a solution to this and you are able to keep your home.