I need some direction on how to handle this problem.
I filed for Chapter 7 and was discharged in 11/09. I did not include my PHH mortgage in the BK since I was in the process of a loan modification and making the trial payments. I signed the mod agreement and made the payments I was supposed to be making. I never received a copy of that agreement signed and recorded as they stated they would.
In October 2010, I received a letter congratulating me for completing one year of trail payments. In the same week, I got a new modification agreement stating that PHH made an error and I was to sign and return the new agreement. I did, and again, never received a signed and recorded copy. 2 weeks later I got an intent to forclose letter. I was floored!
Turns out, PHH Mortgage was collecting my payments as agreed in the first package and holding them. On my 1 year anniversary, they applied all the payments, which of course came up 4 months short since they believe I should have been paying the higher amount, and reported my 120 late on each month. Not only did I have to make those up, I was now going to be late on the next 5 months and put a payment plan in place. PHH said if I made those payments as agreed, they would not report. Guess what... they did. Now I'm also showing 4 months at 30 days late (12/10 - 3/11).
To this day, I still do not have a signed copy of my modification agreement, nor do I have a copy of the note, or anything else for that matter.
Another thing - the entry on my TU report shows a balance almost 37K higher than what my principle balance shows on the online account info page. I'm pretty sure this is due to deferred principle in the modification.
The account is reported as $0 balance on the other 2 CRA's and IIB, which it was not. I think I'm just gonna let that slide... 
I have no idea where to go next to get this fixed, as I'm sure there's no way they're going to remove the lates. Any input from the fine community here?
My scores as of 7/2/11:
TU - 601 myFico / 662 FAKO
EQ - 661 myFico / 652 FAKO
EX - 674 FAKO
Ferris here. I read your post but I don't know what to tell you to do. 
I can't help you with your specific problem...
* have you asked them to send you a copy of what you had signed?
* do you still have a copy of the paperwork they sent congratulating you on the 1 yr completion?
* in the future, photocopy EVERYTHING before sending ANYTHING back to them.
A friend of mine asked me to help interpret his credit report. Initially, actually for more than a year, he expected the gov't/bank to forgive the difference in his property value and what he owed, as well as drop his interest rate 8.65% to something like 4.5%. He was financed at a high rate because he had a LONG history of neglecting his creditors as well as an IRS lien or two. It took a long time working with a bank (Bank of America) to finally get approved for a mortgage.
He applied over and over again with different companies to get a loan modification. He was never approved for one. And in his mind, he was entitled to it due to a drop in income and being upside down on his mortgage. He continued to ignore his bills during this waiting period, and skipped a few mortgage payments. And in his mind, if he didn't pay the January 2010 mortgage until February 28, 2010, he was not *REALLY* 30 days late and they couldn't report him late. If he skipped February 2010 payment, but made a half payment on March 30, 2010, then he thought he wasn't late at all. (He just didn't get it!)
So fast forward to the credit report viewing. I looked at it and asked if he ever got his mortgage modification. He said sorta. That BoA sold it to another company and the new company said everything was ok.
I looked closely at the new reporting. It says the mortgage is a 40 year mortgage. The friend swears he signed up for a 30 year mortgage. Went back to see what BoA was reporting. Sure enough, they were reporting a 40 year mortgage.
It appears that BofA, as a way to make the account look good, took all of the money past due (fees, payments, interest) and added it to the back end of the loan, changing the term from 30 years to 40 years. Then sold the loan to another company. (His payments stayed EXACTLY the same, although property taxes dropped significantly in his area.)
The friend doesn't really care. He's behind with new company but says it doesn't matter. In his mind, if the April 2011 payment is made, even partially, by June 1, 2011, he's not late. 
I only have the information he shared with me and what I saw on his credit report. There could be misunderstandings or information withheld by the friend.
I hope you can save your house from foreclosure. And when you get a chance, check your credit report to make sure that your loan wasn't extended on the back end.
