ALS Home Modification..pls some advice

Every mortgage company is different they may run another credit report depending on how old the last one they ran is, I would say definately if it is over 90 days. If they say they are not reporting to your credit, they shouldn't be, you could ask them how long and in any case the mortgage would not show at all on your credit until they start reporting again. I'm not sure why it would take so long, have you had to submit additional income docs to them? (Make sure and submit the entire package the first time) They may not have the loss mitigation staff to review the number of requests they have coming in. Have you even been set up on a 3 month trial yet for the Obama plan? I work for a mortgage company and approve loan modifications, usually within a week. (depending on how long it takes for the escrow figures, attorney fees(foreclosure loans only) if I need investor approval etc...) But I know my companies turn around time is a lot quicker then most. Good luck!

Well I think right now everyone is looking at modifying their mortgages and the lenders are overwhelmed with loan modification requests. That is why its taking them so long to process the requests. You can always ask them to speed up the process.

Anyway, the lender might not look into your credit report before giving you a loan modification but what they would really look at is your income. They would certainly check if you can afford the modification or not.

Are you still current on your mortgage payment? If you're still current in all your accounts, nothing negative would be reported to your credit report. But, if you're delinquent, it would eventually show up and hurt your score.

Thanks for your replies. We are on the trial period and have been since Sept of a payment of 1/2 of what we were paying. We have never missed that payment or been late. Even before we started this we were not on default with the loan at all..never late payment. We simple called our mortgage b/c we know our 5 yr ARM was up at the end of this year and we are on an interest only. We knew we needed to re-finance or do something.They told us "hey you qualify for the obama thing..let's do that. We said great. We filled out huge packet in Aug. Then heard nothing until begining of Jan. Of course I called every month with them reassuring me all was turned in and to just wait. Then Jan they told us they needed on last final profit and loss statement thru Dec. We did that. Now we are again still making the lower payment and now WAITING..I realize tons of people are doing this, but 6 months seems a really long time. I am just getting nervous and will just die if they don't approve..then what..I have to make up the balance of what I have not been paying??? That would be impossible. We need to get moving on this debt settlement thing so anyways since they aren't giving me any answers I was hoping find out all I can on here. :>

I would say call them as often as possible and as much as I hate to say it, see if you can get a direct number for the person handling your account. Try and elevate your calls, see if you can talk to a team lead. The trial period is usually only for 3 months, unless Aurora is doing things differently?

Yeah I have no idea what they are doing. The last call I made was yesterday and they did transfer me to another dept, but only would get an answering machine. Called back again and it was full. Frustrating. I wish I could just simply ask them hey are you going to be doing a final credit check or what?? I just don't want to alert them to anything. But we reallly need to get cracking on this stop paying cc so to start the debt settlement process. I hear negative about so many lenders but honestly can't find anything about ALS...so hoping that is a good sign???

Luckin, I'd agree with Loss Mitigation on this aspect. Really, there isn't much that can be done about it since no time limit has been specified for the lenders to approve a modification proposal. You can call them up more frequently, urging them to speed up the process.

They told us at the beginning that the govt tells them it has to be done in 120 days but they are now saying that is not true. Oh well. We have done all that we can and it is now just a waiting game. I will for sure post again when the decision comes in. Thanks again for all your input...

Lucking, I'm not aware if any such time is mentioned in the program.

Just hang tight I'd do the digging for you.

SC...thanks again. One of the people I talked to at the beginning of the year was really helpful so I thought at the time, said you really need to keep bugging us. Under the Obama Act these loans need to be completed at 120 days and this is way over. So if I were you I would call every week until you get an answer. So I was like ok...I have been calling every week. One of the people I called yesterday said well that is true once it gets into the review process and ours did not go into review until Dec 19th...well that is dumb they have had our paperwork since Aug 21st..how the heck am I suppose to know when they decide to review it. When I call there is a recording that says thank you for your paperwork received Aug 21st if you have not heard a decision by Dec 19th pls stay on the line and talk to one of the reps blah blah blah..it is all so confusing. I just hope whatever is going on will all work in our favor. I really do get that they are overloaded but gosh a real answer would be nice. I mean they give me absolutely nothing. The frustrating thing is we probably could have back then done another traditional kind of re finance but we went with there recommendation of this obama thing and now we are way behind on payments because we have only been making the trial payment.Another thing which I guess is good, but I worry it is going to bite us in the butt is they seem to be totally fine with all our paperwork. It is a TON of paperwork. I can't believe that we did that all right??!! I totally expected them to come back and say oh you missed this or filled this out wrong or something but so far they are telling us all is fine. We did our very best with that, but gosh just being human I wou;d think anyone would make some mistake on all this paperwork. So it is causing me tons of stress. Things are just not going well for us these last few months financially and this is not helping. Anyways, any insight would be helpful. Thanks for all your comments.

lots of people miss some of the paperwork, so it slows down the whole process, because then the mortgage company has to request the missing docs. Where I work, we dont wait for it, we just shut everything down and then once the missing docs are recieved; start the process over. We just dont have the time to wait, but then again we process hundreds of requests a day. Aurora services your loan do you know if Aurora is also the investor on your loan. I would recommend trying to find out your investor guidelines on modifications and for sure if they participate in the HMP program.

So did my weekly call to ALS today. Still in review. However, they are suppose to be giving us a status update any day because it has been 60 days pass when the 3 month trial payments should have stopped. We have still been making the trial payments on time. She did tell me the investor was Freddie Mac and that the 31% guideline is not all that they look at. They also look at if we were ever delinquent and a year ago that that actually helped you...what?? Whatever. We have never been delinquent. I am so confused..this whole thing is killing me. SC, loss mitigation anymore you can add to this nonsense of what she was maybe trying to tell me?? I also asked if it was a good sign that a month ago they asked for more paper work and she said no. This could go either way. The last guy told me he thought it was a good sign. Our initial paper work was put in back in Aug 09. She said to be prepared to bring our loan current or they would foreclose..nice they just started telling us this last week. First we had ever heard of that. All other calls have been..looks great, shouldn't be a problem.blah blah blah... any other insight to calm my nerves would be helpful. Thx.

That sounds like some nonsense to me, about previously being delinquent, that is not part of the HMP program, and if you were never late that really makes no sense. The phone rep may have been feeding you a line. Glad to hear you have a Freddie, they definately participate in HMP, I would be somewhat concerned about them telling you to be prepared to bring the loan current. I am suspecting they may be thinking that they are not able to get your payment low enough to be at 31% of your gross income. I am suspecting that they put you on the trial first before calculating to see if they could get to your target payment with an HMP mod. If they do deny you, make sure and ask why it was denied, ask them to be specific. I would also request to have your account reviewed for a traditional modification or a forbearance plan. Also this would mean your not bringing in enough income, so I would suggest to start looking for more, part time job, renter etc... If you do have more income, they should be able to rereview for HMP.

Sorry I just had a couple more thoughts, if you are denied, question the calculations they have for your income etc. most likely the person calculating only started a few months ago, so they may not be accurate. Ask what they have for you gross income and calculate it your self. If your paid weekly make sure and multiply by 52 and divide by 12 for your income and 26 if paid bi-weekly etc...

[QUOTE=;][/QUOTE]
My friend recently lost their home to foreclosure and now they are planning to file for bankcrupcy. They recently went to file their taxes and they found out IRS is billing them 52,000 for abandonment even though they have tried for months asking for help from the banks. Need some advise on how i can help guide my friend to the right people to settle the foreclosures.

They should ask their accountant if they are insolvent...if they are they can't get a bill from the IRS. Insolvency is a huge thing to look into with foreclosures, settling debts etc...