This was my previous post to yesterday's article, hope it helps:

I have a GMAC account. I actually was declined at first because they sent me the approval paper work 7 days before the first payment was due. I told them that was not possible, so they said to apply again, which I did, and a nice rep called and told me I was approved so I had advance notice to make the payment.

The process actually took 8 months, it was very scary, with foreclosure
papers served and all, but looks good now.

From what I understand, the new modification program is a simple formula-app 33% of gross monthly income is your new loan amount, but you have to show you can afford the payments. After 3 months of successful payments, the loan is modified close to the amount of the trial modification for the lifetime of the loan.

The only snafu I may have is the escrow account, which is now short. They require one in the modification. So I think they add the shortfall into your permanent payments.

If I can offer any advice, it would be this:

Be patient, give them everything they request, and document every phone call, fax, etc.

Remember, foreclosure, or lis pendens, is an administrative process that can be stopped at any time. Be worried, of course, but not so paranoid that you don't communicate with your lender.

I did this without an attorney, but you may want to hire one if you feel you need to.

Hope this helps, and remember most of us are in the same boat.

Wells Fargo lead me on from Feb until two weeks ago. I was never late but in an interest only arm. They sent me a letter saying my investor didn't want to work with me. It took them 6 months to tell me that.

The only candidates for loan modification should be real (not liar loans) owner-occupied ,primary residences with first lien status mortgages.
Homeowners magically expecting the bank to take a loss in principal because house values have dropped are idiots, are we going to allow the banks to take the profits if the house values go up? Too many people have multiple mortgages from multiple financial institutions, good luck with that.
In my opinion home equity loans are legalized gambling anyway, borrowing against mythical increases in the market value of your home is a questionable business practice. I am still waiting for the reforms to appraisers and real estate brokers...I guess they have better lobbyists than the banks/credit card companies.

i have citimortgage fha 30 year loan that got all fouled up about 2 years ago. when we went through streamline process the loan underwriter miscalculated the taxes by 1500 dollars. I did not catch the error until 2 payments into it. by then it was already too late as it was oct of that year and taxes are due in dec. so when the new year rolled around, they re-calculated the taxes and added about 300 dollars to my monthly payment to make it even and pay for the years escrow as well. needless to say that just the 300 increase made payment almost unaffordable. If i were to tell you that last year has been easy i would be lying. at first there was no way to modify my loan because its an fha loan until i was 3 months past due(really????!!!!) and even then the prospects of getting any adjustments was dim. That all changed about 2 months ago when fha loans were included in loans that can be easily modified. i now have a payment i can afford without shuddering, everything is fixed and i am able to keep my home. was it easy? no was it worth it? yes. my suggestion is be honest with yourself and your loan councelor..if they ask for lots of documentation, dont think they are being nosey... the more info you give them the more they have a clear picture of your situation. and most of all.... do what they are asking you to.... because in the end if you dont they have no real reason to try to modify the rules by which they lent you the money