A trial payment plan (TPP) is the first step in the loan modification approval process. A TPP signifies the end of the loan modification review process and is considered an “approval decision” on your loan modification request.
Your lender may propose a Trial Payment Plan (TPP) as part formal loan modification process. A Trial Payment Plan often occurs for a set amount of scheduled payments and may reflect a new proposed payment structure.
If you arrange a loan with us, it is important for you to know that FCI cannot approve your Trial Payment Plan, only your lender can approve a Trial Payment Plan as FCI is the loan servicer for your Lender and FCI works on behalf of them. Upon successful completion of the Trial Payment Plan’s terms, typically the loan modification will officially be enacted.
What can you expect to be included in your TPP?
- The duration of the TPP (usually 3 payments in 3 consecutive months).
- The exact amount due for each TPP payment.
- Payment due dates.
- Payment instructions for where to send / how to make the TPP payment.
- Instructions on what form of payment is acceptable to them (check, certified check, wire, moneygram, etc.)
- Some lenders will include the type of modification that you are going to be receiving, such as a HAMP Tier 1, HAMP Tier 2, or an FHA Partial Claim.
What information will not be included in the TPP?
- The terms the lender will offer in the final loan modification.
- The trial payment plan will not tell you if there are any due or past due escrow payments, pre-payment penalties, insurance payments, or taxes.
- It will not let you know what the interest rate is going to be on the final modification.
- The trial payment plan will not reveal if there are going to be any balloon or lump sum payments due over the life of the loan.
Common mistakes about Trial Payment Plans
- Don’t make all three TPP payments at once.
- Don’t overpay or underpay or split the TPP payment.
- Don’t pay the TPP payment online.
- Mail your TPP payment with tracking information.
- You should track all of your trial payments, make sure they are all received and applied on time and do not assume the lender are going to make sure that these things happen.
- Once the trial period is over, inquire about your permanent loan modification and when it will be coming.
- Pay the TPP payment in certified funds if required.
- Don’t wait until the last minute to make the TPP payment.
- Call to confirm the receipt and application of the TPP payment.
If you have further questions about a TPP agreement, the loan modification process or would like to discuss your individual situation, please feel free to contact FCI Customer Service at (800) 931-2424 x651, or email customerservice@myfci.com.
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