The Trial Period Plan (TPP) Trap

You were behind on your mortgage. The bank offered you a “Trial Period Plan” (TPP): “Make these three payments of $1,500 on time, and we will permanently modify your loan.”

You made the payments. On time. By certified mail. Then, in month four, the bank said: “You didn’t qualify. We are denying your modification.”

A TPP Is a Contract

Courts across the country (following the landmark Wigod v. Wells Fargo case) have held that a TPP is a binding contract. If you perform your side of the bargain (making the payments and providing the documents), the bank must perform its side (giving you the permanent modification).

Breach of Contract & RESPA

When a bank reneges on a TPP, they are often liable for:

1. Breach of Contract: For failing to honor the written agreement.
2. Promissory Estoppel: You relied on their promise to your detriment (you didn’t file bankruptcy or sell the house because you thought you were safe).
3. RESPA Violations: For failing to properly evaluate your loss mitigation options.

We Enforce the Deal

If you completed a TPP and were denied, do not accept it. We litigate these cases to force the bank to honor the modification they promised.