 kramark55
Joined: 08 Sep 2009
Posts: 1
1.94 Dollars($)
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 Posted: Tue Sep 08, 2009 4:43 pm Post subject: Proactive modification? |
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| I live in California and though my property lost a great deal of value on paper over the last year, it seems to be going back up. It is in a great area and it is a fine property. That said, I have a first and an equity line on it. LTV right now is about 63%. I am self-employed. The first is 4 yrs. into a 10 yr. fixed interest only that will convert to a 20yr. adj. The EL is well, adj. It has about 7 yrs. on the draw and then becomes 20yr. adj. In other words, I have time, but do I? The Bank gave me a far greater line than I asked for but I did not turn them down. I used it unwisely during these past years. I am paying very low interest only now, but can see interest rates rising over the next few years and I will reach my tipping point pretty quickly. I would like to combine both loans to a single, 30yr. fixed for security and peace of mind. This would amount to a conforming Jumbo. I tried refi. with my bank, BofA, but was denied due to too high of a debt to income ratio. By the way, they let me into this mess via the old stated income route. Right now, if I were able to get a loan, it looks like rates would be about 5%+-. This would be too high a monthly payment for me. 4% to 4.5% would be possible, if I could get it. The problem with a modification, if that is what I need, is that you have to be in or near foreclosure, behind on your payments, etc. I am none of that now. I pay, I never miss, my credit is excellent, etc. and most importantly, I really want to stay in this property. I have been here 31 yrs.+, I built the homes on it and I do not want to lose them. Is there a way to be proactive in modifying this situation? I do not want to become a problem, but I am one waiting to happen. Thank you. Mark |
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jameshogg
Joined: 20 Dec 2005
Posts: 4291
Location: nevada
509.34 Dollars($)
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| Posted: Tue Sep 08, 2009 8:12 pm Post subject: |
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Hi Mark,
As far as I know, you won't have to be delinquent in your mortgage payments in order to get a loan modification. If you feel that you would be facing hardship in paying off the mortgage dues in the near future, you can apply for a modification. However, the lender would judge your situation and then decide whether or not he would accept your request.
Thanks |
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