modification of mortgage

datc91 · Joined: 01 Feb 2008 Posts: 3 2.37 Dollars($)

I'm in 3 yr ARM and in April my mortgage will adjust. I'm trying to work with my bank, but they are not very helpful. I've been paying all my bills on time for the last 16 yrs, my credit score is 767, I'll pay credit cards next month and only left I have is my car pmt9 for 8 more months). But my lender doesn't want to work with me, they gave me high rate for modifying my loan on 30 yrs P&I, which I can't afford. What is the next step to try again to nagotiate
Please advice
Thanks
AT

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi datc,

Welcome to the forum.

How much do you owe now to the lender?

See if the " lender doesn't want to work with" you, you just need to shop around a bit for lenders and I am sure you will get one who will provide you best terms and rates.

Best of luck.

datc91 · Joined: 01 Feb 2008 Posts: 3 2.37 Dollars($)

1st loan $203,372, second $65,000. I manage my budget very well, coming from different world 16 yrd ago, I know what is to not have and I do very well with paying every bill on time .I can shop around but I can't refi now because of the market, many houses here are below the purchase price.

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi datc,

Welcome back.

It is nice to see that there someone who "budget very well" Smile

and we all should try to do so.

Do you know the appraised value of your house? How much is it.? You have paid monthly mortgage payments for 3 years. So it may higher than what you owe to the lender.

The rates are down. So if you can refinance it to 30 year fixed, it will be better.

Feel free to ask if you have any further questions.

Thanks.
Larry

datc91 · Joined: 01 Feb 2008 Posts: 3 2.37 Dollars($)

Well , looking other houses around my sq. ft, maybe $60,000-$80,000 under. I'm not sure, but all the housing in Sacramento is selling for much less then what we pay 2-3 yrs ago. THe market change, I understand that,I know my house will appraise below the market I can't loose it, I can't refi, but I want to work with my bank for some modification on my first loan. Simce that great credit, payments on time won't work.

Guest 0.10 Dollars($)

Thanks for sharing

Jessica · Posted: Sat Feb 02, 2008 1:24 am Post subject: RE: refinancing with 30 year FRMs

Hi Datc,

Currently rates on 30 year fixed mortgages are going pretty low, so I don't understand why your lender has quoted a higher rate. can you tell me what's the rate offered? Did you explain to your lender why you wish to modify the loan?

You can try out with an FHA refinance loan offered by some other lenders. Had you defaulted on the loan, I would have suggested that you go for an FHA Secure program. But right now just a simple FHA loan would be good enough for you.

Regards,

Jessica.

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