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Gray Swan
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Post subject: almost ok, but curious |
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| I am almost ok with my income and house payments, but quite upside down on the value. When I hear about the new programs I wonder what I might be able to do with a Loan Modification or Short Sale or whatever. My job could disappear at any time. I am in California, and I'd like to start over from zero. I do not want to wait, I at least want to understand my options & maybe more. My lender must be happy to have me, for now. I know regulations have dramatically changed, how can I get "fresh" advice and review all my options? |
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jerry
Moderator
Joined: 17 Oct 2005
Posts: 1778
Location: MICHIGAN
266.05 Dollars($)
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Post subject: |
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Hi Gray,
A loan modification would be a good option for you. This will help you make your payments affordable and help you be current on the mortgage. But in order to qualify for the modification, you need to convince the lender that you can afford to make the new payments under the modification plan. The fact that your job could disappear any time might be a problem in modification of the loan.
If you do not want to keep the property, a short sale is an option to consider seriously. This will hurt your credit (by almost 75-100 points), but not as much as a foreclosure does. However, you may have to pay the deficient amount arising out of the short sale.
Thanks,
Jerry |
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ralph12
Guest
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Post subject: |
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| My option ARM is about to be recast. The loan is primarily interest-only. I've been making payments on time and have no plans to walkaway. But my home value has dropped significantly – I mean it's upside down actually and I don't have the equity to help me refinance. At the same time, I don't think I can afford the 30 year amortized payments. What shall I do now? Is there any chance for a loan modification? Do I need to pay closing costs for modification? |
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jerry
Moderator
Joined: 17 Oct 2005
Posts: 1778
Location: MICHIGAN
266.05 Dollars($)
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Post subject: |
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Hi ralph,
In your situation a loan modification would be a good option. You need to send the lender a hardship letter stating your current situation and why a modification is necessary for you. You will also have to convince them that you can make the payments under the new payment plan. If the house is upside down, the lender can even allow a principal reduction. You will be requied to pay for certain costs, but this is usually much less than the closing costs during refinance.
Thanks,
Jerry |
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Guest
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Post subject: |
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| Hi there…thanks for this informative forum…It would be great if you could answer my query. I've just received a foreclosure notice from my lender. The letter says that I’ve 30 days to satisfy the loan. What does that mean? Do I've pay off in full? If I pay this, will I own my property free and clear? Or can another lien come up? By the way… My 2nd mortgage is the one doing the foreclosing, not the first. |
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Niicss
Joined: 03 Oct 2005
Posts: 2620
Location: New Jersey
409.63 Dollars($)
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Post subject: |
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Hi Guest
You will have to pay off the past due amount along with late fees and attorney fees. If your second lender is foreclosing the property, then he will have to satisfy the dues of the first lender. If he is unable to pay off your first lender, then he would not be able to foreclose your property.
I would suggest you to contact your second lender and check out the option of loan modification. In this process, the lender will give you an alternative repayment plan which will help you in paying off the mortgage dues. However, you should remember that it would be the lender's discretion whether he would accept your request for modification or not.
Thanks.
_________________
Good is the Enemy of Great. |
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shuwanda
Guest
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Post subject: loan modification |
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| Can I get a loan modification without my husband's signture even though we're both on the mortgage |
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Shuwnda
Guest
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Post subject: |
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| We only have 1 loan on the house |
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adonis
Joined: 22 Oct 2005
Posts: 3852
Location: ALASKA
120.89 Dollars($)
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Post subject: |
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Hi shuwanda,
As both of you have your names on the mortgage, then I think the lender would require both of your signatures.
_________________
Procrastination is the enemy of your financial sucess |
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K3
Guest
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Post subject: Loan modification |
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| I have a ARM that will readjust May 2010 and a second both with IndyMac. I pay the interest only which is 3700.00. My house is very much underwater (California). I'm single and mostbof my paycheck goes to mortgage payment. I have not missed a payment and IndyMac will not help even after I sent a hardship letter. I was even told they don't care if the house goes in forclosure. What are my options |
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smithsussane
Joined: 18 Sep 2008
Posts: 3738
Location: Alaska
561.45 Dollars($)
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Post subject: |
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Hi K3!
Welcome to forums!
In my opinion, the lender is not offering you any kind of help because you are current on your mortgage payments. The lender might be thinking that you are capable of paying the mortgage dues regularly. Lenders generally offer loan modification if borrowers are delinquent on their mortgage payments. Though you have written a hardship letter, may be it did not convince the lender. I would suggest you to contact your lender once again and explain your situation.
Sussane |
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frederick
Guest
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Post subject: Property is 100K less than my loan |
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| I able to pay my loan, but I'm concern that I will have to sell before my property reaches what I paid. I paid 273K, and it's now somewhere between 175K and 200K. My question is: If I were to sell at a loss will my bank make me pay the difference, even if that means I have to give them everything that I have in savings. This is not my current situation but it could be in a couple of years from now. Or how does one protect themselves so that they will have enough money to live on after selling at a loss. Thank you. |
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jameshogg
Joined: 20 Dec 2005
Posts: 4291
Location: nevada
509.34 Dollars($)
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Hi frederick,
If there is a deficient amount from the foreclosure sale of the property, then the lender may ask you to pay the deficient amount. If you do not want to pay the deficient amount, then you can inform your lender about your hardship and apply for a deed in lieu. If the lender accepts this request, then your property will be sold off but you will not be required to pay the deficient amount.
Thanks |
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tee barnes
Guest
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Post subject: loan modification |
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| i thought modification was to make payment lower not higher. If payments are higher what would I be able to do to negitate lower payments once they have submitted a proposal? |
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adonis
Joined: 22 Oct 2005
Posts: 3852
Location: ALASKA
120.89 Dollars($)
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Post subject: |
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Hi tee,
In a loan modification, the payments can increase as the lender will add the past due payments while giving you the alternative payment plan. You can definitely negotiate for lowering the payments but it will be the discretion of the lender whether he would agree to it or not. |
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