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bky
Joined: 02 Jul 2009
Posts: 4
2.26 Dollars($)
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Post subject: CAN I DO A LOAN MODIFICATION IF I PAY ON TIME? |
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| IF I CAN DO A MODIFICATION AND SUBMIT THE PAPERS, DO I HAVE TO CONTINUE WITH MY PAYMENT UNTIL IS DONE, AND IF NOT IT IS GOING TO MY CREDIT AS LATE PAYMENTS? |
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smithsussane
Joined: 18 Sep 2008
Posts: 10020
Location: Alaska
917.78 Dollars($)
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Hi bky!
Welcome to forums!
It would be better if you could keep on paying your debts until your loan modification is accepted. If you don't, then there are chances that the lender may report it as late payment.
Feel free to ask if you've further queries.
Sussane |
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loriekelly
Joined: 22 Jun 2009
Posts: 6
3.79 Dollars($)
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Post subject: CAN I DO A LOAN MODIFICATION IF I PAY ON TIME? |
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| Hi bky. I am going through a home loan modification with B of A. 30 days ago they told me that in 30 days they would contact me regarding my application. They called me last night at 9 pm and requested current paystubs and a copy of my expense report (listing all household monthly expenses). When I tried to make my payment online (I have never missed a payment), I received an error message that indicated my account "required special attention". I had to call an 800 number and told the rep that I was calling to make my payment. she said I couldn't make a payment because my account was on hold. I told her get someone else on the phone who was qualified to accept my payment. She did and I was able to make a payment. Don't miss a payment. If you do, you might not be eligible for the "streamline" home loan modification and your credit score will be effected. If I can help you with your application for the modification, please let me know. It took me probably 100+ hours to research and get mine processed. I can share the information with you and hopefully save you some time and stress. Good luck to you! Lori |
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annyb27
Joined: 07 Jul 2009
Posts: 144
-1.08 Dollars($)
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GOOD POST.....
HUGE INFORMATIVE AND USEFUL |
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Combat VF-24
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Post subject: Loan Mod vs Ch 7 |
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We are in a "neg-am" loan. Every month we make the "minimum payment" (less than interest only) and the balance is tacked on the backside of the loan. Our original loan amount back in the summer or '06 was 320K. The company that sold us the loan told us it was a "great loan" for we could make the minimum payments for 2 years and then re-fi to a conventional fixed.
Fair enough.
Then of course the economy collapsed.
This loan was not taken out of greed or impulse. The proceeds of the equity were put right back into the home in the form of remodeling. Lots of blood sweat and tears. I think we may have been the victims of predatory lending but at current this is neither "here or there."
Now after an auto accident back in '07 which has yet to be resolved, mounting credit card bills (partially our fault) and this "great" loan that now has a principal balance of 350k, well we are stretched to our limits.
Ch 7 seems to be the best option and yet I had hoped for some form of loan modification. I have tried (in vain) to contact Loss Mitigation at BofA. They tell me that because we are current on our payments and our debt to income ratio is acceptable (...it is not. After mortgage payments, and unsecured debts and living expenses we are in the red by over $500.00 per month) that they can not help us. We have worked with ACORN and another not for profit organization without results. They have sent BofA our financial info and BofA acknowledges reciept of these docs and yet they are not the leat interested in even considering helping us.
Taking this info into account, my questions are as follows:
1. Is there any wisdom in approaching an attorney to pursue a loan mod? I have heard horror stories about these loan modification companies that have popped up and have swindled thousands of helpless victims. Are not attorneys required to work more ethically? Are they not guided by their respective state bar assocation?
2. Would a Ch 7 be a wiser choice for us? And if this is the course of action then should we include the house? Should we simply "walk away" or should we tough it out and re-approach the loan mod in say, 6 months to a year?
BTW Our home's estimated value is somewhere in the neighborhood of 130k to 150k. We literally owe twice as much as it is worth?
Any help would be greatly appreciated.
Thanks and best wishes to all of us that are in this horrible situation. |
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smithsussane
Joined: 18 Sep 2008
Posts: 10020
Location: Alaska
917.78 Dollars($)
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Hi Guest!
Welcome to forums!
You can contact a loss mitigation expert in order to negotiate with your lender so that they accept your loan modification request. You can contact your attorney and check if he is ready to negotiate with the lender on your behalf. Generally loss mitigation experts can help you in better way in this regard.
If you walk away from the property, the lender would foreclose the property and sell it off to recover his dues. If you want to sell off the property, it would be better if you could apply for a deed in lieu. Though this will effect your credit rating badly, you won't be liable for the deficient amount.
Feel free to ask if you've further queries.
Sussane |
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johnv
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Post subject: loan modification |
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| does a loan modification stop foreclosure or trump it |
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smithsussane
Joined: 18 Sep 2008
Posts: 10020
Location: Alaska
917.78 Dollars($)
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Post subject: |
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Hi johnv!
Welcome to forums!
A loan modification would help you in stopping your foreclosure. It is considered to be one of methods to avoid foreclosure sale of your property. The lender would reduce your interest rate in this process and increase your loan term which would help you in paying off the mortgage dues easily.
Feel free to ask if you've further queries.
Sussane |
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missg3
Joined: 03 Aug 2009
Posts: 1
1.78 Dollars($)
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Post subject: Was in loan mod but got dumped due to "late payment&quo |
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okay, here is my story....Wells Fargo of course!
My husband got cut to part time work and then laid off and we could not make the payments anymore. We applied for the loan mod and I had just sent the last "trial" payment when I get a letter saying thank you for canceling your loan mod....of course I freaked out! When I called they told me they didn't receive the payment that was due on the 1st of July until the 13th of July. I told them that i sent it on the 26th of June and they said sorry. When I asked what I could do, they said reapply.
Here in lies the problem...my husband has gone back to work full time but in 2 weeks time he will have to take mandatory time off(about 48 hours a month). Also when i checked to see when the check was cashed, it was stamped on the 7th so they had to have received it before then. Also on my WF mortgage account, it said that funds were applied on the 9th.
I'm not sure that we would still qualify but they have given us until the 25th of August and I am really worried. Our house is now worth 40,000 less than our loan so worth about 180,000.
Should i call the customer service # and ask to speak to a supervisor and ask for an exception or to look at the date on the envelope I sent in? They didn't give me an option to pay on line or by phone in the packet they sent. They sent pre addressed pre paid envelopes that I had to send in.
Please help, I am desperate to keep our house. |
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sara
Moderator
Joined: 05 Jul 2006
Posts: 2645
Location: New Brunswick, New Jersey
488.43 Dollars($)
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Hi missg,
If your check was cashed in on 7th of July, then you should first clarify it with the lender as to why they have canceled your loan modification. If they give you some other reason for the rejection of the loan modification, then you should reapply for it. Or else, you should insist your lender to consider the same offer.
Take care. |
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Garry
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Post subject: second lien program update on April 28th 2009 |
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| O.K. I finally received a loan mod offer from B of A and sent in my first trial payment, now I'm trying to figure out what to do about my second mortgage with Chase. From what I'm reading the second loan mod is automatic? Can anyone explain this second lien program to me and what I should do? |
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adonis
Joined: 22 Oct 2005
Posts: 10242
Location: ALASKA
1042.50 Dollars($)
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Post subject: |
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Hi Garry,
Did you contact your second mortgage lender and requested for a modification? If not, then you should inform the second lender about your hardship and apply for a modification.
_________________
Procrastination is the enemy of your financial success |
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Judi
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Post subject: loan modification |
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| Can we get a loan modification if we have money in savings? For instance, we have $6,000 saved up, but we have $20,000 in credit card debt. How is that considered? |
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adonis
Joined: 22 Oct 2005
Posts: 10242
Location: ALASKA
1042.50 Dollars($)
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Post subject: |
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Hey Judi,
Though you have money in your savings account, you can get a loan modification. You'll have to apply for a modification with your lender and check if you qualify for it.
_________________
Procrastination is the enemy of your financial success |
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loriekelly
Joined: 22 Jun 2009
Posts: 6
3.79 Dollars($)
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Post subject: second lien program update on April 28th 2009 |
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| Hello Gary. You said you received your modification from B of A. How long did it take? If you don't mind me asking, what are the new terms? I am currently negotiating with B of A for my loan modification and have been waiting months for my paperwork. Have you contacted Chase about getting a modification? If I remember right, they are one of the big banks who take bail out money, making it a requirement that they participate in modifications. Thanks. |
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