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danielleevans1
Joined: 30 Mar 2008
Posts: 1
1.62 Dollars($)
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Post subject: Mortgage modification |
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| We currently have 2 mortgages which we are having trouble paying. Our lender has suggested we modify the loan because we are in a high interest only mortgage. Are there risks we should look for? Should we seek counsel? Our original loan officer lied on our financial paperwork and we should have never been qualified for this type of loan. We only purchased with an interest only loan to give us time to sell the house we were living in prior to purchasing this home. That house is still on the market and doesn't look like it will sell anytime soon. Any advise will be helpful. |
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sara
Moderator
Joined: 05 Jul 2006
Posts: 1679
Location: New Brunswick, New Jersey
315.07 Dollars($)
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Post subject: RE: loan modification risks |
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Hi danielle,
I guess you took out the interest-only loan just to get access to funds till you could sell the home. I have to say this but this doesn't seem to be a good decision on your part. It is at times quite difficult to manage two loans on the same house until and unless you have the funds required.
There might be risks involved because I've heard loan modification often increases your monthly payments. So you'd have to talk to your lender and then come to a proper solution. may be he can suggest aletrrnatve solutions like another reapyment plan or a refinance. I suggest that you have a stright talk eith your lender and while yuou do so, seek free consultation with the loan consultants in this community.
Take Care |
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larry
Joined: 27 Jun 2007
Posts: 3328
474.49 Dollars($)
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Hi danielle,
Welcome to the forum.
You can go for loan modification if it decreases your monthly payments and also your interest. It is meaningless to go for loan modification if the monthly payments and the interest rate increase.
Feel free to ask if you have any further questions.
Best of luck,
Larry. |
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Gil
Guest
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Post subject: Reduce Principal Balance |
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| Is there anyway my lender can reduce the principal balance on a residential property. Property is 4 months default payment. I want to keep it if they lower the principal. I received the ANNUAL REVIEW NOTIFICATION asses value base on county is 370,000, Principal balance of 530,000 |
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larry
Joined: 27 Jun 2007
Posts: 3328
474.49 Dollars($)
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Post subject: |
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Hi Gil,
Have you consulted with your lender and requested him to reduce your loan balance. Although I don't think the lender is going to reduce the principal balance of your mortgage. He may only reduce the interest rate and the monthly payments by modifying your mortgage.
Take some action ASAP otherwise you are going to face foreclosure as you are already 4 months behind on your payments.
Feel free to ask if you have any further questions.
Best of luck,
Larry |
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Mikey B
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Post subject: mortgage modifications/help |
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| I was behind 3 months on my payments and didn't start a foreclosure process but I needed help bad to get caught up and save my home. I called US Mortgage Modification and worked with a rep. named Jeff, he was awesome. Anyways, long story short, he got my mortgage re-instated with no fee to the lender and saved me about 37% on my monthly payments and I even didn't have to make a payment until September of 2008, 45 days later approx. My question is: Do you think I could have done this on my own?? thank you, Michael |
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smithsussane
Joined: 18 Sep 2008
Posts: 3738
Location: Alaska
561.45 Dollars($)
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Hi Mikey B!
Welcome to forums!
You did a good thing by consulting a representative of US Mortgage Modification. They know how to deal with these situations.
Feel free to ask if you have further queries.
Sussane. |
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tnsmith7
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Post subject: Interest only Loan, Poor Credit, is Loan Modification Opt |
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| I have 2 loans with countrywide; the first is about 144,000 at 11% with adj interest rate; the second is 36,000 at 13% fixed rate. Not behind on mort payments but if loan adjusts again afraid wont be able to afford it. Shld do Loan Modification, have poor credit. Will FHA finance me? What are best companies for Loan Modificaitons? |
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erandjr
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Post subject: Home in foreclosure |
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| Am about 6 months behind in mortgage; home went into foreclosure on 06 Jan 2009. Need lower monthly payment, have poor credit due to late mort payments, dont want lose home. Is Loan Modification good option? What are reliable companies; non-fradulent? |
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jameshogg
Joined: 20 Dec 2005
Posts: 4291
Location: nevada
509.34 Dollars($)
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Hi,
To tnsmith,
As you are not late on payments, you can first try refinancing the mortgage at a lower rate. I think a FHA refinance is possible for you provided if you have a credit score of at least 580. Moreover, you should not have any collections or late payments on your credit report.
To erandjr,
You have mentioned that your property has been foreclosed on 6th January, 2009. If it's already foreclosed and sold in the auction, then you will not be able to save your home by a loan modification.
If you have only received a foreclosure notice from the lender, then you can definitely speak to the lender about a loan modification. To know more about loan modification, check out the following link:
http://www.mortgagefit.com/know-how/loan-modification.html
Thanks |
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worried
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Post subject: mortgage modification - risks |
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| We are current on our payments, we are only paying interest. (we have a 5 yr ARM fixed, in two years it will become a variable interest loan). We are retiring next year and will not be able to make the payments (not even interest only.) We owe twice what the house is worth now. We asked our mortgage company to modify our loan but they said that at this point we don't qualify. We would like to stay in the house and we could make payments (once retired) if the interest rate is lowered, (even if the principal stays the same). Is there anything that we can do now to prevent ourselves from falling behind on payments next year? |
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jenkin7
Joined: 04 Jun 2007
Posts: 3430
Location: Hawaii
514.35 Dollars($)
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Hi Guest,
The lender will not modify your loan, unless they are sure that you will be able to make the payments under the modified plan. Since you are going to retire next year, it is likely that the lender will not modify the loan. In that case, the other option you have is to refinance the loan into a lower rate. Considering your impending retirement, it will be difficult for you to qualify for a refinance. If you have good credit score and a good amount of down payment, some lenders may consider offering you a loan. |
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tnsmith7
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Post subject: Need to Refinance ASAP |
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| I have spoken with you previously. I have 2 loans with countrywide now Bank of America; the first is about 144,000 at 11% with adj interest rate; the second is 36,000 at 13% fixed rate. Not behind on mort payments but if loan adjusts again afraid wont be able to afford it. Tried to negotiate with them and they state I am not eligilbe. Have poor credit; Score about 520. Is loan modification and option what companies are not known for SCAMS |
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phyllisg
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Post subject: mortgage modification requirements |
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| I am in the trial stages of a loan modification. My question is a scary thought, for us... My husband and I live in the home. My son abandoned the property 1 year ago, in other words, moved out and totally disregarded us as parents. To put it correct perspective, my son was kicked out and will have nothing to do with us... Will the mortgage modification ask for my son's information too? If so, it will never be possible to obtain it... where does that leave my husband and I? |
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savior70
Joined: 25 Mar 2009
Posts: 1422
Location: Florida
168.75 Dollars($)
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To tinsmith,
A loan modification can definitely be an option for you. As your credit score is quite low, chances of a refinance is impossible. In such a situation, you can at least try to lower your monthly payments through loan modification. Interest rates of 11% and 13% are quite high. The current interest rates on home loans are low and it would have much better if you could refinance both the mortgages at current market rate.
As far as the scams are concerned, all I can say is beware of any modification service provider who charges a good amount of fees upfront. Talk with the loss mitigation dept. of the lending company and check out if you qualify for any modification program.
To phyllisg,
Is your son on the loan? If he is not, then the lender will never want to know his information to modify the loan. If he is one of the borrowers on the loan, the lender will ask about his financial condition before approving the loan modification. However, I do not think it is going to create any problem with your loan modification request. If you and your husband are on the loan, your son’s financial information will not be too important. You can explain the scenario to your lender and I believe they will understand your situation. |
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