Yes it is true that a loan modification does not always lower your payment..most investors will not allow a rate reduction on a loan that is already a fixed rate.....if you are 4 months late on your mortgage and you have a fixed rate your payment will go up because the 4 months are being put back on your principle and it is capitalized over the remaining term of the note thus raising your principle balance and raising your payment..
If you are current and simply asking for relief from your ARM then no your payment won't go up your interest rate will likely just be rest for 5 years to the original rate....if you are delinquent AND you have an ARM your rate might get rest but because of the delinquency and depending on how delinquent you are your payment still may go up also..
Posted: Tue Feb 26, 2008 12:40 am Post subject: RE:
Hi Matt,
You mean you're into negotiating with mortgage companies to help borrowers with some work out options? Isn't that similar to a foreclosure help company? I've heard most of these companies are frauds, is that so? You seem to be giving some great advice here. Not a problem if you aren't a lender or broker, you can still join this community and get rewards as other have. Just have a look at http://www.mortgagefit.com/annoucements/community-rewardsdollar.html .
Even i joined with the aim to help others..i was looking for such communities to help people whenever I had time from my regular work and i stumbled across this forums one day and what a great community it is! I like the people here as they genuinely want to help others and you too seem to have similar thoughts. Well, that's great
Hope to see you soon as a community member. _________________ Procrastination is the enemy of your financial sucess
No I work for a workout department for a mortgage company. I'd perfer to remain annonymous however.
As for Foreclosure assistance companies, I wouldn't go as far as to call them frauds because many have genuine intentions of helping homeowners, however from the borrower perspective those companies can not do anything you can't do yourself, so why spend the money? The money you spend on getting one of those Foreclosure Assistance companies to help you is money you could put on your delinquent mortgage!
The best rule of thumb is to work with your creditor and negotiate directly with them in most instances.
I think the main moto here is to help people if we can. So if you can help people with your sound info and valuable suggestions there is nothing better then that
jameshogg
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