Posted on: 13th Nov, 2007 03:08am
If you're facing financial hardships and almost on the brink of foreclosure, then you can negotiate with your lender for a workout plan to avert foreclosure. You have few options available before you to avoid foreclosure. These options are deed in lieu, short sale, forbearance and of course loan modification.
- What is a loan modification program?
- Are you eligible for mortgage modifications?
- What are the different loan modification programs?
- When is loan modification right for you?
- What are the benefits of loan modification program?
- What should you remember at the time of loan modification?
- What are the outcomes of a mortgage modification?
- How much time does loan modification take?
What is a loan modification program?
Mortgage loan modification is a program where your lender agrees to reduce your mortgage rate, extend the loan term, change the type of the loan etc in order to lower down your monthly payments.
Are you eligible for mortgage modifications?
You may be eligible if:
- You're at least 3 months delinquent on the loan.
- You took out the loan more than 12 months ago.
- You have stable income.
- The property has not been sold at a sheriff's sale.
- The property is in good physical condition.
What are the different loan modification programs?
There are a few modification programs which have their unique features. Here we briefly discuss about 2 most prevalent programs.
Treasury Loan Modification Program
This program has been designed by the Obama administration in association with the US Treasury. This is a very inclusive program in the sense that it is not only helping the homeowners currently in financial difficulties but also assisting the homeowners who have lost significant equity in their homes and who are foreseeing tough financial times ahead.
Federal Housing Finance Agency Loan Modification Program
This is the newest mortgage modification program offered by the Federal Housing Finance Agency (FHFA). FHFA serves as the supervisory regulator of Freddie Mac and Fannie Mae. This program is only applicable to the mortgages held by Freddie Mac and Fannie Mae.
Treasury Loan Modification Program
This program has been designed by the Obama administration in association with the US Treasury. This is a very inclusive program in the sense that it is not only helping the homeowners currently in financial difficulties but also assisting the homeowners who have lost significant equity in their homes and who are foreseeing tough financial times ahead.
Federal Housing Finance Agency Loan Modification Program
This is the newest mortgage modification program offered by the Federal Housing Finance Agency (FHFA). FHFA serves as the supervisory regulator of Freddie Mac and Fannie Mae. This program is only applicable to the mortgages held by Freddie Mac and Fannie Mae.
When is loan modification right for you?
Loan modifications are right for you when:
- You have experienced a long-term reduction in income.
- Your monthly expenses have increased.
- You don't have enough income to pay off mortgage dues.
What are the benefits of loan modification program?
This mortgage program alters the terms and conditions of a loan that has been agreed upon between you and your lender. Some of its benefits are listed below.
1. Averts foreclosure
With this you can avoid the severe negative consequences of foreclosure and short sale.
2. Restores credit score
With this you can protect your credit score. Foreclosure damages your score badly and it remains on your credit report for around 7 years.
3. Lowers principal balance
Principal balance is the amount of the loan amount (without interest) that has to be still repaid. Sometimes, be negotiating with the lender, you can lower down the remaining principal balance.
4. Reduces rate of interest
This mortgage program may help you lower down the rate on the loan. This in turn makes payments more affordable for you.
5. Extends the loan term
Loan modification may extend the term of the loan. With extension of the loan term, rate gets lowered. This actually helps you make payments easily.
6. Converts ARM to FRM & vice versa
This offers you the chance to convert an adjustable rate mortgage (ARM) to a fixed rate mortgage (FRM) and vice-versa. You may be willing to switch to the safety of making fixed payments offered by FRM from your existing ARM. Again, the rate on your existing FRM may be too high. In such case, you may want to convert FRM to ARM.
7. Waives off late charges
Your late charges may sometimes be waived off by your lender.
1. Averts foreclosure
With this you can avoid the severe negative consequences of foreclosure and short sale.
2. Restores credit score
With this you can protect your credit score. Foreclosure damages your score badly and it remains on your credit report for around 7 years.
3. Lowers principal balance
Principal balance is the amount of the loan amount (without interest) that has to be still repaid. Sometimes, be negotiating with the lender, you can lower down the remaining principal balance.
4. Reduces rate of interest
This mortgage program may help you lower down the rate on the loan. This in turn makes payments more affordable for you.
5. Extends the loan term
Loan modification may extend the term of the loan. With extension of the loan term, rate gets lowered. This actually helps you make payments easily.
6. Converts ARM to FRM & vice versa
This offers you the chance to convert an adjustable rate mortgage (ARM) to a fixed rate mortgage (FRM) and vice-versa. You may be willing to switch to the safety of making fixed payments offered by FRM from your existing ARM. Again, the rate on your existing FRM may be too high. In such case, you may want to convert FRM to ARM.
7. Waives off late charges
Your late charges may sometimes be waived off by your lender.
What should you remember at the time of loan modification?
While negotiating on a mortgage modification, you should keep in mind the following points:
- Check out your financial health: You need to review your finances carefully. Lender may ask a personal financial statement from you. You need to keep that ready. Your financial statement should contain a comprehensive list of all your expenses such as credit card bills, utility bills, food expenses and other financial obligations. You should estimate the average expenses on each item for the 3 months in order to better assess your financial health.
- Prepare a hardship letter: In order to apply for a loan modification, you need to prepare a hardship letter . The hardship letter should satisfactorily explain the reasons behind your inability to pay off the mortgage. It should also explain why you are looking for loan modification.
- Gather necessary documents: Before offering you a mortgage modification deal, lender asks for certain documents. You need to keep these documents ready. These documents include :
- Your bank statements and pay-stubs of last 2 months
- W-2 form of last 2 years in support of your annual wage and taxes
- 1040 Form of last 2 years as a proof of annual income tax returns
- Latest mortgage statements
- Hardship letter
- Current property tax statements, if available
- Intimate your lender about your position: It is wise to intimate your lender about your financial position. If you are unable to keep up with the mortgage payments, lender may offer you a loan modification program. But, for that you need to contact your lender
- Complete the necessary paperwork: Before approving your loan modification appeal, lender sends a financial worksheet to you. You need to fill up that worksheet carefully and send it to the lender along with other necessary documents. After receiving all these, lender assesses your financial health and determines whether you can repay your mortgage after modification.
What you need to show is that you are still able to repay your mortgage even if you are not able to meet your current monthly payments. - Get a written agreement: Â If the lender agrees to modify your loan, you should obtain a written confirmation from the lender. Mere verbal confirmation won't suffice .
- Follow the stop gap repayment arrangement: If you apply for loan modification program, lender can't offer it to you with immediate effect. It requires some time (maximum of 60 days) for the lender to make the offer. This time gap is required to check your financial statements, loan status and other documents. During this time, lender wants you to follow a stop gap repayment plan.
What are the outcomes of a mortgage modification?
- You can keep up with mortgage payments.
- You can convert your ARM into a fully amortized FRM.
- The principal, interest, taxes and insurance (PITI), may be or may not be included in the current loan balance.
- If the past dues are added, the modified principal balance amount may be more than 100% of the LTV of the original principal balance.
- Modified loan balance may include administrative charges caused due to the cancellation of foreclosure.
How much time does loan modification take?
You have to wait several hours to file your loan modification appeal. When your turn comes, you have to present your case confidently. You should have all the relevant documents ready with you. This is not a very easy task.
You may have to wait for several weeks to get the final modification offer after your case gets registered. Your lender may tell you about your course of action in the meanwhile. You may be told by the lender to keep on making payments so as to qualify for loan modification. You need to follow it seriously so as to get the approval.
The purpose of loan modification is to ensure that you can better afford your mortgage payments. Make sure you don't miss payments under the modification agreement, as the lender will consider it a new default and it will be harder to negotiate a second modification. With each default, the chance of losing the home in foreclosure rises.
You may have to wait for several weeks to get the final modification offer after your case gets registered. Your lender may tell you about your course of action in the meanwhile. You may be told by the lender to keep on making payments so as to qualify for loan modification. You need to follow it seriously so as to get the approval.
The purpose of loan modification is to ensure that you can better afford your mortgage payments. Make sure you don't miss payments under the modification agreement, as the lender will consider it a new default and it will be harder to negotiate a second modification. With each default, the chance of losing the home in foreclosure rises.
Related Readings
I was out of work for 3 months back in the late spring and early summer. After I obtained a new job I spoke with my lender and they wanted me to pay a three month "good faith" payment which was only a little above my current payment. I paid those 3 "good faith" payments and now I received a loan modification letter. The letter sets my loan back to 360 months and totally offsets the 2 years I have been paying on the loan. I owed 78,000 on my home and now according to this i will now owe 84,000. THis also increased my monthly payment by over $105 a month. THere is no way I can afford this. I thought a mortgage modification is supposed to help not hurt?? Any ideas on what I should do, I am very confused and lost. THanks in advance.
meta title:
Mortgage loan modification
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
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
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
GOOD POST.....
HUGE INFORMATIVE AND USEFUL
HUGE INFORMATIVE AND USEFUL
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.
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.
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
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
does a loan modification stop foreclosure or trump it
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.
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.
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.
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.
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?
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.
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.
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?
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.
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.
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.
DO I HAVE A CASE HERE?
Approximately April of 2007 I was granted a loan modification by my mortgage Option One Mortgage/AHMSI. This modification lowered my payment by reducing the interest rate to 2% for one year with a scheduled increase to 4% the second year then on the third year increase to 5.87%. Since this modification was granted I was able to afford my mortgage payments and made the payments on time each month. However towards the end of the year I became worried that when the interest rate adjusted up to 4% it may cause a financial hardship.
For that reason in December of 2008 I contacted MR. Alonzo Davis at Trinity Capital inquiring if he could contact my mortgage company and negotiate an amendment to the my loan modification keeping my interest rate at the 2% fixed rate for the life of the loan thereby keeping my payment lower. Alonzo said he was pretty confident he could and asked me if it would create a financial hardship for me if my mortgage payment increased? I explained yes! That is why I am requesting this amendment to the modification. So Alonzo asked me for the necessary information and said he would let me know. Within a day or so Alonzo called me back to tell me yes the mortgage company has agreed to negotiate the amendment to the loan modification. Alonzo explained that because he would have to go through the required process it would cost me $1500.00 to get this done. I was also told that I would be entitled to $1000.00 refund in the event the request was turned down but Alonzo said that they (Mortgage Company) already said they would do it.
I was requested to provide a list of all my expenses, two recent pay stubs, two recent bank statements and a hardship letter. Next I stopped by Trinity Capital to hand them a check in the amount of $1500.00 to cover the fees for this process. After several days I was informed by Alonzo at Trinity capital that the mortgage company has agreed to keep my interest rate at a 2% fixed rate for the life of the loan. After several days I called Alonzo at Trinity Capital because I havent received any paperwork confirming this agreement. Alonzo said that there may not be anything since the loan was not modified rather an amendment was made to the current modification. My statements continued to reflect a 2% but I was still concerned that I havent received anything confirming my interest rate would remain at 2%. I sent a letter to my mortgage company (AHMSI) requesting confirmation of the amendment that my loan is at a 2% interest rate for the life of the loan. After awhile I received a letter from AHMSI dated March 2, 2009 confirming that my mortgage is at a 2% fixed interest rate for the life of the loan.
Then the April statement came, it reflected an interest rate increase to 4% consequently, increasing my payment. I called AHMSI several times and was told that yes they see the letter dated March 2, 2009 which states interest is at a 2% fixed rate for the life of the loan. I was told by AHMSI that there records havent been updated yet. So I made the payment for the same amount I have making based on 2% interest. I received a couple more statements reflecting the increase to 4%. Trinity Capital advised me to continue making the same payments I have been. I wrote several letters and made several phone calls and nothing got resolved. Finally AHMSI stopped sending me statements all together. I continued to pay as normal. Soon I began to receive harassing phone calls and letters from AHMSI demanding payment and threatening foreclosure.
I contacted Trinity Capital to inform them of the situation. This went on for weeks. Late June early July 2009 I received a set of new loan modification documents in the mail. These new documents were for a new loan modification. Not the amendment which I was asking for in the first place. This new modification was 2% the first year, 3.4% the second year and continued to increase each year to a cap of ??... I was advised by Trinity Capital not to sign those documents because they were not what AHMSI agreed to and they would turn this over to their attorney.. I continued to receive harassing calls and letters. In fact the letters became more demanding. I gave Trinity Capital a copy of everything I received. More days past and I made several calls to Trinity Capital Trinity Capital trying to find out if they were able to resolve this. No news. Trinity Capital said they had their attorney Nova Dean Pack send AHMSI a letter. Still I heard nothing. Then I received a letter from AHMSI on Saturday 7/18/09 stating that if they do not receive the signed loan modification documents by 7/24/09 the modification offer will be denied etc etc.
I gave Trinity Capital a copy of that letter on Monday 7/20/09. I was told that they would contact the negotiator at AHMSI. I heard nothing back that day. On Tuesday I called Trinity Capital trying to find out what going on. I asked to speak to the attorney because I needed to know where I stand. I was told it would be easier to email him so I got Nova Dean Packs email address and sent him an email. No response. On Thursday 7/23/09 I called Nova Dean Packs office and left message with his assistant that I needed to
Speak to him. Later that day attorney Nova Dean Pack called me back. He told me that the letter from AHMSI which states my interest rate is at a 2% fixed rate for the life of the loan would be considered a typo. Nova Dean Pack told me that a 2% fixed interest rate was unreasonable and if it went to litigation I most likely would lose. He said that the new loan modification offer was a very good deal and that he would advise that I sign the new loan modification documents right away and get them returned via overnight mail and call the AHMSI negotiator to tell him I will accept their offer that I signed the documents and they are on the way. Because Time was running out for me I did what he suggested and immediately drove to the UPS store.
Although this loan modification is good, it is not what I was asking for from the beginning. I feel I was forced to accept this at the last minute because the advice I received from attorney Nova Dean Pack on Thursday afternoon 7/23/09 was totally contrary to prior advice.
Approximately April of 2007 I was granted a loan modification by my mortgage Option One Mortgage/AHMSI. This modification lowered my payment by reducing the interest rate to 2% for one year with a scheduled increase to 4% the second year then on the third year increase to 5.87%. Since this modification was granted I was able to afford my mortgage payments and made the payments on time each month. However towards the end of the year I became worried that when the interest rate adjusted up to 4% it may cause a financial hardship.
For that reason in December of 2008 I contacted MR. Alonzo Davis at Trinity Capital inquiring if he could contact my mortgage company and negotiate an amendment to the my loan modification keeping my interest rate at the 2% fixed rate for the life of the loan thereby keeping my payment lower. Alonzo said he was pretty confident he could and asked me if it would create a financial hardship for me if my mortgage payment increased? I explained yes! That is why I am requesting this amendment to the modification. So Alonzo asked me for the necessary information and said he would let me know. Within a day or so Alonzo called me back to tell me yes the mortgage company has agreed to negotiate the amendment to the loan modification. Alonzo explained that because he would have to go through the required process it would cost me $1500.00 to get this done. I was also told that I would be entitled to $1000.00 refund in the event the request was turned down but Alonzo said that they (Mortgage Company) already said they would do it.
I was requested to provide a list of all my expenses, two recent pay stubs, two recent bank statements and a hardship letter. Next I stopped by Trinity Capital to hand them a check in the amount of $1500.00 to cover the fees for this process. After several days I was informed by Alonzo at Trinity capital that the mortgage company has agreed to keep my interest rate at a 2% fixed rate for the life of the loan. After several days I called Alonzo at Trinity Capital because I havent received any paperwork confirming this agreement. Alonzo said that there may not be anything since the loan was not modified rather an amendment was made to the current modification. My statements continued to reflect a 2% but I was still concerned that I havent received anything confirming my interest rate would remain at 2%. I sent a letter to my mortgage company (AHMSI) requesting confirmation of the amendment that my loan is at a 2% interest rate for the life of the loan. After awhile I received a letter from AHMSI dated March 2, 2009 confirming that my mortgage is at a 2% fixed interest rate for the life of the loan.
Then the April statement came, it reflected an interest rate increase to 4% consequently, increasing my payment. I called AHMSI several times and was told that yes they see the letter dated March 2, 2009 which states interest is at a 2% fixed rate for the life of the loan. I was told by AHMSI that there records havent been updated yet. So I made the payment for the same amount I have making based on 2% interest. I received a couple more statements reflecting the increase to 4%. Trinity Capital advised me to continue making the same payments I have been. I wrote several letters and made several phone calls and nothing got resolved. Finally AHMSI stopped sending me statements all together. I continued to pay as normal. Soon I began to receive harassing phone calls and letters from AHMSI demanding payment and threatening foreclosure.
I contacted Trinity Capital to inform them of the situation. This went on for weeks. Late June early July 2009 I received a set of new loan modification documents in the mail. These new documents were for a new loan modification. Not the amendment which I was asking for in the first place. This new modification was 2% the first year, 3.4% the second year and continued to increase each year to a cap of ??... I was advised by Trinity Capital not to sign those documents because they were not what AHMSI agreed to and they would turn this over to their attorney.. I continued to receive harassing calls and letters. In fact the letters became more demanding. I gave Trinity Capital a copy of everything I received. More days past and I made several calls to Trinity Capital Trinity Capital trying to find out if they were able to resolve this. No news. Trinity Capital said they had their attorney Nova Dean Pack send AHMSI a letter. Still I heard nothing. Then I received a letter from AHMSI on Saturday 7/18/09 stating that if they do not receive the signed loan modification documents by 7/24/09 the modification offer will be denied etc etc.
I gave Trinity Capital a copy of that letter on Monday 7/20/09. I was told that they would contact the negotiator at AHMSI. I heard nothing back that day. On Tuesday I called Trinity Capital trying to find out what going on. I asked to speak to the attorney because I needed to know where I stand. I was told it would be easier to email him so I got Nova Dean Packs email address and sent him an email. No response. On Thursday 7/23/09 I called Nova Dean Packs office and left message with his assistant that I needed to
Speak to him. Later that day attorney Nova Dean Pack called me back. He told me that the letter from AHMSI which states my interest rate is at a 2% fixed rate for the life of the loan would be considered a typo. Nova Dean Pack told me that a 2% fixed interest rate was unreasonable and if it went to litigation I most likely would lose. He said that the new loan modification offer was a very good deal and that he would advise that I sign the new loan modification documents right away and get them returned via overnight mail and call the AHMSI negotiator to tell him I will accept their offer that I signed the documents and they are on the way. Because Time was running out for me I did what he suggested and immediately drove to the UPS store.
Although this loan modification is good, it is not what I was asking for from the beginning. I feel I was forced to accept this at the last minute because the advice I received from attorney Nova Dean Pack on Thursday afternoon 7/23/09 was totally contrary to prior advice.