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Replies (29)
- Rob Cochems
- Contributions:3523
It is voluntary. Most lenders have not signed up, and from what I have heard very few are being done right now. But they keep trying to tweak the guidelines to get more and more lenders to participate.
Who is your lender?
- Michael Yaeger, "yaegermike"
- Contributions:754
no... the efforts being done that actually lower loan value are just to help get the Debt ratio closer to guidelines of 31% for housing expense. They need to lower everyone's mortgage to home value + any cash out proceeds and attach a 2nd lien in the amount of the remaining balance to the property that has no payment plan.
- FERMI
- Contributions:272
Hope for Homeowners will only do a loan at 90% of current market value (based on new FHA appraisal). In addition, it has a 3 point funding fee which CANNOT be rolled in. Since homeowner generally doesn't have any extra cash (otherwise they wouldn't be behind, right?) that means the lender has to accept 87% of current market value, or maybe less depending on closing costs. Hence all major lenders have said no thanks thus far.
- Andrew Adams, "203K Specialist"
- Contributions:9349
It's not the new lender that takes the loss...It's the existing lender that has to agree to only take 87% of the current value regardless of what is owed.
I have yet to find an investor that is willing to buy these loans so I don't see the point in trying to get an existing lender to accept 87% of the current value!
The last stat I had heard was something like 67 loans taken nationally with 0 actually approved!
- Martin Wareing, "Martin Wareing"
- Contributions:3772
It should have been renamed to HOPEless for Homeowners. Attempting to "speak" for a lender and the possible losses they must agree to incur at time of refi is crazy. When they do that... if it were a bank.. capital requirements, Sheils Bair and the FDIC police at your doorstep.. it is a highwire act to say the least. We are hearing that upwards of 50% of the first wave of MODS have gone bust again. We haven't even added the unemployment piece to this storm. We will probably see some type of "almost" complete mortgage overhaul program of some sort in 2009ish. 9 out 10 pay (this is beginning to sound like a TRIDENT gum commercial).. The "walkers" are going to walk regardless of the talk. Very few will really "stick it out" with this turmoil. Credit scores are potentially being "jerked around" just by reducing limits on plastic lines, so "scores" will not mean anything to many Americans anyway and it really looks like America is giving up HOPE. I HOPE not, but it would appear from the lates stat trends for delinquency that we are. Sad part is the meteoric rise AND we modified a trainload already. The real numbers of folks in trouble are much greater. Keep rockin' and fingers crossed.
- nbvargas1
- Contributions:25
I talked to bank and after they gave me so many numbers I would need + - 25K to refi at FHA lower rate of 4.875 % 30 yrs fixed and I'll have to pay PMI it'll still only lower my monthly payment from $1990 to $1780, it isnot a big saving but I don't have 25K, and they can't rolled in all the fees and points then what is the HELP from the bank? Why bank received money if they are not really helping?
- Martin Wareing, "Martin Wareing"
- Contributions:3772
nb,
It is smoke/mirrors... Looks good right at 4.875%!!!!! for $25,000 in cash (in your case)... you can lower your payment by $210/month... That payment differential would take almost 19 years to recoup (just using common math).. This problem is/was not about rate... it is/was about loan sizes in general and the fact that we simply do not make the money to support such high debt loads. I wish you well, but I would look and hope for a MOD... The HOPE program is not reality. Keep rockin'.
- Andrew Adams, "203K Specialist"
- Contributions:9349
NB,
The banks want one thing...They want to be repaid the money they lent to you and every other person that took a loan out. They have no interest in owning your home...if it comes to that they are loosing money! If banks wanted to own properties they would be doing great in this environment, but the reality is banks are failing because they can't get the money they lent back!
- nbvargas1
- Contributions:25
Then they should do a loan modification to anyone, or if low rates are 5 or %5.2% 30 yrs they should offer same this rate for 40 year, if they lower the rate and increase time all monthly payments will be low and more affordable to pay
- Andrew Adams, "203K Specialist"
- Contributions:9349
NB,
Over 50% of loans that modify go back into foreclosure....Modifying the notes doesn't appear to be the answer...just delays the inevitable!
- nbvargas1
- Contributions:25
1.-If I do a loan modification do I have to pay points?
2.-If I need a loan modification do I have to be behind in my payments or current?
AA- that is not good news for the homeowner or the lender. The woman from NY I was talking with got a loan mod done on her own- 7% rate, and they forgave her missed payments and late fees!
NB- from what I have seen, unless you have a 'Pay Option ARM', you'd have to be missing payments for them to modify. What type of loan do you have?
- Andrew Adams, "203K Specialist"
- Contributions:9349
The one that's payment was $2,600 per month and had $2,800 per month in income....Would not shock me if they end up falling behind again. I don't know aboutt you but I couldn't live on $200 per month for expenses outside my mortgage!
- Jesus Juice
- Contributions:10
I bet you couldn't big boy!
Yeah, I think her payment is now 2300/month? Not good, but she's happy for the time being. It just drives me nuts that this H4H program doesn't do a thing!
- nbvargas1
- Contributions:25
Jennifer, my loan is 30 yrs fixed, will the bank do loan modification ? I'm current but struggling to be current, sometimes taking money from saving, which I don't think so is good, because I don't know what tomorrow will bring
nb- not looking good. You are in a fixed rate. Was there something that changed that made you less able to pay on the loan? (job change, etc)
- Doug Jordan, "dougjordan"
- Contributions:1
NB - I'm with Jennifer on this one. If you have a 30 yr fixed, then at one point you had to qualify for it. People who can barely make the payment don't qualify. Has something (financially) recently changed?
- Barry Dalton, "Barry Dalton"
- Contributions:492
I agree with Jenn and Doug. Hopefully, the markets will stabalize in the next year or so and selling can again become an option.
- nbvargas1
- Contributions:25
Yes, we are in a fixed rate at 5.875 and it was good, but starting 01/01/09 I'll need to go to unemployed office ;-(
yeah, i received that letter...
- nbvargas1
- Contributions:25
Jennifer will the bank do loan modification even I'm current? I'm trying to damage my credit
- nbvargas1
- Contributions:25
I meant I trying to do not dfamage my credit
- Andrew Adams, "203K Specialist"
- Contributions:9349
nb,
I hate to say this but job loss is probably not gonna work as a reason to modify. Not that Hope 4 Homeowners works but it was designed to help those that were placed in mortgages they couldn't afford from the get go. Job loss has been causing financial hardship forever and unfortunately that will always be part of the market 5.875% on a fixed rate mortgage is a good rate...even if it doesn't feel like it. The only way it might work is if you have a co-borrower whose income can carry the loan.
I wish I had a better option.
I hate to say this but job loss is probably not gonna work as a reason to modify. Not that Hope 4 Homeowners works but it was designed to help those that were placed in mortgages they couldn't afford from the get go. Job loss has been causing financial hardship forever and unfortunately that will always be part of the market 5.875% on a fixed rate mortgage is a good rate...even if it doesn't feel like it. The only way it might work is if you have a co-borrower whose income can carry the loan.
I wish I had a better option.
- Marc Castrechini, "Castro_9"
- Contributions:3
Regarding loan modifications, a lot of our clients don't understand that it isn't a silver bullet. The bottom line for a loan modification is that you are still going to need to prove that you can afford the new plan. That is the reason that people who are current or have fixed loans (without any temporary hardship) are less likely to have a successful modification.
Yes, in some cases the payments go down but generally the intent is to get the home owner back on track AFTER a hardship has been resolved or corrected so they can stay in the house and avoid the big F.
I agree with Andrew on his point that many end right back in trouble. If you are inquiring or moving forward with a loan modification make sure that the numbers make sense or you are going to end up in the same situation.
It's a discouraging thought but IMHO ... if you are buried under mortgage payments and can't get a modification then let it go and rent. A very close friend, his wife and newborn did just that and are quite happy renting a town house for a third of the money.
If you have any direct questions about loan modifications and/or forbearance agreements contact me directly.
Yes, in some cases the payments go down but generally the intent is to get the home owner back on track AFTER a hardship has been resolved or corrected so they can stay in the house and avoid the big F.
I agree with Andrew on his point that many end right back in trouble. If you are inquiring or moving forward with a loan modification make sure that the numbers make sense or you are going to end up in the same situation.
It's a discouraging thought but IMHO ... if you are buried under mortgage payments and can't get a modification then let it go and rent. A very close friend, his wife and newborn did just that and are quite happy renting a town house for a third of the money.
If you have any direct questions about loan modifications and/or forbearance agreements contact me directly.
- Dave Mason, "DebtFreeDave"
- Contributions:1315
Here is a link on how to do loan modifications yourself. Don't waste your money.
- nbvargas1
- Contributions:25
.. good link. Thanks
I don't want to get behind, I don't want foreclousure, but if I try refi, then they will charge me PMI, ending with almost same monthly payment, so I want to try loan modif, but if I don't get help, I'll probably have to go 3 or 4 months behind, my friends, say if I got behind on payments then bank will listen to me.
Confusion on hope for homes!
I am having massive confusion in regards to the new hope for homes program!
I have been told that it is voluntary on the part of the lenders and that no lenders are doing this.
Then some one told me that this IS being done!?
Which is it!?
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