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Answers (5)
- klarek the realist
- Contributions:7044
"If you hang on long enough the government will start letting the lenders write down the principle on the loans , with the government picking up the difference."
The day that happens the amount of civil unrest created will rock the world. The majority of non dead-beats that agree in paying back what you borrow will scream to the f*cking skies.
The day that happens the amount of civil unrest created will rock the world. The majority of non dead-beats that agree in paying back what you borrow will scream to the f*cking skies.
- Steve Freeman, CMB, "mtgmantn"
- Contributions:27
How can I qualify for a loan modification so that when rates adjust I'm not in trouble?
You probably won't be in trouble. The lender will probably keep your rate where it is now if the payments are still current. If you have a interest only arm then your payment will go up with the new adjustment. Interest only arms adjust with principle applied for the remainder of the term. Don't confuse it with the rate. The lender doesn't want you to default and move out. Keep making payments of any kind and you probably won't be thrown out. If you hang on long enough the government will start letting the lenders write down the principle on the loans , with the government picking up the difference.
You probably won't be in trouble. The lender will probably keep your rate where it is now if the payments are still current. If you have a interest only arm then your payment will go up with the new adjustment. Interest only arms adjust with principle applied for the remainder of the term. Don't confuse it with the rate. The lender doesn't want you to default and move out. Keep making payments of any kind and you probably won't be thrown out. If you hang on long enough the government will start letting the lenders write down the principle on the loans , with the government picking up the difference.
- Aldreth
- Contributions:4226
Firstly....
NEVER
throw your savings at interest. I don't care the purpose, credit cards, mortgage, car loans, student loans....
NEVER
NEVER
NEVER
Secondly, (to answer your question), there are normally only a few requirements to actually receive a modification, (however, don't expect any bank to jump at the opportunity to hang themselves)... You must have experienced a financial hardship, (sign an affidavit of financial hardship and verify your loss of income) and you must be able to make the lower payments.
Even if you do qualify most of these so called loan modification programs only save you on interest or increase your loan term ie... 30 year loan turns into a 40 year loan.
Don't expect a decrease of principal.
NEVER
throw your savings at interest. I don't care the purpose, credit cards, mortgage, car loans, student loans....
NEVER
NEVER
NEVER
Secondly, (to answer your question), there are normally only a few requirements to actually receive a modification, (however, don't expect any bank to jump at the opportunity to hang themselves)... You must have experienced a financial hardship, (sign an affidavit of financial hardship and verify your loss of income) and you must be able to make the lower payments.
Even if you do qualify most of these so called loan modification programs only save you on interest or increase your loan term ie... 30 year loan turns into a 40 year loan.
Don't expect a decrease of principal.
- Michael Emery, "MikeEmery"
- Contributions:7297
Well I'm no rocket scientist (and not a loan officer so I'll 'play' stupid) but wouldn't it be impossible to get a loan for 180k on a property now worth 108k?
What difference does it make if rate adjusts if you can't afford what you have now? Not being able to afford 100 or $1000, is there a difference? They won't modify your loan unless you have a means to repay the modified rate. You do not have that means. Look into a short sale.
How can I qualify for a loan modification if i'm living off of savings?
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