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Profile picture for michele19999

I just got our permanent modification, but the payments are 2X higher than our trial, should we sign

We can barely afford them, they said if we turn it down , we can try for a traditional modification but most people don't get them and "I should just sign" Help!!
  • May 06 2010 - Bethlehem Township
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Answers (7)

I have heard of this happening to other borrowers. Has your income increased since first applying for the Loan Mod?  I would try contacting the lender by phone and ask how they determined your income and what that figure is. If their figure is higher than yours, then offer to send them documentation to prove your figures are more correct. If they are trying to build up the escrow impound account or recover property taxes they have paid, ask them if you can work out a repayment schedule of those items over a 2,3 or 5 year time period or possibily adding them on the end of your loan. Maybe they would consider lengthening the term of the loan from 30 to 40 years to accommodate a lower monthly payment. As for signing the new documents with a payment you feel you can't afford, I would suggest having a good real estate attorney review them first. It's possible for your lender to change some of the terms of your original loan that may not be in your best interest. Good luck!
  • May 22 2010
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Who is the lender ? That doesn't sound like they are following the rules. And the clerk who told you that most people don't get them is only looking out for the lender's interests, not yours at all.

In a HAMP modification, your payment should be no more than 31% of your income. It's possible you are not eligible for a HAMP modification, and your lender is offering their 'in house modification' for them to get you caught up for past taxes, insurance and payments that may have been missed. We have seen this situation before, and have still been able to negotiate modifications with lower payments.

If you are offered a 'modification' with higher payments, it's not really a loan modification, just an adjustment to catch up on past outstanding amounts.

Would need to know more to provide a better answer for you.
  • May 22 2010
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hang in there........ I feel very strongly as our economy takes yet another nose dive our fearless leader will create new programs to keep people in their houses...........

A loan modification that increases your payment... give me a break! That bank should be shut down....

best of luck to you....
  • May 07 2010
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First, contact the lender --- and find out exactly how it the payment (and your income) was calculated -- notate who you talk too and don't accept anything but a clear answer -- (my guess is your figures will not agree)  ---  depending on the type of trial you were in, you have the write to dispute, anything you do at this point must be done (or followed up) in writing   ----   but do not agree to a bad deal that you can not afford --  if you do qualify, you will have to be vigilant......best of luck -  let us know what happens
  • May 07 2010
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Profile picture for Patriot Bank Mtg
If your not able to afford the payments signing is a mistake.  if you can and the modification is close to market rates then its probably a solid deal.  If it is out of the market you may want to seek some help.
  • May 06 2010
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Profile picture for wetdawgs
If the 2x payments are lower than your old payments, sign if you can afford them.

If you don't think you can afford them, perhaps don't sign and put the house on the market.


  • May 06 2010
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If you can't afford the payment, don't sign, return to the starting line.
  • May 06 2010
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