Loan Modification: What To Expect If You Are Not Currently Late

65 Comments so far

1. Gay Potter

   Justin - thank you for sharing this vital information that everyone seems to be requesting in today’s market. No matter what the price range, pocket books are getting thinner!

   January 28, 2009

2. Greg Schwartz

   Justin: Any general guidelines for how much a loan modification firms fees should be and what the typical structure is?

   Thanks

   January 28, 2009

3. Justin McHood

   @Gay

   Great point about people’s pocket books being generally “thinner” - I get just as many calls from people in million dollar homes as I do hundred thousand dollar condos — all asking generally the same questions about how loan modifications work. Spread the word!

   @Greg

   Nice work on getting me to step out there on this one… I will only say “what I have seen” and not “what is right/legal/ethical” because I have no idea about what the official answers are to those questions.

   Generally speaking - there are fees charged on the front end of the process and then fees charged on the back end of the process if your loan has been modified.

   For the front end fees:
   Companies who charge a “fee” on the front end of the process and it is usually non-refundable - meaning that you don’t get your $ back if your loan isn’t modified. This fee can range from $500 to $3000 (very generally) and can be call anything from “forensic audit fee” to “document / case preparation fee” to “whatever-else-there-is-to-call-it fee”.

   Not all companies charge an up-front fee, but most seem to.

   For the back end fees:
   I see the general “success fee” range be between 1 and 2% of the loan amount. In general.

   There.

   Now that I have stepped out there, I am sure someone will follow up with a different set of numbers/fee structures — but in general, this is what I am seeing.

   January 28, 2009

4. Gay Potter’s Purse is Getting Thinner - How About Yours? Maybe a Loan Modification Would Help? « Potter Blog on Real Estate in the Phoenix Metro area

   [...] decided to help those around him by writing this great post on Loan Modifications.   “Loan Modification:  What you can expect if you are not currently late.”  Thank you Justin for filling us in with your experience.   To see that the [...]

   January 28, 2009

5. Mindy Hutchins

   very true. everyone’s situation is different and unpredictable.

   January 29, 2009

6. cindy

   Good luck on getting a loan modification if u are current on your loan. We have been trying unsuccessfully for over 2 months now. We owe more than our house is worth and we are seriously considering walking away and taking the hit now instead of later. We will loose $100K but who knows if our house will even be worth what we owe in the next 15-20 years. No sense in throwing good money after bad!! We are worried about our credit but we won’t be alone. I have contacted a loan modification co. and they want $5K to do this for us. I think not!!!! Wells Fargo refuses to lower the interst rate or take any money off the loan. Can someone help us? We really don’t want to move but we can’t stand paying for something that is worth far less than we paid. It is just sickening!!!

   January 29, 2009

7. Justin McHood

   @Cindy,

   Good speaking with you over the phone - please keep us updated on your situation so we all can learn through sharing!

   Justin

   January 31, 2009

8. sharlene

   Hello,
   I have just completed myown loan modification without being late it is very possible!
   Another option would be to try to do a Short Pay refinance..

   I am in the mortgage business and i think it is insane the amounts of money people are paying for a unpredicatble outcome. It is time cinsuming but you can do it yourself! If you are doing a short pay refianance you will need the assistance of a liscences loan agent.

   Hope this is helpfuol info.

   January 31, 2009

9. ck

   testing…

   February 3, 2009

10. ck

    I thought I add my two cents…

    If you are current on your mortgage payment then consider refinancing with your current lender. You may qualify for a streamlined refinance (appraisal report not required). Right now is a great time to take advantage of the low interest rates, which may help reduce your monthly payment.

    If you are behind on your mortgage payment and have an ability to pay then complete the financial information package your lender mailed to you. Usually you will get this package when you are behind 2 or 3 payments. Just like a refinance, you will need to qualify for a loan modification.

    Here are some things which will cause you to be disqualified for a loan modification. Not a legitimate involuntary to pay (virtue does count), no ability to pay, uncooperative, and misrepresentation on origination or during loan modification process.

    Realistic expectations if you qualify for loan modification. Lender will usually take your past due payments and other costs and roll them into your principal balance. To keep your payment from increasing b/c now you have have higher loan amount, lender will usually extend your term out, up to 40 years (keep in mind you are paying more interest over the life of the loan). In some instances interest may be lowered to either the current market rate or note rate; usually the lower of the two. Also keep in mind if you had an interest only loan, you now are paying principal and interest (fully amortizing loan) and mandatory impound account (taxes and insurance).

    If you have a ton of unsecured debt (credit card, installment, etc) then its best to negoitate with them before you begin the loan modification process. Your bank or servicing is not willing to free up cash flow to pay unsecured debt. You will need to develop a good budget; there are many approved HUD counselors that will help you set up a budget for free (800-HOPE-NOW).

    I hope this helps you and your family get back on track in these challenging times.

    February 4, 2009

11. Loan Modification: Reader Comments on Loan Modification | Arizona Mortgage Team

    [...] and one national blog that we contribute to is Zillow.com. Recently I wrote a piece titled “Loan Modification - What to expect if you are not currently late” and a reader who identified himself as “CK” left some really, really good advice [...]

    February 4, 2009

12. Justin McHood

    @CK,

    Thanks for stopping by and sharing - great comments! I also posted your comments on our “regular” blog so that I could share them with as many people as possible.

    http://www.arizonamortgageteam.com/loan-modification-reader-comments-on-loan-modification-what-to-expect-if-you-are-not-late-on-your-payments/

    Justin

    February 4, 2009

13. cassia Montgomery

    We have investment properties that we switched out of our primary to secondary. There are two bldgs that were legally split. But the bank wont split them and now say they wont give us an end loan on these bldgs they tied together to build one on unsplit land. We split them, we changed our primary location. We stopped paying after our mature date on the construction loan. We know have no loan and being foreclosed on in 3 months, we dont know what to do?

    Cassia Montgomery

    February 13, 2009

14. Justin McHood

    @Cassia
    Thanks for stopping by and commenting! You are probably in a spot where it makes sense to speak with a loan modification company or attorney about your situation.

    On our main site (http://www.ArizonaMortgageTeam.com) we have a list of loan modification companies that we have some experience with - and any one of them could provide you with expert answers to your questions and also tell you if they can help you or not.

    Justin

    February 13, 2009

15. DcDubbs

    while its possible to modify a loan that is not late- it is very difficult if not impossible. Where is the banks incentive if you are current? To Sharlene, who recently modded her loan without being late, I’d be curious to know why the bank decided to do so? Is there some sort of hardship that caused a decrease in income or increase in expenses that was going to hinder your ability to repay?

    I found this article

    http://www.bankapedia.com/component/content/article/28-frequently-asked-questions/340-am-i-eligible-for-a-loan-modifcation

    which claims it is essentially impossible to mod a loan without being late.

    Anyways Sharlene if you are out there- speak up- I am in a situation where I am current but about to go delinquent if i can’t mod and would like to do something before its too late

    February 15, 2009

16. Justin McHood

    @DcDubbs,

    I think that you are doing the right thing - doing your research and asking as many people as many questions as you can about it.

    I also think that there may be some “standardized” programs that may come out of our government here soon - there has been some talk about possible “loan modification programs”.

    I wouldn’t speculate as to what the details will be — but I would pay attention to the news for the next couple of weeks, there may be an announcement soon.

    Justin

    February 15, 2009

17. SaraG

    I am currently going through the loan modification process with Wells Fargo. I am in a conventional loan, 5/1 arm, interest only. I am 2 months behind now and I want to save my home. Wells Fargo is telling me that they are not modifing interest only loans, but they would try to put together a repayment plan to help me get caught up. Wouldn’t that make my payment higher? I can’t afford it now and I won’t be able to afford the new payment if is more. I really need help and I’m not sure if there is another program that I just don’t know about. Does anyone have any other suggestions?

    February 17, 2009

18. cindy

    Hey Justin,
    Just wanted to update on our situation– We are thinking about going with the attorney and are meeting with him next week. Although he can make no promises or guarantees it may be warrant the $3500.00 he charges. Wells Fargo is still refusing any help and we have decided that if we get no money off our mortgage balance then we will definately be moving on. I think we will then short sell our home and go from there. The attorney gave some good advise and if he saves our home great– if it’s not possible then we will cut our losses and start over after 32 years of buying & selling homes as sad as it may be. Hopefully the talk of re-thinking the way credit scores are done will help all of the people who have ended up on this sinking ship and allow all of us to move on with our lives and be able to prosper again.Just maybe all of us who did things the right way and are paying for our homes (although being horribly “underwater”) should unite and let government know that we aren’t gonna take this lying down. Where’s our bailout?!!!!

    February 17, 2009

19. Justin McHood

    @SaraG,
    It is worth your time to speak with a good “loan modification attorney” and tell them what has happened up to this point.

    Here is a short list of people that I can recommend - but it is by no means an all-inclusive list.

    http://www.arizonamortgageteam.com/loan-modification-contact-list/

    Good luck - and you can always call or email me anytime with questions. I am pretty well versed in what is possible and what is “normal” — and am a pretty good listener and “advice-giver”.

    But start with the people who will be possibly your official advocates on that list.

    @cindy,
    Thanks for giving us an update. Please continue to do so! Oh, and if it helps at all, I did my best at getting your personal bailout approved by writing to President Obama today…

    http://www.zillow.com/blog/mortgage/2009/02/17/dear-president-obama/

    Justin

    February 17, 2009

20. SaraG

    Thank you Justin for the contact list. I will definetly reach out to one of them. Just an update, Wells Fargo called me and said that I was denied for a “repayment” option (which I already knew that was going to happen). They said they are forwarding my loan docs to their “Hope for Homeowners” department. Why wasn’t I sent there in the first place? Let’s see if they help.

    More questions though - with the recent anouncement made by President Obama, I’m not sure if my loan is owned or guaranteed by Fannie or Freddie. Wells Fargo cannot give me that information. Can I find that info out on my own? I want to be a part of the 9 million that is getting help, but I’ve read that you don’t qualify for refinancing if you are underwater more than 5%. In my case…I live in Las Vegas and my home has fallen 20%-30%. ??? I’m so overwhelmed by all the different info out there.

    February 19, 2009

21. What is a Loan Modification and Who Qualifies for One? | Zillow® Blog

    [...] Loan modifications: What to expect if you’re not currently late [...]

    February 20, 2009

22. Patrice

    This is all so confusing. I have an interest only mortgage w Countrywide from summer 2007. I also got a HELOC from Chase within 6 months to help with actual home projects that my ex-husband had let go during our divorce proceedings. Home values have decreased and now because of the HELOC I owe more than the house is worth. I am current on payments, have excellent credit and want a traditional mortgage. When I tried to refi in 2008, the issue was the falling home values had changed the L 2 V ratio so I couldn’t qualify. Will any of the new stimulus plans for mortgages apply to me? My interest only loan is fixed for another 3 yrs but then who knows??

    February 22, 2009

23. Wanda

    I have been trying to get my loan modified through Aurora Loan Services since September with no luck. They have been running me around in circles. The first time I submitted my Financials they said I didn’t make enough money and I needed to have a 20% cushion or money left over. They told me to resubmit my financial statement. I resubmitted this time putting the minimum payment due on my credit cards. About a month later they told me I made too much money and to resubmit the financial statement again. I did as they asked and then the underwriter stopped returning my calls. Then I spoke to her and she said Oh just make one more payment on your payment plan and then we will modify your loan. However, she wouldn’t discuss terms. Another month passed and she wasn’t returning calls. Finally, I spoke to her and she said I didn’t qualify for a loan modification since I couldn’t afford my home. I asked her what I was supposed to do and seh replied, “keep paying the higher payment on your payment arrangement.”

    Two days later I got a letter in the mail saying that the loan modification would be denied if I did not produce an updated financial statement. It has been faxed twice. I’ve heard nothing and she will not return my calls.

    What do you suggest I do?

    Please note that I fell behind a payment last March because of unforseen major home repairs (first one whole wall of electricity shorted out…had to hire an electrician. Then, my furnace died…has to by a new furnace. Can’t be in Michigan without heat)!

    February 23, 2009

24. Justin McHood

    @SaraG,

    If your loan amount is below $417,000 - chances are that your loan is guaranteed by Fannie or Freddie. I am surprised that your lender can’t tell you - but - after March 4th, I think that there will be details released about loan modification programs that might help you.

    So watch for information that comes out then.

    Also, it probably won’t hurt to speak with the Hope for Homeowners department - but I wouldn’t do anything until after March 4th’s announcement.

    @Patrice,

    Maybe. We won’t know for sure until the details of the plan are released. They are supposed to be released on March 4th.

    @Wanda,

    I hear this story from many people from many lenders. The truth of the matter is that the loan modification process is very, very “non structured” and often seems disorganized.

    My advice to you at this point is to consider hiring a loan modification attorney that may be able to help with the negotiation process.

    I am not suggesting that you actually hire a loan modification attorney - only that you consider it and talk to a few of them about your situation.

    It may make sense - but you won’t know until you speak with them.

    Why do I recommend that you consider this? Because you may be better off to let someone else negotiate with your lender who has experience in dealing with them and sees many files just like yours and knows what to do.

    Justin

    February 23, 2009

25. CD

    I echo DcDubbs desire to hear from Sharlene. I lost my job last year and my husband is struggling to pay our current mortgage. He would rather sell at current market price which is a giveaway than ruin our credit. I spoke to our lender and they claim that since our current rate of 5.25 is the lowest they can offer, we are not eligible for loan mod. We would ratehr keep our home . A penny for your thoughts Sharlene and Justin ?

    February 23, 2009

26. Justin McHood

    @CD,

    Maybe we can all chant “S-h-a-r-l-e-n-e” and she will come back and share…!

    Here are my thoughts about your situation… I would WAIT until we hear the complete details of President Obama’s plan - they are supposed to be released on March 4th.

    Once you see the details, I suspect that you will have a better idea of what your options are. It is my opinion that your lender is not telling you enough about your options based on what you are telling me… but nothing surprises me anymore.

    So —

    Just wait.

    Until after President Obama releases the details of his plan.

    And then we will know better about any possible options besides what your current lender is telling you.

    Justin

    February 23, 2009

27. Sonya P

    Yes, we are yet another victim of the Wells Fargo 5/1 arm, interest only loan. We have excellent credit and both have the same jobs with the same pay as all the years before. Our loan officer thought 4 years ago that this loan was the way to go when we carried two mortgages when we bought the house we are in now and our previous house by the railroad tracks. The previous house sold, we took all the equity profit that we recieved and paid down the loan that we are in now. Now in the past year our property value in our current loan has declined so much (175K), Wells Fargo refuses to modify, refinance or extend our loan terms. They appraise the value much lower than the assessment appraisals of the county tax collecter by 50K! No wonder our country is in such a foreclosure black hole. The banks have more to lose by not modifying our loan and extending it to a 30 year conventional as we might just have to walk away if they don’t. It doesn’t make sense. WE WANT TO PAY THE MORTGAGE DEBT. WE WANT TO RAISE OUR CHILDREN IN THIS HOME AND BE GOOD NEIGHBORS. The banks should not have been bailed out. It should have been the homeowner’s themselves bailed out with the government money. The government could have loaned silent second mortgages to buy down the loans to provide enough equity, so most folks could refinance to a regular conventional loan. These silent seconds could have been paid back with a low interest rate or paid back when the home was sold later on down the road. This way most hard working families could have just saved their homes and kept working to pay off their mortgages. We just don’t get it - anyone have anymore suggestions? How does a short sale or foreclosure affect your credit rating and for how long? We don’t sleep at night knowing that for the past 10 years of home ownership and paying all of our bills on time, working hard everyday, paying our taxes, raising our children to be good people, that there is no hope. What’s the use?

    February 24, 2009

28. Justin McHood

    @Sonya P,

    Thanks for taking the time to comment. I can’t tell you how many people I have spoken with in the last 6 months who are saying essentially the same thing — I did my best to explain it here:

    http://www.zillow.com/blog/mortgage/2009/02/17/dear-president-obama/

    To re-state a portion of your comment:

    We just don’t get it - anyone have anymore suggestions?

    I have only one more suggestion.

    Wait.

    Wait just a little while longer until the *details* of President Obama’s plan are released and then you will be able to develop a plan of action that is specific for your situation.

    And of course, I can always be a sounding board when developing your plan of action - but I would hesitate to answer before we all know the details of President Obama’s plan.

    Justin

    PS I am not holding out “hope” — I am just trying to take the most logical, conservative, realistic approach possible.

    February 24, 2009

29. SaraG

    Justin,

    I was looking at my mortgage docs and it says “Freddie Mac Uniform Instrument”. What does that mean? I also contacted Freddie Mac and they told me…” Thank you for contacting Freddie Mac. Freddie Mac is not the investor on your mortgage. Our guidelines will not apply in your situation. Please contact FHA to inquire about Hope For Homeowner Program.”. Ok…so if they don’t own or guarantee my mortgage…who does and how can I find that out if my lender can’t tell me?

    February 25, 2009

30. Lucy

    I called my mortgage company for a loan modification and was told that because my debt is 60%ratio of my income I don’t qualify, and was told the maximun is 45%, who qualify for this loans, since I got my house the taxes almost double, and this increased my mortgage payments, I still have 450K equity, my husband lost the job and took 30% payment reduction, can somebody help me, I tried to sell the house for over a year, the price went down 20%.

    March 2, 2009

31. Justin McHood

    @SaraG,

    Sorry it took so long to answer this… but my answer is “I don’t know.” Try your lender again.

    Please don’t think I am an idiot… I just don’t know!

    @Lucy,

    When you say that you have 450k in equity… it makes me think only one thing: You probably won’t be able to get a loan modification, so there is a high chance that your best choice is to sell your home if you cannot make your mortgage payment.

    Justin

    March 2, 2009

32. Lucy

    Justin I am currently paying and have never been late,I have not problem paying the loan, but I can’t do basic things like going to a doctor if I have a cold because the $20 dollar fee is a problem, My home is worthy at this moment minimun $997K I put it on the market for $825K, I had offers of $600K wich is what I paid for this house, and if I sell it at this price will loose my $150K downpayment, I’m cofused about who qualifies for this loan, if my debt is only $45% of my income Hell I don’t need to modify nothing, most of the people that can’t pay the mortgage are 60% to 65% or more, I took this survey among 200 people, So Who qualifies?

    March 2, 2009

33. Gay Potter

    @Lucy The realty of the situation we find the real estate market is that you can help yourself by reducing the price of your home. $450K equity???? What is equity anyway? Equity - is the difference in what is owed and the open market value of the home. If your home did not sale in a year, PRICE, PRICE, PRICE! Price may get it done, this is assuming all other aspects of your home does not have any objectionable colors, flooring, etc. and be in marketable condition.

    March 2, 2009

34. SaraG

    Justin,

    After the details were announced by the President I’m hearing different things like if you are far underwater then you will not qualify for a loan modification??. Is that correct? Oh, and I finally found out that my mortgage is not owned or guaranteed by Fannie or Freddie (it’s actually B of A), so that disqualifies me for the refi, but I still have the option for a loan modification if the above doesn’t set me out of the range….right?

    March 6, 2009

35. CK

    Most borrowers have refinanced during the past 5 years at least 3 or 4 times, usually with the same BROKER. Some may have been refinancing every 6 months; this is called CHURNING. Churning is when the same broker refinances the same borrower in a short period of time to capture the YIELD SPREAD PREMIUM paid by the lender. The Yield Spread Premium is what the Lender pays the originating broker for putting you into a higher interest rate than the PAR RATE. The Par rate is the market rate with no points. Example, the par rate is 5.25%, this means you pay no points and the broker gets no Yield Spread Premium to get you that rate.

    The par rate is good for you but not the broker. So you probably have a interest a lot higher so your broker can drive the Benz and eat at those fancy steaks houses while sipping on those apple martinis. Oh your broker probably has McMansion at our below the par rate.

    It probably cost you $10,000-$20,000 upfront and thousands of more in higher interest payments. The hole you find yourself in is probably due to your BROKER!

    Your BROKER probably never told you that based on your $30,000/year income it is not wise to take that Option ARM loan to qualify for a $500,000 house. Or that paying off UNSECURED credit debt is not wise when you are refinancing. Is visa/mastercard going to foreclose on you when you cannot afford to pay them, certainly not. But if you stop paying your mortgage then you can certainly expect foreclosure.

    I would urge you to pull out your ORIGINAL GOOD FAITH ESTIMATE that should have been provided to you within 3 business days of completing your application and see how much your broker told you it would cost you to get the loan. Now pull out your FINAL HUD-1 (closing/settlement statement) that you should have received when your loan closed by the closing agent. This will show you the all the fees your broke charged including the Yield Spread Premium.

    After you get over the initial shock on how much your BROKER made, I would then give him/her a call and see if they will give back that money they made off you to help pay the unaffordable loan they got you in.

    Please let me know what they say…

    March 7, 2009

36. Maggie

    Can my lender servicing company tell me they dont do loan modifications?

    March 16, 2009

37. Cassie

    Try NACA!! It is free! They are helping people with Mods. I read all about them on loansafe .org

    I am in the process of getting a proposal ready for our home. We are $200K upside down. Lender won’t help. We are not late yet, but will probably not make April at this rate. Loss of income after necessary career change….daughter had cancer and I couldn’;t go back to work traveling where the real money was…… Anyway….try the forum listed above and check out NACA!

    March 17, 2009

38. SaraG

    NACA’s services say it’s free, but don’t you have to pay membership fees? Maybe I’m reading this wrong but it states that you pay a Homeowner Memeber due of $50 a month for between 5 and 10 years, depending on the mortgage amount?????

    March 18, 2009

39. Mary

    I just have a quick question regarding loan modification procedures and outcomes. I understand that it all depends on the individuals situation. So this is my scenario, I just recently got laid off and still have mortgage payments to make. Wells Fargo sent me a promotion to saying that I may be eligible to modify my mortgage. But as I have been doing my research I am a bit skeptical on whether or not I should apply for this modification program with them. Being that I am unemployed does this have any affect on the qualifications required? Will it end up causing more harm to my mortgage then the benefit of having lower monthly payments?

    If anyone can just answer. I need as much advice/information as possible.

    May 13, 2009

40. Justin McHood

    @Mary,

    Thanks for commenting!

    The best advice that I can give you is to pick up the phone and call your lender. Your situation is unique to you and lenders are really trying to work with borrowers in today’s world.

    If they won’t work with you, also go to http://www.HopeNow.com and call them — they will not charge you to talk with you about your situation.

    You are not alone!

    Do these two things and I bet you will find the answers that you are looking for.

    Let me know if you don’t get answers after doing these two things.

    Justin

    May 13, 2009

41. Mistie

    Hi Justin,

    We have been trying for 2 months now to participate in the Making Home Affordable Loan Modification program. Our loan servicer is US Bank (they purchased the loan from Wells Fargo shortly after we bought our home). US Bank’s website clearly states that they participate in both parts of the Making Home Affordable program - both the refi and the loan modification. We have made several attempts to contact US Bank and apply for the Making Home Affordable loan modification program. They keep telling us that we are not eligible “because we must have a Fannie or Freddie securitized loan to be eligible for either program.”

    I know for a fact that this simply is not true, but I don’t know who to turn to for help. Everything I have read (including the info on makinghomeaffordable.gov and the treasury website) says that you must have a Fannie/Freddie loan for a the refi option, but NOT for the loan modication. I have verified this through several qualified sources. I even asked one of the reps at US Bank to check the above mentioned websites and even their own US Bank website for the details. She agreed with me that it sounded like we were correct and it is not necessary that you have a Fannie/Freddie loan for this loan modification program, but then she told me that she has to “read answers to me from a script” and her script tells me that we are not eligible for either program since we don’t have a Freddie or Fannie loan. Are you kidding me?!? She said she would look into it further for me and call me back, but of course, that was the last I heard from her.

    I am left to assume that even though US Bank has chosen to participate in the Making Home Affordable program, they are trying to pick and choose who they will let participate, which I would think has to be some type of discrimination… this has to be breaking some laws. The Obama administration created this program to help hard working home owners like us. We completed the quiz on the government website, and we do qualify. Who can we turn to for help? There has to be some type of consumer protection/advocacy agency out there to help people stand up there loan companies who are in the wrong. Please help. If you need more info, just let me know.

    Sincerely,
    Mistie

    May 18, 2009

42. Chris R

    I am not late, never have been, contacted B of A / Countrywide and they are working on a modification for me. I do not exceed the 31 or 38% numbers. I just an overwhelmed by living costs and I am usside down by 65k. They are going to modify my loan. The one really important thing that i know has made a difference is this. Be nice, be kind to the people you are dealing with. They will be more helpful. They have very difficult jobs and they deal with people who are desperate and hopeless. They do what they can do, at least most of the time, be patient and persistent, never give up. and go to the top, direct your request to the president or CEO of the company you have as a lender. If I can asssit anyone or share my story, email me
    Thanks

    June 23, 2009

43. Linda B

    Linda B. Im not late, just more the 105 unside down, so Sun Trust put in Loan Modification in March. Keep calling, say just have to wait, very busy, not sure what really waiting for. Can I go to a different lender.

    Thanks,

    June 24, 2009

44. cheri

    im really stressed, we bought in 2005 for 455.000 and now worth 190.000 we have a 5.9 interest only till feb, and even with an attorney we are told being we pay on time we show no hard ship,, but my car is 2 months behind and everything else, now our cards are maxed out for paying for this attorney,, any suggestions? B of A seems really hard to deal with,, i thought interst only loan would qualify you for a modify? then we found out our broker who originally got us this home was convicted of a crime of fraud on several loans, and we dont make near what she stated I cant believe we dont qualify because we pay on time

    July 15, 2009

45. Christine Harms

    to Chris R……I too have a Countrywide/BofA 1st mortgage and am still current but am about to miss my 1st payment for next month due to financial hardship. We are also upside down by about 90K and can’t sell. I would like to know who to contact at BoA or how to begin the process to request a modificaion. I spoke to Countrywide months ago and was told they can’t help as I am current and I should “just let the house go to foreclosure!” It is an interest only for $400,000 @ 6.625% which is killing us. It will adjust up in less than 7 years and I would like to fix it now so we can stay put. Did you call them or email them? How do you request the CEO to talk to?

    July 22, 2009

46. Chris R

    Christine, Email me at wiziwyg@yahoo.com if possible. I can tell you this, I started with a kind email to Ken Lewis at bank of America.

    July 23, 2009

47. cheri

    for those who want to hire an attorney,, well i did and took much time doing it and picking out one, being we paid 450.000 and bought in 2005,, now our home is worth 200.000,, we are in an interest only 5.5 till feb 2010,, we have a second on it a smaller one which is 6.7. we are barely making it, but do have an income, just takes everything we have,, the bills are unbelievable and hubby in debt over 20,000 dollars, minimum payments on his credit card are 900 dollars,, for a man who only makes 2,200 a month! well anyway we hired and paid an attorney, and that was in march,, now were told by bank we show no hard ship being we pay on time! we missed this months payment due to my car payment was behind and i couldn’t afford to help my husband pay my portion, we have never been late and are very nervous.. and we are suppose to get most our money back from attorney, but of course havent heard a word,, my only thought was, we are in hard ship and never even communicated with this attorney, then get a denial from B of A that they didnt see a hard ship being we pay on time, im hoping this attorney is going to honor their signed agreement to return our 2,500 dollars minus 500 dollar retainer fee. My friend did her own loan mod, and bugged everyday, she got a 1 % for 5 years, she paid 3000 a month and is now paying 1000 a month, she said it was hard, and just meet the criteria of the loan modification, and call 2 times a week at least.. why couldnt that attorney fought for me.?? she didnt even know our hard ship im thinking of maybe feldmans law center???.

    can someone please answer,, is it best to consolidate credit cards before loan mod?? or will that hurt?? thanks

    July 24, 2009

48. Claudia

    This question is for Cherie who is working with BofA for loan mod- I am in the same boat I am not late with any payments, I did loose my job due to Education budget cuts, I have called BofA and spoke to Tyler, he even sent me an email, but he told me that I dont qualify because I have PMI on my loan-
    Can you tell me who you spoke to we bought in 07′ for 250k my house is now worth 165k my payments are 1700k- I just want my interest rate adjusted.

    let me know
    Claudia

    July 25, 2009

49. Claudia

    ooops sorry I meant to ask Chris..

    July 25, 2009

50. cheri

    claudia,, We were late for the first time ever this month,, and were told we could not get help unless we were.. so i figured i might as well pay my car payment that is over 2 months behind,, if i loose my car i loose my new job,, we just recieved a letter form B of A saying if we are having hardship to call this hud line they gave us?? have no idea what thats about,, ?? but i will let you know …and i have no idea who our lender is either???

    July 26, 2009

51. Chris

    Call the office of the president @ 800-669-2443, ask for a senior loan negotiator. Hope that helps

    July 28, 2009

52. Laz

    Hi,

    My mother and father own a home in South Florida. Unfortunately my father has deceased about 4 months ago and my mother’s job was outsourced causing her to receive a 25% pay cut. I’ve been helping her out of my pocket to stay current with the mortgage as she cannot afford it on her own. We are definitely interested in the loan modification solution but have some concerns:
    1. Should we contact an attorney, or loan mod company.
    2. We are current on our payments, however I hear it is easier if you are late.
    3. What really happens to the interest of the loan, does it remain low for the life of the loan or does it creep up slowly to its original figure.
    4 Will doing the loan mod prevent her from renting the house if she ever decided to move in with me?
    5. What will happen if down the road we decided to sell the house, will we owe anything to the mortgage company or government. Thank in advance for your responses.

    July 30, 2009

53. cheri

    claudia.. i know i have have heard people can do these loan mods them selves, but i really dont know much about them to be dealing with a lender?? nor do i know the laws, I have already been screwed by a loan modification company who offered to give me my money back in a written contract,, who are now suddenly avoiding my emails,, but im seriuosly thinking of hiring another attorney on a credit card, im trying to get on my feet and work and feel i dont have the time ,, has anyone here heard of FIMA?? they will help you pay 1 months mortgage if you are having hardship, my friend just got help from them and its free, its part of the stimulous money we are all going to pay taxes on. Does anyone know of any successful lawyers who you can trust?? i was thinking of FELDMAN Law Center?? he does have testimonials,, but hes very expensive 4000 dollars that i just dont have right now.

    August 1, 2009

54. cheri

    I wanted people in here to also go to a great forum called
    loansafe.org alot of info,, but you have to search around,,its like here,, but many more pages and a lawyer on there that answers your questions

    August 1, 2009

55. Mark Vee

    I have started the process and am doing a daily blog so that people can learn from my experience.
    http://loanmodificationcityfinancial.blogspot.com/
    I hope it helps!

    August 20, 2009

56. Sara G

    I have been in the process of doing my own loan modification since Dec 2008 and FINALLY got an answer from Wells Fargo. They are putting me on a “Trail Modification” for 3 months to evaluate my hardship, income, etc. and see if I can pay these 3 months on time (I’m 5 months behind) and they have lowered my payments by $500, still not enough as my mortgage is $2,580 and the new trail mod is $2,038….I bought my home for $490,000 and it recently appraised for $239,900. My credit is damaged because I’m behind on my first and credit cards and I have a second that I am behind on as well. I am looking into Chapter 13 to get rid of my credit cards and second and will still be able to keep my home.

    August 21, 2009

57. Free Loan Modification Kit

    Its a shame how difficult it can become to accomplish a loan modification if your still current on your mortgage payments. These people are struggling to save their credit score while staying current on their mortgage obligations. Unfourtuneatly its a losing battle for most people…

    September 12, 2009

58. Loan Modification Help

    Thanks for providing this information and advice. It is important that consumers know the facts and benefits about loan modification and how to go about to successfully modify your loan.

    September 23, 2009

59. SW

    I contacted Aurora Loans for a loan modification last week (under the NEW Obama plan). I have a 5/1 ARM interest only loan that I took out 3 years ago. Aurora’s making a bundle on this one because it is @ 7-1/2%. My house is upside down by 181,500. My hardship is that my husband & my income has been decreased by over 30% this year at both our jobs, however we’ve never missed a payment, never been late & have an excellent credit score. Unfortunately, we had bought a 2nd home two years ago & we’re upside down on that one by 30,000(different bank). My interest only payment @ Aurora is 3,018/mo. I pay the taxes & insurance, plus HOA dues which comes to another 1,000/mo, totaling 4,018/mo for my home. Aurora told me that they would consider a 3 month modification, refusing to tell me what they were changing on interest rate or terms, & then informed me my NEW PAYMENT would be a whopping $7 (yes, that’s seven dollars) less per month. They are adding taxes & insurance onto my payment & putting it into an escrow account, for 3 months. I told her I had already paid the insurance 12 mos in advance, & the taxes in advance for 6 months. Over the period of 3 months, there would be no taxes or insurance for them to pay. I added that $7 per month would give me NO RELIEF. She didn’t seem to care. She was rather patronizing about it. The way I see it, Aurora Loans is just going to make more money on this deal, because it’ll take months, possibly years to get this escrow money back for bills I have already paid. Anyone else out there had this happen to them? I don’t think any of these banks care if they help anyone out, not in a REAL way.

    October 12, 2009

60. Greg - Cumming, GA.

    Justin -
    My wife and I are looking into a loan modification. Have you heard of the current company (http://1stamericanlawcenter.com/)? I am trying to do some background work. I checked with the BBB and State Bar for the Lawyer and all seemed ok.

    October 19, 2009

61. Edgar

    By any chance does anybody know how long it takes to get the actual loan docs once recieving the letter of trial modification?

    October 20, 2009

62. veronica, ca

    we have never been late on our mortgage, i called my lender and specificaly asked for a modification, our income has droped some but we want a lower intrest. we bought our home 15 years ago but have re financed 3 times to improve the house. I am wondering we owe 270,000.00 and have not got the house appraised since 2004 that was at 350,000.00 my question is this if i owe 270k and it is appraised at 300k do you think we can still modify, credit is not that good, cause we seem to pay the house pymnt on time every month but skip credit card debt,to be on time. so we win some and loose some. does anyone know if this can be done.
    v in california

    October 26, 2009

63. What If I’m Not Currently Late On My Mortgage - American Economic Solutions

    [...] McHood addresses this obstacle in the next portion of his article in the section entitled, “Loan Modifications: What To Expect If You Are Not Currently Late.” The best recommendation our Foreclosure Prevention Consultants can give is to let the homeowner know that the loan modification varies from lender to lender. While the loan modification process varies by lender, it also varies by each individual borrower’s situation. This is why at American Economic Solutions, we feel it pays to have an authorized company represent the client. We know how to work with various lenders and maximize homeowner/borrower benefits, not the banks’ benefits. To read the full article referenced above, please visit the following site: http://www.zillow.com/blog/mortgage/2009/01/28/loan-modification-what-to-expect-if-you-are-not-curr... [...]

    November 10, 2009

64. bp

    I am current on my mortgage,never late. My house appraises at around 225,000 and I owe $200,000 between 1st and 2nd. I have an interest only loan with ditech. I have become disabled about 2 years ago and it is really getting tough to make it. We are even considering bankrupcy since I have exhaussted my rollover 401k. I need to get my mortgage into a fixed rate but am concerned that my debt to income ratio is to high to refi and if I go bankrupt I will have harder time refi. Do I qualify for a loan modification or will ditech convert to fixed rate?

    November 14, 2009

65. cheri

    Im just going to be frank here, as worng as it is.. You will only get a loan mod if you are late, over 3 months, Believe me, they wont even look at your file if you are current, becuase there are to many people that are late they are helping first, the only way you will get a loan mod is to not pay and get an attorney to help, some do it themselves if you have the time and patience,, but yes you do qualify, if you cant pay, then the bank will even offer to get you help .. trust me, my attorney couldnt tell me this as it is unethical to tell a client not to pay. But unfortunately its true… merry christmas

    November 15, 2009