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03-03-2009, 09:40 PM
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#1 | | Elite Member
Join Date: Oct 2006
Posts: 567
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Spoke to a Mortgage Loan Modification company about negotiating with my mtg co for a lower intrest rate. Sounds too good. Are there any pitfalls to me from going through with this?
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03-04-2009, 11:10 PM
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#2 | | Administrator
Join Date: May 2006
Posts: 2,760
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Yeah, slim to no chance on it happening, except your bank account will be a little lighter.
Have a look at FinancialStability.gov
Get a hold of your congress critters, encourage them to give BK judges the power once again to do cram downs inside of bankruptcy.
__________________
It is better to keep your mouth shut and appear stupid than to open it and remove all doubt. - Mark Twain
The information and materials in this document are provided for general information purposes only and are not intended to constitute legal, accounting or tax advice or opinions on any specific matters. Laws and regulations change frequently and their application can vary widely based upon the specific facts and circumstances involved. You are responsible for the applicability and accuracy of Information as it relates to your specific situation. | |
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03-21-2009, 12:47 AM
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#3 | | The One and Only!
Join Date: May 2006
Posts: 4,050
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Originally Posted by Enigma  Yeah, slim to no chance on it happening, except your bank account will be a little lighter.
Have a look at FinancialStability.gov
Get a hold of your congress critters, encourage them to give BK judges the power once again to do cram downs inside of bankruptcy. | I was able to get a loan modification, directly from my mortgage lender. No issues no hassle, they took me from 6.8 to 3.4, I was stunned!
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03-21-2009, 08:23 AM
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#4 | | If You Do Not Like It, Kiss My...
Join Date: Nov 2004
Posts: 5,754
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Story on 20/20 last night about just such. Be very careful...
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03-23-2009, 09:08 AM
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#5 | | Administrator
Join Date: May 2006
Posts: 2,760
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Originally Posted by Qtip I was able to get a loan modification, directly from my mortgage lender. No issues no hassle, they took me from 6.8 to 3.4, I was stunned! | You "really" did not get a loan modification, they lowered your rate. I think Neil is talking about principal amount adjustment.
__________________
It is better to keep your mouth shut and appear stupid than to open it and remove all doubt. - Mark Twain
The information and materials in this document are provided for general information purposes only and are not intended to constitute legal, accounting or tax advice or opinions on any specific matters. Laws and regulations change frequently and their application can vary widely based upon the specific facts and circumstances involved. You are responsible for the applicability and accuracy of Information as it relates to your specific situation. | |
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03-26-2009, 04:08 PM
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#6 | | Elite Member
Join Date: Oct 2006
Posts: 567
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My goal is rate reduction.
I now find myself one among millions "between jobs." Is that something that I should keep to myself when talking to the mortgage co, or will it help? The sharks that I almost retained to do this said it would hurt.
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03-26-2009, 04:09 PM
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#7 | | Elite Member
Join Date: Oct 2006
Posts: 567
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My goal is rate reduction.
I now find myself one among millions "between jobs." Is that something that I should keep to myself when talking to the mortgage co, or will it help? The sharks that I almost retained to do this said it would hurt.
Qtip - how long did the process take?
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03-26-2009, 09:27 PM
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#8 | | Member
Join Date: Nov 2007
Posts: 95
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I would suggest first that you check out: https://www.efanniemae.com/sf/mha/mhamod/
to see if you qualify.
Secondly, to save yourself a lot of money, try to contact your existing lender to see if they will work with you.
No matter what route you go, this is a long process, but well worth the time and effort.
Charles
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03-27-2009, 10:52 AM
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#9 | | Elite Member
Join Date: Oct 2006
Posts: 567
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How should I handle my "between jobs" dilemma?
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03-27-2009, 11:07 AM
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#10 | | Member
Join Date: Nov 2007
Posts: 95
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You would have to wait until you get another job/income stream.
How is your job hunting going?
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04-14-2009, 08:45 PM
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#11 | | New Member
Join Date: Apr 2009
Posts: 16
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So at the end of 5 yrs say, what happens, does the interest ratchet up and beyond or can all that be written into the loan modification? Seems to good to be true. I am considering a modification if they will take me but my credit has tanked over the last few months.
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04-14-2009, 08:53 PM
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#12 | | Member
Join Date: Nov 2007
Posts: 95
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All of the loan modications that FannieMae has are fixed 30 year mortgages.
Some lenders that will work with borrowers to modify their existing loans, will have a graduated rate, sometimes starting as low as 5% first year, 5.5% 2nd and then at the end of the 5th year rate is about 7% and stays there. Still much better than people that are in adjustible rate mortgages that are in the 11-12% range.
When you are working with your existing lender, be sure to push for a fixed rate.
Charles
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04-14-2009, 09:34 PM
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#13 | | New Member
Join Date: Apr 2009
Posts: 16
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For all of you out there I've decided to post my progress through this loan modification system blow-by-blow and let you know how it goes. The new thread will be called "Halelani's Mortgage Modification Blog". It will be under blogs if there is one here, otherwise just search Halelani's ....Please let me know what you think and if you have any advice (or support) to offer.
Thank you!
PS Thanks Loan Doctor for your response.
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05-18-2009, 12:42 PM
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#14 | | Elite Member
Join Date: Oct 2006
Posts: 567
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Well, I contacted the mortgage company myself, just got the call that our income (was) too high. When I said that now I'm between jobs, we have to re-submit with the new information.  | |
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06-21-2009, 02:01 PM
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#15 | | New Member
Join Date: Jun 2009
Posts: 7
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Now as your bank has offered you a good options and you not mentioned you have any other options to choose so go for it. So far seems not bad.
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06-30-2009, 10:33 AM
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#16 | | New Member
Join Date: Jun 2009
Posts: 4
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How much time did they spend actually discussing your situation vs. giving you a sales pitch? There are at least 15 - 20 questions they should ask to see if you're even a candidate. Questions about income, debts, expenses, laon balance vs. equity, cash flow, residency, etc., etc. If all you got was a sales pitch, they're probably scammers.
Did they ask for ANY money upfront? If so, run to your nearest exit. It is now patently illegal in about 20 states for loan modification companies to charge upfront fees. (And correctly so!)
Did they offer any guarantees? If so, they're scammers. Absolutely NO ONE can guarantee a loan will be modified. Not only is the qualification process somewhat rigorous, at the end of the day the decision to modify, or not modify, is solely up to the lender or the investors (if the loan was sold and securitized). I will unabashedly state that anyone offering any kind of guaranteed modification is a scammer.
Will your case be handled by an attorney? ONLY an attorney can protect your legal rights. (No self interests here ... I am not an attorney.) If they say they're "attorney backed" or "attorney reviewed" that actually means "No!" Those two designations are entirely meaningless.
How long have they been in business. I wouldn't even consider for a split second a firm that hasn't been in business at least 5 years. Keep this in mind, most of these new firms that have sprung out of the woodwork are started and/or staffed by the very same mortgage brokers who put people in crap loans to begin with. Don't believe it? Just google in "loan modification" and "business opportunity". Any Tom, Dick, and Harry can open a loan modification "business" .. no licenses, bonds, experience required!
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06-30-2009, 10:39 AM
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#17 | | New Member
Join Date: Jun 2009
Posts: 4
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You'll have to get a job. Sorry.
There is no "stated income" loan modification. Income and employment WILL be verified. So, will your liquid assets (checking, savings, cd's, ec.) in most cases.
The bottom line is banks are generally not modifying loans for unemployed borrowers. The exception to the rule is if you are retired or on disability, AND you can prove it with award letters, AND the income is sufficient to support the modified payment, AND you have a positive cash flow at the end of the month.
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06-30-2009, 01:23 PM
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#18 | | The One and Only!
Join Date: May 2006
Posts: 4,050
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Originally Posted by nkochmann You'll have to get a job. Sorry.
There is no "stated income" loan modification. Income and employment WILL be verified. So, will your liquid assets (checking, savings, cd's, ec.) in most cases.
The bottom line is banks are generally not modifying loans for unemployed borrowers. The exception to the rule is if you are retired or on disability, AND you can prove it with award letters, AND the income is sufficient to support the modified payment, AND you have a positive cash flow at the end of the month. | I do not think this is always the case, a person I know had a stated loan and when it came time for the loan modification; the bank modified the loan without verifying any financial or employment information.
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06-30-2009, 01:43 PM
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#19 | | New Member
Join Date: Jun 2009
Posts: 4
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You are absolutely correct. Borrowers who closed on "stated income" loans certainly do have their loans modified! But, that's not what I meant ... my bad for not being more clear.
What I meant was that when applying for a loan modification, the homeowners income WILL be verified. Unlike "stated income" mortgages, there are no "stated income" modifications. I have never successfully completed a loan modification, nor have I ever heard of one, where the borrowers income was not verified. Hence, no job = no modification.
I don't doubt your experience. It seems there is literally an exception to every modification "rule". I personally know a homeowner who was able to get loan modifications on TWO of his rental properties. Unreal.
What I try to keep in mind when talking to people is to not set false expectations. OK, so today I learn of a lender that did a loan modification without verifying income. Wow. Amazing. Really. But, personally, I wouldn't tell that to a person I'm working with. Why set up hopes for that one in ten thousand chance of an exception?
Borrowers who do have a "stated income" mortgage and apply for a loan modification should be aware of a potential problem area. Suppose the borrower initially "stated" their income to be $90,000 on the mortgage application. Now the borrower is applying for a loan modification. Keep in mind income is now verified. Suppose the borrowers real income is $60,000. The lender may very well wonder why there's a $30,000 discrepancy! The borrower should be prepared for an answer.
Does this happen all the time? Of course not. Lenders, believe it or not, keep prretty lousy records. They may not even have access to the original loan application, The further removed from the loan closing date, the less chance there is of this occurring.
However, I have heard of cases where the borrower was not only denied the loan modification, but was subsequently foreclosed upon when the lender claimed the borrower committed loan fraud. An extreme case to be sure.
Last edited by nkochmann; 06-30-2009 at 01:52 PM.
Reason: Added comment
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07-03-2009, 02:56 AM
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#20 | | Member
Join Date: Jun 2009
Posts: 119
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Ditto Nkochman. My resume contains work in most fields of credit, and unfortunately a brief exposure to loan modification. An embarassment actually, and proud to say I was fired within less than two weeks. I'm putting that on my resume.
The goal was not to modify anyones loan. It was to get them to send in approximately a thousand dollars, for the chance to try and modify a loan. Sales pitch, Nkochman, darn right. The folks who get you to remit those fees are well paid, regardless of the success of whether, or not the modification was successfull, or not. They do mailings in mass to certain areas of the country and then take the inbound calls. Some, they do avoid, to take money on someone they absolutely know they can't help could really be bad whent the A.G. gets around to them.
Most banks will also require the past due amount, or a large down payment. Every aspect of your financial life will be investigated, right down to the amt. spent on groceries (sound familiar for an in-house cr. card program?). I've seen some of these agents tell the debtors to lie. And if a modification fails, it is unlikely if you do "make a comeback", that failed modification where you lied will be held against you, as mortgage was modified once and failed.
Some banks will take the thirty years times the months = total amount due. If you can put down some sort of down payment, large, they will take the several months behind, put them on the back of the loan, and the payments should increase slightly. And yes, I have heard of reduced pmts substantially.
It is one job I was very happy to be fired from. Proud to be fired from. The state of Florida passed a law in oct. 08 that these firms can't collect up front fees, just a $50 app fee, which is standard in most financial businesses in Fl. They can only collect a fee after they have modified the loan to the satisfaction of the homeowner. Many are under investigation in Fl. and Attny Genrl. Cuomo recently released a press release that he is beginning a national investigation of mortgage mitigation companies and debt settlement companies. Though I believe Mr. Cuomo, has high political goals for the future he is right I believe, though some here may back debt settlement.
You can modify yourself. Why pay someone to do it? And if you haven't come back from a financial disaster of say a year ago, or really can't afford the home????? Check each states rules for when you must vacate, when the time comes.
One other thing a catch, if you feel like gambling. Some people have delayed, or avoided foreclosure because of the length of time, and the selling and reselling of the loan. They did it with two simple words. "PRODUCE THE NOTE".
This simple two words have caused attorneys, and bankers to lose a lot of sleep, and in some cases ruined their relationships with their client.
As of research in the last few weeks the fastest on the trigger, most and fastest foreclosures nationwide has been Deutshland bank. Get a summons from them don't fall asleep at the wheel they play hardball.  
T
Last edited by rescue me; 07-03-2009 at 02:59 AM.
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