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A friend of mine completed her three-month trial mod over the summer, and recently received the permanent modification under the HMA program. Her husband's company went under, they depleted their savings, and they weren't able to keep up the mortgage payments. Her lender is Wells-Fargo.
She said her new mortgage payment was decreased to almost half. They had a 30-year fixed, and the new loan was extended to 40 years with first 5 years at 2%, stepping up to 3%, 4%, and then to 4.something %, where it stays fixed, all fees waived, and IIRC, she said the new loan also includes $60,000 in deferred principle, paying no interest on that amount.
MS,
This is good info, thanks. I know that the bank is getting paid to modify the loans, that is the ONLY reason they are doing this!
"You saying that you received mod docs, stating your payment date has changed.
No person (or document) telling you to go late on your payments, has the best intentions for you. Any late payments can be reported as lates showing on your credit report. I don't know your entire situation, my advice to you is be careful.
I have been made aware of a trick a lot of lenders are doing, they talk you into doing a modification, to enroll you into a program like the O'Bama plan. This is where your interest rate can go as low as 2%. What the lender is not telling you, is that they are getting reimbursed by the government as mush as $3500 per year. The issue is you either fit the qualifications or not."
"You just threw me a curve ball. You said you just had an offer? Are you trying to get a modification, or are you trying to sell you home? What are you trying to accomplish?"
I was trying to save my house but I can see the bank is making that impossible for me.
About a week before I got the Modification paperwork in the mail, I was told that I did not qualify for ANY modification programs. I then decided to try to sell before it went into foreclosure. So I do have it listed and yes I have received an offer, just hoping and praying that the appraisal comes in at the sale price. And by the way I will walk away from this with nothing! I have it listed to just pay it off. So after paying and living here for 10 years I have nothing to show for it! I would rather sell it to pay it off than go through foreclosure! And I will be paying the 1st and 2nd payments this month because a very good friend has lent me the money for it so I can stay current until the closing date. I am doing the best I can right now. I have not had time to grieve for my husband with all this mortgage stuff going on. It is time to let it go so I can start the greiving process and start to heal from this abrupt change in my life!
..... living here for 10 years I have nothing to show for it! I would rather sell it to pay it off than go through foreclosure!
K-FOX
Kfox - it seems you have a good plan of action.
I am sure you have spend a lot of effort in trying to reduce your payments. How you spent the same amount of effort looking for another source of income?
In the last decade I have spoken to 1000's of people - one on one about their financial situation. The more successful individuals have multiple sources of income.
In addition to your regular job, have you thought about.....?
Renting a room.
Have you looked into a part time job.
Starting a website and selling a product or service on the internet.
Finding something in demand, and selling for a profit.
Having people work for you, to complete a large job.
Stock market - I know it is risky, if you know what your doing, it is very easy to double your money. I started in March, since then tripled my money.
We recieved a phone call today, we have been approved for our modification. They are sending the paper work out shortly. The bank is lowering our interest rate and if we pay on time they will take a $1000.00 off the mortgage for the next 5 years. That should help cover our late payment. I'm not counting my chickens yet, but it's nice to know it's getting done.
A friend of mine completed her three-month trial mod over the summer, and recently received the permanent modification under the HMA program. Her husband's company went under, they depleted their savings, and they weren't able to keep up the mortgage payments. Her lender is Wells-Fargo.
She said her new mortgage payment was decreased to almost half. They had a 30-year fixed, and the new loan was extended to 40 years with first 5 years at 2%, stepping up to 3%, 4%, and then to 4.something %, where it stays fixed, all fees waived, and IIRC, she said the new loan also includes $60,000 in deferred principle, paying no interest on that amount.
Very genourous to the borrowers. What I see wrong with the program is, what if this guy gets a job paying $100k/yr. or he starts a new company and in 2 years is making big $? He now got subsidized big time on his mortgage FOREVER, even though he only needed a temporary boost.
Very genourous to the borrowers. What I see wrong with the program is, what if this guy gets a job paying $100k/yr. or he starts a new company and in 2 years is making big $? He now got subsidized big time on his mortgage FOREVER, even though he only needed a temporary boost.
This is exactly what I wonder as well. I thought this modification was a temporary thing until people got back on their feet. Once you get this a loan mod you don't have to be recertified, so to speak, every six to twelve months to see if you still qualify? If you don't, there's something wrong there.
I find it all too amusing that one can get a modification if you are already behind on your payments but you CANNOT get one if you are trying to prevent getting behind because you are paying for 2 homes due to a relocation...
Very,very amusing I say.
I have posted on just about every board that I can about this ridiculous and infuriating subject ...
It is just a venting tool for us now because we have basically been told that there is no answer for us, if you want help and a remote chance of getting a modification on the home we are paying for that we no longer live in and are trying to sell, GOOD LUCK.
Get behind on our payments and maybe ,maybe someone will talk to us.
I find it all too amusing that one can get a modification if you are already behind on your payments but you CANNOT get one if you are trying to prevent getting behind because you are paying for 2 homes due to a relocation...
Very,very amusing I say.
I have posted on just about every board that I can about this ridiculous and infuriating subject ...
It is just a venting tool for us now because we have basically been told that there is no answer for us, if you want help and a remote chance of getting a modification on the home we are paying for that we no longer live in and are trying to sell, GOOD LUCK.
Get behind on our payments and maybe ,maybe someone will talk to us.
Yes, it is pathetic. We asked for help before we were a month behind. Do you think they were sympathetic? Until we were stuggling 3 months behind and our late penalties were higher than our mortgage and we stopped paying because we were sinking and we would probably need that money to move (which we told the bank) that's when they started helping us. We were sure we were going to lose our home. I've been looking at rentals for a while just in case something happened and we had to vacate.
BTW we did not get an ARM or buy a home that was over priced, and we have only lost a little bit of equity in our home. We had a downpayment of $20,000 with a fixed rate. We did have a high interest rate because we were self employed.
This is exactly what I wonder as well. I thought this modification was a temporary thing until people got back on their feet. Once you get this a loan mod you don't have to be recertified, so to speak, every six to twelve months to see if you still qualify? If you don't, there's something wrong there.
Nope. I believe it's permanent. I know a guy who is a truck driver. He was laid off in Jan. for a few months. Got a loan mod that dropped his interest rate and payment way down permanently. He has since gone back to work where he earns $60-$70k/yr. and sold a small business he had that involved a pateneted product for a pretty good chunk with a substantial residual. As it turns out there was NO NEED for a permanent GOV"T SUBSIDIZED modification.
I know another guy who got a very generous modification as he has been unemployed for a year. The kicker is that the only reason he doesn't go out and get a job is because he collects over $400/wk in unemployment which is enough to get him by.
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