Mortgage Loan Modification help!!!

[rjl0206]

To all,



new to the community and have taken the first steps to becoming debt free. Anywho, just wanna ask anyone out there about loan modification. In my situation my mortgage per month is about $3352 (with PMI, insurance, principal etc.) in a 30yr fixed 7.25% mortgage. My wife and I work in the healthcare field which also hasn't been doing well in our area for the past year or so (hospital closing, limited hours with no overtime) before that I was doing overtime and even had taken 2 extra per diem jobs to get extra cash, so payments to all debt were made on time and with extra on top to pay debt down. average take home per month was $12000-11000 depending on overtime/hours worked for me, otherwise on a bad month it would be $10000 average. NOW for the past summer especially the hospitals I work at have cut down on hours and manpower, leaving me with barely any overtime/hours and have had to leave my original full time hospital to a more bigger/stabler hospital but with no overtime (they avoid it now like the plague) . now for the past 2-3 months our average take home income is $8500-$9000 and boy are we feeling it. I am now working with careone which has helped but I feel more is needed as we are dipping into our savings which isnt much, living from paycheck to paycheck is now common, I thought my hours being cut down would only be temporary but I cant wait around forever. Working 3 jobs and 5-6 days a week with 12-16 hour shifts isnt much fun either as it surely is taking its toll on me. my main question is, I contacted my mortgage lender (1st 2nd mortgage of NJ) and they pretty much said to me that I would have to be behind 2 months in mortgage to even be considered for mortgage modification. I am current with my mortgage and am going to them asking for a little breathing space as I am barely making it now and they put me in a predicament. I just wanna ask the community what I should do? I am looking up mortgage modifier services but with so many to choose from I dunno where to start, and I dont wanna risk my house being forclosed and such by missing two payments which MAY happen eventually just to be considered for mortgage modification.



Thanks all.



Ray

[Flamingo]

Loan modifications have been in the news recently because of the economic situation and numerous foreclosures. Certain lenders are doing loan modifications for people in trouble to avoid foreclosures. Not all lenders are doing them. However, you have to be unable to make your present payment, be late, etc. What would be done is that they would reduce the interest (sometimes as low as 3%) on the mortgage so the borrower can afford the payment but there are certain qualifications for all this. It's just not done for everyone. Loan modifications are not given to people paying their mortgages on time and not late. Refinancing is available for that.

There are many people in your situation with reduced hours and wages due to the type of jobs they are in and are looking for ways to cut corners and living from paycheck to paycheck but are not behind in bills and keeping their credit in good shape by stopping spending, shopping discount, not eating out, etc., etc. It's up to you how you want to handle your life and your credit rating. This economy is going to be around for a while but it will eventually change. Those with foreclosures and bankruptcies as a result will take many more years to recover as there will be massive credit changes all around and credit will not be as easy to obtain as it once was.

[gymbo]

In the news today ...Fannie Mae, Freddie Mac restructuring loans. But I think I heard they are doing 38% of gross income - which seems really high to me!

Also Citigroup is freezing foreclosures for people trying to pay "in good faith."