Mortgage Modifications?

[eddiep]

I am trying to modify my mortgage

[Tromploi]

Thats funny, I too am addicted to loansafe.org, Now that I have no money to do anything but surf the internet. lol

I am trying to get my mortgage modified too, my lawyer says I have to get this done before we file because I will not be able to negotiate with ANY creditors until this is resolved.

What are you trying to negotiate with creditors??

[eddiep]

Thats funny, I too am addicted to loansafe.org, Now that I have no money to do anything but surf the internet. lol

I am trying to get my mortgage modified too, my lawyer says I have to get this done before we file because I will not be able to negotiate with ANY creditors until this is resolved.

[Tromploi]

You may be able to get the 2nd reduced, like Hrdlck1 said, to 8-10%! Now THAT would be something! Just have your hardship plan ready.

Good luck!

[albacore44]

Tromploi is correct. Principal reduction is an "added bonus" of any modification.
ost seconds can be settled around 8% of the principal balance.

I have spent many hours reading that Loansafe forum. The moderator states that they have had little success with principal reductions. my case looks like this 1st = Citi $417K, HELOC = Hsbc $240K. Property now worth mabee $500K, Was appraised $900K June "07". what I really need "Big Picture" is a principal reduction from Hsbc. both loans are somewhat affordable right now at interest only, and my income, and thanks to rate reductions by Mr. Bernanke. but there is a time bomb ticking in my future if I can't renegotiate the terms.

[Tromploi]

There are some folks I have read that were able to do the mod without behind behind on payments (it's not common but it happens!). Thing is, that changes your payments and affects your means test, so really either way it seems best to wait for the discharge (Hrdluck1 would know better than me though).

I am in the same boat as you ansky. Waiting for my discharge (341 isn't even until 2/24). Then after the DC I will start talking with the bank. In the meantime, I pay almost $3K a month. In my case, without a BIG mod on the 2nd (210K) it won't work anyway. I owe $354K on the 1st, paid $595K in 2005 and it's worth about $455K now. I am getting a divorce, which I know is a reason for hardship so the income goes from $150K to about $50K. Hopefully that works in my favor and I can keep my home, and comfortably afford it. If not, I will have to sadly walk away.

[Hrdluck1]

Ansky,
Modifications can be done while you are current. Again, You have a show a hardship. Most hardships are stated not proven.

[ansky0007]

Ansky,
It can be done. You need to be persistant and paint the picture that you are struggling. You need to show a legitimate hardship as well. Talk with your BK attorney. The best time to get a modification doen is in a BK. You have more "ammo" to use against the lender.

Unfortunately right now we are trying to save the house since the trustee was trying to take it from us. If I stopped paying on the house right now it would be much easier for the trustee to take it from us so my lawyer has advised us to make sure our payment on the house stay current so it looks like we will have to wait 1-2 more months before we stop making payments.

We have not re-affirmed the loan but we are making the payments. Its included in the bankruptcy so we could walk away at any time but we have around $70k equity and we have lived here for 10 years and dont want to move.

[Hrdluck1]

Tromploi is correct. Principal reduction is an "added bonus" of any modification.
ost seconds can be settled around 8% of the principal balance.

[Tromploi]

Read the stories on the forum link I posted above, there are ALOT of success stories as well as examples of hardship letters, who to contact etc. I don't think principal reductions are a big part of it, and IMO people shouldn't be expecting that anyway. But interest rate reductions, longer # of years, and some negotations with the 2nd mortgages (some are paying pennies on the dollar). Alot of people have been helped, but you have to be realistic about it.

[Hrdluck1]

Ansky,
It can be done. You need to be persistant and paint the picture that you are struggling. You need to show a legitimate hardship as well. Talk with your BK attorney. The best time to get a modification doen is in a BK. You have more "ammo" to use against the lender.

[ansky0007]

All I am looking for in my case is a rate decrese, I have a 30 Year Fixed at 6.75%, I have seen some mods go below 5% and on a $400k mortgage that can save $6000 a year which would be very helpful to me. Unfortunately they will not talk about a mod because I am still current and I cant fall behind because I am in the middle of BK, I need to wait until I get the BK over with before I can start missing payments.

[Hrdluck1]

Albacore,
We have seen principal reduction from 5K to 165K and have seen lenders completely wipe out deffered interest.
You are right though, There are many times where the lender wont do a thing.
Some times people have to realize they either
A. Made a bad investment
or
B. Need to wait it out

If they can get an affordable payment they can most likely wait it out for 4-7 years and hope the value comes back.

Value really has nothing to do with a modification. It is income driven 90% of the time.

[albacore44]

The mods being offered by and large are not really effective, as I have read of very few successes of anyone getting a principal write down. My residence has declined in value 50% since 2007. when a home becomes upside down Ltv, as many are in this country, you can't qualify for any type of mod. there are several well known economists reccomending government programs to write down/defer principal and the government gets paid back when the property is sold. They must come up with a comprehensive plan to significantly reduce forclosures, or property values will continue to sink.

[Hrdluck1]

I work for a law firm which does loan mod's.
We have been very successful in helping 100's of clients.
If you have any specific questions I would be more then happy to help. PM me.