Mortgage Modifications?

[Tromploi]

I found a GREAT site/forum for loan mods. It's just like this one for BK's. I am glued to both now. Hope this helps.

http://www.loansafe.org/forum/

[Trixie007]

exactly -

[Flamingo]

Interestingly enough, as part of the mod we had to sign an agreement that we wouldn't sue the lender for any violations that occurred in the origination of the loan- looked like they were covering their butts! We were happy enough to sign that - I don't think that we can hold them responsible for our bad choices - LOL - they did some pretty interesting stuff in approving our original loan. It was a NINA (commonly called liar's loans in the industry) using only DH's income, ignoring the first home, using my income as an "undocumented" compensating factor. Sheesh, no wonder we're in trouble...

Morgage Loans like you describe above are what brought down things to where there are right now. Your last sentence describes things for everybody from that fallout.

[Trixie007]

We did a loan mod on one of our homes last summer. I think we missed 3 or 4 payments before they offered it. I'm a little hazy on the details right now, but I think they reduced the rate from 7.75% down to like 3.5% for 3 years, then it goes back to the original fixed rate. The also forgave the past due interest & fees - wiped them off completely rather than tacking them onto the end of the loan. It was actually a pretty decent deal, and we may have followed through with it, but then DH got transferred to another state, and we were upside down.

Interestingly enough, as part of the mod we had to sign an agreement that we wouldn't sue the lender for any violations that occurred in the origination of the loan- looked like they were covering their butts! We were happy enough to sign that - I don't think that we can hold them responsible for our bad choices - LOL - they did some pretty interesting stuff in approving our original loan. It was a NINA (commonly called liar's loans in the industry) using only DH's income, ignoring the first home, using my income as an "undocumented" compensating factor. Sheesh, no wonder we're in trouble...

[saintjohn]

good for you! though extending the time to 40years would mean that you still pay the same, although not as heavy per payment.

still good though

[sivuh5]

I Did

I got a modification from Wells Fargo. I had to fall behind three months in order to get them to talk to me. They initially sent me an agreement to sign stating that I was behind three months, that I would pay 1/2 payments for the next three months and that I would owe the balance (over $11,000) in full on the first day of the seventh month.

I knew I couldn't make that last payment, but I signed the agreement and sent it back anyway because they said they would continue to try to modify my loan.

Finally after another month went by, I got a letter stating they were lowering my interest rate from 7.625 to 5.625 and they would put all of the arrears at the end of the loan, and extend to 40 years. I signed it and sent it back as they requested, that was in September. Then they didn't need a payment for October or November, and just a couple hundred dollars for December. I made my first new payment (which was reduced by about $400) on 1/1/09.

I have not filed BK7 yet, but plan to this year. Have not paid any credit cards since April 08. My credit is trashed, but I had never been late with a mortgage payment and was with WF for about 5 years. I think they required at least 2 years of on time payments to work with you.

HTH.
S.

[ansky0007]

Has anyone been successful is obtaining a mortage loan modification to lower the interest rate? If so where were you at and what were you able to get?