NEW THREAD IN PROGRESS, PLEASE DO NOT CLUTTER WITH Offtopic Commentary about your views on modifications. if you want to discuss your views on mods, DO IT HERE IN THE OLD THREAD
We are in the middle of a historic time, one where it is becoming possible to get the interest rate , and even the principal amount owed, reduced on your home loan.
As of now, most programs are voluntary and dependent on your lender's willingness to modify your loan. And most often, they choose only to work with people who are delinquent in an effort to get payments coming in again.
But there have been some cases where responsible CURRENT borrowers are also taking advantage and reducing their note rates, lowering the interest, or changing from an ARM to a below market rate fixed rate mortgage. And a few rare cases have included PRINCIPAL reductions.
Soon, I expect we will see far more of this activity, and more "involuntary" programs that lenders will be required to offer to certain borrowers. This thread is to serve as a consolidated place to list them , detail, the requirements of how to take advantage of them, a quick and easy way to find lender contact #s, etc. I will be adding specifc lender information for both Voluntary and Involuntary programs.
I simply ask ONE THING - DO NOT TAKE THIS THREAD OFFTOPIC with political debate, comments on how you "feel" about bailouts and loan mods, how its unfair for the responsible people, etc.. Lets keep it tight and focused on sharing of details and information on obtaining the mods. If YOU have received a loan mod from your lender, please post a followup reply and detail the lender name, facts of your situation (were you current or late, contact #s, what documentation you provided, and what modification you received).
We are still in the infancy of loan mods and I dont expect this thread to fill up with helpful info quickly, but rather to build it over time.
Here is an old thread on lenders offering loan mods. Even I obtained loan mods without being delinquent. In that environment , the goal in offering loan mods was to keep clients, not loss mitigation, rather than losing them via refi to lower rates.
codename47
Senior Member - 3K
posted: Oct. 30, 2008 @ 10:26a
Well, since this is a loan modification thread, I'll throw in my data point regarding Advanta. A buddy of mine got rate jacked by Advanta from like 8% to 30%+. No warning. No reason. No missed payments. No defaults anywhere else. This seems to be a recurring theme with some credit card companies, so he said F' that, I'm not paying. They called and called and he explained to them that if they take off the late payments charged and additional interest he'd start making payments again.
They complained and moaned and said that nothing was available until right around the 90 day mark, when magically, they said that he was late enough and showing enough signs of distress that they could do everything he was asking for.
shura7400
Ancient Member
posted: Oct. 30, 2008 @ 10:57a
codename47 said: ......he said F' that, I'm not paying. ...... ..... around the 90 day mark, when magically, they said that he was late enough and showing enough signs of distress that they could do everything he was asking for.
What I take away from the article is that knowing the formula that determines how much you can afford based on your income is crucial. I am sure many people have some ability to modify their documented income to qualify for the best deal with the bank.
We need Data!
kenblakely
Senior Member - 2K
posted: Nov. 1, 2008 @ 8:19a
codename47 said: ...so he said F' that, I'm not paying.
..That's kind of been my philosophy for a long time. Once you realize that YOUR money is YOURS, and you don't have to give it to someone if you don't want to, the whole game changes. If more people just said "F*that - I'm not paying" instead of running scared, banks wouldn't be so bold....
codename47 said: Well, since this is a loan modification thread, I'll throw in my data point regarding Advanta. A buddy of mine got rate jacked by Advanta from like 8% to 30%+. No warning. No reason. No missed payments. No defaults anywhere else. This seems to be a recurring theme with some credit card companies, so he said F' that, I'm not paying. They called and called and he explained to them that if they take off the late payments charged and additional interest he'd start making payments again.
They complained and moaned and said that nothing was available until right around the 90 day mark, when magically, they said that he was late enough and showing enough signs of distress that they could do everything he was asking for.
Wonder, dont' they hand it over to collections after two months of late? I heard from people how their credit got screwed because they missed a utility payment. I wonder how this works for CC and Mortgage loan.
My objective is, is there anyway to get in to this loan mod even if you have good credit and up to date in payments. I just don't want to land at collections.
codename47
Senior Member - 3K
posted: Nov. 1, 2008 @ 9:14a
Wonder, dont' they hand it over to collections after two months of late? Very few companies hand debts over to a 3rd party collector that fast. Most try to work it for a while until their efforts fail or until they charge it off at 180 days. It really just depends on the company you are talking about, the amounts in question, business/personal, etc...
I heard from people how their credit got screwed because they missed a utility payment. I wonder how this works for CC and Mortgage loan. People get screwed because they let themselves get screwed and they don't fight back. The same will happen to you until you put up some resistance.
My objective is, is there anyway to get in to this loan mod even if you have good credit and up to date in payments. That's possible, again it depends on the amount in question, the lender, the type of loan, etc... I'd just call up someone in a position of authority (executive level) and tell them if they don't play ball, you are going to default.
I just don't want to land at collections. Why not? That just shows that the creditors are getting desperate. What are you scared of?
ThursdaysChild
Missed.
posted: Nov. 1, 2008 @ 12:38p
Sorry, SIS. Looks like people will never shut up and just give data rather than opinions.
Borrowers are encouraged to contact their lender to determine eligibility, but may be eligible if, among other factors:
The home is their primary residence, and they have no ownership interest in any other residential property, such as second homes.
Their existing mortgage was originated on or before January 1, 2008, and they have made at least six payments.
They are not able to pay their existing mortgage without help.
As of March 2008, their total monthly mortgage payments due were more than 31 percent of their gross monthly income.
HOPE for Homeowners also includes the following provisions:
The loan amount may not exceed a maximum of $550,440.
The new mortgage will be no more than 90 percent of the new appraised value including any financed Upfront Mortgage Insurance Premium.
The Upfront Mortgage Insurance Premium is 3 percent and the Annual Mortgage Insurance Premium is 1.5 percent.
The borrower must agree to share with FHA both the equity created at the beginning of this new mortgage and any future appreciation in the value of the home.
The borrower cannot take out a second mortgage for the first five years of the loan, except under certain circumstances for emergency repairs.
Rorer714
Senior Member
posted: Nov. 1, 2008 @ 11:50p
ThursdaysChild said: Sorry, SIS. Looks like people will never shut up and just give data rather than opinions.I am a little confused, is your post data or opinion?
jtronique
Member
posted: Nov. 2, 2008 @ 7:29a
I am currently working on a prospective mod with BOA. I'm going to leave out most of my stats here and will follow up as it progresses if I make out. On Oct 1, I called BOA to inquire about their participation with the HOPE program. At that time, "Julie" told me that BOA's participation was limited to loans "originated" between December 2006 and June 2007. These dates seemed to conflict the dates that the HOPE program "umbrellas", which is mortgages originated before January 1, 2008.
However, I would like to share with FW that at this time I was talking to BOA, they were running around with heads cut off, so it seemed, and I called back a few times - each person had a different take on the information - one person even asked, please call back in a couple of weeks, so they could interpret the Dodd memo and would have more info avail. I called back again, tenacious as I am, and spoke to a woman to whom I said "Listen, I'm not late here, and I really want to be proactive." She said, it was possible they could consider an extention on payments if I was 15 days late, and that I should go ahead and fax my current income materials to Loss Mitigation Dept. Well, I went ahead to fax my current income materials to Loss Mitigation, about a month ago - from my BOA branch - and no one has called me as a result of this action
Anyway , this is posted as data. I'm not complaining, this is all a process. My situation is that similarly to a lot of folks who have lost income, I have, em, lost income lately A considerable amount, but again, let me just stick to the Loan Mod experience.
I'm not completely insolvent though which means eventually I'm sure that I will achieve some reasonable conclusion with the bank, which I will follow up with.
I can tell you guys this - I actually have one of the last Alt-As that BOA ever brokered... mine was even almost halted in transit as they wound down the business - originated before June, 2007. So, Will they treat my mortgage mod as proactively as they will take care of their Countrywide clients? This is something we all should know. (Many people got BOA brokered mortgages around that time period)
My plan, is to go for the full thrust. I have an appointment with CCCS on Nov 12, which is before the 15 days late mark. CCCS is also a HUD approved counselor which means if they feel you are qualified they can vouch for your financials to the bank which will help people get their terms modified within a reasonable DTI. (See also Hope for homeowners alliance...)
You guys have been very helpful with me in the past so I only hope that my story will serve you , if I am the first person to consummate a FW HOPE mod, I only hope that my experience will assist. So I will update when I have more info, probably after my CCCS visit.
I'll just be really really glad if I never have to work with a super lefty org like NACA )))
Thank you SIS , Green for opening this forum.
jtronique
Member
posted: Nov. 2, 2008 @ 7:42a
Ajohnamous said: "HOPE for Homeowners also includes the following provisions: percent.
The borrower must agree to share with FHA both the equity created at the beginning of this new mortgage and any future appreciation in the value of the home."
For the first 5 years, it seems.
FHA.gov's HOPE page Click on "Equity and appreciation sharing with the Federal government,", it opens as a notepad, and explains the breakdown.
Basically, after 5 years, you split the equity 50/50.
But
If the HOPE program reduced one's payments so much that they caught up, and actually paid off their home, and the loan was discharged, split naught!
jtronique
Member
posted: Nov. 2, 2008 @ 7:56a
Another tidbit:
When I called the CCCS 1-800 , for the national directory, to be assigned to a councelor in my locale, I was told that the one closest to my home had a 3 month wait. Luckily, I was able to get in to a center which is only 15 miles down the road, and on my way to work, and they were able to schedule me an appointment a few weeks out...
My locale is the North Shore of Mass if that helps...
So if any of you feel that HUD or other counseling through this org would assist you, you also might want to consider beating the pre and post Holiday rush. Lots of people get laid off and there's tons of drama around the Holidays (at least, there always is in my family
Coto
New Member
posted: Nov. 3, 2008 @ 9:36p
I think this "shared equity" needs to be taken into condsideration:
HOPE for Homeowners Examples of How Equity and Appreciation Are Shared
These are examples of how the unique equity and appreciation sharing elements of this program work. Keep in mind that these are only examples, and your actual experience will depend on many things, including how much your home increases or decreases in value
1. Let’s say your home has an appraised value at the time you receive your FHA mortgage of…………. $200,000. 2. And your mortgage is 90% of this, or…….... $180,000. 3. This means the initial equity is the difference between 1 and 2, or……………………………….. $20,000.
In this example, you and the FHA share this $20,000 when you sell your home or refinance your loan. Here’s how that $20,000 would be split:
If you sell or refinance:
During Year 1 FHA receives 100%, or $20,000 You receive 0%, or $0 During Year 2 FHA receives 90%, or $18,000 You receive 10%, or $2,000 During Year 3 FHA receives 80%, or $16,000 You receive 20%, or $4,000 During Year 4 FHA receives 70%, or $14,000 You receive 30%, or $6,000 During Year 5 FHA receives 60%, or $12,000 You receive 40%, or $8,000 After Year 5 FHA receives 50%, or $10,000 You receive 50%, or $10,000
So, if you sell or refinance right after receiving the new loan, the FHA keeps the equity that was created, and you don’t receive any of it. On the other hand, let’s assume you stay in this loan and don’t sell or refinance for ten years. At that point, you’re entitled to half of the equity – in this example, that’s $10,000 – and the FHA is entitled to the other half.
In addition to this equity sharing, you will have to share any future home price appreciation with the FHA. This means that, if your home has gone up in value between the time you receive your FHA mortgage and the time of your home sale (or other disposition), you will share the amount of this increase with the FHA (less closing costs and a portion of any improvements you have made). This is a 50/50 split that does not change over time.
For example, if: 1. The value of your home when you take out this loan is……………………………………………. $200,000 2. After some years, you decide to sell. Now the home is worth…………………………………… $250,000 3. That means the appreciation is the difference between 1 and 2, or……………………………… $50,000 In this example, you would keep half of this, or $25,000. The FHA would also receive half, which is also $25,000.
But what if the value of the home goes down?
4. The value of your home when you take out this loan is……………………………………………. $200,000 5. Now you sell, and the home is only worth…………………………………… $175,000 6. That means the appreciation is the difference between 1 and 2, or……………………………… -$25,000
In this example, the appreciation is actually negative (the home has depreciated), so there is nothing of financial value to share. As far as the appreciation sharing feature of your HOPE for Homeowners loan, neither you nor the FHA would receive anything.
These examples assume that there are no closing costs when you sell your home and that you have made no improvements to your home.
Again, keep in mind that these are just examples, and your actual experience will vary depending on factors such as: How much your home is worth when you get a new HOPE for Homeowners loan, how long you stay in your home, and how much your home is worth when you sell.
NEW MOD PROGRAM IN EFFECT for Fannie/Freddie clients who are behind on paymenst
"Fannie and Freddie's loan modification plan aims to help abate the foreclosure crisis by aiding homeowners who have fallen at least three months behind on their payments, but only if their loans are held by the two companies.
Under the program, the new primary mortgage payments -- including taxes and insurance --shouldn't total more than 38 percent of homeowners' pretax monthly income"
I'm due to lose my job within 30 days so I called up Wells Fargo, my current mortgage holder. Finally got routed to 800-416-1472. A recording states that they are going through their files and sending letter out to people who may qualify for loan modification. I'm assuming they are looking at people who are now behind and sending out letters offereing mod.
I'm not behind so I asked if it's possible still, she said I can send a FAX to 1-866-359-7363 (Loss Mitigation) to plead my case. She want information like living expense, utilities payment, CC payment, and unemployment pay, etc to be in the FAX. She failed to mention that I need to including information like saving and investment account, not sure if it's a oversight or SOP to not include those in consideration. Any ideas?
According to the CSR, they are very backed up with now and will take as long as 45 days to respond. Everyone I talked to at WF are very professional.
For now, I will keep that information handy and probably do a regular refinance instead (I'm at 5.875%).
Also, any idea if credit score will be affected by a loan mod?
EEngineer
Member
posted: Jan. 2, 2009 @ 12:57p
SUCKISSTAPLES said: NEW MOD PROGRAM IN EFFECT for Fannie/Freddie clients who are behind on paymenst
"Fannie and Freddie's loan modification plan aims to help abate the foreclosure crisis by aiding homeowners who have fallen at least three months behind on their payments, but only if their loans are held by the two companies.
Under the program, the new primary mortgage payments -- including taxes and insurance --shouldn't total more than 38 percent of homeowners' pretax monthly income"
"Primary mortgage payments" does that mean if you have an existing second mortgage they do not include that? Also, does anyone have any information on how the loan modifications work when you did a 80/10/10 and the two mortgages are with different banks? Obviously I want to concentrate on getting the rate changed on the 80 as any changes to this rate mean a lot of savings each month.
Actually Countrywide's 'Home Retention' program uses this phone number
800-669-0102
tester99
Member
posted: Jan. 8, 2009 @ 5:07p
Aurora is 1-877-297-5353 , They are not looking at your case untill you miss two payments and then they will try a payment plan? You may or may not get any modification depending on your financials.
tester99 said: Aurora is 1-877-297-5353 , They are not looking at your case untill you miss two payments and then they will try a payment plan? You may or may not get any modification depending on your financials.
Chase is doing nothing at this time.
Just saw this regarding chase: http://loanworkout.org/2009/01/chase-mortgage-loan-modification/#more-2125
MadSeason
Tired Member
posted: Jan. 21, 2009 @ 6:07p
I talked to Countrywide today. I have a mortgage with a $130,000 balance and payments of $1250/month including taxes and insurance. The rate is 6.25%.
I am currently 2 months behind, last week I was 3 months behind. My monthly income is about $2000-$2500 depending on the hours I get at work. My household is myself and 2 kids. I was told they can do nothing. They will not defer payments, they have no programs to reduce payments, even temporarily. I am trying very hard to keep the mortgage from falling more than 90 days behind as they said they will begin foreclosure proceedings as soon as it hits 90 days.
I didn't expect them to knock the principle down but with all the talk about mortgage help I was hoping they could do something like defer the payments I've missed. I don't even know if there is help out there for me at this point.
what numbers did you call? the one zdog posted above?
mikef07
Senior Member - 3K
posted: Jan. 21, 2009 @ 6:38p
I heard on the radio today a person who called their mortgage company and they let her skip 3 payments and add them on the back end. Not sure of the mortgage company but may be worth a try if a person is having trouble. I had heard that mortgage companies did not usually do this, but they may be changing their ways.
MadSeason
Tired Member
posted: Jan. 22, 2009 @ 6:29a
SUCKISSTAPLES said: what numbers did you call? the one zdog posted above?
Yes, they had called me and left that number. They took all my info and said "sorry, we can't do anything".
mlalanne
New Member
posted: Jan. 30, 2009 @ 12:18p
HEADS UP GUYS!!!
THE LOAN MODIFICATION PROCESS S TRICKY WITH THEIR PAPERWORK. IF YOU FILL IT OUT WRONG, YOU MAY GET DENIED.
My friend received a notice from he bank and went ahead to negociate with them. He submitted everything the ask for, but he was denied. The bank claimed that they could not help him because e did not qualify. He was reffered to a small company that does loan modifications. They found out that his papers were filled out wrong, therefore, there s no way he would get it done.
They helped him out for a small fee and and the bank is working with this firm now to modify the loan and reduce his principal.
If you don't kow what yo are doing, Beware. Better get a professional ti do it for you. The benefits in the end are far more grate than the fee.
interested in loan mods but was told you have to be late. has anyone been successful but not being late on your payments?
i was told in the paperwork, if you make your expenses too high (relative to income) they will reject you because 'you dont make enough money'. if you make your expenses too low, you're too rich. what is the right ratio/number?
also (to SIS) if you have more than 1 house, does that disqualify you from loan mods?
mshen11 said: interested in loan mods but was told you have to be late. has anyone been successful but not being late on your payments?
i was told in the paperwork, if you make your expenses too high (relative to income) they will reject you because 'you dont make enough money'. if you make your expenses too low, you're too rich. what is the right ratio/number?
also (to SIS) if you have more than 1 house, does that disqualify you from loan mods?No, having more than 1 house does not "disqualify" you, but as has been noted, each lender is applying different standards for who they will modify, what their income needs to be , etc.
A general rule is that if you take your income, subtract all expenses (including your anticipated new loan payment), you should have no more than $300 left over. If you have more than that, they will say you can afford a higher payment. If you have less than even the basic expenses, you will be denied as not making enough regardless of modification.
coolambo
Senior Member - 1K
posted: Feb. 1, 2009 @ 11:16p
I am reaching out to those who are NOT currently in a resetting ARM loan, have not missed or is not behind in any payments and have applied for a Loan Mod. I have a fully amortized property with an interest only first loan and principal interest second loan. But my debt-to-income ratio is pretty tight. My month-to-month expense is ok (little left over every month) but could use some help. I am personally trying to put together a case to send to Countrywide to request for a loan mod or anything similar. The argument I am making is, we are one financial setback from getting into a tough predicament where we may end up defaulting on payments and potentially lead to the dreaded "f" term. To stay afloat we have been slowly tapping into our reserves but would really like to get away from doing so. Any help you can provide will be greatly appreciated. I also have the hardship letter written down along with a spreadsheet breaking down all my month-to-month expenses. So if anyone is out there in the same situation and have petitioned for a loan mod, or anyone who went through the whole experience I would appreciate getting your input.
One example question I have is, do you have to disclose all your financial statements? Some that I know who went through the process only disclosed the ones that would help them make a good presentation.
ILOVEHAWAII
New Member
posted: Feb. 5, 2009 @ 10:05p
I have been following this site for a while, and now I am in desperate need of your help. I have a Countrywide loan on my primary residence it is a 10 Year Arm that is currently at about 6.0% - It is not set to readjust for another 7 years. I am almost 90 days behind in my payments. I have about 100k equity in the property. I am not currently working, however, I just rented the bottom 1/2 of my home to a boarder for $1500 per month (separate kitchen etc.) I have a job that will start in March that pays well - $40-$50.00 per hour. I have not worked for almost a year and a half, but I am returning to a field I have worked in for over 12 years. I receive rent on 2 other properties- but they are also behind by over 90 days. I owe Home Depot about $9,500 and a Jewelry Store about $9,500 - those are my only credit card debts. WILL I QUALIFY FOR A RE-MODIFICATION? HOW DO I GO ABOUT IT? I AM SO OVERWHELMED. PLEASE, I AM BEGGING FOR ANY ADVICE OR HELP.
have you called the lender #s mentioned in the quick summary? You need to do a lot of legwork, provide documents to the lender, perhaps have a credit counselor prepare an action plan and help you with a hardship letter, etc. Call your lender and they will tell you what is needed.
The fact you have equity means they are unlikely to do much for you besides take the late payments and tack them onto the end of the loan. They can recoup their full loan if they foreclose so there is no incentive to reduce any amounts owed
SUCKISSTAPLES said: have you called the lender #s mentioned in the quick summary? You need to do a lot of legwork, provide documents to the lender, perhaps have a credit counselor prepare an action plan and help you with a hardship letter, etc. Call your lender and they will tell you what is needed.
Does anyone know what "hardship" mean? My house is upsidedown. My ARM ended in NOV08 and my mortgage went up $300 a month. So what exactly is "hardship"? I'm not trying to work the system, (I just refi to a 30 year fixed) but I have not read anywhere what "hardship" means and wondered if anyone have actually seen it defined anywhere.
Just submitted my info over to Wells Fargo for a loan mod. Let's see what they say. So far it's been maybe 4 phone calls to get to the right group. I've submitted my W-2s, hardship letters, income/expense statement and a few other things.
My issue is that the mortgage was taken out as my primary residence and now it's a rental. I've been very careful in stating that it's now a rental and fully rented. The mortgage is paid each month and I'm current - so I don't have much hope on Wells doing a mod.
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