OK, I'll go first, but it's old news, and it was commercial. It was a local bank, so not relevant to almost everyone, just more of a sign of the times. link to red thread. Summary: never a late payment, 20% LTV, 7.5% APR due to reset for final 5 yrs of 15 yr note in 8 mos It was looking to reset around 5%. Told loan officer I was going to go for 4.75% with another bank. She reset at 5% with no docs, no fees, over the phone.
First, thanks OP, fantastic idea for a thread. Expect it will help us to navigate our current negotiations with the lender (Chase) much better than on our own.
Second, a suggestion out of the gate for people. When negotiating with the lender, don't forget about someone BESIDES the lender who has a vested interest in you being able to make your payments: your PMI company (private mortgage insurance) My PMI company (Genworth) has a homeowner assistance team and they will negotiate with the lender on behalf of the borrower to get better terms, etc. I'm thinking they are going to battle pretty hard for manageable terms for me since they are on the hook if I can't pay. I posted their number and website in the Wiki.
In light of National City being bought out, will that include National City Mortgage? Sorry if it is a stupid question; I know some of the corps have different divisions and they are not always part of the same entity. Our mortgage is with NCM and I am curious what will happen to it and if we can get a lower 30 yr rate than our current 6.25%?
CALABASAS, CA - Bank of America today announced the creation of a proactive home retention program that will systematically modify troubled mortgages with up to $8.4 billion in interest rate and principal reductions for nearly 400,000 Countrywide Financial Corporation customers nationwide.
The program was developed together with state Attorneys General and is designed to achieve affordable and sustainable mortgage payments for borrowers who financed their homes with subprime loans or pay option adjustable rate mortgages serviced by Countrywide and originated prior to December 31, 2007. Bank of America acquired Countrywide July 1, 2008.
"We are confident that together with the Attorneys General we have developed a comprehensive program that provides more solutions than ever before to assist troubled borrowers and put them back on the path to sustained home ownership," said Barbara Desoer, president, Bank of America Mortgage, Home Equity and Insurance Services. "Since acquiring Countrywide in July, we have committed significant resources and developed innovative programs to help as many Countrywide customers as possible stay in their homes."
Countrywide mortgage servicing personnel will be equipped to serve eligible borrowers with new program elements by December 1, 2008 and will then begin proactive outreach to eligible customers. Foreclosure sales will not be initiated or advanced for borrowers likely to qualify until Countrywide has made an affirmative decision on the borrower's eligibility....continued
I've tried doing this with Countrywide about a month or so ago. I am really hoping things change so next time I call them, they'll tell me they'd be happy to do this modification for me. I am in the OPs category of "responsible, current borrowers". We've seen all this bailout for those who have been irresponsible. Here's hoping that something gets done to us who are responsible and doing our best to be current on our payments.
This is really the best solution for all that have a vested interest in the home loans not defaulting, which is pretty much everyone. I hope we hear some sucessful stories on this thread. I also hope comments stay positive since even for responsible individuals it is better to have neighbors with a modified loan than a neighbors whose house went into foreclosure.
I suppose to play devil's advocate some might say it is better for everyone to cut their loses instead of prolonging this "crises".
drodge said:Wouldn't any changes also be taxable?Unless there is an exception on the federal level, a reduction in principle would be considered cancellation of a debt and taxable as income. No idea how that concept applies to an interest rate reduction, or whether a principle reduction would be considered current income or would be prorated over the term of the loan. But it does raise an interesting issue, especially if you do not have the money to pay the resultant tax liability.
I have a Countrywide 5/1 ARM that is set to adjust in June '09. I hope we can get somewhere with this thread. Who has called? Who has tried what? Anything work yet? I'd just love to get some "bailout" benefit coming my way. Take advantage of what you can, that's the FW way, right?
fewchaboy said:LoanWorkout.org has a lot of useful information.
Try there first for feedback.
Did you bother reading that site info under "Loan Modification Tips"? Unless your broker or lender committed some fraud(ie chances are you got some sub-prime mortgage which reset at 500-600 over Libor) or you are delinquent, upside down in your house, don't have the ability to pay and can prove some kind of financial hardship which impairs your future ability to make your mortgage payment then most lenders won't re-negotiate the terms of your mortgage.
Now while I understand some people will fall into one of the 2 above categories most people will not unless some lenders are truly stupid when it comes to verifying people assets and future ability to pay. I do not think any lender is going to reduce your principle balance or interest rate if you can afford to continue to pay your mortgage based on the contract you signed.
Loan Modifications I have a felling are only going to benefit people who got screwed by their bank or broker into taking one of those teaser rate mortgages with the promise of "Don't Worry we will just keep refinancing you each time your mortgage adjusts so you will never have to pay libor +500-800 bps on your mortgage". But hell if you managed to get your mortgage company to do a loan modification even tho you have the ability to pay your mortgage please let us know and with what bank as I do not think anyone is going to delinquent on there mortgage on purpose just to try to get a loan modification.
Dolmar - Loan mods have been offered to CURRENT borrowers for many years.
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.
SUCKISSTAPLES said:Dolmar - Loan mods have been offered to CURRENT borrowers for many years.
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.
In that thread no one stated they were able to get a loan modification. The site fewchaboy linked is for a site selling their services in helping you get a loan modification. For $2k they claim they will help you get a loan modification as their "Legal Team" will review your loan docs for fraud and send a letter to your mortgage servicer if fraud is found and if no fraud is found and you meet their guidelines they posted they claim they will be successful in modifying your loan.
I have obtained a loan modification on non recourse commercial property back in 1995 as the property was upside down and had negative cash flow for 3 years based on rents in that area the building was located collapsed. It is one thing to get a loan modification on a property owned by LLC where you have no personal responsibility and bank can not go after anyone else and only the income from the property can be considered vs your personal house when you can show plenty of income to pay your mortgages and if you default they could always come after you for the deficiency if they choose to do so. Now if you managed to get a loan modification in the 2nd scenario then you are a very lucky as never been able to get a loan modification on a profitable property even after letting the bank know I am refi that property with another bank. They did not even try to save the loan or compete with the other banks offer. I have a very good relationship with the bank I was refi the loan away from.
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