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Take this loan, please
Now we all know that banks, with a few exceptions, really aren't modifying mortgages for borrowers in distress. Look at the comments on yesterday's post. The stories there are difficult to accept. And, we know the Obama administration thought somehow that publishing the list of which banks had done what would bring public embarrassment to the banks.
Me, I don't think that's going to do much. The outrage they're hearing from consumers today also is not moving them off the dime.
I'd like to hear from anyone who has successfully managed to get a mortgage modified. I'd like to know your advice, your tips, for others who are beginning this tortured process.
Harriet Johnson Brackey, the personal finance writer for the Sun-Sentinel, has been an award-winning business...
Comments
This was my previous post to yesterday's article, hope it helps:
I have a GMAC account. I actually was declined at first because they sent me the approval paper work 7 days before the first payment was due. I told them that was not possible, so they said to apply again, which I did, and a nice rep called and told me I was approved so I had advance notice to make the payment.
The process actually took 8 months, it was very scary, with foreclosure
papers served and all, but looks good now.
From what I understand, the new modification program is a simple formula-app 33% of gross monthly income is your new loan amount, but you have to show you can afford the payments. After 3 months of successful payments, the loan is modified close to the amount of the trial modification for the lifetime of the loan.
The only snafu I may have is the escrow account, which is now short. They require one in the modification. So I think they add the shortfall into your permanent payments.
If I can offer any advice, it would be this:
Be patient, give them everything they request, and document every phone call, fax, etc.
Remember, foreclosure, or lis pendens, is an administrative process that can be stopped at any time. Be worried, of course, but not so paranoid that you don't communicate with your lender.
I did this without an attorney, but you may want to hire one if you feel you need to.
Hope this helps, and remember most of us are in the same boat.
Posted by: DP | August 5, 2009 12:43 PM
Wells Fargo lead me on from Feb until two weeks ago. I was never late but in an interest only arm. They sent me a letter saying my investor didn't want to work with me. It took them 6 months to tell me that.
Posted by: Annie G | August 5, 2009 1:18 PM
The only candidates for loan modification should be real (not liar loans) owner-occupied ,primary residences with first lien status mortgages.
Homeowners magically expecting the bank to take a loss in principal because house values have dropped are idiots, are we going to allow the banks to take the profits if the house values go up? Too many people have multiple mortgages from multiple financial institutions, good luck with that.
In my opinion home equity loans are legalized gambling anyway, borrowing against mythical increases in the market value of your home is a questionable business practice. I am still waiting for the reforms to appraisers and real estate brokers...I guess they have better lobbyists than the banks/credit card companies.
Posted by: g | August 9, 2009 8:04 AM