Does This Sound Right -- Mortgage Modification

[momtosam]

Our mortgage is with Wells Fargo. We received a call from our local branch that we have been approved for a modification under the President's program for this. We would pay no fees, but could have our interest rate reduced. We've only been in the house for 3 years so we are definitely under water after the bubble burst. I guess we should qualify for this. I just not sure I'm understanding the hard sell the guy was giving if it is costing us nothing. The options we were given were to modify to a 30 year with a reduced interest rate and reduced monthly payment, modify to a 27 year to keep the years we've paid in so far to a reduced interest rate and slightly less reduced payment, or change to a 20 year with a lower interest rate and slightly higher payment to payoff faster. So, this sound up and up? Is there really a money fairy that is coming to give us some extra bucks each month for free???

 

[riley2008]

It does sound right for a refinance. The reason the guy is doing the hard sell is for his commission.

 

[kacaju]

were you looking to refi? Did you call Wells Fargo or did they just call you out of the blue?
I recently had a recording call saying how we can quailify to have our mortgage refi'ed. They went on the say because of Obama we could do this...
Sorry..we only have about 7-8 years left on the mortgage... I am not interested.

 

[Tina]

I'm also with Wells Fargo and am in the middle of a refi. Be sure to ask what program they are talking about -- HARP or HAMP. The HAMP is a modification. The HARP is a refi that doesn't penalize you for being upside down on the house (up to 125%).

I got a call a few nights ago from the agent who handled my original purchase. He asked if I had considered refi, but I told him I was upside down and didn't want to end up with PMI on the refi. He told me with the HARP program, if you didn't have PMI, you won't be required to add PMI. I met with him this morning and we went over the paperwork. I'm going from 6 1/8 to 5%, saving me $250 per month. No appraisal. He had $600 in junk fees on the HUD1 but I was able to get those removed with a lender credit he worked out for me. I'm doing a new 30 year fixed (I've been in the house 3 years too).

 

[momtosam]

I'm also with Wells Fargo and am in the middle of a refi. Be sure to ask what program they are talking about -- HARP or HAMP. The HAMP is a modification. The HARP is a refi that doesn't penalize you for being upside down on the house (up to 125%).

I got a call a few nights ago from the agent who handled my original purchase. He asked if I had considered refi, but I told him I was upside down and didn't want to end up with PMI on the refi. He told me with the HARP program, if you didn't have PMI, you won't be required to add PMI. I met with him this morning and we went over the paperwork. I'm going from 6 1/8 to 5%, saving me $250 per month. No appraisal. He had $600 in junk fees on the HUD1 but I was able to get those removed with a lender credit he worked out for me. I'm doing a new 30 year fixed (I've been in the house 3 years too).

This is extremely helpful. thanks!

 

[Singleminnie]

I conduct housing violations for HUD, we are concentrating on these new modification programs. Make sure you do some research on your own, if you have a VA loan you can possibly qualify for a VA HAMP program. Also make sure they put everything in writing upfront. They could lower your rates and extend the length of your loan also!

 

[quentina]

Our mortgage is with Wells Fargo. We received a call from our local branch that we have been approved for a modification under the President's program for this. We would pay no fees, but could have our interest rate reduced. We've only been in the house for 3 years so we are definitely under water after the bubble burst. I guess we should qualify for this. I just not sure I'm understanding the hard sell the guy was giving if it is costing us nothing. The options we were given were to modify to a 30 year with a reduced interest rate and reduced monthly payment, modify to a 27 year to keep the years we've paid in so far to a reduced interest rate and slightly less reduced payment, or change to a 20 year with a lower interest rate and slightly higher payment to payoff faster. So, this sound up and up? Is there really a money fairy that is coming to give us some extra bucks each month for free???

I have a good friend, who got in a critical situation, and applied for a modification. It took MONTHS and a lawyer to get it all worked out. If you pull stats on these approvals, they are quite low (atleast according to her lawyer). I believe she said less that 10,000 people actually had a modification done. Also, there's is still not complete, they have a mediation hearing in November to finalize it.

I think that this is more of a cold call, commission thing.....I would be careful and make sure it is all on the up and up.

 

[CowboyCO]

Our mortgage is with Wells Fargo. We received a call from our local branch that we have been approved for a modification under the President's program for this. We would pay no fees, but could have our interest rate reduced. We've only been in the house for 3 years so we are definitely under water after the bubble burst. I guess we should qualify for this. I just not sure I'm understanding the hard sell the guy was giving if it is costing us nothing. The options we were given were to modify to a 30 year with a reduced interest rate and reduced monthly payment, modify to a 27 year to keep the years we've paid in so far to a reduced interest rate and slightly less reduced payment, or change to a 20 year with a lower interest rate and slightly higher payment to payoff faster. So, this sound up and up? Is there really a money fairy that is coming to give us some extra bucks each month for free???

The program is on the up and up. But it's not free (accept to those in the program. ) The billions of dollars to fund the program were added to the national debt. $22 BILLION.

My SIL tried to get in the program, the paid a reduced payment for 6 months, but her appraisal came in a little too high, so they got bounced and are still stuck with their VRM. and their bank tried to foreclose because they had been paying the smaller payments (which are part of the program)

Take advantage of it if it helps you. Reports are that only 13% of homeowners that entered the program have been able to permanently refinance. Good Luck!

Makes me wish my DW and I didn't put 30% down on our house in 2002. The depreciation is our loss...