I got our home loan modified!!

[hlane]

We purchased a home back in 2005. We were anxious to get a house so we did as a lot of people did and took out a ARM interest only for 30 years. We were told we would be able to refinance but of course that didn't turn out to be the case. Our rates stated adjusting and it was becoming harder & harder to make our payment so in Dec of 2008 after reading a Suze Orman book I decided to try to have our loan modified to a fixed rate that would include our taxes, principle, & interest. I gathered all the paperwork needed & faxed them to my lender (the first of many times I had to do so!) It took much longer than I ever expected & has been such a long, hard ordeal but finally about 14 months since I started we received our final paperwork today & we are now locked in at 4.75% for the life of our loan and that includes taxes, principle & interest!! I am so relieved and just wanted to share!

 

[bonzarella]

congrats- you have a great rate. Wishing you the best

 

[dis-happy]

Great news! Enjoy your new fixed rate loan....

 

[hlane]

Thank you!!

I forgot to mention in OP that interest only was for the first 5 years, starting 12/10 our loan was to adjust to principle & interest which would have make our payments skyrocket

 

[tar heel]

That sounds like a refinance instead of modification -- yes? Were you upside down or behind on payments? If not, I suspect you just refinanced. Since you had the interest only, obviously this is a good thing.

 

[hlane]

That sounds like a refinance instead of modification -- yes? Were you upside down or behind on payments? If not, I suspect you just refinanced. Since you had the interest only, obviously this is a good thing.

No it was def a modification. We were approx 2 months behind & struggling to make our payments plus upside down. We owe 181,000, house appraised for 140,000. Not to mention we would never be approved for a refi with our credit scores sadly. I went through the loss mitigation at our mortgage co to get this approved with lots of guidance from Loansafe.org


When we started the process this is where we were...

Did not escrow taxes
30 year Arm, had already reset and was at 9.25% for 6 months
interest only for first 5 years
Princial kicked in at 5 years (12/10)
Interest cap of 13.865%

 

[tar heel]

It sounds like a really good solution to your problem. I'm glad it worked out.

 

[tileman]

Good to hear.

 

[princessknb]

Were they any fees associated with getting your loan modified?

 

[hlane]

Were they any fees associated with getting your loan modified?

No fees just lots & lots of time and energy on my part. I couldn't even begin to tell you the amount of time I spent on the phone & writing emails. It was not an easy or short process for us but I am so thankful I stuck with it.

 

[princessknb]

Thanks, wew are not behind but I would love to modify the loan. We already have a fixed rate. I just want to add the taxes and insurance to the loan so I don't have to pay it all at one time. That's a big chunk to pay at one time.

 

[hlane]

Thanks, wew are not behind but I would love to modify the loan. We already have a fixed rate. I just want to add the taxes and insurance to the loan so I don't have to pay it all at one time. That's a big chunk to pay at one time.

I agree it is a big chunk! I'm not sure if you have to be behind or not but you can check out Loansafe forum and there is tons of information there. Good luck!

 

[yeahdisney]

You did great. I'm sure you are really glad. No one like paperwork and to follow it that many months. Congrats

 

[eeyore#1fan]

One thing that I find odd is in your signature you have two times that you went to DW in the last 6 months. I'm assuming the dates are 2009 and 2010. If you were behind on your mortgage how could you afford to go to DW?

 

[IDoDis]

A friend of mine who went through a divorce and wanted to be able to stay in the house also got the loan modified. The payments on her single salary were too high. She had to be behind at least a month to be considered for the loan modification. The divorce messed up her credit big time, so that was shot.

The process took about three weeks, but she got her loan modified. I don't think the interest rate changed at all since it's still the same loan, but her payment dropped $250 a month. The funds came from a govt. loan modification program, not from a lower interest rate. She was thrilled!

 

[BellePrincessBelle]

One thing that I find odd is in your signature you have two times that you went to DW in the last 6 months. I'm assuming the dates are 2009 and 2010. If you were behind on your mortgage how could you afford to go to DW?

Don't you know that everyone is entitled to a vacation even if it means not paying your mortgage? The OP's dates might be older so I'll give her the benefit of the doubt right now. Edited I take my benefit of the doubt back since OP has posted about buying season passes to an amusement park for christmas and has posted about going to Myrtle Beach last Aug. Just another person who bought more than they can afford and doesn't want to take responsiblity for it.

 

[hlane]

One thing that I find odd is in your signature you have two times that you went to DW in the last 6 months. I'm assuming the dates are 2009 and 2010. If you were behind on your mortgage how could you afford to go to DW?

Ahhhhhhh, the Disboards, here we go

LOL, well you know what they say about assuming

Not that I need to explain myself but that was in 2003 & 2006

 

[hlane]

Don't you know that everyone is entitled to a vacation even if it means not paying your mortgage? The OP's dates might be older so I'll give her the benefit of the doubt right now. Edited I take my benefit of the doubt back since OP has posted about buying season passes to an amusement park for christmas and has posted about going to Myrtle Beach last Aug. Just another person who bought more than they can afford and doesn't want to take responsiblity for it.

Just so you're not concerned....we have not taken any vacations to Disney, MB or any where else since 2006 AND yes, God-forbid, we purchased season passes for a whooping total of $400 for a family of four to a local amusement park for our family BIG CHRISTMAS GIFT. Guess since we're behind on bills we should be buying Christmas gifts


Here is my post exactly.....

For our 2 DS (ages 8 & 9) I'd guess a total of about $600 but $360 of that was for season passes for the four of us to Kings Island, thats the big family gift this year.
This Christmas we were only able to get them about 1/2 of what we usually do and didn't buy for anyone else including extended family other than a pair of PJs for my dad & small (about $3) gifts for each of the boys teachers.

 

[BellePrincessBelle]

Just so you're not concerned....we have not taken any vacations to Disney, MB or any where else since 2006 AND yes, God-forbid, we purchased season passes for a whooping total of $400 for a family of four to a local amusement park for our family BIG CHRISTMAS GIFT. Guess since we're behind on bills we should be buying Christmas gifts


Here is my post exactly.....

Seriously if you're behind on your mortgage then no you shouldn't be buying christmas gifts IMO. Sometimes you just have to suck it up & explain the situation to the kids and go much smaller. Spending money when you can't pay to keep a roof over your head is a poor financial decision and then you stick it to the banks nice.

 

[flamom]

i knew it wouldn't take long for the flames to start,amazing. OP congrats on the modification!