Modification sucess stories?

[hlbtimes2]

I'm curious if any members of this board have applied for a mortgage modification under Obamas "make housing affordable plan" and what the out come was. Please share your experience!

 

[tinatark]

Oh... you said the name... I think this thread is going away soon!

 

[LuvOrlando]

Be careful. The predatory lenders are already out trying sound sanctioned and pretending they have all the answers.

The other day I heard a suspicious ad on the radio that announced the gov't is accepting extremely reduced tax settlements. So out of curiosity I called the 1-800 number and said, "I'm not calling for me but just wanted to check if you are the IRS itself or if you are a negotiating company." Unable to wiggle out of that pointed question he had to say, "We're a negotiating company." I told him how misleading I thought the ad was and never heard it again, the next time I heard the number they announced the firm's name.

Desperate people make an easy mark for anyone looking to profit on their fear. The worse off you are the more cautious you should be. No big banks are lending to anyone but the best credit scorers, if you are not in that group assume you are going to be lied to and READ EVERYTHING.

BTW, hlbtimes2, just delete the name and it should be ok... not positive but there is a better chance if there are no names. No need for the names anyway, they don't change anything. The topic is interesting all by itself.

 

[MommaSnowwhite]

We did a refi thru one of the programs. We had a adjustable mortgage (when we purchased our current house we had been transferred so many times that we were in our 4th house in 8 years so we didn't think we would be here longer than 5 years) and lost $100,000 in equity in our home. The process was long - we started in March and closed in August - it may have been our lender though. It took them so long that we actually had to give then new documents (pay stubs and bank records) because the original one we gave them were too old to close! We used the current lender holding the loan and they most of the closing costs into the loan.

 

[sunnyday123]

Can anyone give me a brief explanation about the program?

 

[hlbtimes2]

Thanks for the heads up on the name change. Not sure what to make it so it doesnt get removed, but I still get the info I"m looking for.

My story:

My husband lost his job the end of Feb., at the same time my hours were reduced. We quickly submitted paperwork for Obamas new plan. Months past, and we were unable to get any info from the lender (Chase). They couldnt / wouldnt even confirm they received our paperwork. Finally in July they sent a letter saying that with in 30 days I would have an offer for modification. Mid August, still not letter. Started calling again, so given the run around and many excuses. We were finally assigned to a loan officer and things started to move. We were oh so hopeful that we were going to get the modification.

We fit EVERY single requirement listed: amount of loan was under $700,000, backed by Fannie Mae, loss of a job/reduced income, live in the home, not late on payments in the last year, etc. We thought for sure we would be ideal canidates.

Last week we were informed we were being DENIED. The later stated it was because my husbands "hardship was not long term". I called yesterday and was told that because he's drawing unemployment we dont qualify.

If they modified us it would be about $300 reduction a month. Nothing for them, but the difference between making ends meet or not for us. If he wasnt drawing unemployment, so we would qualify, it would reduce our payment by more then $1000 a month! Guess they'd rather just take the chance of forclosing on us then give us that small reduction.

I'm furious at the system. Why did it take them 6 months to come up with that answer?

So far have not heard of a single person that was actually give a modification- which is the reason for the poll. I curious if any one is really getting any of the 75 billion dollars the gov has thrown at this program.

 

[LuvOrlando]

As I understand it, financial institutions are being encouraged to offer modifications to people who got caught in unsavory loan situations. I do not think there is a whole lot of info on what those encouragements are nor do I think there is any one recipe for what the relief looks like for consumers. IMO, the best approach is probably to start with big banks because they have the most to lose if they behave inappropriately and they do not want the negative press. More to the point, at some point I suspect the big guys are going to get called on the carpet to produce their numbers for these modifications. This won't happen to the little banks who aren't worth the trouble so I suspect they are less likely to comply... they have no incentive to do so IMO. By way of contrast, the big institutions that trade publicly just do not want to take the hit on stock values that would follow any sort of trouble associated with their names, KWIM.

Good luck!

 

[robinb]

I don't need a modification, but I have a friend that did. She was in foreclosure due to a combination of predatory lending, desperation and stupidity. She bought her home back in the day when lenders would not offer you a mortgage unless you could show the ability to pay it back. She refinanced (and took out equity of course because she was desperate for money to fix her roof) when the predatory lenders would offer anyone who was breathing a loan. The stupidity came in when she she says that she thought it still worked the same way and that they knew something she didn't. She trusted the snakes. She was able to get her loan modified before the current program. They rolled all her missed payments and penalties into the new loan and gave her an ultra-cheap rate for the first couple of years.