Mortgage Renegotiation/Modification

[threecrazykids]

Has anyone done this? As I'm sure you can search and find in some previous posts my DH and I are really struggling to make ends meet. I took the advice of meeting with CCCS and was very surprised at how quick they were to bring up the big BK word. Now...don't get me wrong...I'm sure by looking at our scenario that's an option, but we are going to try to do everything we can to prevent this.

We are NOT behind on any credit card payments OR mortgage payments etc, but feel it's just a matter of time before something happens. DH commission has been slowly dropped over the course of the last 2 years...but dang it we've hung on so far!

During the counseling session we went over what our interest rates would drop to etc if we got on the CCCS plan. Then...after the fact, in the process of researching all the alternatives to bankruptcy I came across the new Obama Mortgage Modification/Refinance information.

First off...I'm sort of pissed off that this option didn't even come up during our 2 hour meeting with him...not because we would/wouldn't qualify but just the fact that it never was discussed as even looking into it...but that is here nor there (I called him today and he's looking into it to see if we qualify)

Has anyone ever renegotiated the terms/rates/payments on their mortgage? We have our first mortgage and of course the dreaded second mortgage (HELOC) which was a STUPID move about 2 years ago when things with our finances were sitting much better than today.

I'm just curious...know anything about it? Good/bad...etc?

 

[dzneprincess]

I have no experience but there is a whole forum devoted to the issue at www.creditboards.com/forums lots of valuable information over there

 

[leslie826]

We spoke with a financial advisor who informed us we "should" qualify because our mortgage payment is more than 30% of our income. I called our mortgage company and was told that we can't even apply for the Obama program because our loan is held by a private investor. WTH?? I have some family members that applied though. It can't hurt to call your mortgage co. and ask for a loan modification packet. They will send you forms to fill out with all your financial info, and a list of everything else they need (tax returns, bank statements, letter of hardship, etc.) Then just wait and see if you are approved. Can't hurt to try. Good luck.

 

[Disney-Kim]

I don't know anyone who has been able to modify their mortgage. Our company's criteria put us out of the running, we made too much and some other things.

I also reinerate to check out the creditboards...lots of help on modifying morts and on CCCS and BK.....should at least give you a lot of helpful info.

 

[chyam]

www.makinghomeaffordable.gov
I am in the process of starting to do this now...you may also be able to find some info on todayshow.com they just did a story on this about a week ago.

 

[kellydizfan]

We are in the process of doing it now with St. Jude's Home Rescue. They told us they could help us with our credit cards also. It is a very long process. Paperwork up the cazoo and more that was completed - actually the same. We were not behind on our payments but things are very very tight. We had to take and get behind on our mtg payments in order to be approved. We received a horrible letter from our mortgage co even though they know what we are doing. It is a scary process. Letters we had to write also. They also charge to do this for us. We have 2 payments left then they are paid off - this is what is also making our situation hard along with other factors I will not discuss here.

 

[cats mom]

Just a little food for thought... the most recent info I could find is only current as of November 2009, but at least it's something:

HAMP Snapshot
Number of Borrower Requests: 3,137,548
Number of active Trial Mods: 697,026
Number of Permanent Mods: 31,382

 

[SweetPeasMom2]

http://makinghomeaffordable.gov/

Go to this site to read more about the plan.

If your loan is a Freddie or Fannie, you could qualify. There are other criteria, but that is where you should start. There is a link on there to find out if your loan is a Freddie or Fannie loan.

Once you figure that out, determine if your lender is participating in this program. Not all are. The major ones are though.

It is not an easy road. We started on March 5 last year, one day after it was released. We didn't get our trial letter until November, and that was after we were days (literally) away from foreclosure.

Make good notes of who you talk to and when. Be prepared for a lot of calling on your part. Have lots of patience. It has been a very frustrating process for us. But we stuck it out and are hoping it'll turn out for the better.

Good luck.

 

[goofyforlife]

We started our 3 month "trial" in June..

So in theory we should have been sent paperwork in September for permanent Modif.... YAY RIGHT

Every time i've called the bank they have no idea what's going on... The first time i called they said they didn't even know i was on a mod...

Uh they sent the paperwork and i called them to verify it was legit....

I have no faith that the mod will ever become perm....

 

[FlFairygirl32405]

I just negotiated a modification on my home loan to get out of my adjustable rate. The first time, I applied, I was offered a modification from 9.8% to 9%. I refused this offer and hired an attorney ($600) to handle the modification on my behalf. I was offered a modification of 4% for 30 years. I accepted this offer. From start to finish it took about 9 months.HTH!

 

[Krischaser]

Will this work for HELOC?

 

[thop529]

My mortgage is with Citi Financial and I modified my mortgage. It took about 6 months and calling them everyday. They said they were very behind.

It dropped my interest rate from 7.125 to 4.59 for the remainder of the loan. My payment dropped $200.00 per month.

First call your mortgage company and ask for the modification department and they should send you papaerwork. COPY EVERYTHING, date it, and start making a log of everytie you call them and who you speak with. I did dates and times, extensions. It still took 6 months to go through. If you are having trouble during this time they may let you defer a payment or two to help you out.

Good Luck!

 

[Kimkimba]

We did finally get a permanent MOD under Obama's plan that was effective 12/24/09. We never thought we'd get the final paperwork, but we did. It was a lot of repetitive paperwork and waiting and calling and more paperwork and waiting and calling and calling and waiting, etc., etc. We actually started trying with a traditional modification in October/November 2008.

We have CitiMortgage and we got 2% for the first 5 years and then it goes up 1 percentage a year til it reaches 4.875%. They also put $1000 a year for 5 years towards our principal as long as we don't become delinquent. It saves us about $400 a month right now. We have less than 19 years left on the mortgage.

 

[threecrazykids]

Well, we found out we don't qualify for the Making Home Affordable plan. But I did call 3 of our credit cards last night and got all of the cards closed and dropped 2 of the cards to 0% interest for 48 months to pay them off. The other card offered me 3.25% which is better than nothing! I tried Capital One for one of the cards and sure enough, because I'm not behind I got the brushoff...I'm calling back again today to see what I can do. I told them (which they hear all the damn time) that it's pathetic when someone who's NEVER been late on a payment in over 12 years who needs some help can't get any until they are delinquent. She was very nice and told me she agreed, however there was nothing she could do. We got to joking and I said "I'll bet if I miss a payment or two they'll be more than willing to help me out"...she goes "sadly...you got it!"

I know it's my debt etc...but I am starting to lose compassion for the credit card companies/banks who get the bailout with our tax dollars yet won't even have compassion for the hand that feeds them. Oh well...hard lesson learned I guess.