Loan Modification Myths and Facts

Its practically impossible to modify a loan with JPMorgan Chase. If homewoners in trouble file a class action law suit against Chase stated income loans – Chase will have no choice but to modify practically all the loans. Majority of loans were lite doc, no doc or stated income…

I have a question, can a loan servicer, Saxon, take insurance money and apply it to the balance of a loan? I had an accident on my property, not me, and they withheld the last third of the payout because I am deliquent on my mortgage. When I asked previously if they could do this, the rep said unequivicably no, but they sent me a letter that stated just the opposite. What gives?

Hello Everyone,

I have a loan that is serviced by SPS and I agree it is like pulling teeth to get anyone to work with you. I call and get one person that tells me to do one thing; I do it, only to be told by someone else when I call back that they cannot help me. It is very frustrating and tiring. I just sent a letter to them requesting a loan modification under the Obama-Home Affordable Modification Program. I will keep my thoughts and prayers going up along with crossed fingers that this will help me otherwise me and my family are out on the street. This is a tough company to work with but I am trying……Good luck to all of you!

Friend made a payment to avoid foreclosure of $5470.12 the loan was 3 months behind monthly payment is 537.00 was told the payment brought the loan current as of end of february. Now shes being told the woman she spoke to didnt note the account as current. They say she owes 1300 when monthly payment is 537 and was due march 1. Do you have any suggestions?

Does that whole ‘find legal violations and threaten to sue’ angle work? When the owners of the company I work for (attorneys) set out to learn the modification business last year, they partnered with a lawyer who claimed to do a forensic accounting, find errors, then threaten to sue unless they modified the loan. And it didn’t work. And thinking about it, I don’t see how it really could. Do you think Wells Fargo would be afraid of some country lawyer who can’t afford to go to trial? If so, he’d have to charge his clients a fortune for his services sine they’d often include trial fees. No, Wells would wipe the floor with guys like that, run them out of money in no time.

So far I don’t think the lawyer touting that method has modified any loans for his customers. However, it’s a great marketing tool, and probably much easier to attract clients.

But I could be wrong and it may work. I’m just skeptical.

BENEFICIAL- WILL THEY HELP? THATS A BIG FAT NO!! I HAVE CALLED, WRITTEN,FAXED, AND CALLED AND CALLED WITH NO HELP. I CAN PAY SOMEONE$2500 TO DO THIS FOR ME BUT IF I HAD THAT I WOULD PAY MY MORTGAGE. THEY DON’T TAKE INTO CONSIDERATION COLLEGE TUITION AND CHILD CARE- THATS AN ADDITION 1400.00/MONTH THAT I DIDN’T HAVE TO PAY OUT WHEN I GOT MY MORTAGE. PLEASE SOME ONE HELP ME.

TYPE IN YOUR LENDERS NAME FOLLOWED BY SCAM. You’ll find people who’ve gotten a modification from your lender WARNING YOU. This is what I found so far…

1. Their negotiator will charge you upfront fee’s $500 +

2. Your lates payments and fees will be added to the new loan principle.

3. They claim they’re taking years off the loan. Where?

4. They’ll reduce your current payment by maybe $30. a month. But they’ll just add it back in to your escrow account or it’s coming out of your new higher principal loan.

5. They may say you don’t qualify under the new plan even though you do.

Check it out:
http://www.complaintsboard.com/bycompany/american-home-mortgage-servicing-a55770.html

I am helping a friend who does not speak English to modify his loan. He has a very high interest rate at this moment, and it will become in ahigher one in less than a year from now, he also signed a contract that does not alow him to refinance his mortgage for three year after this period his mortgage will change from fixed to variable.
tell me if this is a subprime mortgage?

Regards

Luis Alvarez

We are trying to negotiate with Wells Fargo, they bought our loan when we were in the process of working on a reduced principal & interest rate loan with our old lenders now WF will have nothing to do with us. We never missed a payment or were late, I think there may be something funny going on here, the district manager of our old loan company and others have told us our loan should have been red flagged so they knew we were in the middle of a new loan. What now?

Moe Bedard,

I recently came in contact with a company named “Grander Financial” in Irvine, California. I have checked into the background of this company with the Department of Real
Estate and BBB; they seem to be authentic. However I am still lost! Today the DRE told me that I should do the Mod myself because these companies will end up doing the same thing that I am capable of doing??
Based on what I’ve been reading it seems it would be best to have a person who has more experience in this area, perform the modification. I do need to do something pretty soon. Can you help with a suggestion? Are you familiar with Grander Financial?

Does unemployment income count as income in the Homeowner stability plan

Wall Street and Associates is a loan modification scam, falsely guaranteeing results, charging upfront fees, pressure selling at all times, and even claiming an affiliation with the Obama plan.

Check out their site: http://www.WallStreetandAssociates.com to see their nationally televised commercial with Obama on it. These people should be shut down immediately. Here is their info:

Wall Street and Associates
16200 Ventura Blvd.
Suite#301
Encino, CA 91436
Phone: (818) 999-0333
Fax: (866) 204-9998

Can you get a loan modification if you pay interest only????

There is so much false information and outdated information, floating around the web that it is difficult to get the story straight anymore about foreclosure and loan modifications. I’m glad someone finally made a post to sort of clear the air…Good job and thanks!

If you have any questions, feel free to call me. Anytime. I will help anyone learn what the banks are doing currently and what options you may or may not have. No promises, just current situations we are experiencing now. We are D.R.E licensed and HUD approved if that helps some of your concerns. Its always hard to make that call for fear of being screwed over by the same guys who made this situation. There is no obligation and you will not be charged ANYTHING for the consultation. Hang in there and stay positive. talk to you soon.

I have been trying to get a Loan Modification but Bank of America wont work with me. The rep I spoke to told me there were no programs for me at that time. I think maybe because I’m current on my payments. I’m trying so hard to make my monthly payments of $3000. I have what is called an upside down loan. I have been falling behind on some other bills but an trying really hard not to fall behind on my mortgage. Unfortunately I have had to take out loans on my 401K which is not good but It has gone down to that. Can someone offer some advice. I really need some help.

The post by Eugene on 6/13/09 regarding Wall Street Associates is accurate. I paid them 3495.00 up-front fee in April. Then we received the package for the Home Affordable Program and they took credit for getting us the offer. Then by chance a field rep called on me today (8/27/09), verifying our receipt of package and if we were taking advantage, which we are. Also, I had left several messages for a return call and emails to Wall St (DC-initals of rep) and no call nor email response. I am sorry I wasn’t aware of this site before cause I’d sitll have my $3495.00 .
So if you are currently working with this company….get your back or hang up on them!!!!!!!

A general rule of thumb is to never work with a company that charges a hefty upfront fee. As cruel as it is, there are still people who will want to take advantage of you when you are at your lowest point.

Help,
I have been working with my mortgage company BOA, formall C.W.
On a modification due to my husbands illness. I am behind 19 months
they offered me a mod this past Dec to start in Feb I sent the docs back with proof of income. I called and was told by a rep to start my new payment as docs indicated I di, when I went to make next payment I was told that mod was denied. we ent around and around before i found out they claim they did not get proof of income. I later found one rep who saw my docs in their system. they have offered me another deal for $700.00 more a month I cant afford that I sent the docs back unsigned with a letter asking what hap[pened to the former offer. they sent another offer for even more money. I have sent that offer back with another letter. What can I do about the offer that I agreed to and made that payment? They also have places an escrow. when I first asked for help I had no escrow and i also have an adjustable rate
the first offer was 4.875 % this last was 8.6%. pleas if anyone knows what to do. Help

STOP FORECLOSURE IN COURT CITING HAMP LAW!
I am former non-commissioned officer in the United States Marines and an Illinois Residential Mortgage Licensee and an FHA approved lender. I am also the owner of a telemarketing company and combined my two offices have spoken with and reviewed credit reports on over eight thousand homeowners throughout Illinois in the last two years alone. Almost 87 % of these homeowners did not meet the qualifications to secure a new mortgage under the current tighter lending guidelines that the banks have enforced.

For years I have provided loan products to homeowners designed by lenders that I now realize were in the better interest of the lender than the actual homeowner.

If it were not for Gods Grace I would have gone out of business long ago when this crisis started. As God blessed and sustained my company through these trying times, I made it my mission to help distressed homeowners. I now feel that I have a duty to the community to help as many homeowners as possible navigate the maze to save their home.

In my efforts to assist I have dedicated multiple resources to provide clarity and direction to distressed homeowners. I have made a tremendous effort to help as many homeowners that my office finds eligible apply for this Great program designed by the Obama administration. The homeowners that my office finds ineligible for traditional refinances are directed to apply for a “Home Affordable Loan Modification” directly with their lender that does not cost them anything. This program designed by the Obama administration offers hope where there otherwise is none. Critics can say what they want about the HARP program bottom line is it is a lifeline for families in need; if it worked – BANKS ARE REFUSING TO PARTICIPATE!

Bank of America, Wells Fargo, Citi and other Big Banks are actively deceiving qualified distressed homeowners applying for President Obama’s Home Affordable Mortgage modification Plan

The major problem is the above-mentioned Banks are misleading borrowers into believing they are not eligible. In my efforts to assist these homeowners save their homes I have participated in dozens of 3-way conversations with the homeowner and the bank. These eligible homeowners where offered a different program that was more beneficial to the bank and much less beneficial to the homeowner not in accordance with the guidelines of President Obama’s Plan.

FOR EXAMPLE:
Bank of America: Requires 2 pay stubs / 2 years tax returns / hardship letter / 2 months banks statements / 4506 / etc. in accordance with the documentation required for consideration to be faxed to a fax machine that will not accept more than 10 pages! They then discard the submission for the program with no notice to the homeowner. In addition when a distressed homeowner who is current on their mortgage calls B of A inquiring about the Home Affordable Modification Plan they are prompted to enter their loan number, B of A system automatically identifies that that are current and transfers them away from the modification department thus never giving them an opportunity to apply.
Citi: Actually denied an 85-year-old widow of a veteran that spent her last penny of savings and never missed a payment. She is paying a $2,000.00 mortgage payment even though she only received $1,500.00 a month in survivor benefits. She was denied because Citi’s computer model calculated that they stood to loose $63,000.00 by modifying her loan. We contacted a HUD approved credit counselor from HOPE and had a 4-way call with Citi in regards to their unlawful denial in this case. The Citi employee actually emailed us (unauthorized) the screen shot from the software that denied her modification. I have saved this documentation and can provide.
Wells Fargo: Representative in home retention claims that “Wells Fargo Financial” is not offering plan only “Wells Fargo Home Loans is offering plan” and vice versa when you speak to Wells Fargo Home Loans. Wells Fargo representative had borrower fax all required documentation and then after checking back once a week for eight weeks a “work out representative” offered a three year forbearance agreement that was less beneficial and required homeowner to sign and notarize a form that stated the homeowner “further agree to waive any claims or cause of action you may have against us as a result of this account” as a condition of acceptance.

Fact – The problem isn’t the program; it’s the maze that the banks make homeowners navigate to apply for it!
The hoops the banks have created to apply for this program are used to discourage distressed homeowners seeking relief.
On all the banks websites with the exception of Chase the space dedicated to the Home Affordability Program is either buried non-existent or the links send you in never ending circles. *(Sites have been updated in recent months!)
Most elderly and low-income homeowners don’t have access to the Internet to download the necessary forms.
When a delinquent homeowner calls their lender they are automatically transferred to the collections department. The collection department has no interest in assisting the borrower modify their loan they only want a payment. The collection agent does not identify themselves as such to the homeowner and far too often mislead the caller into believing if they don’t make a payment or post date a check for payment they will not take their modification request into consideration. Most homeowners just simply give up after being misinformed that they are not eligible!
When called directly all of the above-mentioned Banks do not give a complete list of documentation to the homeowner to apply for the Home Affordable Modification Plan. When only partial documentation is compiled the Banks cannot process for the Gov. plan so they offer their own less beneficial plan.
Most homeowners do not have ready access to a fax machine and none of the banks will give a mailing address to send the required documentation, so they have to go to a FedEx Kinko’s or similar store and pay almost $1.00 a page to fax in the documentation.
Even with a fax confirmation there is no guarantee that these banks received all the documents.
Homeowners have no way of following the progression of their application and when they call in they are routed in never ending circles to every department but the one working on their modification.
These are just a sample. Most homeowners are told they don’t qualify prior to even sending in the documents! This was the case with the three individuals I referenced above. I have first hand knowledge and a paper trail of dozens of these unlawful occurrences. By law these Banks that received TARP money have to comply and they are not. Something needs to be done. This has to be exposed! Thousands of eligible homeowners need to be given the opportunity to keep their homes and succeed in this program. Banks are fleecing U.S. Citizens for their own profit! I have also studied the HAMP guidelines extensively to assist homeowners that my office could not help. I found that if properly cited the HAMP law actually prevented any foreclosure prior to the homeowners’ consideration for the program. My wife is an attorney, I did the research on this law and she later appeared for a client that had a default judgment entered against them in a foreclosure matter. The judgment entered May 2008 and subsequently set for June 09 to confirm the sale of the property. She successfully cited the HAMP guidelines and the judge granted the motion to vacate the order previously entered and allowed the homeowner time to submit an application for a HAMP modification. Below is a summary of my findings after meeting with various lenders regarding HAMP that my wife utilized in this case:

I recently had the opportunity to attend a meeting on President Obama’s Home Affordable Modification Program with representatives from Major Banks and Servicers.

The Bank representatives from two of largest servicers in the United States boasted servicing one in five mortgages equating to almost 14 Million loans an approximately 8 Million loans respectively. In addition, the first Bank proudly disclosed that they have doubled the number of associates dedicated to home retention to 7,400 this year at which point the other Bank proclaimed that they had 11,000 associates dedicated to home retention.

The combined resources that just these two major lending institutions have dedicated to home retention is equal to .08 % of their entire servicing portfolio, less that 1/10 of a percent. This abysmal percentage truly represents the Banks intentions to comply with the Presidents HAMP program.

In order to understand why the Banks and Servicers are not making a good faith effort to comply with this law you must first understand what the HAMP program requires of them:

Servicers should not proceed with a foreclosure sale until the borrower has been evaluated for the program. Any Foreclosure action must be temporarily suspended, including new foreclosure actions.
Servicers must establish a property tax and homeowners insurance escrow account and disperse payments to the insurance provider and County and roll this expense into the principle balance of the homeowners current loan (even if delinquent taxes are owed and no previous escrow account was established).
Servicers must reduce monthly mortgage payments to an affordable level based on the borrowers income, regardless of principal balance owed.

The HAMP underwriting guidelines require the Banks and Servicers to accept lower payments and pay property taxes to the County and homeowners insurance out of the Banks’ funds! The Banks do not want to concur this expense; it is less costly to foreclose.

The representative from the housing counseling organization stated at the meeting that day, “We needed another moratorium, or new Law to stop the foreclosures plaguing the city of Chicago”. I stated that, “You don’t need a new law, you just need to enforce the American Recovery and Reinvestment Act of 2009, that President Obama already signed.”

President Obama signed the American Recovery and Reinvestment Act of 2009 into law on February 17th. On April 6th 2009 the Treasury Department issued uniform guidance for loan modifications across the mortgage industry in supplemental directive 09-01.

In accordance to the underwriting guidelines for HAMP within this Law:

Any foreclosure action will be temporarily suspended during the trial period, or while borrowers are considered for alternative foreclosure prevention options. In the event that the Home Affordable Modification or alternative foreclosure prevention options fail, the foreclosure action may be resumed.
Participating Servicers are required to service all eligible loans under the rules of the program unless explicitly prohibited by contract; servicers are required to use reasonable efforts to obtain waivers of limits on participation.

On April 21st 2009 the Treasury amended the supplemental directive 09-01 with Announcement (09-05R):

Q3. How should borrowers who contact their servicers be handled with respect to HAMP if the servicer does not yet have the proper documents or is not yet equipped to evaluate the borrowers situation?

Servicers are required to validate the homeowner’s eligibility for HAMP and capacity to pay. Servicers should begin the process of collecting the required documentation from the homeowner and the information necessary to establish an escrow account on non-escrowed loans. Based on the servicer’s understanding of the homeowner’s ability to pay, a servicer may place a homeowner on a forbearance plan pending its ability to execute a HAMP modification. Foreclosure actions (with the exception of those in Georgia, Hawaii, Missouri and Virginia), including initiation of new foreclosure actions, must be postponed for all borrowers that meet the minimum HAMP eligibility criteria.

Q8. Must servicers suspend foreclosure or not initiate foreclosure for all borrowers who are potentially eligible for the HAMP?

To ensure that a borrower currently in foreclosure or at risk of foreclosure has the opportunity to apply for a HAMP modification, servicers should not proceed with a foreclosure sale until the borrower has been evaluated for the program. Additionally, servicers are strongly encouraged not to initiate foreclosure until a borrower has been evaluated and determined to be ineligible for the program or the borrower fails to respond to a Trial Period Plan offer that has been made by the servicer.

All Fannie Mae-approved servicers must participate in the program for all Fannie Mae portfolio mortgages loans and MBS pool mortgage loans guaranteed by Fannie Mae.
Legally, Banks and Servicers may not proceed with a Foreclosure sale until the borrower has the opportunity to apply for a HAMP modification. Since the Banks and Servicers have not allocated the resources necessary to process the 4 to 5 million eligible homeowners currently in foreclosure or at risk of foreclosure as intended by the Obama administration, the courts should then enforce it!

The common perception of the average consumer is that my lender does not want to take the loss by foreclosing on my property and that they want to work with me if I need financial help in modifying my loan. In most cases, nothing could be further from the truth! Most lenders, despite taking TARP money, have little interest in helping the average consumer and have hired an army of minions in their loss mitigation departments who will block you at every step and lose your paperwork in a focused attempt to dissuade all but the most tenacious and astute borrower. Additionally, they will push you to take your financial information so they may record and document it, mainly in an effort to disqualify you from a loan modification.
To qualify for a loan modification, your financial situation (assets vs. liabilities) must fit into a narrowly defined box for your lender to consider you for a modification. You must have just enough income, but not too much. Your debt to income ratios must fit within certain guidelines, and these guidelines vary be lender and change all the time based on the Investors guidelines (the person or entity that actually owns your Mortgage Note as the bank is just the servicer in most cases). Your housing costs vs. your net income must be within certain limits as well. Giving your financials incorrectly or not within guidelines may permanently disqualify you for a loan modification, ending your chances for financial relief. It is in properly preparing your financials where Loan Modification companies in part earn their money!

Beware! There are many non-qualified companies including debt settlement companies and former mortgage companies vying for your money, all claiming to help you with a loan modification. They promise you anything and tell you what you want to hear in regards to the outcome of your case without taking any financial information or doing any analysis of your situation. A reputable company will turn down close to 40% of the people seeking help as they will not fit within the lenders modification guidelines.
A loan modification by definition is designed as temporary financial relief to help a borrower get through a documentable financial hardship such as job loss, income loss, divorce, medical issues, etc. It is not as give-away program just because you want a lower payment. A proposed payment to your lender is typically calculated by taking your net income and trying to fit it within the upper limits of your lenders underwriting guidelines. If you are being promised a new interest rate or a principal write down by a company, they are likely scamming you. Make sure the company takes a full financial profile before determining if they can help you. Make sure they are proposing a new payment within the lenders underwriting guidelines.

In summary, never pay for loan modification services unless you are retaining an attorney who has at the very least taken your full financial profile before determining if they will take your case. If they are not interested enough to see if you qualify, they have little regard for the outcome of your case. Remember, it is still a negotiation process and ultimately it is up to the lender to decide if they will modify your loan. If you don’t fit within the financial guidelines of your lender, your chances of a successful outcome are slim.

all i have to say is that there is a lot of helpful info on this website, but some of the things that are said are just wrong. this is a numbers game, if your financials can suppport a MOD then you have a chance, but who ever reads this needs to understand, that the loan servicer and the customer are not the main parties, the loan servicer will obtain the borrowers info, and they will then go to the investor of who they are servicing for and present them with a off on behalf of the borrower, and unforntunately there are some investors that do not do MOD or have extremely strick guidlines that the serivcer has to follow, and no loan expert can force investors to do anything with there money(home loan)……. so who ever reads this just know that none of these thrid parties or attorney’s can promise a MOD. and they are wrong for giving that as a guaranty.

we are trying to get a modification on our loan and we have been since
june.our mtg. company is citi financial and they keep telling us thay are waiting on our arm rate to be able to make this decision.what should we do while we are waiting for there respons???

Hello, we are in the process of applying for a home load modification. Its been 4 mths since we have defaulted on our load and this week we received a letter from WAMU/CHASE stating if the payments are not received by 11/4, our house can be foreclosed. We have submitted requested documents repeatedly to WAMU/CHASE via a 3rd party, but to very little avail. Ive been told its is normal to receive foreclosed letters during this process. Is this true? We are very scared of losing our home, can someone suggest what we should do next? Thanks

Exceptional feedback CJL and this is largely what we have determined to be accurate when dealing with the lenders or servicers. Thank you for the verification and we’ll remain open to additional nuggets of wisdom that you may share.

Best regards,

Mr. Sharaf

now i’m really confused. we have a home loan with bank of america and wilshire. in the beginning we were on a fixed rate, which was high, but it was our stupidity that signed those papers. we wanted this house and didn’t understand anything about interest rates, fixed, or arm. to trustworthy in believing those lenders, during our closing, we realize we would only be on a fixed rate for 2 YRS. again, stupid, we in our minds said, it’s ok within two yrs we can get refinanced. but then this yr, basically all hell broke loose with the economy. so now we are screwed. we went to a home modification so called specialist, and at the time we were not behind, but after months and months of waiting we did fall behind, we paid them their $1500 in may and today we get a call, the woman on the line said, we have great news, they have come up with a resolution, your payments will now be $1475.00 a month, we were paying $1400 a month at an interest rate of 11.% percent on one mortgage and somewhere like 10% on the other. these people promised us a reduced mortgage payment of $856.00 for both, with an interest rate of 5% fixed. we have complied with all requests from them and the lenders, we have sent in bank statements, check stubs, tax info, and basically our blood. i really feel screwed again, very confused, and hurt because we trusted someone else with our lives , and to know, not only did they, the lenders took advantage of us, but also a so called company that is GONNA HELP US. WHAT DO WE DO NOW

I am so frustrated with this modification program, I have been dealing with Chase for 7 months. Was told the modification would be finalized first week of January. Sent in my payment, and on December 31st, the modification was denied, saying I made too much money. How can that be?????
Put me on another plan, sent me papers to sign, and the payment doubled, how do they expect me to pay double, when I was having a hard time paying the first modification deal.
I have called several times, to get 4 different people, with 4 different answers.
I have finally given up, I will not pay February’s payment and they can take my house and stick it where the sun don’t shine. I really wanted to save my house, but it is not worth all of the stress that I have been under for a year.
Obama and the banks are not trying to help us.
So, bottom line, Chase has another home that will be foreclosed on, and what are they going to do with it, good luck trying to sell it for what I owe on it.
Circumstances arise beyond our control, but I am so done with all of this crap, I am finally feeling better.
Just waiting for the sheriff signs to go up and I will go and they can have this house

one question and one comment.

1. Do you have to use your current mortgage company for a loan modification?

2. Bank of America is also not being upfront with about loan mods, they want to steer you to a refinance of mortgage

gabe

I have a second home that I bought as an investment. Heck of a deal, it’s now worth about half of what I owe, I’m making half of what I was and I’m about to walk. The loans with B of A, is there anychance they will discuss a loan mod on a second property?

keep guiding !! you are helping stressed home owners and I appreciate it .

Hi, your site has been very helpful to me , and I wanted to ask a question do you have any info on my situation. We were on the trial HAMP with Saxon mortgage since Aug. o9 they just denied us in Feb stating the reason as a missed payment in Dec. I spoke with several call center reps who informed me we had no missing payments that was in Feb. and they told me to keep making the trial payments then last month we get a breach letter stating that unless we pay 15,000 by May19 we would go into foreclosure. I have spoke with several reps to dispute this and have been told that if we missed a payment on HAMP that we could not obtain a traditional modification but have been told by other reps we could get one , now just 2 weeks ago I had a rep in the mod. dept send me out the financial packet and took all our financial info over the phone and told me we did pre qualify so when I recieved the packet I gathered all the financial info required and sent it back via fax I have checked back daily and was told yesterday that they did recieve the info from me and it had been submitted into the system the rep told me to check back every few days to make sure there was no missing documents which I will do but my question is have you heard of this you can’t get a traditional mod if you have been denied HAMP for a missed payment? And Since they have submitted our financial documents and our deadline is May 19 to cure the default will it still proceed with the foreclosure process? Or does that halt when you are trying for a loan workout/modification? Thanks for any info you can provide.

I have just received my Loan Modification Agreement from Wells Fargo and they have countered with a balloon type offer. Pay the first five months at 5.25%, jumps to 5.75% for the next four months, after that it goes to the “Conversion Date”, accordance with note. Whatever that statement means? If I do not sign this, what can I do at this point, renegotiate and not pay my monthly? What happens to my house if I try to play hardball with them? Also I was advised of a selling date on the house, can they do that and how can I prolong something like this? Thanks for any info that you can give and your time.

How about this…A 30 year adjustable loan, scheduled to reset beginning the 7th year…and the lender decides to ask you to requality! The note and mortgage only give them the right to charge a $250 fee. Does this constitute fraud on the part of the lender?

i am helping friend with mort modification been going on for 8 months
they say it is now “under review”meaning it is with the underwriter.
who is essentially a banker with no name, no contact number who has the power to accept or deny.they are rewriting mort that someone is presently going to lose money on ,(untill of course house goes into for closure)
i believe they now have to state the EXACT reason for denial.
so i will let you all know how it goes. this month should be it.
zev
ps considering the time it take to talk to anyone i would recommend sending in a letter for a third party (friend in our case)permission to talk for lender. will need last 4 # of SS . it at least keeps thing moving to some degree

I refinanced my adjustable rate home equity in 2008 before this program came out but I am currently unemployed and the prospects for future jobs look slim – the future is uncertain. I owe 280k and my house is probably worth a bit more or less than that.
Can I qualify for a remodification?
Paul

***TIPS- HOME MODIFICATION…
* make sure to make your payment every month on the same date so u do not get kicked off.One day late can kick u off!
* Even if you are not on a trial program keep making those payments!”even if your banker tells you NOT too!”(I am lucky that i have been advised by decent banker from the Chase Corporate Branch)after 20 debt-collector- bankers telling me the wrong things for almost a year. Now I know what is expected going through this long- stressful- process!
* If you can now make your payments again,always pay an extra dollar or more-it shows the bank u are able to pay.
* If the bank will not take your payment at the branch do a WESTERN UNION QUICK COLLECT-those usually always go through.The fee for Quick Collect is $12.99
* You are more likely to get approved if you show that you can make your payments again.If you are needing a lower payment and cannot keep up with the payments at this time,thinks may still work out but i would have a back up plan just in case they do not.
*When you do fax all the paperwork FAX FOR FREE AT YOUR LOCAL BANK BRANCH.It is free and since it is Bank BUSINESS they HAVE TO DO IT even if they act rude towards you go to the next teller.
*If you don’t have a printer or do not want to use up all your printer ink go to the LIBRARY ,use the library computer for FREE and print everything out for 5-10 cents a copy.AVOID KINKOS at all cost unless you don’t mind paying them for something you can do for free!
*If you need to prove income and you are in a $CASH business now-so many people are like NEVER before(dog groomers,bartenders,car washers ect.)You must open up a checking account and put your cash pay in there every week so it CAN be documented.Put it in and take it right back put if you need it right then.Other wise you will not get approved just by stating your income or a letter from your boss saying that you work for him/her.
I HOPE THIS HELPS-I FEEL YOUR MISERY PEOPLE!