Comments on: Loan Modification Do’s and Don’ts

By: lisa

lisa — Wed, 06 May 2009 03:25:10 +0000

lisa…

in as much as Obama is doing a good job on the economy helping all the bloated corporations keep their million dollar bonuses and crap,m it would be nice if they took the same effort to help those of us that are afraid to pick up the phone because of b…

By: Andy Lauer

Andy Lauer — Thu, 23 Apr 2009 18:53:24 +0000

i have contacted many agencies to help me with my modification. About 1/2 say i need a Forensics Audit. Other 1/2 says its a waste of time. This might help you answer, Ralph:

My loan originated with a ‘fly by night’ mortgage broker and then sold the load to ??? who then sold the countrywide who then sold the loan EMC….lots of hands.

By: Sharon

Sharon — Sat, 11 Apr 2009 02:02:49 +0000

Is there such a thing as a 50-year loan?

Would it be considered predatory?

What would be a legitimate purpose to use one? How would it amortize?

Thanks.

By: Marie

Marie — Thu, 02 Apr 2009 17:53:32 +0000

I have had 4 mortgage companies in the last 5 years with an ARM which continues to rise. My payment has gone from 986 to 3000 and I can no longer afford the payment, when I asked for a loan modification my loan was once again sold to someone else and I have to start the process over. Now six weeks into the loan modication request I keep getting the runaround, one person will say they have the paper work and another says they need more. When I asked for a loan modification I was told that they would go 12 months maybe and possibly 24 months. All the loan modifications I read about are fixed 30 year deals. I am now behind on my payments and they are calling me at work wanting to know when I will be paying, and all the while I am trying to work through a loan mode without success.
AHMSI is my mortgage company and I feel that I am being taken advantage of, preditory lending. What options do I have that do not require me giving someone $$$ without results, no guarantee?

By: Andy Lauer

Andy Lauer — Wed, 01 Apr 2009 20:50:13 +0000

Ralph,

I saw your answer to tiffany and i have a question about your “rule of Thumb”. >>

You wrote: “What you do is take 30% of your gross household income. If that amount is more than the monthly mortgage payment you’re making now, you’re either in trouble already or are likely to find yourself struggling to make your payment in the near future. want to modify my home loan”.>>

didn’t you mean if 30% gross of your income is LESS than the monthly mortgage payment then you’re in trouble?

i did it 12 months ago on my own but they only gave me 20 months. i have waited the year and now want to modify again. My question is:>>

Is there a way to ascertain if there is a ’sweet spot’ or rule of thumb that the mortgage company goes by regarding my assets vs. expense. if i make too much they’ll say i dont need to modify. if i say too little they will say i’m hopeless and need to short sell. i am self-employed and have some wiggle room as far as what i can state my income to be. My wife is fixed so no bending there.

By: E G V

E G V — Tue, 31 Mar 2009 01:56:32 +0000

My mother’s name is on the title and loan documents of our home. She is retired and has no income other than social security. I pay the mortgage. When she purchased the house, the lender gave her 2 loans, one being an Interest only loan. Due to the poor economy, our home value has depreciated almost $20,000 and we can’t seem to get out of this loan. We can’t refinance, she can’t “sell” me the house (have it under my name). Are there any options for us? Can we go thru a loan modification even though she is retired? Your advice is appreciated!

By: Harry Joyce

Harry Joyce — Wed, 25 Feb 2009 15:31:54 +0000

Dear Ralph this is Harry Joyce I wonder if you can give my wife and I some advice for our predicament. thanks Harry

By: V H

V H — Mon, 23 Feb 2009 04:15:31 +0000

Dear Ralph,

You are a life server. My wife and I bought a home five years ago for $535,000. Our first mortgage is with Washington Mutual ( JP Morgan Chase now) with a balance of $333,000. Our second which is a line of credit with E*Trade with a balance of $52000.00. Our third mortgage is a home equity loan with Navy Federal CU with a balance of $192,000. We are currently two months behind. We contact both JP Morgan Chase and Navy Federal CU in December 2008 to let them know that we need help. We faxed all the required financial statements to them both. Now, Navy CU said that they will not do anything until JP Morgan Chase approve a loan modification. And JP Morgan Chase just sent us a letter saying that we are denied because they do not have our proof of income. We faxed it to them already. I am in auto sales and my income has been reduced by 40%. I thought the JP M Chase want to help people stay in their home. What do you advice me to do now?? I am considering contacting the Federal Loan M. Law Center that sponsor your website. By the way, what is their fee??

Thanks a million!!!

V H

By: Harry Joyce

Harry Joyce — Sun, 22 Feb 2009 13:39:44 +0000

I live in Michigan and my house value has gone down $100,000 in the past 3-5 yrs. I am 68 yrs old and have a 10yr arm (2005) and want to refinance to a fixed rate while the interest rates are low.I am afraid that I will loose the house when the arm runs out. I can barely make the payments now because my wife and I are retired and living on social security and a pension from general motors.My question is with an income of approxamently $28,000 a year and our ages do you think that we could get a 40yr fixed rate to lower our mortgage payments.We have a good credit rating and have never missed a payment. this might not be the right format but I thought I would ask for some advice thank you Harry Joyce

By: Mani T

Mani T — Sat, 21 Feb 2009 06:12:45 +0000

Dear Mr. Ralphs:

Thank you for responding to so many people. Your advice is truly invaluable.

We brought a townhome in Southern California in 2005 for $415k. We currently owe $315k in first mortgage (5yr Interest only ARM with IndyMac Bank resetting in April 2010) and $80k in second mortgage (30 year fixed HELOC with a Credit Union). The value of the house currently is $280k. Our combined monthly payments on the mortgage, insurance, taxes etc. is $2300.00.

Meanwhile, we are now in escrow to buy a bigger home (due to various reasons: expansion in family, cheaper home, better neighborhood etc.) We will not be able to afford both homes at the current mortgage payments. So we are deciding on what to do with our existing home. I would truly appreciate your opinion and advice on what to do with our first home. We are currently considering 3 options.

1. Get a loan modification from IndyMac bank, lower our monthly payments and rent it out. However, it looks like we could end up paying $500/month from our pocket as the rent will not cover full expenses.

Given that the the house house is not going to go up in value (above $415k) for a few long years, do you think it is makes financial sense to rent this home?

What happens to our second mortgage in a loan modification?

2. Request a short sale. We found that would be loosing about $65k compared to if we had rented a house for the 4 years instead of buying this house. We are willing to take a ding on our credit if we are loosing by renting out (option 1).

3. Request a short refinance from the banks?

Can you please suggest other approaches you would advice us to minimize our loss on this house?

Thanks much in advance,
-Mani