Upside Down Mortgage

Posts Tagged ‘cases’

Loan Modification Success

Question: Has anyone had any success with a loan modification?

Initially we hired a company, total rip off, got 100 percent refund after threatening legal action. Our mortgage company doesn't seem to know what they're doing, we get assurances over the phone but also unsigned computer general threatening letters in the mail! Does this really work? Or are we destined to lose our home?

Answer: Karen, depending on your circumstances you probably need an attorney. Yes, most of the solicitations out there are a complete rip-off. Attorneys cost money but this is your house and your credit, not to mention a possible deficiency judgment.

The banks are getting a little better (and a little less indignant over the phone) because the underlying assets (the homes) are getting harder and harder for them to dispose of. That said, they have the upper hand. You're going thru one of these. They've gone thru, and are going thru, thousands.

Spend a few bucks on a real estate attorney that knows what they're doing. The bank's attitude and level of service will literally change overnight.

Hope this helps.

If you're new around here, you might want to subscribe to our Upside-Down Mortgage RSS feed. It's quite likely the only feed of it's type on the internet!

Loan Modification Cases

Question: Loan Modification First Payment or keep Checking from Chex?

Ok here is the brutal honest truth-I lost my Father had to pay for his funeral expenses and pay his debts- in the meantime did not pay close enough attention to my bank account and debt (obviously)-I did a loan mod on my house which was a long process and finally my first payment is due the 1st of May-now on the other hand I let my check account get out of control and I owe 1400-if I don't pay that off by the 30th of April they will send to collections and Chex-my mortgage NORMALLY gives a 15 day grace period but I am not sure in the case of just doing a loan mod-I cannot pay both by the due date-I can have both paid if the mortgage can wait until the grace period date-any advice? thanks!!

Answer: Have you contacted your bank? Usually you can set something up with them to pay it back in smaller increments, as long as you make your weekly payments. I went through that with my bank (I was overdrawn by 300) and they let me pay it back weekly while still allowing me to use my account and not taking all of the money out when my direct deposit went in. Contact your mortgage company and just ask them. Don't go into it detail, just ask. The worst they can tell you is no.

Can you get your pay/money in cash/check form and just Western Union or MoneyGram your mortgage payment to the company? That is one way to make sure your mortgage company gets the payment. I understand that your risking the account going to collections, but making your mortgage payment on time far outweighs your bank account going to collections. Good Luck!

Loan Modification Case Study

Mortgage Modification Success

Question: Has anyone had success using the Governments home modification program?

Are there any success stories using the Governments home modification program? My company said that they are not in it and if you listen to the Government they say that most companies are in it. I can see the refinance part of the Government program working if you have the selected type of mortgage(fannie mae or freddy mac) but I don't see the home modification part working and especially not for me. One of the problems is that mortgage companies have to be in the refinance part but do not have to be in the home modification part and many are not. Therefore there is no pressure on these mortgage companies to modify your mortgage. So has anyone had success with the Government home modification program?

Answer: If the government programs do not work, your best bet may be a short sale. It does hurt your credit some, but it is less damaging than the alternatives. With many real estate markets getting a little more stable, the environment for short sales is better than it was in the past.

Financial Success Centers of America Campaign