Need Advise on Loan Modifications

Updated on April 27, 2010
E.M. asks from Pomona, CA
25 answers

Hello everyone, I need your advise on loan modication . I need to reduce my mortgage payment. I am a displanced worker , I can not find a decent job. I have a 15 year loan - I called the lender and requested info on a 30 and 40 year loan and I was told that the difference was $ 300.00 a month. I then requested a loan modification and the lender said, " in order to consider a loan modification my payments had to be deliguent". This is ridiculous. I do not want to ruin my credit. Any suggestions!

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L.B.

answers from Los Angeles on

You could consider refinancing- if interested call Robert at ###-###-####. He does not charge mortgage/lender-broker fees to the borrower. If you go elsewhere and have to pay any fees at all(even appraisal) call Robert and he will tell you his program-then you can choose. Rates are low right now.
Best of Luck!!

1 mom found this helpful
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S.C.

answers from Los Angeles on

Hi E.
I'd suggest calling my friend Heather Marton, She is absolutely fabulous and specializes in this (nad is a mom, too!)
###-###-#### or ###-###-####
good luck!
S. cohen

1 mom found this helpful

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J.M.

answers from Reno on

Make sure to ask for the loss mitigation department when contacting your lender. Customer service reps are not given authority to make decisions of that magnitude and often explain that you cannot be helped or that you need to become delinquent before receiving any assistance. How long ago did you try? Lenders are much more willing to help now than they were last year.
Good luck.

2 moms found this helpful
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L.S.

answers from Los Angeles on

Hi E.,

I think my husband and I can help you! We own our own business and we help people make and save money - get out of debt, pay off their homes, save for retirement, kid's education, etc. Give me a call at ###-###-#### so we can set up an appointment with you and your husband and share more information with you. Or you can give me the best number to contact you and me or my husband will call you. I look forward to talking to you soon. L. (and Derrick) Stroud

1 mom found this helpful
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H.V.

answers from Los Angeles on

hi E.! we were in an adjustable last year and were able to get a modification. you just need to keep calling your loan company and plead with them that you don't want to lose your house. that's what we did. they told us to call that hope hotline that the goverment put in place and then we got passed around between loan writers. eventually we got a guy who told us that we also had to write a hardship letter. we were never late and just didn't want to lose our house and given the current situation they don't want to lose you either regardless of what they say. it took a month but they were able to put our first back to it's original loan amount and drop our second without us asking. they also made the new terms for the orginal life of the loan, so it wasn't like we tacked on 30 more years. just think positive and keep calling and pleading your case. someone there will have compassion and help you.

1 mom found this helpful
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L.R.

answers from Los Angeles on

Hi E.,
My name is L. and I'm a mortgage broker for Milestone Mortgage in Manhattan Beach. I haven't personally done any loan modifications but I know that Milestone works with one of only 2 loan modification companies approved by the California Department of Real Estate. I'm pretty sure you don't have to be delinquent to receive a loan modification if you can show that without one, you will likely default. What you do have to prove is that you can qualify for the new payment if the modification is done. I know you said you can't find a decent job but are you employed? I would love to try to help you find a solution, whether it be a loan modification or a refi. You can call me at ###-###-#### or email me.

Best,
L. Robb
Milestone Mortgage

1 mom found this helpful
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B.S.

answers from Las Vegas on

That's not what my mortgage company said! My husband helps people like you,,,, go to lonniestevenson.com and he's hooked up with a group for modifications that will get you a way better deal than you can on your own! Hope this helps! B.

1 mom found this helpful
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K.M.

answers from Los Angeles on

Hi E.,

I work loan modifications, and unfortunately, what the bank has told you is correct. In order to "be considered" (not necessarily qualify) you have to be late at LEAST 90 days. Otherwise they don't see the undue hardship, they figure whatever you're doing now to stay afloat should continue to work for you, and when it doesn't then they'll consider a loan mod.

There is a balance they search for when considering...you can't show too much hardship and, like you now, you can't show too little...same thing happens with income. That is why it is always suggested that you seek assistance when negotiating the modfication.

Never trust a company that wants your money without Pre-Qualifying you and doesn't tell you IN WRITING what happens if after PreQual, the bank then turns you down. Meaning, how much money will you get back. Also make sure that you are aware of how much money you pay upfront, and how much at the end of the process. Any company that wants to charge you all upfront should be one to watch out for.

Please email me offline if you need more info, no obligation, just happy to help, if I can.

[email protected]____.com

Good luck!

1 mom found this helpful
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L.M.

answers from Los Angeles on

E. I know some lenders have changed their policies even up to 1 or 2 times a month. Some lenders will not offer a modification if you are unemployed. First you need to speak to the department that actually handles the modification application-sometimes it is a collection department or a modification department-it will never be a customer service department. Secondly,are you the only one on the loan? if not is the other borrower(your spouse,mother,etc) on the loan employed? Another thing , You don't necessarliy have to become over 30 days delinquint with your mortgage payment to be reviewed for a possible loan modification. This means if you stay current,you may not be reviewed immediately as another high risk loan account...meaning you will be reviewed within 30-45 days....as opposed to 4-7 days. If you are able to continue to make your minimum mortgage payemtns -with or without the late fee, no later than the end of the month, then yoou are protecting your credit. Do not take it personal...just realize there are much more dire situations that may take a higher presidence over your situation....I have had customers whose spouses have died, or walked out on them or childern have died and people who have lived without gas or electricity to try to pay their bills and ask for a modification....also it will depend on your lender. If you dont mind me asking who is your lender? I work for a lender in a collection department & pre froclosure department & work daily with loan modifications. I can help you walk through it-and no I will not charge anything- I dont believe in charging anyone for a loan modification-but there are agencies who do offer help with a loan modifcation and charge for this service. My advice to you is not to pay for this service because yoou can do it yourself for free. Basically the lender will ne looking at your gross combined income and net combined income. Then your credit report and your monthly expenses. Then they review your principle balance, your escrow account if you have one, if you are current with your property taxes and home owners insurance. I don not suggest to fall behind in your mortgage payments so if at the least make your minimum mortgage payment -without your late fee no later than the last bussiness day of the month to keep your credit report free from any negeative creditmarks. be honest about your monthly expenses and combined income. email me back if you need some more information or want to ask more questions....

1 mom found this helpful
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M.D.

answers from Los Angeles on

The banks are changing weekly on what they are offering for modifications. I suggest if you just want to modify it that you call once a week and ask about it.

If you want to refinance which is a permanent solution or change, then I can help. I'm a loan officer. Feel free to e-mail me for more information.

[email protected]____.com

Thanks and good luck!
-M.

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N.S.

answers from San Diego on

All I can say is call back, call back, call back. Lenders are amazingly frustrating to deal with, so you must be persistent. There are companies that will help you with this, you may want to at least talk to some of the folks that offered to help on here! Some offer a money back guarantee if they cannot help you. Good luck and please let us know what happens.

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L.S.

answers from Los Angeles on

That's what our lender said, too. However, we called them and quoted their policy from their website .... "we've helped over 42,000 homeowners stay in their home....". If they have something like that, please call them and use their own line(s). We did, and followed up with a hardship letter, as we, too didn't want to ruin our credit, just get a lower interest rate. Needless to say after much prayer and discussion with our lender, they modified our loan! KEEP calling them! We did....daily.

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D.S.

answers from Los Angeles on

I just did a remodification thru countrywide.I was not delinquent, i've always been on time with all my payments. It was a no hassle process and amazingly no upfront fees. Best of luck to you!

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J.C.

answers from Los Angeles on

I know the name of two great mortgage people. Let me know if you would like me to send you their contact info.

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C.S.

answers from Las Vegas on

It is insane what lenders are doing. I would call back in hopes to get a different person on the phone. I would imagine it will cost something for the paper work to change it, as well, it will probably have to go through escrow which will cost a little too because everyone has to be paid. Is there a local branch you can set an appointment with where you can ask more specific questions? Maybe they can tell you why and what other options there are. Sometimes people are jerks and only offer minimal information unless you practically shake them down.

Best of luck.

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B.P.

answers from Los Angeles on

Which bank are you banking with. Not all modication loans are programed in that manner. If the 30 or 40 year loan takes care of the need now. Does your husband have a job, because you need a job in order to apply.
Hope this helps. If you decide to take the 30 or 40 year loan. You can always pay it off earlier. B. in van nuys

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N.S.

answers from Los Angeles on

With rates dropping, why don't you check out a full refinance at 30yrs? This way you can go to any reputable lender that treats you with respect.

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D.S.

answers from Los Angeles on

I'm in the same position you are in except my loan is thru Chase and they said something about it being owned by Fannie Mae or Freddie Mac or something. Anyway, I got the same story the first couple times I called. One time I called they told me I could not pay for 3 months, they'll tack on those payment to the end of the loan and it won't affect my credit. After the 3 months, if I was employed they would modify but they could not guarantee a lower payment or interest rate. Kind of BS if you ask me. The process was supposed to take 6-8 weeks before someone could review my file and start the process. I think I'm at week 5 now so no word yet.

I know there are attorneys who will handle it for you. I have a friend who went to one and he was great. I haven't contacted him yet but I referred him to someone else and she's using him now as well as referring him to her friends and family. If you're interested in knowing his contact info, let me know.

Best,
Deb

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S.G.

answers from Los Angeles on

that is correct - loan modifications are for people on the verge of losing their homes. You MAY be able to get a refinance though. Ask about that. I have a good mortgage guy in Cucamonga if you want his name to see if you qualify or not. Keep in mind - it's really tough to get a loan right now.

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T.Q.

answers from Los Angeles on

E.,
i would recommend that you contact Alicia Ynurrigarro at ###-###-####. she is honest and well informed of all kinds of programs. i know that people have told you to call this or that person. i would say call all and then decide who to go with. good luck.

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S.W.

answers from Los Angeles on

My husband works in loan modifications for a law firm and has told me that there are companies out there giving that advice, he says that is absolutley false!!! You should send me your email, he could probably assist you. Mine is [email protected]____.com.

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M.M.

answers from San Diego on

E.,
Contact Katie Beecher; Stinson Financial group, at ###-###-####;
[email protected]____.com,
she is honest and will get you the best deal!
She helped me analyze a payment plan and honestly told us
we had a great rate and to stay with what we had.
We were in a womens business group together for over a year.
Sincerely,
M.

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A.P.

answers from San Diego on

Could you refinance? Right now rates are about 5%, does that help? I would speak to more banks and gather as much info as possible-being delinquent doesn't sound like a solution.

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S.R.

answers from Los Angeles on

Hello E.,

As ridiculous as it sounds, it's true. It took me a year of negotiations with the bank but I finally was able to get a modification. The payments are almost the same but they included the property taxes on it. Plus, they lowered our interest for five yrs from 5.5% to 2%. I'm also a displaced worker and have been having a hard time paying my bills, so ruining my credit with a modification was better than a foreclosure. I would not pay a lawyer to do it though. My sister did that in another state and she only lost her money. If the bank wants to work with you, they will. Unfortanelly, we're at their mercy.

Good luck.

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