Loan Mods

[rck3]

I've been reading up on everything but still have a question on Loan Mods. Our house has abotu $3k equity after you consider our 1st and 2nd mortgage. We will be keeping it after we file for B7

My question is what exactly do they usually do in a loan mod? We are currently about 3 years into our 30 year loan which I checked and is Freddie. My rate is at 6.25, not because of bad credit(though I will after bk) but because we choose to do a no doc loan.

If they were to even cut the rate, that would free up some and at this point we realize how important ever dollar is.

[brad10281]

From my experience they won't even consider a mod if you're current on the loan. I'm now 10 payments behind and they finally decided that I qualify for a mod...I'm still waiting for the documents to come in the mail.

Good luck!

[mrskal]

I think it really depends on what bank you have the loan with to start off. Then what are you eligible for? There are in-house mods, goverment mods, and I am sure others. I can tell you, from reading up on this same thing, it is not too easy to get one, but there is a lot that goes into the decision. Be prepared to start the process, and wait months and months for approval, then get approval, only to have it denied later, and have to send in more paperwork. I chose to not even bother, since I am not keeping my house, but I joined a forum that is all about morgagess and getting mods, etc. Lots of sad stories out there, and the banks that are stringing the people along, losing paperwork, and outright lieing. That is what I have come across at least.

[Pandora]

You can get a loan mod if you are current - its just harder to do - you have to show imminent default is at hand.

First and foremost - what is your payment % at now - is it above 31% of your gross pay?

[NanaOf11]

Mrskal, May I ask what forum you belong to for Mortgages? We are looking to get our ducks in a row for a modification.
Thanks

I think it really depends on what bank you have the loan with to start off. Then what are you eligible for? There are in-house mods, goverment mods, and I am sure others. I can tell you, from reading up on this same thing, it is not too easy to get one, but there is a lot that goes into the decision. Be prepared to start the process, and wait months and months for approval, then get approval, only to have it denied later, and have to send in more paperwork. I chose to not even bother, since I am not keeping my house, but I joined a forum that is all about morgagess and getting mods, etc. Lots of sad stories out there, and the banks that are stringing the people along, losing paperwork, and outright lieing. That is what I have come across at least.

[mrskal]

It is loansafe.org
I hope it is ok to post that here. People over there also recommend this site and creditboards.com also, when you are dealing with a lot of this stuff. Good luck!