Anyone have any luck with a loan modification during a 13?

[chloe0724]

I have a call in with my mortgage holder. I am hoping to freeze the rate. Just wanted to see if anyone has had any luck with this, or could give me any advice.

[justbroke]

I had started working with my servicer just prior to filing and actually got approved for modification. The darned BK messed it up.

I'm working with their Lawyer now to re-instate their "offer". They wanted 3-consecutive payments on time, and then they'd modify the loan by putting the arrearages on the end and putting the interest rate back to 7% (it is about 9.5% now due to the ARM adjustment).

[chloe0724]

My lender said they would do it!!!!!!!!!!! They are locking us in at our current rate for the remainder of the term!!!!!!!!!!! I was crying on the phone with the representative. He said that they are aware of how hard things are now for people and are looking to help.

[brokeNconfused]

anyone else have luck with this? I was thinking of talking to my credit union as well, but i have already given back a car and credit card and put them in my plan.

[chloe0724]

It can't hurt to ask

[parsoc48]

Good for you Chloe, you sound so relieved! We got a letter about a "consultation" to change our ARM to a fixed.....but I thought "yeah, right...another opportunity to be turned down". Haven't called yet...

[jennp102371]

My lender filed their POC at 18K less that what I filed my Ch13 plan at, never disputed it at confirmation or when we did an agreed order last year. I am now current with my lender and asked for a modification and they told me they could modify my loan if I had 19K (well, if I had 19K I wouldn't have filed Ch13, right?) Option One (Now AHMSI) IS THE WORST LENDER IN THE WORLD!!!!!!!!!!!!!! Congrats to you if your lender worked with you!!!!!!!

[workinghard]

my lender just sent me a letter saying I was approved for a modification but need court approval. my attorney warns the court will scrutinize my whole case and lower mortgage may increase my payments to the trustee. Even so, I called the lender to discuss and they wanted all this in less than 10 days time. Then they started asking me to send them my w-2 form, bank statements and check stubs etc...the letter made no mention of that. It basically said I need the court approval, the signed agreement and the first payment. What a hassle and there's no way we can even get in court by their "deadline" so my feeling is like thanks alot for nothing.

[chloe0724]

My modification doesn't change my payment amount, it just changes my ARM to a fixed at my current rate. So this time next year I won;t have to be freaking out because of another adjustment.

[brokeNconfused]

thats all i want

[liz417]

My lender said they would do it!!!!!!!!!!! They are locking us in at our current rate for the remainder of the term!!!!!!!!!!! I was crying on the phone with the representative. He said that they are aware of how hard things are now for people and are looking to help.

Congrats!!! What choice do the lenders have now? They can either work with their customers or have the house foreclose. So many people are just "walking away".....so sad.....

Congrats again!

[WoodSprite]

Chloe, I'm coming late to your party, but I'm SO happy for you. Congratulations!

Why on earth won't they just write a provision into this $700 billion bill that MANDATES mortgage holders must do this for people? Surely they'd make more money that way than simply letting everyone default, and it would stabilize both the financial markets and the social structure. Is that completely naive?

[chloe0724]

Wood Sprite, I completly agree with you. I hope that whatever they pass with this huge bail out, helps everyday people.

[justbroke]

Chloe, I'm coming late to your party, but I'm SO happy for you. Congratulations!

Why on earth won't they just write a provision into this $700 billion bill that MANDATES mortgage holders must do this for people? Surely they'd make more money that way than simply letting everyone default, and it would stabilize both the financial markets and the social structure. Is that completely naive?

This may come to pass as the lenders sell off their portfolios. The major problem with MODIFICATIONS is that most of the servicers, don't know who holds the underlying debt!

When I asked (ahem, begged) for my modification, I was told that they'd have to find out what asset-backed security it is in, then ask the INVESTOR if they are willing to do the modification.

Now, most investors would love to extend your term to 40 years and make MORE money. However, modifications which change the terms of an ARM (adjustable rate mortgage) are going to be more difficult, because this is where the "hedge" (investment) lies.

Having wrote that, this major debt purchase by the Fed and Treasury, will probably relax some of that, because NOW you'll KNOW who owns it... the People!

For now, it's not just as simple as calling the servicer and asking for a modification. The servicer doesn't own the underlying debt and can't make any decisions. That's why it goes to a negotiator who then contacts the institution(s) holding the underlying debt to ask if a modification is possible. In most cases, the servicer has some pre-authorized leeway. However, to make major modifications, requires approval from the debt owner, which is not the servicer.

The servicer couldn't care less about modifications. They make money off servicing the loan. They want you to keep the property! However, it's not their money, so to speak, to make changes.

[NowImDownInIt]

Congrats!! I think ARM mortgages are the equivilant of asking you to agree to a foreclosure 16 months in advance..