Home Loan Modifications-Do they really exist?

[freeatlast98]

Has anyone been successful getting a home loan modification? I've been speaking to several people and they all say the same thing, modifications are offered then the bank/lender changes the terms. Do the lenders base the amount to pay them on 31%of your income? I'm worried because my loan is with BofA and I'm afraid they won't offer me one. I've done as they requested to become late on my mortgage. I have also completed a package with all my tax returns etc..I refinanced my home in May 2009 so I know it will have to be an in-house modification. Any advice as to helping this process along? I would like to hear the experience of other people as far as do the banks really want to work with struggling home owners or not?

[momofthree]

I have a permanent hamp mod thru GMAC. It was finalized in Nov. 09. I've heard BofA is hard to work with though. Check out www.loansafe.org for more info on mods. Their message boards are a great source of info.

[freeatlast98]

Momofthree- I noticed you received your modification prior to filing BK, did the mortgage company give you any problems when they found out you filed? In other words did they make any threats of canceling it.

[momofthree]

Haven't heard even a peep from the mortgage company--they never even revoked my online access or automatic payments.

[freeatlast98]

momofthree- You are where I want to be. I hope I get there. Sometimes I feel everything is hopeless and I'll lose everything.I feel if the modification was granted and I filed Chapter 7, I'll be able to get my life back on track. It's been on a real collision course these past two years. Thank you for responding. It's good to know there is a way out somewhere.

[Pandora]

Has anyone been successful getting a home loan modification? I've been speaking to several people and they all say the same thing, modifications are offered then the bank/lender changes the terms. Do the lenders base the amount to pay them on 31%of your income? I'm worried because my loan is with BofA and I'm afraid they won't offer me one. I've done as they requested to become late on my mortgage. I have also completed a package with all my tax returns etc..I refinanced my home in May 2009 so I know it will have to be an in-house modification. Any advice as to helping this process along? I would like to hear the experience of other people as far as do the banks really want to work with struggling home owners or not?

To answer a few of your questions -

Yes, they do exist But its very hard to get them and certain lenders are notorious for dragging their feet (the bigger the bank, the harder to obtain it seems). BOA is a nightmare for alot of people. We were approved for HAMP and became permanent about 6 months ago, however it was a long battle and lots of paperwork involved; much resending and keeping track on our part to keep our lender on thier toes, so to speak.

The 31% rule is for HAMP guidelines - they base the payment off 31% of your gross income - but some lenders that are doing in-house mods are also using HAMP guidelines, but using net vs. gross. It just depends on the lender it seems.

[Spagal]

They do exist! Although I think its hard to wade though all the offers that are scams. My boyfriend was able to successfully modify through his current mortgage provider. The dropped his rate from 6% to 2% for 5 years and it will gradually increase over the next 5 years after the initial 2% expires and tops off at 5%.

Keep at it. It was well worth it for him and meant the difference between keeping his home and foreclosure...

[freeatlast98]

They do exist! Although I think its hard to wade though all the offers that are scams. My boyfriend was able to successfully modify through his current mortgage provider. The dropped his rate from 6% to 2% for 5 years and it will gradually increase over the next 5 years after the initial 2% expires and tops off at 5%.

Keep at it. It was well worth it for him and meant the difference between keeping his home and foreclosure...

Hi thank for your response. May I ask what his payment was and what is is now? Also what bank/lender was it with?
Was is a Hamp mod or in-house? Also, how long did the lender take to finalize the modification?

[Spagal]

Hi was an in house modification. I think his bank is PNC. His payment went from $2200 to $1100. He did have to fill out mountains of paperwork, provide tax returns for 2 years and an affadavit describing how he ended up in his hardship. It took 3 months for them to work through his paperwork and send him the final acceptance with new terms. During the 3 months they have him a trial period payment that was even lower than his current payment. Only stipulation was he had to be on time, every time while in the trial period. Good luck to you! It does happen.

[momofthree]

Honestly, BK was like a walk in the park compared to getting our mod approved and finalized.

[freeatlast98]

Hi was an in house modification. I think his bank is PNC. His payment went from $2200 to $1100. He did have to fill out mountains of paperwork, provide tax returns for 2 years and an affadavit describing how he ended up in his hardship. It took 3 months for them to work through his paperwork and send him the final acceptance with new terms. During the 3 months they have him a trial period payment that was even lower than his current payment. Only stipulation was he had to be on time, every time while in the trial period. Good luck to you! It does happen.

Thank you you have given me hope. One more question while he was waiting for them to work through his paperwork, did he send in payments? I'm not sure I got understood that part of your answer. I don't qualify for HAMP so.. mine if the do even consider it, will be an in-house also. Thank You Again

[youngnbroke]

My mortgage (first and second) is thru GMAC. Last August I filled out paperwork (it was the MHA - Making Housing Affordable) and was told and read over and over again that it would only work for the first mortgage. After about 5 weeks, we finally got a call back from the mortgage company and they had told us that we were denied because we had "too much income" to qualify. I was devasted. In September, I was unable to pay the 2nd mortgage by the due date and I missed the grace period. One day after the grace period i went online to make a payment and they wouldn't take it. I FREAKED OUT! I had never been late on payments and didn't know what to do, so i called the mortgage company back and they told me that my paperwork was being filed and that no payment was due yet. Low and behold..i was some how approved for a loan modification on the 2nd mortgage - something i was told was impossible. After that..the interest payment went from 14.5% to 7%...dropped our payment $270 which helped. Now my husband has been laid off the past 3 out of 5 months and we are unable to pay. SCREWED AGAIN!

[freeatlast98]

My mortgage (first and second) is thru GMAC. Last August I filled out paperwork (it was the MHA - Making Housing Affordable) and was told and read over and over again that it would only work for the first mortgage. After about 5 weeks, we finally got a call back from the mortgage company and they had told us that we were denied because we had "too much income" to qualify. I was devasted. In September, I was unable to pay the 2nd mortgage by the due date and I missed the grace period. One day after the grace period i went online to make a payment and they wouldn't take it. I FREAKED OUT! I had never been late on payments and didn't know what to do, so i called the mortgage company back and they told me that my paperwork was being filed and that no payment was due yet. Low and behold..i was some how approved for a loan modification on the 2nd mortgage - something i was told was impossible. After that..the interest payment went from 14.5% to 7%...dropped our payment $270 which helped. Now my husband has been laid off the past 3 out of 5 months and we are unable to pay. SCREWED AGAIN!

I hope you're able to get back on track soon. Sometimes it seems life is out to get us. Good Luck to you.

[Spagal]

Freeatlast - Yes, while he was waiting for approval they temporarily lowered his payment and part of him being approved for the program was that all payments during that period had to be paid in full and on time...if he was late they would/could have rejected the modification request since it would appear he wouldn't be able to meet the lower terms either.

[ConfusedinOC]

Personally I tried modifying a couple of times even went with NACA. Each and every time I was denied for various reasons from making too much money, having high credit card debt, the investor wasn't accepting modifications and being current on payments. Due to high credit card payments we decided to stop paying them and stay current on mortgage and just file for BK. I was ready to file this week but I received an offer from my lender to modify my loan. They said since I am current on my loan that I qualify for an in-house mod. The interest rate will stay at the current 4% for the life of the loan which is great because my original loan was adjustable on a monthly basis. The best thing is that there are no documents to submit.