Asking mortgage company to modify mortgage?

[sillywalks]

The house I am living in is one I want to keep. I am thinking about talking to the mortgage company about modifying my current mortgage -- hopefully a lower interest rate and/or a 40 year mortgage. I looked into the government modification program, but it would only reduce my payment by $35 dollars or so. Does that mean that the bank is not likely to work with me? Or does one not impact the other?

The bank is U.S. Bank. The house (according to Zillow) is worth $178, the mortgage is $190K. It appraised for $220-$240K two years ago.

Thanks.

[justbroke]

No one will know until you actually try. There are too many variables to consider. Most won't modify unless you are past due, or your interest rate is going to adjust in the next few months. For HAMP, you seem to have done the calculation. I don't know why a bank would re-amortize your mortgage just because you asked.

[sillywalks]

Just to be nice? lol

I was thinking of approaching them with the possibility of my bankruptcy, wanting to keep the house, but needing a break on the payment amount. Hey, they would make more off of me if they moved me to a 40 year mortgage anyway!

[justbroke]

You have to realize, that most mortgage companies already sold your mortgage and are just "servicing" your loan. They make money everytime you pay.

In any event, it is always worth a shot. However, be prepared for "lost" faxes, income issues, you'll have to resubmit again, and all the other diversionary tactics used to just string you along and to continue paying. Threatening bankruptcy means absolutely nothing. Actually filing bankruptcy tends to motivate them somewhat.

[sillywalks]

Sounds like fun -- like a full time job (bleah). I hope it does not hurt to try, anyway.

[justbroke]

I did the modification thing, but had already filed Chapter 7 and was prepared to walk. That motivated my lender! I had a modification signed and recorded within 4 weeks! None of those dumb "trial" periods either!

[Panacea]

WAIT! So after you filed chapter 7, your mortgage company modified? I would love to keep my home, and hope that happens to me. I hope you don't mind if I ask what the difference in the monthly mortgage was?

[tcreegan]

modification

Hi again sillywalks!

Threatening bankruptcy means absolutely nothing This was my experience w/ GMAC mortgage....

the government modification program, but it would only reduce my payment by $35 dollars or so. does govt mod = HAMP ? I would hate to bet on a lender going lower than HAMP allows....GMAC mortgage was willing to go about half-way to HAMP levels, but no more.

Maybe do a search for US Bank and see if anyone else on the forum as had success with them?

Good luck with it, nice to hear your experience justbroke !

Tom in Colo