Loss mitigation department: mortgage lendr

[Flowers]

I was advised by my attorney to speak with the Loss Mitigation department with the bank that holds my mortgage.

I was told to send a letter of hardship and supporting documentation (tax returns, paycheck stubs etc)
The bank representative told me I would hear from them in 120 days. Typically it is 30 days, but they have a good 50,000 files in the pipeline.

Anyway, has anyone had their rate lowered or monthly payments lowered.

I am just wondering what will occur at the end of the 120 days when I hear from the bank.

thx.

[spell]

I wouldn't stand for such delays. That's a big difference depending on what you want out of the deal. Unless you're waiting for the automatic stay on a ch7 to expire.

1 month behind, a valid option is refi. 4 months behind, refi is impossible.
The #1 thing they'll want is for you to catch up withing 3-6 months. 120 days from now, that could be complete. So, you might not even need to talk with loss mitigation.

If it's another sort of workout you want, get somebody on the line now, while your arrearage is managable.

[Flowers]

I wanted to update this thread as I heard from my mortgage lender's loss mitigation department this past week. I originally contacted them in late June.

They have proposed:
* that I send them $5300 in good faith by September 30
* they will place the roughly $30k past due total payments with interest at the back end of the mortgage.
* the rate will drop to about 5% but in 5 years it will adjust to 7%

I have yet to file BK and I will be deferring to my attorney this week for her advice.