7 months later, my mortgage company finally contacted me!

[getmeoutofhere]

It has been 7 months since I was able to make my house payment. In December, I submitted a hardship letter and workout package. Finally, today, almost 7 months from the last payment due date, I get a call from the lender.
They are putting together my loan modification!

My original mortgage payment was $3876. My new payment should be around $1800. The way they do it, according the loan agent, is first look to extend the term to 40 years. If that does not get me down to the 38% number they need, then the mess with the interest rate. Agent said it might be a stepped rate.

Agent said they need to do a BPO, which is fine. My only concern is the second. The first is $510K and the second is $150K. House value? Around $390K.

I will keep you posted. Ideally, I would like to keep the house if I can get the payment down as the new payment would be comparable to a rent payment....

[dingdong]

Conratulations! Hope it all goes well for you and you get to keep the house.

Keep fightng for it!

[plantlvr]

Hope everything works out for you! Glad to hear some good news for a change!

[BKINAZ]

Awesome for you! Keep us informed, we are two months into our last payment and now realize it will be a while I guess...we are very interested in hearing about the 2nd though? That is almost a bigger pain in the rear than any debt we have.

[BKINAZ]

BTW GETME...a couple quick questions that I think will be helpful...

1. Can you tell us about the process. ie after how many months did they contact you by mail? No other phone calls? After our second missed payment we got a "we are in default and we will be forced to foreclose" letter. What can we expect?

2. Who's your mortgage company?

[BKINAZ]

Sorry one more...mind is fried tonight...

BPO=??? Is that broker price opinion or something like that? What does that mean?

[HHM]

Sorry one more...mind is fried tonight...

BPO=??? Is that broker price opinion or something like that? What does that mean?

Yes, it means Broker Price Opinion.

The challenge you will run into with the second mortgage is that none of the government supported modification programs can be used for 2nd mortgages.

[getmeoutofhere]

BTW GETME...a couple quick questions that I think will be helpful...

1. Can you tell us about the process. ie after how many months did they contact you by mail? No other phone calls? After our second missed payment we got a "we are in default and we will be forced to foreclose" letter. What can we expect?

2. Who's your mortgage company?

1. We never received a default letter. We did receive several calls, about once a month. I told them each time about our situation and that I was waiting to hear back from loss mitigation. The calls were all short and sweet. I finally took the initiative and contacted loss mitigation myself back in December. They sent me a "workout" packet which I filled out and promptly returned.

2. First Horizon is the mortgage company although MetLife is the servicing agent and also the ones who called me.

3. Not sure about the second. I can strip it in a BK if I need to, but my hope is they will just write it off and 1099 me. I would rather pay the tax on the $150K than pay the $150k.

Hope this helps. I will update later next week when I know more.

[BKINAZ]

THanks!

GET "3. Not sure about the second. I can strip it in a BK if I need to, but my hope is they will just write it off and 1099 me. I would rather pay the tax on the $150K than pay the $150k.

How realistic is that? You didn't mention (I don't think) if you stopped paying your second and when, have you even tried to negotiate the second yet? Mine has been playing hard ball...maybe they'll get to softball at 6 months?

Lastly...what was your income percentage before they tried to get you down to the 38% mark?

[getmeoutofhere]

THanks!

GET "3. Not sure about the second. I can strip it in a BK if I need to, but my hope is they will just write it off and 1099 me. I would rather pay the tax on the $150K than pay the $150k.

How realistic is that? You didn't mention (I don't think) if you stopped paying your second and when, have you even tried to negotiate the second yet? Mine has been playing hard ball...maybe they'll get to softball at 6 months?

Lastly...what was your income percentage before they tried to get you down to the 38% mark?

I quit paying my second at the same time I quit paying my first. I have NOT tried to do anything with the second as of yet.

I was at 76%, just on my first; not including the second. Throw in the second an I am at 111% LOL

[BKINAZ]

I was at 76%, just on my first; not including the second. Throw in the second an I am at 111% LOL

Your my new idol..lol

I will look for some internet articles I have on seconds...I'll drop you an email and see what you think.

[getmeoutofhere]

loan mod

For those of you following this post....

My Loan Mod was APPROVED!!!!

The details:
Mortgage Company: Met Life/First Horizon
Last Payment: August 2008
New Payment due date: May 1, 2009
New Interest Rate: 3% for 3 years, 6.25% remainder of loan
Old Payment: $3870 PITI
New Payment: $2028 PITI

I should have the docs to sign on Monday. Once completed and I make my first payment, I will "attempt" to do something with my second....although I don't know what that is at this time.

They did not do a principal reducton. My last line of defense is if I am forced in to BK, then I should be able to get the judge to reduce the principal amount...

I will keep you posted!

[BKINAZ]

Congrats! That's awesome...I expect to hear within the next 30 days on ours...

[2Bshinyandnew]

For those of you following this post....

My Loan Mod was APPROVED!!!!

The details:
Mortgage Company: Met Life/First Horizon
Last Payment: August 2008
New Payment due date: May 1, 2009
New Interest Rate: 3% for 3 years, 6.25% remainder of loan
Old Payment: $3870 PITI
New Payment: $2028 PITI

I should have the docs to sign on Monday. Once completed and I make my first payment, I will "attempt" to do something with my second....although I don't know what that is at this time.

They did not do a principal reducton. My last line of defense is if I am forced in to BK, then I should be able to get the judge to reduce the principal amount...

I will keep you posted!

Awesome!

How did they handle the 7 months of missed payments?
Was this loan a Fannie or Freddie?
Was the mod done under Obama's Making Home Affordable plan?
What was the interest rate/terms of the original loan?

Congrats!!

[getmeoutofhere]

response

Awesome!

How did they handle the 7 months of missed payments? Thrown on to the back of the loan
Was this loan a Fannie or Freddie? Yes
Was the mod done under Obama's Making Home Affordable plan? Yes
What was the interest rate/terms of the original loan? original loan was $525k, 6.25%, 30 year fixed

Congrats!!

a