I recieved a loan modification with a balloon payment in 4 months. Mortgage company stated 90% of home owners can not pay balloon payment-so, at that time i will resubmit paperwork again and apply for another modification for that 9000.00 owed.I have already waited 6 months to file bankruptcy waiting for this loan modification to go through. My question is has anyone gone through a modification filed bankruptcy during and then had to restart modification process. How did it go? thanks
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it sounds like you received a forbearance, not a modification. Usually a forbearance is a temporary fix, but they never work because as you noted, you must come up with a ton of cash at the end of the forbearance.
Your mortgage company is right - most cannot afford the balloon at the end of the forbearance, so forclosure ususally happens. How far behind are you, if at all? Can you afford your current payments or did you run into a bind? The 9K balloon payment cant be modified - your entire mortgage has to be modified with the balloon tacked onto the end of the note when it comes due. Thats why I asked if this is a temporary thing or if its long term where you really cannot afford the house without a modification. Know also that foreclosure process will not stop during the entire process until you get approved for a trial modification, then if denied a perm. modification, the process continues. Its just temporarily halted during the trial period. In-house works a little differently and there are others on here that have been or are currently going through in-house mods.
Did your lender tell you why you didnt qualify for an actual loan modification (either HAMP or an in-house loan mod) ? There's alot to getting a loan modified and what program you go under and it can take anywhere from 8 - 18+ months before its all said and done.
First thing I would be doing is finding out why they put you in forbearance vs. a trial period, or even just an in-house mod. Is your mortgage more than or less than 31% of your gross monthly income? So many questions you have to find out.
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