The skinny:
Mortgage IIB7 in 2007, ride through until Aug of 2010, stopped paying after failed HAMP and then failed in-house modification (failed=declined). House is approx $75-$100k underwater and values in that neighborhood are still falling fast. House is an investment multifamily property.
Mortgage was transferred to LBPS (now Seterus) last fall. Since March, we've been in application for an in-house mod. Foreclosure process has not proceeded past the Notice of Acceleration, which has been sent three times, most latest to expire June 21st.
Finally received word that a modification was approved. Terms are as follows:
1) Interest drop from 6.75 to 2.5 for the next five years, then up 1% each year to a max fixed of 4.5%.
2) Missed interest, taxes, insurance, late fees, etc to be rolled back into the loan, increasing the principal from 250k +/- to 270k +/-.
3) The payment drops from 2100k/month to $1600k/month.
3) First payment to be due August 1st.
4) This is a permanent mod, not a trial and so therefore, the foreclosure process halts completely and would begin anew if we default after accepting.
Obviously, this mod is really not a great deal. I mean, you're taking a house that's already severely underwater and making it further underwater. It's a temporary fix as well.
Does anybody have any experience with the process of foreclosure after you've declined a modification? Think it will pick up where they left off, or do you think they will have to start the whole process all over again (assuming we do not accept the mod as opposed to accepting and then defaulting down the road).
How about sending the modification back and asking for consideration of different terms? We were hoping for a principle reduction (I know....very rare, but, apparently it's becoming more of an option for some lenders).
Thoughts?
Mortgage IIB7 in 2007, ride through until Aug of 2010, stopped paying after failed HAMP and then failed in-house modification (failed=declined). House is approx $75-$100k underwater and values in that neighborhood are still falling fast. House is an investment multifamily property.
Mortgage was transferred to LBPS (now Seterus) last fall. Since March, we've been in application for an in-house mod. Foreclosure process has not proceeded past the Notice of Acceleration, which has been sent three times, most latest to expire June 21st.
Finally received word that a modification was approved. Terms are as follows:
1) Interest drop from 6.75 to 2.5 for the next five years, then up 1% each year to a max fixed of 4.5%.
2) Missed interest, taxes, insurance, late fees, etc to be rolled back into the loan, increasing the principal from 250k +/- to 270k +/-.
3) The payment drops from 2100k/month to $1600k/month.
3) First payment to be due August 1st.
4) This is a permanent mod, not a trial and so therefore, the foreclosure process halts completely and would begin anew if we default after accepting.
Obviously, this mod is really not a great deal. I mean, you're taking a house that's already severely underwater and making it further underwater. It's a temporary fix as well.
Does anybody have any experience with the process of foreclosure after you've declined a modification? Think it will pick up where they left off, or do you think they will have to start the whole process all over again (assuming we do not accept the mod as opposed to accepting and then defaulting down the road).
How about sending the modification back and asking for consideration of different terms? We were hoping for a principle reduction (I know....very rare, but, apparently it's becoming more of an option for some lenders).
Thoughts?
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