Has anyone done a mortgage loan modification under the Hope for Homeowners Act?

[Stilltheone]

Right now, we owe $260K on our home and it's worth much less.

I know that the "Hope for Homeowners Act" passed and am very curious about it.

Our first mortgage company is through a division of Lehman Brothers (EEK!) and our second is through Countrywide.

According to their websites, they both have a Homeowner's Retention program of sorts.

I would love to have our principal balance lowered. I doubt that would happen. But, I would also love to be able to lock into a fixed rate and pay down on the principal at least. Right now, both are interest only.

Also, right now, we are a month behind on everything, which sucks. We had to shift somethings around to pay for an emergency, so now EVERYTHING is 30 days past due.

Has anyone ever done a loan modification on their mortgage?

Thanks!

[endisnear]

I think we are in the exact same boat! lol. We owe 340K and home is worth prob 215K but if we had to sell we wouldn't even get that much for it.

It is backed by the FHA and so their underwriting guidleines are what applies. From what i read...
1. Your current lender has to agree to take the loss (it's essentially a short refi)
2. FHA allows DTI ratios of about 28/41, i believe it was.
3. I think they allow BK discharge of 2 years

This must be why the prgram is only expected to help about 400K people.

I'd also like to know if anyone's been helped by this program

[Flamingo]

There are certain qualifications for any mortgage adjustment. One is you need to be at least 3 months late on your payments and there are certain income qualifications that need to be met. What is being done on most of these modifications is the loan being spread out to 40 years and interest being lowered so payments are affordable. Lowering principle continues to be a hot issue due to all sorts of issues. Not too many people have obtained modifications under this Act according to a recent article in our paper.

Your mortgage company will probably not even talk with you until you are at least 3 months late on payments.

[albacore44]

Thats nothin

I am in the inland empire of so cal home to a sea of forclosures. thanks to that fact my home that was appraised at fair value $900,000 in June 2007, is now worth mabee $500,000. I have 1st $417,000 + 2nd $240,000. Both loans are int only option, and thats what i'm paying. i have a good stable job and can afford the payments with some thanks to Ben Bernanke lowering the funds rate. but the clock is ticking for me , i have 3 1/2 years for my 1st to adjust, and my 2nd at the whims of the federal reserve.so i need to get into something better. But seeing I need to have principal write down, have not heard of much of that happening. I'm not holding my breath, but hoping the Dems come up with a plan after Obama's in to help the hopeless.

[bulletproof77]

in order to qualify for the HFH program you must be 5 months behind and have a sub-prime loan. Banks and lenders have absolutely no information and or funding for this program and despite the hype and a little counseling from ACORN there really is nothing thats being done, except endless links on HUDS page to "housing advocacy groups" like ACORN. I also live in the Inland Empire with an "upside down" home, however I am trying to stave off getting behind, but no-one, particularly Countrywide Home Loans will work with me. "Hope for Homeowners" is just a bunch of smoke and mirrors...

[albacore44]

in order to qualify for the HFH program you must be 5 months behind and have a sub-prime loan. Banks and lenders have absolutely no information and or funding for this program and despite the hype and a little counseling from ACORN there really is nothing thats being done, except endless links on HUDS page to "housing advocacy groups" like ACORN. I also live in the Inland Empire with an "upside down" home, however I am trying to stave off getting behind, but no-one, particularly Countrywide Home Loans will work with me. "Hope for Homeowners" is just a bunch of smoke and mirrors...

not surprising since they lied to us about the TARP money.That was supposed to go to the banks in trade to the government, in exchange for devalued assets (upside down mortgages, etc.) instead they give it too the banks, no questions asked, and my thinking is the banks are giving it to cover foriegn investors they tricked into risky investments. at least today Bernanke, acknowledged that they have do more to fix the forclosure problem , particularly writing down principal to levels equaling value of the property. I'd grab any lifeline I could , but being -$200K there is no way out. And I'm not the worse case in this neighborhood. many are much more upside down. I do believe help is coming after the new president gets in.

[bulletproof77]

I sure hope so, all I know is right now HFH is a joke...I too, live in the "sea of foreclosures" (Hesperia) and am trying to work with Countrywide, but they refuse, so "heres your house back Jack" and good luck getting blood out of the proverbial stone.

[endisnear]

LOL Bulletproof! Although I think it's turning more into an ocean rather than i sea! I'm in Fontana, 'nuff said.

[bulletproof77]

Oh Lord, not off of I-15 ??? Scenic "North Fontana" AKA "Wind Alley" ??

[2strong]

Looks like this is turning int an IE thread. Im in fontana and its getting bad I owe 377,000 1st and 92,0002nd and zillow estimate my house at 311,000 neighbor is selling for 315,000. I just started my loan mod I got a lawyer to do it just in case it doesn't go through he will use that money towrds my bk. Funny thing is after I told my mortgage company I had an attorny I got a contract in the mail from them.. All I had to do was sign it and they would drop my intrets rate to 5% for 60 month and they even offered to pay me $250 in a card if I sent it back within a certain amount of time this made me think that if they can offer me that what can my lawyer get me. And they did not rewuest no paper work just my signature

[albacore44]

Looks like this is turning int an IE thread. Im in fontana and its getting bad I owe 377,000 1st and 92,0002nd and zillow estimate my house at 311,000 neighbor is selling for 315,000. I just started my loan mod I got a lawyer to do it just in case it doesn't go through he will use that money towrds my bk. Funny thing is after I told my mortgage company I had an attorny I got a contract in the mail from them.. All I had to do was sign it and they would drop my intrets rate to 5% for 60 month and they even offered to pay me $250 in a card if I sent it back within a certain amount of time this made me think that if they can offer me that what can my lawyer get me. And they did not rewuest no paper work just my signature

Might I ask which bank that was ??

[2strong]

AMERICAN HOME MORTGAGE. AHMS It used to be Option one.

[endisnear]

Bulletproof....well we are actually South Fontana, southridge, but the wind is just as bad as the north part of the city! LOL....DH just talked to someone at his work who is doin loan mods on the side. Not sure all the details, he just told me about it today, but hopefully this lady can swing something for us!

[Stilltheone]

We contacted both mortgage lien holders last week. Countrywide can't help us because they only hold the HELOC. Aurora, who holds the first mortgage, gave us a slew of paperwork to file out and fax...so we'll see. I'd be happy with just getting into a fixed rate and out of the interest only crap!

[endisnear]

We have our 1st and 2nd with NationPoint and they sent us a letter a couple months ago that they were going to fix our rate (our 1st is interest only due to adjust this month) for the next 5 years, but that we would have to start paying principal. We can no longer afford even the IO 1st and 2nd so hopefully something will happen for us.