Waiting for a loan modification?

[kenshirley]

Our daughter and son-in-law are in tight times.
He still has his job paying less than $50K. She lost hers in the real estate office management trade last November. She was making over $70K at the time so the loss of that job had a big impact on the family. They had a big house payment and car payments and child care.
She has been trying to get back to work and needs a job that pays well and they just don't exist anymore in the administrative field she was in. We all know things are tough out there and jobs that are available are being taken by people that were making really big money and will settle for anything now.
So unable to get a new job that will pay their bills they applied for a loan modification. She applied in December, they lost the application, twice or so they say. Then they said that they did not have all the information they needed from the White House. I was one excuse after another.
So she finally got her letter approving her modification in the mail and it was a whopping $102 off their $1700+ payment on the home. Big Deal!
I would appear that unless something breaks very soon they will be joining me in Chapter 7.
Don't hold your breath for the modification folks. I think these banks may just be pulling a fast one and thinking they can take your property and make a killing when and if the market recovers.

[h0usekeeper]

I have personally processed 150 loan mods. Only 3 of them reduced the principal. Most of them increase the principal by way of forbearance, increased the term, etc. I have even received letters stating that they will consider loan mods if the borrower pays 3 months of the arrears. That to me is extortion. If you are to accept any loan modificatin, please read the small print.

[OregonMom]

I tried to modify my loan, my sister has been trying for a year (her hubby lost his job), my mil is trying (she lost her job), none of them have been successful. My MIL likes to believe that this new Hope plan by Obama has to be done by the banks and they have no choice. I say they don't have to modify anything. The only one I have seen modified is some inlaws who got their second wiped out for $3,000 up front and their first reduced to 4.85% but it was with a bank I have never heard of. But who knows they are in middle of BK and have know to be fibbers.