7 months later, my mortgage company finally contacted me!

[bubbles7361]

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!

This thread looks a bit old, but I thought I would see if you could give us an update. I am curious because I am dealing with a similar modification with MetLife.

I sent in my workout package The end of January and after two and a half months was finally told I was approved and all was grand. I received my modification papers, signd them, and sent them back in at the end of April. along with, what I was told was, my mortgage payment for May under the modification.

All is good right? Wrong!!!

I received a letter today saying that my modification was denied because I do not qualify financially, after I have already been told I was approved many times and signed all the papers and given them money based on the new deal!

Hopefully I will find out more tomorrow, but I was curious if you had any troubles with yours after signing the paperwork.

[All Cash]

Congrats, party like its 1999.

[getmeoutofhere]

update

UPDATE:
I mailed in all of my paperwork along with a certified check. I spoke with them the next day and metlife stated all was completed. I have not yet received a new billing statement, but then again, my next payment is not due until August 1st. I have not seen anything on the recorders website yet either since we modified the loan, it might not need to be recorded.

All is well for now. I am still trying to settle on the second. I have a 10% buyout and full lien release. I spoke with my accountant yesterday and due to my losses last year, a 1099 would be offset against those losses. Just need to come up with the 15K to settle.

[pcn]

How did you get the second to settle? Did you initiate it? Thanks.

[getmeoutofhere]

How did you get the second to settle? Did you initiate it? Thanks.

No, they contacted me. It is charged off and their in house collections is collecting the account

[pcn]

Thank you! I have been trying to find more stories of people who have tried, successful or not, who have done a "2nd lien strip in a ch7" over in the ch7 forum, but haven't been successful. It seems like there are more against the idea over there than support it.

[HHM]

Thank you! I have been trying to find more stories of people who have tried, successful or not, who have done a "2nd lien strip in a ch7" over in the ch7 forum, but haven't been successful. It seems like there are more against the idea over there than support it.

It's not that we are against the idea. First, realize that calling it a "chapter 7 2nd mortgage lien trip" is misleading. There is NO mechanism in the BK code for removing the lien "in a chapter 7" BK. The strategy is simply "settling" with the 2nd mortgage holder after the chapter 7 is discharged. The thing is, you need to have the resources readily available to settle, "i.e. cash".
The chapter 7 does not give you the right to remove the lien (unlike chapter 13), you are simply gambling that the 2nd mortgage holder will accept what you have to offer.

[pcn]

[iv65536]

Looking at this too, discussed it at initial consultation with an attorney, and what I am thinking in my case is to stop paying the second, make an offer of roughly 3 cents on the dollar, threaten to stop paying the first, and see what happens. Estimate of market value for my home is about the amount of the first. Basically, once I start on this, I will put the second behind the eight ball.

[325Falcon]

I know this thread is old but I am just wondering if one got a chapter 7 discharge why on earth would one reafirm a mortgage that was so far up side down?

[mand15]

are you planning on staying in the home long-term? i think i might be missing something. are you upside down on the home? will you ever be able to sell to pay off the mortgages? or is the goal to just keep making payments (much lower good job!)?

i ended up short selling my house because the loan modifications didn't work out (with a pending ch 7) and i realized in the long run i had to cut my losses with the house and file a ch 7. at this rate, i doubt i'll ever have as nice of a home as i did before but my rent is very cheap so i'm hoping to build the savings again.

it sounds like you did a great job. congratulations!