Your Questions About Home Loan Modification

Sandy asks…

Loan Modification Question?

I am trying to get a loan modification through Citi Mortgage. I am just waiting on the appraisal for my home then it will be set. They are already over a week late. Can anyone tell me if this is normal? I know they are back up with loan mod’s, but they seem to keep stringing me along. I told them that if I don’t get this resolved soon, I will fall behind in my mortgage. ANY ADVICE ?????

John answers:

If you aren’t behind they are not all that likely to modify your loan.

I have done several modifications, and they are all the same, you have to call EVERY DAY to keep the paper moving. If they have a question, misplace paper, whatever, they tend to NOT call you, but just sit there on it.

Laura asks…

thinking of home modification?

im thinking of modifying my home loan.does anyone have any info on this?

John answers:

Yes. Be wary about missing any payments. Do not make any “partial” payments. Just keep paying the regular amount until the modification is 100% done. Too many people do not “qualify” for the modification. Most people make too little to afford any house payment at all. They are going thru a tough time. Others have not suffered any loss of income but they want to modify now before they are desperate. They make too much to qualify for the mod.
Most people are rejected after they have invested 90 days in the process. It can work but even a successful mod can cause your credit score to go down 100 points.

Ken asks…

are these loan modifications just another gimmick?

it seems that everyone i talk to that has done this now has more years added to the loan with a lower rate. is anyone just getting a better rate without the strings attached. it seems that this is just another money making deal for the lenders. I thought the stimulus money was put there to help people that are in an upside down mortgage. Adding years or money to a loan with a lower payment is just a extension of time on the money you owe which is more money overall paid back to the lender.

John answers:

The overall program pushing for these loan modifications is the Making Home Affordable Program. It was never designed as a way to get free money or help pay someones loan but it was designed just as it says, to make homes more affordable. Most people that need assistance are having trouble paying their mortgage and their other bills. They can’t just simply refinance as they are either way upside down in their home or just plain don’t qualify for one and cutting back on their bills just won’t offer them the cushion they need.

Having a lower payment would really help them to, pay their car payment, pay their electric bill, pay for food and medications. So to anyone who thinks only an idiot would accept an agreement like this I’ll ask you to go without some of your needs every month and then ask if you would like to lower you housing costs.

Chris asks…

I applied for modification loan with BOA but dealing with BAC home loans. After 2 yrs I was approved.?

I have a 3 mth trial to pay and then sign a contract. How do i know if I’ll get a contract after 3 mths and they’ll then foreclose on me. It doesn’t guarantee anything. Can’t get straight answers so do Ihave to just wait and see? It also says it’s a collection agency but does have BOA logo.

John answers:

BAC Home Loans is a division of BofA, so no worries there. If you make all the payments properly under the trial period, they normally grant the modification. Some people screw up and are a day late with one of the payments, and the whole deal is off.

Donald asks…

discuss loan modification?

We have completed our forbearance and now have to submit new P&L and financial records to see if we meet the new loan mod. requirements. We are trying to decide what to do. If we don’t get the loan mod. how much time do we have to sell before foreclosure takes place? We have been advised to continue to pay our forbearance amount even though we aren’t in it anymore and to turn in our paper work. We are afraid we won’t qualify. We don’t know how long it takes for this to process. If we wait to long we start getting into the winter for trying to sell which is very difficult, and not selling for sure we will go into foreclosure and lose our equity. If we decide to sell right now without telling the bank, do we try and sell before the bank finds out to beat the foreclosue?

John answers:

If you want to sell your home you should make is happen now. If you want to keep your home continue to try to work out the forbearance but I would talk to the bank before you continue payments to make sure that you will be approved.
I might be a good idea to plan in case the bank forecloses on you. Depending on what you want to do with the house will determine your plan of action. If you want to keep the house then see if your lender actually has the right to foreclose. If you don’t want the house sell or rent it.

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