Your Questions About Save Loan Modification

Betty asks…

home modification loan Question?

Do they help to save your loan and lower your interest rate? How true are these modification programs?

John answers:

Beware of any company that claims it will “help” you modify your loan. Deal only directly with your lender.

Steven asks…

I have a judgement against me from credit card, can they take my home if I have a government loan modification?

I had to go on Permanent Social Security Disability and I know they can not touch my disability. Last year I went into foreclosure, but was able to obtain a government loan modification loan to save my home. When I went to arbritration here in New Mexico, they award the judgement against me and I now owe the creditor $10,000, which I don’t have at all. I don’t have any equity in my home since the loan modification. What can the creditor do to collect the money from me?

John answers:

Not a lot really.

They already have a judgment so they could garnish your wages (if your State allows it), but since your only income is from Social Security they can’t touch that.

They can attach your bank accounts and file liens on any real property you may own like cars, boats, land and homes. They can not take them but neither can you sell them without paying off the lien.

If I were you, I would have my disability check mailed to me, keep your bank account open so you can cash it and pay all of your bills by money order.

Good luck.

Maria asks…

Should I kick my renter out so I can qualify for a home loan modification?

I own a condo. I owe 90k on the mortgage. 20k+ in back regime fees. It’s not even worth half that right now. The regime wants to foreclose. I just finished grad school and can’t find a job. I’m not living in the condo and I’m renting an apartment close to my school. My school and condo are 4 hours apart. I don’t know what to do at this point.

I’m scared to kick the renter out and lose that income. But if I could do this and get the home loan modification it would save me from foreclosure. Is it worth the risk? PLEASE HELP.
P.S. No fraud here. I would kick the renter out and actually move in and reside there.

John answers:

How did you intend to qualify for a modification with no income?

James asks…

Does the loan modification refund my money from the beginning of my loan period or from when?

Also how much percent is reduced from the principal? In a sum how much money is saved in the program?

John answers:

No, nothing is refunded. The principle is not effected, that is just how much of their money you are still in possession of.

They can lower the interest rate, you can’t expect more then that.

Nancy asks…

Obama’s loan modification program and 2nd mortgages?

We have 2 mortgages. Our first mortgage company will do the new modification, but does our 2nd mortgage company have to? I’m confused how Obama’s new plan covers those of us with second mortgaes who have lost our income. I know we would be able to refinance and put them together under the new plan, but I still don’t think it would save us much, and not as much as getting both of them modified. Any help in understanding this would be great!

John answers:

Dz is clueless. Neither the first or second lender HAVE to do anything. If you refi to put them together you still have to qualify for the new loan. The modification program does NOTHING for 2nd liens.

The Govt plan is a lot of hot air. No lender is required to do anything. Nobody is getting a 2% 30 Fixed loan. Its not happening people. In most cases they are extending the term on the loans. Any reduction in rate is temporary. 5 years at most. If you qualify for a refi your better off refinancing for a low rate that wont expire.

Zeuz is correct its a lot of smoke and mirrors.

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