I HAVE tried to request from my readers to keep me informed about their Loan Modification Success Stories. However, I have maybe gotten two or three only, of which I have posted on my articles. So, I thought of investigating online and seeing what is really out there for you.
Here are my findings online.
Banks promised faster modification process, April 2011
Banks says that they will respond to mortgage modification requests by customers and credit counselors within 72 hours, under a new program that is expected to launch within the next 90 days, according to a new reports. I believe they have beefed up their modification team but the quicker responses were mostly for trial period while they continue their slow process of loan mods.
I have seen a modification where Chase has allowed a balloon payment of the remaining balance of the loan on the 26th year, therefore allowing the homeowner to pay a reasonable amount now. However, the property is under water and they are allowing an amortization loan that really only amortizes the current value and balloon the remaining balance. I am all for this and believe that if all mods were done this way, we will solve our crisis faster.
Saxon Mortgage Loan Modification:
God must be on my side. I called Saxon today, after calling practically everyday for the past 3 months, and was told my modification has been approved and that my new interest rate for the next five years would be fixed at 2%, down from 10%. That’s a saving of over $900 a month off my house payment. I have no clue that my investor is but I’m thankful.
Option One Loan Modification:
I just found this forum and I want to tell my story:
My wife and I purchased our first home in January 2007. Everything was going well at first but I am a small church pastor and towards the end of 2007 the church had some financial problems which reverberated to my household. We became behind a couple of months on the payment and then set up a repayment plan. It didn’t work and finally in February I received an intention to foreclose letter in February. I contacted the home retention and began the process for loan mod. The negotiator called me a couple of days after I contacted home retention and we got the ball rolling. The negotiator Jackie told me that I didn’t have to pay anything on my mortgage until everything was done. So, I didn’t worry about it. Just paid off some old debts and went on my merry little way. I recently started a managerial job that is really helping out. No worries at all that is until I received the letter about the name change a week ago. Now, this worried me so I contacted Jackie and she told me that it would not affect the loan mod. In fact, by the time I called her; they had received the title and were waiting on the approval. She called me on Friday and informed me that it had been approved and that I would get my package on Monday. This is how it changed:
Original note: monthly payment of $1535, 2 year ARM starting at 9.550% increasing to 10.75% in 2009. No escrow in the original note which caused us to get behind on our taxes. By the time the loan mod started going into place, the back taxes were almost $7000!
New note: monthly payment of $1700 with 7.5% interest, increasing to a fixed rate of 9.5% in five years. All back taxes, past due mortgage, and escrow account are included in the payment. With the new job and can afford the payments and everything is working out.
The Option One Modification approval is your cooker cutter type of borrowers that lenders really want to help. They had jobs and were able to fully qualify for their own loan when they initially took out the mortgage. But when the economy started tanking and that affected their income, their paying ability diminished and they had to make choices on which debts are to be left unpaid. Now, this is the part where they really will consider your Modification package is when the borrower found another job and now can afford the fully modified payments which included their impounds on taxes and insurances.
Banks have enforced their regulations and smarted up. They are prepared for all your non payments, foreclosures, short sales and BK’s believe it or not.
Most important rule when applying for a Loan Modification, qualify for “Hardship” at the same time qualify for the “Payments”.
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Please continue your support by sending me questions, inquiries to Kenneth Go of 1st Innovative Finance at (562)508-7048 or write to: This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
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