Your Questions About Mortgage Loan Modification

Paul asks…

mortgage loan modification problems?

My wife and I both lost our jobs the same day. I am currently trying to get through school to start a new job, But have been unable to keep up our mortgage. Our loan is through chase and I have bent over backwards sending all requested documents to get a forbearance or loan modification. I keep getting the runaround, Even though we were told we were in the modification program now we have moved into foreclosure because they say we never sent all documents. I have sent EVERYTHING by mail and fax 3 times now and now they are asking for it again. Is this normal? Should I get a lawyer to help? I want to keep our home, And am just trying for a temporary forbearance while I’m attending school. Thanks for any advice.

admin answers:

You are not getting a modification. You may as well accept that fact.

WIth zero income there is no way a modification would help you avoid foreclosure, you can’t pay a modified loan any easier then you can pay the present one.

A forbearance only lasts up to 4 months, and is for emergencies situations, not that you just up and decided one day that you no longer wanted to work.

You can not both refuse to repay your loan and keep the house.

Donna asks…

Has anyone had success in getting a mortgage loan modification with Navy Federal Credit Union (NFCU)?

admin answers:

Yes but that was way before all this mess going on now.

Richard asks…

HELP! I was employed by a MORTGAGE LOAN MODIFICATION company and they refuse to pay me for deals I closed!?

I live in the Maryland/DC area and I was recently employed by a company that sold mortgage loan my initial interview I was a little sketched out because the company had just opened, did not really have any sort of history, I couldn’t find anything about them on the internet. The man who interviewed me showed me a chart of the earning potential (there was no salary-straight commission) and it seemed way to good to be true. I was leery. He also said “you can have any sort of life you have ever wanted making this kind of money’ I felt he was selling me on the position almost, I should have gone with my gut instinct. After the interview, like I said, I attempted to do some research, I have a background in mortgages, I was employed as a loan officer straight out of college several years ago before the bubble popped and made quite a substantial living for a person straight out of college. I found little on the company so I researched the industry and came across some red flags, such as it was illegal to charge a fee to do a mortgage loan modification in the state of Maryland.
The next day the man that interviewed me called me several times to offer me the position, another red flag. I finally took the call and told him my concerns that I had learned during my research, naturally he had an answer for everything, the “used car salesmen” that he was. He said it was illegal to charge for loan mods in Maryland but they got around it because they were headquartered in a state where it was legal. I had been interviewing for weeks, with companies offering as low as $10 per hour, I am a college grad with a decent amount of successful sales experience, so I caved in and took chance with this company.
I ended up staying with them only a few short weeks. During that time I did sell a client on a loan mod, my boss whom interviewed me assisted in my first closing, but I obtained the client and sold her. The week I was supposed to be paid I finally got fed up and quit. There was technical glitches and the phone system was down and I wasted 5 days of my life playing poker on FB out of boredom with nothing to do. So I quit. I contacted the owner of this company, or president, whatever you want to call him, and asked him if they could send my commission check to my house because I had quit and explained why..he first tried to convince me to go back saying the glitches had been worked out, but at this point I was beginning to see the whole thing as a scam and was over it. He told me he would look into the status of my deal, and check to see if they had received the payment from the client and contact me the following day. After I got off the phone with him I emailed a former coworker who was actually the only employee to stay with the company for more then a few weeks and told her what had happened..she looked into it and discovered that they had received the payment from the client and the deal had indeed went through..she even provided me with a Fed Ex tracking number, but then asked me not to let them know that she had given me this information as it may be deemed unethical or a breech of security, I agreed to protect her by not saying anything about it. I contacted the headquarters two days later after not receiving a call back , I identified myself to someone else who answered the phone and asked to speak to the boss, he put me on hold and returned to say “yea he said we have no of that file or that client. sorry’ and hung up on me.

I have looked into filing a complaint with the Better Business Bureau but learned that they only deal in consumer complaints and not with employee-employer issues. My commission was only a few hundred dollars so I can’t see hiring a lawyer. At this point it is not even about the money. I spent over 100 hours at this establishment working my tail off chasing this imaginary dream of financial success that the man had pitched me. Looking back I should have followed my gut and not taken the position, now I just want to let people know so that no one else falls victim to this b*llshit scheme and wastes there time in already difficult economic times.

My question is: Is there a way to even go about getting my money? ( I doubt it) OR is there a place or public forum I can file a complaint so that others when researching the company can be made aware of what they are, and not fall victim to the same thing?

–I should also note that the coworker that I mentioned has since quit from not receiving payment on at least 4 deals that she closed and is considering taking legal action and that she found out that the last company that this man ran was shut down by the FED ..

I know this was a long post so I greatly appreciate anyone that takes the time to read it and provide feedback.

admin answers:

There is nothing you can do
– you can prove that the money was received. You can’t prove it who earned the commission. It’s a slimy company might guess is they are going to say “yeah, we closed the deal but it wasn’t because of you. After you left the client walked away… We had to start from scratch rebuilding the relationship until it finally closed).

George asks…

Question about my mortgage loan modification?

We have a duplex home that we share with my inlaws. 3 years ago we took out a second mortgage. we used that money to build another house. the house is only half finished because we ran out of money and then my husband lost his job. we are currently going through a loan modification with our bank. The bank just called and told us they want to put a blanket loan over both properties to secure the loan. the loan was secured with the first house. Do we have to let them use the half finished house as collateral too? any advice would be great thanks

admin answers:


It looks like you have no option and will have to do a blanket loan. It is your only option if you do not want to lose your house.

Mandy asks…

Any luck with a loan modification with US Home Bank Mortgage?

Has anyone had any luck with US Home Bank Mortgage in getting a loan modification. I applied months ago and have still keep making my monthly payments. Now I am getting delinquent notices from US Bank saying I’m behind on my mortgage. Is this legal for them to report me to the credit bureaus when I am paying on time? Any advice??

admin answers:

Depending on what state you live in, could mean the difference in how much time the bank could have to foreclose on the property. You might consider doing a review of loan modification companies. Most companies will only charge the client after a successful reduction in payment that is suitable for thier client and the bank.

Keep in mind that not all lenders are willing to lower the payments. It depends on numerous circumstances that a loan modification attorney in your state will discuss with you.

Hope this helps.

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Your Questions About Mortgage Loans

Betty asks…

Is it true that commercial mortgage loans are all ARM’s?

When we got our commercial loan, our loan officer told us that “all commercial mortgages are ARM.” Although we got in on the low interest rate boom 4 yrs ago, our payments are now almost doubled. Any suggestions?

admin answers:

If it is a commercial loan then most of the programs are ARM’s. Most of them also have a balloon payment. However, there are fixed rate options. The rates are usually so ugly though it isn’t worth doing it (at least on the commercial side). Some of the rates on commercial are in the 5’s right now. E-mail me with your scenario and I can give you a quote on another 5 year ARM, a 10 year fixed, and a 15 year fixed. Depending on the property type will depend on whether you can get a term any longer than 15 years.

Sharon asks…

Why are mortgage loans not illegal?

It seems that mortgage loans are crazy unfair. You can buy a nice car for about 70,000 dollars and pay it off in about six to seven years. Why would a 70,000 dollar house take 30 years to pay off and the interest double the price of the house? Why is this legal?

admin answers:

Thats how banks make money. They loan out money at a higher interest rate than they borrowed it at. If you can come up with the money to pay cash for a house then good for you, but most people need to borrow that money.

Mark asks…

How much are Real estate attorneys fees to remodify mortgage loans?

Are they worth getting in this time of need? I was laid off and don’t have alot of money. Will these people work with me to pay them to redo my loan appropriately?

admin answers:

You do not need an attorney to do a loan modification. You can work directly with your lender if you choose. There are loan modification companies that may possibly be able to negotiate a better workout for you. The bank is looking out for themselves and will do the minimum to satisfy you. A loan modification company will probably charge you approximately the equivalent of one house payment subj to minimum and maximum. They work on your behalf and can usually negotiate the best possible workout for you.

David asks…

What are federally backed or insured mortgage loans?

What are the advantages and disadvantages? Especially for first time home buyers? Is it better than a regular loan?

Thank you in advance for your help

admin answers:

Federally insured mortgage loans like FHA or VA have many advantages. First, the down payment is usually a great deal smaller. On FHA, the private mortgage insurance in your monthly payment is a lot less than it is on a conventional loan, but you do pay some of the difference upfront at closing which increases you closing costs (you save more in the long run). VA doesn’t charge private mortgage insurance at all. What most FHA/VA buyers are unaware of is that if you ever get behind on your mortgage, FHA or VA will bend over backwards to modify your loan to avoid foreclosure because if you default they have to pay the lender 80% of the loan to value on the property. I am an old Realtor who specializes in helping first timers and I believe going with a federally insured loan is the way to go if you don’t have less than 10% to put down on a house and plan on being in it for 5 years or more. The government loan rates are a little higher, but the advantages make it worth it. I used one on my first house too. The bottom line can be seen by comparing good faith estimates, with knowledge of you future plans and financial solvency (you don’t want to use your entire savings for the down payment/closing costs). Good Luck!

Michael asks…

Have the standards for securing a Commercial Loan changed as the home mortgage loans?

Is it going to be more difficult to secure a 800K Commercial Building loan than say 6 months ago? I will be in the market for that kind of loan in the next week or two and haven’t a feel for the market right now.

admin answers:

Commercial loans have not taken the same hits as residential. Underwriting for residential loans had become beyond ridiculous allowing everyone to get a loan, whether they could make the payments or not.

Commercial lending has been constant in its criteria, thus it has remained stable.

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Your Questions About Mortgage Loan Modification

Sandy asks…

Did a mortgage loan modification help?

How much more affordable did a loan modification make your mortgage payments and what terms were changed on your loan?
Hmmm, thought my question was pretty straight forward. It is not a general question. I am asking about YOUR personal experience, not what happens in general. If you have not personally had a loan modification, the question does not apply to you!

admin answers:

My payments went down 4$00.00 a month. It all depends on how much you owe and what your rate is right now. I owe 360000 and my rate went down 1.25% from 7.25% to 6% fixed. Also I think it depends on the bank and what they want to offer you. The person I went through was in New york and his name is Thomas contact # 13472150569 give him a call if you need help

Mark asks…

What are the advantages of using a mortgage loan modification company over doing it yourself?

My payments are unsustainable and I need to deal with it or I’ll be dealing with a foreclosure soon.

admin answers:

Hey Niel,

First and foremost let me advise you that I know what I am talking about. I worked directly for Countrywide Home Loans in the Customer Service department and loss mitigation (the department that handles your inquiries, and the department that handles loan modifications). After that I worked as a loan officer for that company for three years. Following that I was laid off and continued to do home loans for local brokers, then now I work with an attorney’s office and do loan modifications. What I’m trying to say is, I know what I am talking about.

One thing I can say is this, do NOT listen to the guy who posted the first comment. Doing nothing is the worst advice you can possibly get. I’m going to try to explain the differences (This might be lengthy and would be way easier to do over the phone but here goes, I’ll try to keep it short).

You could elect to do the modification yourself, however you as a consumer do not really know what you are doing. The bank is not your friend and in the end is still looking after it’s profit margin. They will guide you through the process and ask for your financial information like they would for a refinance and ask you to submit a hardship letter. From that they would come back to you with an offer if you qualified (after months usually, by the way). At that point they usually say take it or leave it, and rarely do any further negotiation. I usually put it like this….if you wanted to see if you qualified for an additional tax deduction, would you go to a CPA, or would you go the the IRS directly? ….you get the picture.

When you go with a modification company you are working with a company who does this every single day. They know what they are doing, and they know what to say to banks. The majority of the time, when they call the bank, they don’t even speak with the same person you would speak with, most companies which are backed and supported by attorneys go and speak directly with the people who MAKE the decisions, not the middle man representative that you speak to. The company is also professional loss mitigators and the company is going to collect your information just as the bank would, and create a financial profile for you, then plead the hardship case to the bank. In addition, if the deal is a bad deal initially (and believe me I’ve seen tons of those) the modification company will go back to them and re-negotiate for a better deal. Basically, a modification company will be able to do more for you and get you a better deal.

So how do you choose a modification company then? What you need to do is be careful. Because of the economic situation there are a lot of scam artists out there. You hear some people say “never go with a company that charges up front” I’ll be the first to say that’s too overcautious. I would say “don’t go with a company that does not have a money back guarantee that you sign in writing.” If you want to take it to another level in security, then do it with an attorney’s office, they have the most power anyway because if it comes down to it they can audit your loan origination file and try to find a mistake made by the lender (believe me, almost all loans generated from the middle to the end of the boom have a technical mistake during the origination process). If this is the case they can threaten litigation against the lender in our favor, that’s called a “forensic audit” on your loan.

In addition, a “Federally backed loan modification program” does not exist. Loan modifications are NOT new. They have been around since loans first started. All a loan modification is, is a business decision made between you, the lender, and the investor, to change the terms of your loan based on your financial situation. The only reason they are so popular now versus before is because before the fall of the real-estate market, almost every modification request was denied simply because it made no sense for the lender and investor to do it. (i.e. You bought the home for $150,000…you experienced financial difficulty…you owe $135,000 and wish to modify….The lender looked at the books and sees the home was now worth $220,000…and they decide to foreclose on you and re-sell to make money instead of give you your modification). However, NOW the investors are in a position where they are LOSING money if they don’t do anything, and lose MORE money if they take the home back, so therefore they are GRANTING loan modification requests.

I hope this helps you, there’s a lot more to it that I can’t really type out but I think that this gives you additional knowledge about the process and answers the initial question that you raised. Feel free to contact me if you have any additional questions or concerns and i’ll be happy to help you out.


Ken asks…

What’s the difference between doing a mortgage loan modification and a refinance?

Do they lower the rates by the same amount and charge the same fees?

admin answers:

No they don’t lower the rates by the same amount and the fees are different. The difference between the two is your current financial situation and how much you pay. In a refinance, if you are able to do it, is that you have equity in your property, your credit situation is good, you have good cash reserves, your current on your mortgage payments and your debt-to-income ratio is good – in other words you can qualify and afford a loan from a lender. You’ll also have to pay to refinance but usually the cost is rolled into your loan.

Now, in a loan modification, you typically are in or are pending a financial hardship and are having trouble paying or can’t afford the current mortgage payments and need lender assistance. In this instance, you won’t qualify for a standard refinance because you are upside down (you owe more on the property than what it’s worth), you have late mortgage payments (which usually disqualifies you from refinancing), loss of job, reduced income, or any other financial hardship, which in many cases again disqualifies you for a standard refinance.

You can try to modify your loan on your own but be prepared because you’ll require patience, persistence and the ability to follow up periodically and deal with the lender’s giving you the run around. Or you can hire a loan modification company or even an attorney to do all of this for you. The caveat to this is that you’ll need to be careful in who you hire because there are many unethical people out there not to mention the number of foreclosure and loan modification scams out there. You might even try calling HUD at (800) 569-4287 for free assistance and advice but don’t hold your breath, in my experience, they are only about 20 – 25% successful in modifying ones loan…..but hey, “it’s free”!!! (I’m being sarcastic here)…..anyway I hope this answers your question, long-winded as it may be.

John asks…

Can I get a mortgage loan modification if it’s not my primary residence?

It’s not my primary residence because I am attending grad school 4 hours away. It’s for a condo..the regime wants to foreclose because I haven’t paid them the $20,000 I owe and they filed a lawsuit against myself and the bank. My fees for the regime and the mortgage come to $900/month and my income is only $1100.

I really don’t want to foreclose. Is there some way to get it modified and explain away it not being my primary residence?

admin answers:


I’m pretty sure you can… You just have to search and find the right lender. Tough in today’s climate, but doable. Try this site:


Paul asks…

What qualifies as a “financial hardship” for mortgage loan modification?

What if my loan is about to adjust and make my payments too high? Is that a financial hardship?

I have great credit, a job, perfect payment history on the loan. However, it’s about to adjust and I cannot refi because the value has dropped.

admin answers:

A job loss for temporary hardship, death of one of the bread winners or life threatening illness, (longer then the normal 8 weeks you can get temp disability for), or major catastrophe, like the house burnt down.

Whatever your hardship is you had better be ready to provide proof.

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Your Questions About Reverse Mortgage Lenders

Sandy asks…

Can a negative mortgage escrow be reported as past due on my credit report?

I found out after pulling my credit report that my mortgage lender was reporting me as $6,400 past due on December 31st when one of their agents told me on December 29th that all that was needed to bring my account current was $858. When I inquired last week about the reporting to the credit bureaus, I was told to send a letter to the research department. It was also suggested that I request a loan modification. Within a day after they sent the paperwork for the modification, changes had been made to my account history reversing payments made in December and not displaying payments made in January, and showing a negative escrow in the amount of $6,400. Needless to say, I haven’t submitted the modification paperwork. This reporting has caused my credit score to plummet. What recourse do I have?

admin answers:

You have a number of ways to combat this, but you may need some outside help.

I would dispute the item with the credit bureaus first, as you will need to do this before disputing the item with your mortgage company. Dispute the amount reported, the fact that it shows a late payment, and anything else that you believe may be incorrectly reported. Send your dispute via Certified Mail with a Delivery Receipt (online version is fine).

If this doesn’t solve the problem, send a complaint directly to the mortgage company, also via Certified Mail with a Delivery Receipt.

If you have paid your account on time and the only adverse element of the account is a deficiency in the escrow account, then you should not have any adverse reporting on your trade line. The lender is responsible for properly maintaining the escrow account, and if they made an error in calculating your payment, then they will need to notify you of any adjustment to your monthly payment prior to your next adjustment date.

As for the loan modification, you may contact a company that performs this function, or you may handle it yourself. I would recommend that you check the government’s “Making Home Affordable Program” first (see link below). You can do this yourself, and you may be surprised at how easy this can be handled.

Just be sure to gather all of the required documents and complete the paperwork carefully, for best results. Contrary to popular belief, you do not have to be late on your payments in order to qualify for a modification.

Good luck!

Mandy asks…

High speed rail. Part of a plot to Crash the US economy like most Progressive spending programs historically?

Can You Handle The Truth? Read it or shaddup. Don’t ask me for links, you can find this stuff & if you don’t care enough to look then don’t bother to read. This is not for ignorants or morons.

Our Government has been screwing us for nearly 100 years. Progressives are not all Democrats. Republicans have had a hand in this, though not the guiding hand.

Here’s the Truth behind the mystery caused by Progressive Smoke Screens. The Progressive Movement was created by Fabian Society members who wanted the US back under European Control. The time bombs put into our economy have been done by Progressives like Wilson & FDR. They seem like prosperity, but what they are is addictive debt that anyone with a brain had to know couldn’t be sustained.

Now politicians who take them on are destroyed because the people are addicted to them. It’s a slower acting destruction of our culture much like the free stuff black populations were given was a faster acting destruction of their culture. Leaving an entitlement culture that depends on Uncle Sam and is basically his slave.

Keynesian Economics itself was devised in Harvard University with a goal of stealing the wealth of the people & taking it for the government. That’s what the cycle of inflation & deficit was determined to do, and Keynesian Economics was the harness to take advantage of that false state of prosperity.

That so called prosperity was like the reverse mortgage loans they give old people where the lender takes possession of the home when they die. Their hard work is taken by the rich lenders, many of those held by Fabian Society Members. We’ve sold out the whole country & it seemed like it was great, we were wealthy, but we’ve screwed the generations to come. Pretty much now they are us, and we’re screwed.

The truth about these things is clear now to any who dare see. Yet Obama keeps working it trying to crash our economy quicker & more completely so there will be no hope that we can come back.

Do you want to chop down the apple tree to get the apples faster? There will be none next year. That’s what the democrats are doing. You will have nothing, you will be serfs to the uber wealthy who will complete an Oligarchy of not only the US, but the entire world. That’s the Fabian Goal, that’s what the Progressives are working toward though their idiot sheep are clueless of that.
Tea Party Hating Nazi … Japan uses it only in high population areas and I do believe that it’s privately controlled.

China has slave labor, everything is cost effective there because they have slaves. Is that what you want? Everyone to be a slave so that kind of thing is cost effective because you don’t have to pay anyone?

Big ol Duhh moment dude.
Growth vs Oil … That’s Keynesian Crap that’s proven not to work, in fact if you read the notes after my question I’ve told you that it was designed to bring the system down.

JFK depended on Austrian Economic Theory. He rejected Keynesianism.

Check out Austrian Economic theory, which has a much better record & a much better group of facts behind it.

Keynesian theory is what Communism is to Governmental Theory, it’s a disaster & it’s never been used by anyone for anything but to bring down an economy.
romare … Plenty of articles on Fox News about high speed rails and how it would be a worse debacle than Amtrack.

High Speed rails should be funded by those who ride it. If it’s good that will work, if not then it shouldn’t be paid for by tax payers.

admin answers:


Do you want to chop down the apple tree to get the apples faster? There will be none next year.

A principal that should be taught to every child in the world.

Keynesian Economics was in deed designed by Progressives with connections to European Fabians to bring down the US system, or at least the US population into serfdom as Europe has set up to a degree with the class system & groups controlling all the wealth & the others being the live stock that generates their ongoing wealth.

Jenny asks…

short sale vs foreclosure for a loved one?

Need some advise on my mom’s home. She hired a firm to do a modification for her home loan payment back in Sept of 2010. Modification went to the lender for review, still waiting to hear back. Was served with papers for complaint and summons from the bank. She has dementia and is not mentally stable to stand in court to represent herself fully or answer questions appropriately so question is, being I am her POA, should I just consider going for a short sale and be done with her home and avoid foreclosure or proceed with the nerve wracking answer and motion deal to set the foreclosure intention back some in hopes the modification will be decided in her favor by then? It’s very nerve wracking. Also, if she has her name on another property but her son is mentally disabled and has a reverse mortgage out with a different lender on that home, (I am his guardian), can the bank take this property as well if her original home goes into foreclosure? I was told being her son is mentally disabled, they can not take a home away from him or me for being his care taker but not sure just how true this is. This is in the wonderful corrupt state of New Jersey by the way. Any advise or suggestions would be greatly appreciated. This is such a stressful situation to deal with. Please help!! Thanks so much for your time….

admin answers:

Depending on your state, while in the process of a loan modification the banks are supposed to consider your account in review and not proceed with foreclosure procedures. If you are not happy with your loan modification company may I suggest you at least do a search for forensic audit specialists, as this might be another solution to saving the property if the loan modification company is not successful.

If you have a short sale specialist and they have been successful with negotiating with the bank, and you are not looking to save the property, this is a very good alternative as well. However, banks are not required to approve short sales just like they are not required to approve loan modifications. Make sure there is no charge upfront to perform the short sale.

William asks…

It’s a fiduciary duty for trustee to only do what benefits the estate?

How can I explain to my brother that it’s to both are benefits that we sell dads house that has a reverse mortgage .Just because dads living trust says he could live in the house for 3 years But now with a reverse mortgage.As trustee his duty is to only do what benefits the heirs not himself .Not informing lenders of death and still cashing there checks is fraud .He is using our own money just to live there. We need to sell as fast as we can before it forcloses to salvage anything left.Somebody explain it to him
my father died 3/7/2009 in california
no estate atty

admin answers:

I am not clear what is going on. Is your father deceased?
Where is the estate atty in this squabble?
You both need to go to a trust and will attorney and have him advise you, it will be worth the200 bucks or so he will charge to look at the dollars and documents and advise you what you should do.

If somebody is cashing checks made out to a deceased person without court authority, somebody could end up in prison

Robert asks…

Can I refinance with high risk credit and less than 30k a year?

My grandmother left me her house, but it had a reverse mortgage so I would have to refinance in order to keep it. The house has a 50k balance on it. I have high risk credit and I am a nurses aide who makes less than 30k a year. I paid off a few thousand dollars of debt over the past year but I don’t know if that helps. Anyway, my question is with my stats would it be worth my time trying to refinance or should I just sell the house? I know banks are tough but would private lenders be willing to refinance me?

admin answers:

You earn enough money, so all that really matters is if the house appraises high enough and if your credit is good enough. You can have really bad credit, like 650, and still get a loan. It might be an expensive loan, but a loan never the less.

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Your Questions About Mortgage Loan Modification

Charles asks…

Should I stop making mortgage payments in lieu of a mortgage loan modification?

I am having problems making exorbitant mortgage payments, and was referred to a financial specialist who applied for a mortgage modification loan for my home, he advised me not to contact or receive any calls from my mortgage holder. It is going on 4 months that my payments is past due and I barely have the amount that is past due I am having a great deal of problems reaching him and my mortgage company is calling me twenty four seven what should I do. I do not want to lose my home but is uncertain of what step to take now.

admin answers:

Start dealing with your mortgage company only.You don’t need a 3rd party to help with a loan mod. Call your lender, explain that you were doing what this guy told you to, but you want to work with them now. They want to keep you in your home and they’ll work with you most likely.

William asks…

How to apply for mortgage loan modification?

I have lost my job and am now working as a cashier at a grocery store. The problem is that my new salary is not enough to cover the mortgage. I am in a very tight situation so I am curious to know my options. I have heard that applying for a mortgage loan modification can help reduce my monthly payments. Has anyone had experience with mortgage loan modification please let me know what are the steps to to lowering my mortgage payments.

admin answers:

I can tell you from my own personal experience.
First off, modifying your mortgage is a very difficult thing to do. Forget what the media and all these other yahoos are saying about the government’s modification act. Most banks are not willing to modify your mortgage without putting up a fight.
Why? Because it costs them money to do it. Most mortgages are sold off to someone else after you take out the loan, but the original bank still acts as the servicer. They receive a percentage from the buyer of your mortgage to handle the payments and record keeping.
When something complex as a loan modification is requested, any profits they would make disappear and as such they are reluctant to do it.
The media and the banks themselves don’t tell you this of course.
First-expect to hire a lawyer or get a legal aid lawyer. Most banks will not take you seriously unless you have a legal mouthpiece going to bat for you. Having a lawyer shows you mean business and just are not some schlub looking for a handout.
If you try to do it yourself, expect to be jerked around for months only to be told it can’t be done and by the way we’re starting foreclosure proceedings, which will only make the modification even more difficult.
The bank will not talk to you unless you are delinquent. And this is where time is of the essence-if you’re very late with your payments and they have’nt started legal proceedings it makes the process much easier. Once legal proceedings start, then it becomes difficult if not impossible to complete the modification because now the courts will be involved.
Second-you will be expected to make your new payments ON TIME if you do receive the modification. The bank will not care how you accomplish this. You will be told that the first 3 payments or such MUST BE ON TIME OR THE AGREEMENT IS NULL AND VOID.
Keep in mind whatever agreement you agree to will only stall the inevitable. Eventually over time your payments will return slowly back to where they originally were. The original terms and payments will not go away. ALL A MODIFICATION DOES IS LOWER YOUR PAYMENT FOR A PERIOD OF TIME UNTIL YOU CAN GET BACK ON YOUR FEET.
Third-If you feel you can’t keep up with the payments at any time now or in the future, consider selling the home while you can or give it back to the bank. It may seem difficult but it’s a far better option than having it being taken away from you. Also note that if you file for chapter 7 bankruptcy, don’t sign a reaffirmation of your loan. That way if you need to walk away you won’t be held liable for whatever is still owed.

I hope this helps you and don’t believe Obama and his socialist bullshit. What I told you is the reality and what the government says is fantasy.
Good luck!

Sandra asks…

What is the deal with mortgage loan modification schemes?

I heard on NPR that mortgage brokers who made a lot of money during the housing boom are now making a lot of money doing loan modifications. How is loan modification lucrative? How do people get paid to do loan modifications?

admin answers:

Do it yourself. Most of the companies are scammers, take money and don’t achieve anything you couldn’t achieve yourself, and frequently achieve nothing at all. The companies collect up front money from the borrowers.

Call you lender and keep calling and asking about loan modification. Ask about how they are implementing Help for Homeowners. Persist.

Most loan modifications are only a reduction of interest rates or a change from ARM to Fixed rate loan.

Maria asks…

Are rented single family dwelling qualified for loan mortgage modification?

I work in the construction industry and is having a very difficult time paying my mortgage. It’s on the market but no buyers and we’re thinking of putting it for rent at the same time.If it gets rented, can I still qualify for a loan modification?

admin answers:

If you decide to move out of your home, and use this home as an investment property then you might not be eligible for the loan modification as this is primarily for home owners and not investment properties.

If you have placed the property up for sale and have not moved out of the property then you could still be entitled to a loan modification. If you think you are qualified for a loan modification then you should contact your mortgage company.

There are some companies that will assist you in completing your loan modification documents. You may chose to use one of these companies, but it is not necessary since your mortgage company would assist you in the completion of your documents.

I hope this has been of some use to you, good luck.


Susan asks…

What are the benefits if I resort to a mortgage loan modification company?

I just lost my job of 5 years and have a mortgage loan of which I am sure I will not be able to pay soon. I am thinking of seeking the help of a mortgage loan modification company. Would like to know the benefits since I think I can do this thing by myself. Any help will be appreciated.

admin answers:

The benefits of hiring a loan modification company is basically saving yourself alot of time from research and actually doing the the loan modification process. Its important to understand that their is nothing a loan modification service can do, that you cant do yourself. If you have the extra money and choose to hire a service, then great. The only real benefits is the time saving and they have knowledge about the industry. It simply is a service. Such as a housekeeper. You can clean your house yourself but its much easier to hire someone else to do it for you… (granted they have experience and may do a better job than you can, but its pretty marginal once you know how to do it)If you do decide to choose a service make sure you hire a legitamate company. In my experience I have seen WAY to many homeowners bieng ripped off and losing thier home becuase of some scammy loan modification company. If you choose a good company they can do great things for you. If you choose to do it yourself just keep in mind that the loan modification proccess requires alot of time and patience. You can download a FREE Do It Yourself Loan Modification Kit from the website I have listed in my resource box below. Check it out if you want to learn a little bit more about doing a loan modification yourself before you decide to hire a company. Hope this helps..and good luck to you!

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