Your Questions About Check My Mortgage Loan

Michael asks…

Help Loan source – Bridge, Mortgage, Equity?

I am a 67 yr old widow wants to sell my home & buy new condo. How do I go about it the best way?

Scenario:
Sell Ranch Home – very desirable location one acre lot
Home has no mortgage
Market & selling price are down (that’s ok, it is still do-able)
My disposable cash is about ½ of the condo cost

Condo is new & builder will take contingency (is this a good idea for me or does it increase the cost I might have gotten?)

I’ve never sold or bought a home (we built it) and I’m lost here with what direction is best for me. I want to go ahead & market my home & buy the condo.

My goal is sell the house – buy the condo and to have NO mortgage when the dust settles. Here are the options I see open to me to obtain less than half the money needed to buy the condo.

1. Withdraw some 401k money (I have not tapped any yet)
2. Get a Home Equity loan & pay it up when I sell my house
3. Take a mortgage (is there a fee to pay it back right away?)
4. Check into a bridge loan? (can I pay it right back?)
5. Forget the condo and just move to an apartment.

If it matters, I live in Wisconsin
I sure wish there was a class to take for seniors downsizing. The biggest problem for me in todays market is simply the fear of doing this alone and wrong. Yes, I will get a lawyer and yes I will hire a RE broker but I have done neither one yet.

Thank you in advance for any help.

admin answers:

Priority is sell your house before anything else. Sales range from 3 months to 18 months. When you receive a deposit and signed contract then and only then start looking for a place to live.
To relieve you of stress take an apartment. Once the dust settles Now look for your condo, use the cash from the house sale as your down payment. Take a mortgage for the remainder, 15 years.
Draw from your 401k monthly to meet the mortgage payment. That way you do not get hit with a heavy tax burden by withdrawing a lump sum from the 401k. Bridge loans and Equity loans are to expensive and will hurt financially if you do not find a buyer for your house.
Most community colleges offer evening classes in this subject.

William asks…

Will the bank check the history of my utility bills when I apply for a mortgage?

I would like to apply for a mortgage, but I’m scared to death. My credit score is 635 and my past 2 car loans are perfect, but I’m sometimes late on my utilities. Will they check them? Are there any mortgage companies that won’t? Thank you.

admin answers:

The bank/mortgage company will pull a full credit report. If your utility company is reporting your payments to credit bureaus, the late payments will be reflected.

Donald asks…

does champion mortgage have a bridge loan program for the $8000 tax credit?

it was recently announced hud will allow FHA-approved lenders to issue short-term loans to advance the credit amount for use in purchasing the home. does anyone know if champion mortgage has such a program? i checked with my state housing dept and they do not currently have a program set up yet. this will be for an fha loan.

admin answers:

I am not sure but I think it was passed on Friday (at least in Florida). I am waiting to find out myself. What state are you in? I would suggest you find a mortgage professional in your area or a trusted real estate agent and ask. I don’t know how Lender Specific it will be, if they told you they are the only ones able to do it, they are misleading you. They have to be qualified to originate FHA to do a FHA loan but the 8000.00 credit is going to be across the board. The borrower has to qualify for it.

You can call email me on Monday and I will have the resourses to find out for you. 🙂
Jill
jt@firstmmc.com

Ken asks…

I just got an inheritance check due to my mom’s death. I can’t deposit it due to my loan modification. Help?

I need to know how I can hide this check or deposit it without the mortgage company knowing it. Otherwise, I will not get approve.
No, I’m not trying to defraud anyone, unfortunately something unexpected happen and now this check is sent to me. I need to get approval for this modification but with this check, it will be difficult. Any advice as to what to do?

admin answers:

Yes, you are trying to defraud someone. Hiding assets is fraud. No matter how you got the money, you got it. You can try and hold the check until after the modification is done.

That said, if they find out about it after, and that you received it during the process, did not declare it, and cashed it later, that’s also fraud.

Not declaring assets in this situation, no matter what, is fraud.

Lizzie asks…

Does my mortgage lender have the right to view checking account info if I am applying for a loan modification?

If so… is this common practice for them to ask if I have already supplied them with current check stubs and last years W2’s?

admin answers:

If you’re modifying your loan then it obviously shows that you’re past financial decisions may not be the best. You either got a bad loan, paid too much for your house, or just took on a payment you couldn’t afford. Your rep doesn’t care how much you make or what your reserves are, his underwriters have an obligation to insure your ability to repay a loan modification. So they do have a write to ask for your bank statements. Besides if you’re modifying your loan then that means you can’t refinance. So put up or shut up, because you can’t take your business elsewhere.

The time of no questions asked stated income loans that got us into this mess is over. Expect to have to show full documentation every time you get a loan for the rest of your life. It may seem excessive to you but banks have their guidelines. Unless you hold millions in your bank account.

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Your Questions About Check My Mortgage Loan

Charles asks…

i received a check from a mortgage company. I didn’t close what happens if i cash the check.?

they sent the check to the bank. The bank canceled the check because it wasn’t my check it was another persons check. I didn’t close on the loan but i received a check. What happens if i cash it

admin answers:

Call them and tell them you have the check. It probably has an outstanding Stop Payment order. They may ask you to return it or destroy it. Follow their instructions. If you try to deposit or cash it, especially KNOWING it is not yours, you will not only pay fees when it bounces, but you will face criminal penalties for fraud. Or grand larceny.

Sandra asks…

Do credit checks for auto loans show up on your credit report?

I’m curious to see what rate I would get on a car loan but wanted to make sure it doesn’t affect my credit score. I heard auto loan and mortgage credit checks don’t show up on your report (thus bringing down your score). Is this true?

admin answers:

Yes it does. But here’s the trick… Auto inquiries and mortgage loan inquiries done within a two week time period will count as one inquiry.
So if you apply with “5” auto lenders you’ll get hit for “1” inquiry which will affect your score a bit, possibly.

The reason is the credit bureau knows that people shop around for rates just like you. When I worked in auto finance I’d run people through several banks for an approval/better rate.

You can also order your own report with scores (tri merge) and use that to shop…. When you go to a car dealer just tell them what your score is and they can give you an idea. If it’s a new car with a special incentive program (0%, 2.9, 5.9, etc) you usually just have to fit within the first couple “tiers” of credit (the guy with 50 points lower and 50 points higher will all get the same rate). The finance guy at the dealer should be able to tell you…

George asks…

I am on the deed (as associate) but not on the loan/mortgage can I claim the interest on my tax refund?

I am on the deed (as associate as stated on the county clerk recorder) but not on the loan/mortgage I occupy the property, pay property tax and the mortgage as well with my personal check. Can I say that I own the property and can claim the interest on my tax refund?

admin answers:

I agree with Kathy R. One thing that I would do is sign a simple agreement with the person whose name is on the mortgage that states that you are legally responsible for the mortgage and entitled to claim the interest deduction. You can take the interest deduction even if you don’t get a 1098 — report the interest you paid on line 11 of Sch A (instead of line 10) and include an explanation with your return that identifies your ownership of the house and the existence of the agreement.

Donna asks…

No Credit Check for Loan Modification ?

I heard that they don’t look at your credit score to determine if you’re qualified for loan modification or not. But do they still pull your credit ?

It’s just that I have racked up more than 25,000 of credit card debt that I used to pay for the mortgage & bills (I know I was stupid, but I thought I could figure out a way to save the house while doing it)
I have not filed bankruptcy yet, but will have to eventually… as of now my house is my priority so just would like to have some feedback if having lots of debt in credit card/line of credit will make you unqualified for loan modification.

admin answers:

PLEASE go see a nonprofit credit counselor, HUD accredited. Don’t assume that you’ll have to file bankruptcy. You made some poor choices and will have to deal with the consequences.

I’d just anonymously call and ask if loan modifications are being done and what the procedure is, what is required. I’d guess they’ll pull credit, but I don’t know as it’s a pretty simple procedure, and they’re just lowering the interest rate on your loan. They want to know that by lowering the interest rate they enable you to make a go of the house, and avoid foreclosure or bankruptcy.

Helen asks…

I received IRS form 8519 Notice of Levy sent to the bank that holds only my mortgage loan.?

There are no funds deposited in this account for any checking or savings; just the home loan. Is this form used to seize the property?

admin answers:

They wasted the postage.

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Your Questions About Mortgage Loan Modification

Sharon asks…

Can I get a loan modification on my mortgage? ?

I have a fixed rate of 6.25%. My mortgage is 2755.00. Husband continues to work while I have been laid off. We are using our savings and have never been late.

admin answers:

It is not very likely, as you already have a fixed rate loan at a reasonable interest rate.

The people getting the modifications have adjustable loans and are paying much higher then the standard mortgage rate.

They would not be able to lower your interest rate much and your present situation is temporary, you will likely have a new job before they even finished processing your request.

William asks…

what are mortgage loan modifications?

Can someone explain how a loan modification works? What are the pro’s and con’s from the home owners standpoint?

admin answers:

A Loan Modification varies in definition by lender but in general means “a permanent or temporary change in one or more of the terms of a mortgagor’s loan, which allows the loan to be reinstated, and can result in a payment the mortgagor can afford”. In other words, your interest rate can be lowered, your remaining balance re-amortized and/or the current term of your loan extended, in order to reduce your monthly payment.

ADVANTAGES:
A successful Loan Modification will give the applicant the possibility of:
1. An interest rate reduction up to 6%
2. The advantage of having the reinstatement amount (total amount of late payments) deferred to the back end of the mortgage and added to the current principle.
3. A reduction in the actual principle balance of the loan
4. Demonstrate to the Lender that they are “pro-active” to the foreclosure process and trying to resolve the situation.
5. Can start a Loan Modification at any time in the foreclosure process and even if you are not even in foreclosure!
6. Has many of the same features of a refinance, without the high cost.

DISADVANTAGES:
You only get one shot at the Loan Modification so you need to get it right the first time. You may need to make a payment to start the Loan Modification between zero and two payments, depending upon the Lender.

Paul asks…

DOES ANY BODY KNOW ABOUT GOOD OPTIONS FOR LOAN MODIFICATION? ANY ANSWERS PLZ! THANKS?

I AM TRYING TO HAVE A GOOD LOAN MORTGAGE MODIFICATION, BUT IT IS KIND OF HARD TO KNOW IF YOU ARE MAKING THE RIGHT OPTION AND ALSO TO KNOW IF IT’S NOT A SCAM. ANY ANSWERS WOULD BE VERY HELPFULL. THANKS FOR YOUR HELP IN ADVANCE.

admin answers:

Depending on where you are located you may find it is illegal for companies to accept a fee for loan modification until they successfully complete a modificatoin. The problem with Loan Modification is that they typically do not discount the loan amount only discount the interest rate so if your home has a loan that is greater than the value you are better off considering a short sale.

Keep in mind you shold not be out of pocket any money until you have results.

All the best
Dave

John asks…

Does layoff qualify us for mortgage modification?

My husband was laid off from his job two days ago. Prior to this, we were considering refinancing (our current mortgage is at 6.625%). I am wondering if this layoff instantly qualifies us for some type of special rate/terms in a refinance or loan modification or if we should just continue with a conventional refinance? We don’t want to miss out on anything that would help us out financially, but we also don’t want to wait on something conventional only for rates to shoot up again.

admin answers:

The layoff means that you probably no longer have the income to justify a refinance. Don’t be surprised if the re-finance is completely denied now that there is no (or less) income to support it.

In case you didn’t understand the last paragraph – you will not be able to continue with a conventional refinance unless YOU have enough income to do the whole refinance by yourself.

Loan modifications are generally only available to people who spend more than 31% of their gross monthly income on their loan payment. In addition, it is often an interest rate reduction only (not a modification of the principal balance). This might be your only hope to reduce your loan payments at this time.

I hope you have it, but this is why experts say to have 6-12 months of living expenses in savings, because your mortgage payments can come out of savings while he looks for a job.

Good luck!

Steven asks…

My mortgage company is messing with me. I have continually asked for a loan modification?

I filled out all the proper information for they required but for some reason they continually are prolonging the process. it’s been over 4 months now and they have thrown every excuse possible at me. I am not sure Y. I understand that they have allot of loan modifications to do but 4 months is excessive. I would like to higher a law year but im not sure what kind. I also want to file complaints but to who?

admin answers:

Sorry, but a lawyer will not help your force the lender into a loan modification. Getting the modification is not a legal right you have…it’s a courtesy the lender is extending to you.

In other words…the lender is under no legal obligation to grant you a loan modification.

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Your Questions About Mortgage Loan Modification

Sharon asks…

would my mortgage holder be more willing to work with a loan modification if home is valued less than owed?

My homes value has dropped significantly with all the foreclosures in my area. Appraised at just 68,000! I owe 178,000! Would my mortgage company be more willing to help me stay in my home buy making my payments more affordable than to add one more forclosure to the LONG list in my area? To me…It would benefit them to help me stay in a home I have been living in for that last 13 years.

admin answers:

No. It makes them less likely and less able to help you. Loan modifications only reduce payments, they don’t change the principal owed. Since you are so far underwater, they know that you are more likely to default than other people they could help.

Plus your mortgage payment will have to exceed 31% of your gross monthly income for them to even talk to you.

Good luck!

Michael asks…

Do you know where can i find a good company that offer loan modification for my home mortgage?

admin answers:

You can only modify your mortgage through your current lender.

Mark asks…

I overheard someone get a Loan Modification to a 4% mortgage rate at Chase. How do I do this too?

The couple said they hadn’t paid their mortgage in like 6 months and almost considered leaving the house. But they got a loan mod for 4%. I want one too. I never get these kind of offers. Do I need 20% down? Is that why? It must be an ARM I’m sure….

admin answers:

It is sort of a 2 edged sword. To get a special deal you either need excellent credit, or have to make them think they will get nothing at all. But in the latter case you trash your credit, and if you can get any other credit, it will cost you big time.

4% is not totally unreasonable. Variable rate on the free HELOC WaMu gave me when I refi’d in 2005 is currently 4.5% and Chase is still giving away 0% credit cards (I forget when that rate expires on my Chase Freedom card). Actually those are both Chase now.

Linda asks…

Can lenders do a loan modification if the borrower is not late on their mortgage yet?

My attorney told me to start missing my payments otherwise the lender will not modify my loan. Is this the only option I have?

admin answers:

Talk to the lender first. Do not miss payments until it is absolutely your last option. Ultimately, the bank does not want to foreclose on your house because they will lose money. Talk to them about your current situation. Banks will often allow you to defer your payments up to 6 months if your inability to pay is due to job loss, medical issues, and other situations which can be resolved within a short time period. Depending on your credit, current equity, etc., consider refinancing.

Robert asks…

Equity in home used to get a mortgage – is mortgage eligible for modification?

If somebody used the equity in their home to get a mortgage (home was paid off, except for $30,000, then home was refinanced with a $200,000 mortgage with $160,000 in cash going to homeowner, $30,000 to pay off the previous mortgage), is this mortgage eligible for loan modification? Or are only loans that were used to actually purchase a home eligible?

admin answers:

It should be eligible for modification as long as the owner is the one living there. If it is an investment property, than no.

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Your Questions About Mortgage Loan Modification

Sharon asks…

Do I qualify for a mortgage modification loan?

I lost my job and took a less paying one. I bought my house in 2002 for $180,000. During the upward move of the market I refinanced 4 times, taking out equity each time. I now have a mortgage of $400,000. Since I have a new job now and have trouble affording my home, can I get help? What can I do? What should I do?
I want to pay for what my home is worth or near what it’s worth. My home value dropped, so should my loan!

admin answers:

“my home value dropped, so should my loan”, sorry it does not work like that. You refinanced when the market was good, each time taking out additional equity money, this added to the original loan each time. So you might have bought the home for $180,000.00, but now you have borrowed up to $400, 000.00, you owe that amount.

A loan modification does not reduce your principle, in most cases they will make your loan a 40 year loan, and lower your interest for a couple of years, each year the interest will increase.

Talk with your lender to see if you qualify.

Ken asks…

Has anyone successfully completed a Mortgage Modification under the new Making Home Affordable Act?

Just curious if anyone has actually been able to speak to a real person at their Mortgage lender and been successful in completing a loan modification under this new plan. Our loan is serviced by Citi and I never get to speak to an actual person.

admin answers:

Unfortunately not. My loan is serviced through First Horizon and every couple of weeks that I call referring to it, they say that they don’t have any details and their still working on it! This has been going on since March.

David asks…

I think I am eligible for Obama’s loan modification because my mortgage is 45% of my income.?

How does that really work? I have a 7% interest rate. I have a disabled child and am widowed.

admin answers:

~~There is not allot of info on this that I can find yet. I believe it is better explained on www.whitehouse.gov but have not had time to to read it. I would wait a few more weeks and speak with your loan company. It is so new, no one seems to have clear cut info on it yet in the lending industry. However he has said, for people who are suffering to keep their homes from the economy will be able to do so. This gives me hope for all of us in the similar situation as yours!~~

Chris asks…

Modification of Mortgage loan?

I’m seeking help from my mortgage company to get a Modification of my home loan. I had to submitted a hardship letter 6 months ago explaining my hardship and why I need assistance from my mortgage company. They gave us a 3 months forbearance payment plan, and after that they would work on the modification, if our hardship hadn’t improve or if we still had the only one income. At that moment I had advise them that I would be applying for Social Security Disability and now they want an update on our hardship situation. But my Social Security will not start paying me until October. Is it still safe to say that I’m still not receiving any financial assistance or would it be possible for them to find out that I will be getting benefits later, but not at this time. They want me to fax them the information in now and as of now we are struggling to keep our heads above water and my husband is the only source of income for our family. Plus we have to get out of this adjustable rate and they are willing just with his income now to give us a modification.

admin answers:

Oct is only a couple of weeks away.

Committing fraud at this point is not advisable.

They wll still modify your loan.

Richard asks…

Should I accept this loan modification offer my attorney negotiated for me for my current mortgage?

2 months deferred mortgage payments
4.0% rate, fully amortized, fixed, for 5 years
5.0% rate after the first 5 years, for the remainder of the loan
40 year term
no prepayment penalty

my current loan is FHA 6.5% 30 year fixed

admin answers:

That’s an extraordinarily good offer. However, by extending the term to 40 years, you’ll be repaying this mortgage forever and a day. Total interest, therefore total costs, of the mortgage will be higher. And over half of those who renegotiate their mortgages have gone into default and foreclosure within 10 months. It seems most of them just cannot repay their debts. On the flip side, within 12-18 months, that interest rate should look like a blessing from the money-gods. Interest rates are bound to skyrocket since so much money has been printed out of thin air — monetary inflation inevitably leads to financial inflation.

So, the only question now is, can you make the loan payments? Only you know the answer to that.

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Your Questions About Mortgage Loan Modification

Steven asks…

If I recently did a loan modification and I miss a mortgage payment can my lender foreclose on me immediately?

How soon before a lender will start the foreclosure process? Is it after 60 days or is it immediately?

admin answers:

No, they still have to go through the legal process, it takes about 4 months. However if a foreclosure was in process already it just marches on.

Carol asks…

Can anyone recommend an honest company offering mortgage loan modifications?

admin answers:

Loan modifications are done “in house”. The bank you have your mortgage with will modify your loan either rate or terms.

If you want a new loan than you can go anyplace. Are you wanting a new loan or to modify your loan you have now?

Michael asks…

What’s the difference between home loan modification and mortgage refinancing?

home loan modification vs mortgage refinancing, are they the same thing?

admin answers:

If you are looking for the best mortgage refinancing site, try this site

http://best-mortgage-refinancing.com/

Here you can find the lowest interest rate in your area

Betty asks…

Mortgage Loan Modification?

Just want to know how can I qualify for a Loan modification. We just bought a condo 3 yrs ago and now we would like to try to lower our mortgage and wonder how can we qualify for a lower loan modification.

admin answers:

Your very best answer will be, go back to your original leander and work with them,they know you best..If that doe’s not work ask a realtor in your area who they think would be the best leander. I hope this helps you and good luck.
Jack

Charles asks…

Mortgage Loan Modification?

The US Gov bailout plan only applies to Fannie May and Freddie Mac funded mortgages? My mortgage is through Wachovia. I’ve called them and they claim it’s their loan. Nobody above them. So there’s no help for me?

What to do?

admin answers:

That is true. Just to be sure you can check Fannie Mae’s and Freddie Mac’s websites and check if your mortgage is financed through them.

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Your Questions About Mortgage Loan Modification

David asks…

Does a note modification of my mortgage loan negatively affect my credit report?

admin answers:

Should have no effect on your credit report or your score.
Merely states that the terms where changed.
As long as there are no late pays on your history you are fine. If there are late pays on your history then those are what will have a negative effect.
And there effect could be lessoned if the bank reports the original loan as closed and opens the new terms as a different loan.

Lizzie asks…

I’m trying to do a loan modification on my home mortgage. How do I list unemployment benefits as income (not)?

Trying to figure how to report unemployment benefits in budget. The problem, it’s not regular income (is it?) and it is only received for a defined period of time (fixed-term, not ongoing like regular income) Any help would be appreciated.
Note: I’m not trying to get a loan, I’m working with my mortgage holder to modify it!

admin answers:

When I tried this about a year ago the application package had an instruction sheet that said UI benefit count as part of “Gross Earnings” as they are considered taxable income. The girl that gave me the package also said it doesn’t matter that UI benefits only last for a set period, like she said “there is really no guarantee that a job is going to last any longer.”

But you should check with the Mortgage Company you are working with.

Sandy asks…

Will my mortgage company ask for money when doing a loan modification ?

I just wanted to know if mortgage companies ask for money before they do a modification ?
Oh , I forgot to ask . And how much do they usually ask for . Is it a percentage of what you owe ?

admin answers:

Yes you need cash. You pay closing costs on a modification just like you did the first time. Check with your lender

Laura asks…

is it be better to hire a lawyer for the loan modification for our mortgage adj instead of doing it on our ow?

we submitted our loan modification at wells fargo but its been months and we haven’t heard from them

admin answers:

There is nothing a lawyer can do for you. Either you qualify or you do not.

Maria asks…

Loan modification Skip Mortgage?

hi,

I have mortgage with chase and I am trying to modify my loan for a lower interest rate. After talking to the loan modification department, adviced told to skip my payment for 3 months, and set the money aside. My question is
1) Will it hit my credit report and hurt my FICO score?
2) if so how long it will stay in my credit report.

Thanks in advance for the advice.

George

admin answers:

Hello Nasim,

This is unethical and incorrect advice. You signed a document (note) which obligates yourself to pay the debt. I would get that persons name and let them someone at Chase know about it next time you call. It will certainly show up as a 90 day late on your credit and may put you in foreclosure depending on your state foreclosure guidelines. Then you find yourself paying foreclosure fees just to modify your loan. It is true that some lenders were not doing modifications to borrowers who are current but since the new Obama plan, a lot of these rules have changed. I suggest calling again and apply again. I believe with Chase, you can do it online.

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Your Questions About Mortgage Loan Modification

Ken asks…

Has anyone received a loan modification, without being late on your mortgage?

We have recently applied for a loan modification, however we are not currently behind. But my husband’s salary has just decreased by 35%, and we will shortly be in arrears.

admin answers:

Its worth a try, but most banks wont even talk to you till your behind.

Donald asks…

Has anyone had any luck getting a loan modification with their mortgage company?

admin answers:

Yeah good luck with that, I could already see how those tax dollars are going to be spent, the Mortgage company I am with told me a flat out lie, they said they don’t do that.
So I think it is gong to take a lot of searching and calling to actually get that done. Would help if you knew someone in the company who could get the right paper work for you.

Betty asks…

what is the punishment on forging your ex husbands name on a loan modification for a mortgage?

wife awarded home in divorce, mortgage still in both names, wife gets behind on pmts and applies for modification to bring loan currant and signs ex husbands name to modification papers.
yes….the ex husband is pressing charges for signing his name. I understand it is wrong but it was done to an existing mortgage to lower the payments and bring the past due amount current. what should the punishment be or do you think it WILL be?
plus this is something that was done back in 2009…..does that matter?

admin answers:

That would be felony fraud, so 10-15 years.

Laura asks…

Am I able to get a loan modification if there is an additional name on the deed/mortgage bill?

My parents helped me buy my house. The deal back then between my parents and I was that my mom’s name should also go on the deed and mortgage in addition to my name. The payments are pretty high, so I will be attending one of Chase’s (my mortgage co) loan modification public sessions. Based on just my income, I think I can qualify for lower payments. But… if they see my mom’s name on the deed/mortgage— will they ask for her proof of income, etc.? If so, I am screwed because our combined income will cause me not to qualify for lower payments. Thanks in advance for your help.

admin answers:

Sorry, but the lender, by law, must look at the finances of all borrowers in their determination on if a modification can be granted.

Nancy asks…

Loan Modification on adjustable rate mortgage?

Why do loan modification companies want you to start foreclosure
before they want to help you? Why not help before hardship occurs? What is the best thing to do before an adjustable rate resets?

admin answers:

Because Loan Modification should really only be your last option. It is a temporary fix (3 years is the average)and disallows you from refinancing until the term is over… In which case the loan would recast back into the former rate and term.

Right now, only about 4% of loan modifications are being done nationwide.

The best thing to do if you are in good standing on your mortgage, have decent credit, and stable income is to look into what options you have to refinance (or you can just let it adjust…). With interest rates so low right now because of what’s going on in the ecnomy, nows the best time to get into a long-term fixed program.

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