Quote:
Originally Posted by maldorf
Not sure why people are saying this isnt going on . It is! We just lowered our rate from 5.8% down to 5.2% by just paying a fee of $450!! Thats it. No other fees, not even a reapprasal of our home. Just sent us the papers in the mail, we signed them and we are done. Saved us about $175 a month, which helps in these hard times. So the fee will pay for itself in about 3 months.
Now we didnt use lawyers or anything, it was a program that Third Federal was offering its customers. Probably to make sure that you dont leave them for another institution. Keeps your business with them .They are awesome. Anyhow, the people across the street have a loan with them also and tried to do the modification after I told them what we did. They were not able to do it because Third Federal had sold their loan to someone else! We got lucky because our loan is only about 9 months old. If youve had the loan out for awhile I might bet its been sold.
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Exactly, but you were also realistic, you weren't mandating $100K off the principle and knocking the monthly payment down $500-1000 a month to make the mod worth it to you.
Ronnieron, I could ask your fiancee the same thing, why did she get into a $300K mortgage when she only makes $1,500 per month?
Obviously she knew she couldn't afford that if anything happened between the two of you, so it was irresponsible on her part as well as the lender's.
I don't know what you mean when you say they used your income in the loan.
If the loan was in your fiancee's name only and a no doc loan, they typically do not put an income figure on the loan documents.
If they did, then they were putting the income amount that your fiancee told the lender, whether it was her total household income or not.
On those loans, lenders and brokers sometimes did whatever they needed to do to make the income levels work within the loan guidelines to make the loan happen, right or wrong.
Your fiancee should have received initial paperwork called a disclosure package when she first started the loan process, check that to see what the Good Faith Estimate and Truth In Lending say as far as the terms of the loan.
If you don't have that, then check thoese 2 documents in your final paperwork.
The only problem is going to be proving that she had no knowledge that the loan was going to be interest only, and proving that she did not want that option, if she signed the paperwork that reflected the interest only loan.
Unfortunately she will not get a loan mod without adding you to the loan, as she will not qualify with her income.
It highly doubtful you will get what you are asking for even with both of you on the loan though.
Best of luck to you witht this situation, and however it works out, it will be a learning experience for both of you that will help you greatly in the future.