loan modifications???

[ronnieron]

Anyone trying to negotiate with their lender? having any success, or had success? If anyone has been successful in doing this, I'd apperciate some tips of how you went about doing it? Also if anyone knows of a good lawyer who does these types of modifications and loan restructers?

Thx

Ron

 

[ronnieron]

no one

 

[marilyn]

ronnieron

Ronnie, I am just starting to look into this myself, I know people who have done it with success, and others not so much.............I know like with everything else you must qualify...and have anywhere from $3,500-$5,000 for fees, including attorney fee. You have to make enough money also, not everyone can do it, for example if one in the home works, you may not qualify, unless both if married are working.....There are many lenders and mortgages companys doing this now, and you should be able to negotiate fees/new mortgage if all your ducks are in a row. If I get more info today, I will PM you.

 

[ronnieron]

Thx, Marilyn

I'm not sure I qualify. The mortgage is in my fiance's name only. our first lender screwed us, and did a no doc loan, with intrest only, for her. They than said it was o.k to add my income on the loan with hers as long as I was living in the home.
I've heard through the preadoatory lending laws that we may be able to get part/all of our down payment back, plus intrest paid on the loan, and any other fees if we were to sue and win, any truth to this? Does it matter that the original lender sold the loan (before we even made a payment)? In the modification process, can they add me to the loan as part of the modifiacation?

Ron

 

[pesty4077]

Ronnie, most of these places want to charge $3000 and they want that up front. I have a good friend who is a real estate broker(one of the best in this area) that I do business with. he will charge $1500, and only $750 up front. They do not sub it out to another company, they work on it theirselves. PM me if you want his info.

 

[Nikopapp]

Thx, Marilyn

I'm not sure I qualify. The mortgage is in my fiance's name only. our first lender screwed us, and did a no doc loan, with intrest only, for her. They than said it was o.k to add my income on the loan with hers as long as I was living in the home.
I've heard through the preadoatory lending laws that we may be able to get part/all of our down payment back, plus intrest paid on the loan, and any other fees if we were to sue and win, any truth to this? Does it matter that the original lender sold the loan (before we even made a payment)? In the modification process, can they add me to the loan as part of the modifiacation?

Ron

Being in the lending business, this bothers me because we always get the bad rap.
How did you get screwed by getting a no doc loan when your fiancee obviously couldn't prove her income to qualify for a traditional loan?
Are you also telling me you didn't know the loan was interest only so you would have lower monthly payments?
I find that very hard to believe, as it is in the paperwork you signed when you got the loan very clearly.
So if you had gone with a traditional Principle & Interest loan (which would be a few hundred dollars more per month than you are currently paying) you wouldn't need a loan mod now?
If you didn't know, then you are telling me that you signed paperwork and agreed to a loan of 6 figures without knowing the terms????
Loans are routinely sold before you make your first payment if the lender decides to do so, that is also stated clearly in your paperwork.
Can you be more clear as to why the loan was put in your fiancee's name only?
You will most likely not be able to be on the loan if it is modified.
You would most likely have to refinance the loan in order to do that.
Are you on title to the home now?
Also, as far as suing, so you mean to tell me that you should get all of your money back, including interest paid on the loan, when you were living there the whole time? So you are entitled to free living in the home for however long you've been there because you didn't read your paperwork?
Why do you need the loan mod, presumably you cannot afford your payments, and they are as low as they're going to get on an interest only loan, what other loan do you think would work for you, no interest?
Sorry to rant, but I so am tired of brokers and lenders being the ones always getting the bad rap, it is the consumers fault as well when they are in over their head.
Do yourself a favor and put the house on the market now, and take your losses because it seems to me that you made a big financial mistake and now want everyone to feel sorry for you and bail you out.

 

[pesty4077]

Being in the lending business, this bothers me because we always get the bad rap.
How did you get screwed by getting a no doc loan when your fiancee obviously couldn't prove her income to qualify for a traditional loan?
Are you also telling me you didn't know the loan was interest only so you would have lower monthly payments?
I find that very hard to believe, as it is in the paperwork you signed when you got the loan very clearly.
So if you had gone with a traditional Principle & Interest loan (which would be a few hundred dollars more per month than you are currently paying) you wouldn't need a loan mod now?
If you didn't know, then you are telling me that you signed paperwork and agreed to a loan of 6 figures without knowing the terms????
Loans are routinely sold before you make your first payment if the lender decides to do so, that is also stated clearly in your paperwork.
Can you be more clear as to why the loan was put in your fiancee's name only?
You will most likely not be able to be on the loan if it is modified.
You would most likely have to refinance the loan in order to do that.
Are you on title to the home now?
Also, as far as suing, so you mean to tell me that you should get all of your money back, including interest paid on the loan, when you were living there the whole time? So you are entitled to free living in the home for however long you've been there because you didn't read your paperwork?
Why do you need the loan mod, presumably you cannot afford your payments, and they are as low as they're going to get on an interest only loan, what other loan do you think would work for you, no interest?
Sorry to rant, but I so am tired of brokers and lenders being the ones always getting the bad rap, it is the consumers fault as well when they are in over their head.
Do yourself a favor and put the house on the market now, and take your losses because it seems to me that you made a big financial mistake and now want everyone to feel sorry for you and bail you out.

Easy Bro, you don't know his situation. I would never blame a bank, after all they only raised my interest rate by 5 points in 6 months. Well, that puts it up to $1500 more a month and guess what? My business is making 1/3 it did. You see, some of us had no choice, being self employed. The sad thing is I tried to negotiate a house that was appraised at one time for 1/2 million, and they wouldn't. I owed 400,000 on it, it went to a short sell for 250,000. Stupid them, I would have paid them the 400,000, I just wanted to get a lower interest rate. Where are they? They were to greedy and now are out of business. Oh, I wouldn't sue anyone for my mistakes, I knew what I was getting into. You don't know each circumstance, alot of people are unemployed and it isn't there fault. I am a survivor, I had another house. The bottom line is these banks got greedy with these interest only loans and it blew up in their faces. I have alot of clients in your business, so I don't blame the ones trying to make a living, it is the bigger fish in the pond to watch out for. That company that had my note is out of business and I am still in business, I guess one of us knows about business.

 

[Nikopapp]

Easy Bro, you don't know his situation. I would never blame a bank, after all they only raised my interest rate by 5 points in 6 months. Well, that puts it up to $1500 more a month and guess what? My business is making 1/3 it did. You see, some of us had no choice, being self employed. The sad thing is I tried to negotiate a house that was appraised at one time for 1/2 million, and they wouldn't. I owed 400,000 on it, it went to a short sell for 250,000. Stupid them, I would have paid them the 400,000, I just wanted to get a lower interest rate. Where are they? They were to greedy and now are out of business. Oh, I wouldn't sue anyone for my mistakes, I knew what I was getting into. You don't know each circumstance, alot of people are unemployed and it isn't there fault. I am a survivor, I had another house. The bottom line is these banks got greedy with these interest only loans and it blew up in their faces. I have alot of clients in your business, so I don't blame the ones trying to make a living, it is the bigger fish in the pond to watch out for. That company that had my note is out of business and I am still in business, I guess one of us knows about business.

I know the situation, I have had many of these over the last few years.
By the way, I asm self employed as well, and my business is down more than 1/3 so I know yours, and others, pain.
My problem is that this guy is saying he was screwed and wants to sue.
As far as your scenario, you took a gamble on an adjustable rate loan to get your payments lower intitially and it backfired in the end.
Many people are in this scenario, but it isn't the banks fault that they raised the rate.
The loan paperwork stated the terms of the loan and that it could adjust a certain percentage in a certain timeframe, so you knew it was a possibility when you got into the loan and you decided to take that chance.

I'm not blaming you, I'm just stating that there is a 50/50 fault between the consumer and lender in MOST, not all, of the bad situations out there now.
Lenders got greedy and did loans they never should have, and consumers got greedy accepting loans they never should have.

 

[ronnieron]

I'm no where on the title of the home or mortgage. My fiance and I weren't engaged at the time and I was going through a divorce, so it went into her name only. She signed the docs and such by herself, she was a first time homebuyer. She was originally qualified for a p&I fixed loan at 6.5%, because we put 20% down.
Than when she went to sign paperwork by herself they told her they could only get her qualified through this type of loan.
To add my income on the loan to push it through and get it approved, is ILLEGAL. Why did they switch the loan, possibly a much higher commission for the broker??? There is a reason why these now doc loans are supposed to be banded nowadays, yet I here banks still using them.
Yet we bail all these banks out, there the ones who started this entire mess, which led to the economy the way it is, and yet they arent helping homeowners which was supposed to be part of the entire bailout.
They sure can afford to take expense trips for all their top sales associates though.
The loan docs also don't mention anything in their about my right to cancel the loan within 3 days. Now your in the lending buisness, don't I now have 2 or 3 years to go back if they didnt' provide that in my loan docs.
thx
Ron

 

[ronnieron]

I'm not looking for a handout. But when your paying 2,200 a month on a house that she could now dump, and I could go get a new loan for the same house for about 1,200 a month? I could do this, but we are trying to work with the bank and come up with a solution but they arent willing to do anything.
we are going to stop making payments and see if their bank is willing to change their tune, if they want to take the house back at a 100,000 dollar loss, fine by me, put i refuse to pay 2,200 dollars in intrest a month. I understand these banks are a buisness and they have to make money, but I'm not jepordizing my family's future to increase their bottom line.
Funny this is my lender is Indy Mac bank one of the banks that got a bailout and is now controlled by the FDIC.

 

[Pekkerwood]

RonnieRon:

You success rate will depend on many factors some having to do with you some having to do with the loan itself, some your house and market.

1. If your loan was sold to a company that is servicing it, it may or may not have the ability to negotiate a modification. Its luck of the draw on how the loan was sold, packages, and tranched out. It sounds like you are not FHA because of the no-doc, interest only, so you do have a shot.

Some lenders will only negotiate if you are 3 months in arrears. It sux, but you have to ruin your credit b4 they will help you. You again, can only tell this by contacting the company serviceing your loan. Luckily, some of these have set packages to send out to you to fill out to see if you qualify.

2. Your personal situation. Yes a mod can add you to the loan, and you could have been on the loan to begin with married, engaged or not. Be careful entering into longterm financial committments with people you are not married to (or married to for that matter). BTW adding yourself can actually HURT the deal you may get. Why? They will look at a percentage of your income as what you can pay. Typically 27-31% of your income is the payment they may settle for so having a small income helps.

3. Current value of the asset (house). Gather up from a realtor the lowest comparables in your subdivision or close to your house. Try to derive an estimated value from them. If you are in Ga I can help you. You want to show the reduced value, and the pain they can get from not working with you.

Be aware that the modification can be for Amount, interest rate, term, and variable versus fixed. It may also include a provision that does the mod in "escrow" until you make three or more payments on time at the new rate.

I hope this helps and I will try to answer any questions you may have.

 

[ronnieron]

I realize that adding me to the loan could hurt the deal I get, but my fiance only makes 1,500 dollars a month and she was making that when the bank qualified her for a 300,000 loan. I don't think the bank is going to modify her soely down to a payment of 500 a month or less.
what I would like to see happen is a modification of principal, down to the market value of the home, and a drop of intrest rate to the current index. In return I would agree to stay in the home with the current lender for a minimum of 5 years, so they could gain most or all their money back in intrest that they will receive. This is not a bad deal, considering if I was to walk way they would have to sell the house at about a 20% deduction of the market value. That assuming the home could even sell in this market.
Here in Az the market is one of the hardest hit, there are homes of the same model as mine in the subdivision for 100,000-135,000 less than my current mortgage amount and they've been sitting for 6+ months.

ron

 

[pesty4077]

I realize that adding me to the loan could hurt the deal I get, but my fiance only makes 1,500 dollars a month and she was making that when the bank qualified her for a 300,000 loan. I don't think the bank is going to modify her soely down to a payment of 500 a month or less.
what I would like to see happen is a modification of principal, down to the market value of the home, and a drop of intrest rate to the current index. In return I would agree to stay in the home with the current lender for a minimum of 5 years, so they could gain most or all their money back in intrest that they will receive. This is not a bad deal, considering if I was to walk way they would have to sell the house at about a 20% deduction of the market value. That assuming the home could even sell in this market.
Here in Az the market is one of the hardest hit, there are homes of the same model as mine in the subdivision for 100,000-135,000 less than my current mortgage amount and they've been sitting for 6+ months.

ron

If you read my above post, I walked form a house, they lost about $200,000 and now are out of business, stupid them. Your girlfriend should have never qualified for a house $300,000 with $1500 dollars income, that is absurbed. She should have gotten a good faith estimate, if they change the terms without giving her a new one, that is a legal issue.

 

[ronnieron]

Petsy,
This is where a lawsuit comes into question into question. They qualfied her for the loan which she knew she didnt qualify her, basically forged documents when they added my income to hers and pushed it off as her income. They took the down payment about 64,000, and sold the loan to Indy Mac. Now the question is who do i go after the original lender or the current lender(Indy Mac)? I would think Indy Mac would have reviewed the loan docs, terms, before they purchased the the loan.

Ron

 

[Steve123]

I'm not looking for a handout. But when your paying 2,200 a month on a house that she could now dump, and I could go get a new loan for the same house for about 1,200 a month? I could do this, but we are trying to work with the bank and come up with a solution but they arent willing to do anything.
we are going to stop making payments and see if their bank is willing to change their tune, if they want to take the house back at a 100,000 dollar loss, fine by me, put i refuse to pay 2,200 dollars in intrest a month. I understand these banks are a buisness and they have to make money, but I'm not jepordizing my family's future to increase their bottom line.
Funny this is my lender is Indy Mac bank one of the banks that got a bailout and is now controlled by the FDIC.

Most lenders will not even have the discussion with you until you are in forclosure. You can try getting through to the department that handles this but that may even be a hassel.

If you think that preditory lending was involved, your best bet would be an attorney.

Typically, one of the most common and easiest modifications is when they take the missed payments, tack them on the end of the loan, charge approximately one mort. payment as a fee and you all move on with the same payment/rate etc. Modificaiton into different loan terms is a little more tricky but you may see some relief soon come out of Washington.

 

[pesty4077]

Petsy,
This is where a lawsuit comes into question into question. They qualfied her for the loan which she knew she didnt qualify her, basically forged documents when they added my income to hers and pushed it off as her income. They took the down payment about 64,000, and sold the loan to Indy Mac. Now the question is who do i go after the original lender or the current lender(Indy Mac)? I would think Indy Mac would have reviewed the loan docs, terms, before they purchased the the loan.

Ron

That I can't answer. I would suggest to take the paper work to an attorney to view. In my are Town, a couple of places are under investigation from the FBI. They are because of false info on loans.

 

[maldorf]

WE JUST DID A LOAN MODIFICATION 1 MONTH AGO!!!!!!!

Anyone trying to negotiate with their lender? having any success, or had success? If anyone has been successful in doing this, I'd apperciate some tips of how you went about doing it? Also if anyone knows of a good lawyer who does these types of modifications and loan restructers?

Thx

Ron

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.

 

[Nikopapp]

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.

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.

 

[ronnieron]

This is why the economy the way it is currently, it all started with the housing crisis. Not to beat a dead horse, but (my lady and I didnt' make a wise desicion) neither did all these banks and yet we have handed them billions of dollars.
There are millions of people in our situation, I ask where's the people's bailout, where's the bailout for the unemployed, for people have lost their homes already. The economy won't be fixed until the housing market stabalizes, and you can't do that if month after month there is more forclosures on the market as the previous month. This affects everyone, even if you aren't in my situation, property values will continue to drop, and if your not underwater in your home in the coming year(s) you will be.
People will continue to walk from their houses, is there really any point in paying your mortgage when your a 100k+ under water or even 50k for that matter? The market is showing no signs of turning around this year or the next and even when it does it will be a slow climb, people arent prepared to wait 5-10 yrs to begin to break even on their home values.
Until the government and banks realize this the economy will suffer. If banks were able to lower principal to current market values, keep people in their homes, the government lower rates to around 4%, so more people could afford homes, than houses can start removing themselves from the market; stabalizing home prices. The banks will get their money back, put into the modification that the mortgage holder(s) have to remain with the mortgage for 5, 10 yrs or have long it takes for the bank to recoup their principal reduciton loss. Banks do this or people continue to walk and banks lose more through foreclosure procedures, and we continue to bail them out!!!

 

[maldorf]

This is why the economy the way it is currently, it all started with the housing crisis. Not to beat a dead horse, but (my lady and I didnt' make a wise desicion) neither did all these banks and yet we have handed them billions of dollars.
There are millions of people in our situation, I ask where's the people's bailout, where's the bailout for the unemployed, for people have lost their homes already. The economy won't be fixed until the housing market stabalizes, and you can't do that if month after month there is more forclosures on the market as the previous month. This affects everyone, even if you aren't in my situation, property values will continue to drop, and if your not underwater in your home in the coming year(s) you will be.
People will continue to walk from their houses, is there really any point in paying your mortgage when your a 100k+ under water or even 50k for that matter? The market is showing no signs of turning around this year or the next and even when it does it will be a slow climb, people arent prepared to wait 5-10 yrs to begin to break even on their home values.
Until the government and banks realize this the economy will suffer. If banks were able to lower principal to current market values, keep people in their homes, the government lower rates to around 4%, so more people could afford homes, than houses can start removing themselves from the market; stabalizing home prices. The banks will get their money back, put into the modification that the mortgage holder(s) have to remain with the mortgage for 5, 10 yrs or have long it takes for the bank to recoup their principal reduciton loss. Banks do this or people continue to walk and banks lose more through foreclosure procedures, and we continue to bail them out!!!

I have to agree about what you said about people just walking away from their homes. Wondering how much longer people are going to continue paying a mortgage figured on a home with a loan value of $400 when its only worth $300k. Many people these days cant even refinance their homes because they appraise so low and they dont have enough equity to do so. Starting to see lots of short sales around here on homes rather than the banks having to foreclose. Banks are starting to get the message and are trying to avoid foreclosure at all costs.

Couple across the street have had their home for sale since October and have had maybe 2 showings! Trying to sell it for way more than market value since their mortgage is for as much as the market value.They arent willing to accept the inevitable. I suggested they try to rent it out and she looked at me like im crazy. The husband lives 6 hours away and comes home from his little one bedroom apartment on weekends to visit his family here.