Posted on: 17th Feb, 2009 08:43 am
Hello Everyone!
I have a question about loan modification. Here is a quick rundown:
I own a home in Southern California.
I owe more on my home than it is worth.
I have a 5 year conventional ARM loan that will adjust in 2010.
I have a solid job with decent income, but like everyone else am just squeaking by on my payments and will not be able to handle the loan when it adjusts next year.
I am current on all my payments and have a credit score of 720
Is a loan modification something I could qualify for?
Thanks
I have a question about loan modification. Here is a quick rundown:
I own a home in Southern California.
I owe more on my home than it is worth.
I have a 5 year conventional ARM loan that will adjust in 2010.
I have a solid job with decent income, but like everyone else am just squeaking by on my payments and will not be able to handle the loan when it adjusts next year.
I am current on all my payments and have a credit score of 720
Is a loan modification something I could qualify for?
Thanks
As you are current in your payments, it will be difficult for you to convince the lender for a loan modification. Lenders generally agree to this if you are delinquent in your payments.
In addition to what Adonis said...
When your rate adjusts next year, it may go DOWN depending upon market conditions and the terms of your loan.
A question....why are you just squeaking by on your payments? Your payment has been the same from the day you got this loan. You have a solid job with decent income. You would need to make other adjustments in your life ie get rid of the car payment, dont eat out, no gym membership, cancel home phone and use cell only, etc etc
Borrowers can find ways to make ends meet but they do not want to change the lifestyle they enjoy so much. No reason why the lender should take a loss until a borrower has exhausted all avenues first.
When your rate adjusts next year, it may go DOWN depending upon market conditions and the terms of your loan.
A question....why are you just squeaking by on your payments? Your payment has been the same from the day you got this loan. You have a solid job with decent income. You would need to make other adjustments in your life ie get rid of the car payment, dont eat out, no gym membership, cancel home phone and use cell only, etc etc
Borrowers can find ways to make ends meet but they do not want to change the lifestyle they enjoy so much. No reason why the lender should take a loss until a borrower has exhausted all avenues first.
go to Dept of Treasury website,
look for
/initiatives/eesa/homeowner-affordability-plan/HousingExampleSheet.pdf
It might help
look for
/initiatives/eesa/homeowner-affordability-plan/HousingExampleSheet.pdf
It might help
I needed help getting a loan modification so I called a company that helped people get them. After I called them it sounded great, but they were charging a $4,000 fee. I decided to try it on my own and I wrote a hardship letter to Washington Mutual. I've never missed a payment and I am current on the mortgage. I got a call two months later and to my surprise it was approved.
I had a 5 year conventional ARM loan and I was worried about the adjustment. Wamu switched it to a 30 year mortgage fixed at 5%. I was thrilled. I got the papers through Fedex and sent it back. All they asked for was a $500 dollar fee. The lady i spoke to said they approved it quickly without hassle because I just wanted it switched to a fixed rate. If you're looking to have the principle amount reduced then you have to be behind on payments, and then it's still doubtful you'll get it.
I had a 5 year conventional ARM loan and I was worried about the adjustment. Wamu switched it to a 30 year mortgage fixed at 5%. I was thrilled. I got the papers through Fedex and sent it back. All they asked for was a $500 dollar fee. The lady i spoke to said they approved it quickly without hassle because I just wanted it switched to a fixed rate. If you're looking to have the principle amount reduced then you have to be behind on payments, and then it's still doubtful you'll get it.