Posted on: 08th Jul, 2009 08:49 am
My 3 yr ARM, 6.74% (interest only) expired July 1 09 with Homecomings ,My first request for loan modification was denied in early June. 3 wks ago they ask me to re-submit my application for modification,which I did, but now I feel they are stalling on purpose to do the modification for me.
My mortgage payment has almost doubled after adjusting which I cannot pay.I called Homecomings to tell them I cannot make this new payment and I ask them if I could just keep paying the interest only in which they agreed.Now I feel like I will never get the modification because the interest only mortgage payment is much higher payment than what they would get after doing a modification for me and bringing down my payment to 31% of my gross income which would amount to a savings for me of about $550. more or less a month.
Am I correct in assuming they will not modify my loan now? Once they include Principal,Interest and Escrow after modification that would amount to a substantial loss of income for them.
Is there any thing I can do to force them to do the modification for me even though I am fully qualified for modification ? I have not been late on any payments with anyone and now my lifelong perfect credit history is about to be destroyed by Homecomings!
My mortgage payment has almost doubled after adjusting which I cannot pay.I called Homecomings to tell them I cannot make this new payment and I ask them if I could just keep paying the interest only in which they agreed.Now I feel like I will never get the modification because the interest only mortgage payment is much higher payment than what they would get after doing a modification for me and bringing down my payment to 31% of my gross income which would amount to a savings for me of about $550. more or less a month.
Am I correct in assuming they will not modify my loan now? Once they include Principal,Interest and Escrow after modification that would amount to a substantial loss of income for them.
Is there any thing I can do to force them to do the modification for me even though I am fully qualified for modification ? I have not been late on any payments with anyone and now my lifelong perfect credit history is about to be destroyed by Homecomings!
Hi jerrya,
You cannot force your lender for a loan modification. It depends upon the discretion of the lender whether or not he would accept your request. He will judge your financial situation depending upon your hardship letter and check if you qualify for it.
If your lender does not agree to a loan modification, you can apply for a short sale and sell off the property. This will lower your credit by 80-100 points and you would be liable for paying the deficient amount. If you cannot afford the loan, then I think a short sale is a better option for you.
Thanks
You cannot force your lender for a loan modification. It depends upon the discretion of the lender whether or not he would accept your request. He will judge your financial situation depending upon your hardship letter and check if you qualify for it.
If your lender does not agree to a loan modification, you can apply for a short sale and sell off the property. This will lower your credit by 80-100 points and you would be liable for paying the deficient amount. If you cannot afford the loan, then I think a short sale is a better option for you.
Thanks