Loan Modification...what to do?

hi guest,

did the lender give you a reason as to why your loan modification request was denied? you can contact your lender once again and negotiate with him for a loan modification. you can also check out the option of home affordable refinance which is new program introduced by the obama government. for further information on home affordable refinance, check out the given link:
http://www.mortgagefit.com/problems/homeaffordable-refinance.html

No...The lender has not given me a reason as to why they denied our request. It actually takes hours to get someone on the phone.

I'll look into the Home Affordable Refinance (Obama), but I was under the impression that you must go through your lender to be approved for that as well.

The problem is that we owe $134K on our first mortg. and $57K on the HELOC. The lender for the first who denies us any help knows that they are going to get their money. My house will sell in a short sale situation for $160K easily. This leaves me with the remaining balance of the HELOC and ruined credit. It just doesn't seem right that the same banks that are not giving any help are going to be paid in full and receive govt. assistance. So frustrating!

Thanks,
Ed

Hi Guest,

I would suggest you to contact your lender once again and check out why you don't qualify for a loan modification. Try and negotiate with your lender for a loan modification.

For Home Affordable Refinance, you will have to contact your lender and check if you qualify for the loan. Real Estate prices have fallen. So most of the properties are selling at a lower price. It is true that you will have to pay the deficient amount to second lender and your credit will also get ruined by 75-100 points if you go for a short sale. But if your lender does not accept the loan modification request, I don't think you have much to do.

Thanks

Well I had a consultation with an attorney today. It seems there may be a glimmer of hope. The attorney said that there is still a possibility we may be able to stay in our home. There is a greater possibility that we can succeed with a short sale. We were told that because our note with Auroran (primary lender) is less than what the house is worth we do not need their approval. Thank goodness because Aurora I've noticed after more research is not helping anyone. We just need the approval from our second lender (the HELOC) in order to do a short sale and since they are likely to receive 0.00 for a foreclosure there is a good chance they'll be more willing to work with us. Thanks for your help. I'll keep this page posted on what happens, as I know many others are in the same boat.
By the way the attorney has a one time fee of $2000 from start to finish. Does that sound average?

Take Care,
Ed

Hi Ed

I am not an legal professional so I don't know much about their charges. But I guess their fees keeps on varying. So, I don't think you should compare your attorney's fees with others.

I wish you all the best and hope that your short sale gets approved.

Thanks.

I also have National City Mortgage, and they refused our modification after putting us on a forbearance for three months paying less than our full payment. We were told the forbearance was like a student loan where the difference in payment would go onto the back of the loan, but after we made our promised payments for three months, they denied our modification and asked for all the back pay with fees and penalties. All they could say was sorry, we don't know why he told you that. We are now considered 6 months behind and they are holding over $1000 in a suspense account because they don't apply partial payments even though that is what was agreed upon. I am angry also that PNC Bank received funds in November as part of the TARP money and used it to purchase National City Mortgage. Now, they are not willing to modify our loan because they say the investor is not willing because of contractural obligations. That is bull!!! I've been in mortgages for years, and I see what they are really doing with their money and how they are putting more restrictions on lending that they are not telling the government or the people. They don't want us to know what they are really doing. If you read the treasury's website and see the monthly required filings that are posted on there from each lender, you will see that they are not doing very many modifications compared with payment plans. Payment plans don't work if you can't afford to make the regular payment. I have written the White House and my state senator, but to no avail. I agree, we need to keep shouting for all to be heard or this is not going to get any better for a very very long time. If we don't, we will just fall back into the lies that are being told now by the government that the economy is getting better. Where exactly is that happening??? Most of the houses in my neighborhood are up for short sale because they can't sell. All of the refinances that are happening at my company are part of the affordable home program, not from regular refinances, so you can't base the economy on those numbers, and if they are, we are really in trouble. Those are inflated numbers because they will not last forever. Isn't that how we got here in the first place with inflated numbers. Just a thought for everyone to ponder!!!

Thank you for sharing your thoughts and experience with the community, vlbk. The lender will judge your financial situation and then decide whether he would approve your request or not. Check out if you can negotiate with your lender and convince them for a modification.

Market situations are too bad these days. Lots of properties have been foreclosed and there are almost no buyers to buy them. Thus, the lenders are also struck with those properties. I personally feel that the Home Affordable Refinance is a good program to save the homeowners. If you qualify for that, you should go for it.