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Loan modification denied, payment arrangement made

Posted on: 26th Oct, 2010 08:15 pm
we applied for loan modification program and after one month behind payment, we were given a 6 months program to make lower payments while they review our financial records. our payments were cut by $900.00/month for 6 months. we were denied loan modification the lender said we can afford the payment. we have excessive debts to be paid and we often use credit card to buy our food and pay our utilities. now we are almost 3 months behind payment for the ist mortgage and may go to foreclosure if we don't bring our account current. the amount due now is the one month we defaulted plus the $6500.00 that was cut from our monthly payments for 6 months. we have 2 mortgage for this house. our second mortgage payment is current, it has higher interest rate 10.5%. the loan is being financed by same lender. will they foreclose our house if we are late on the ist mortgage but current on the second mortgage?

we called the lender after getting a letter of intent to foreclose if we don't pay the late payment. we are 3 months late. the rep we spoke to said she can put us again for a payment arrangement for the next 6 months and after 6 months they can evaluate us again if we can qualify for a lower monthly payment or interest rates. she lowered our monthly payment for the ist mortgage and our ist payment due is nov 1. the letter stated that if we don't talk to them by the end of november our house will go foreclosure.

we are confused now because we just got denied for our loan modification. so why would this rep told us that we are eligible to apply again. if the lender already told us we are denied because according to our financial records we are able to afford the payment, what would make her think we can apply again? is this true that we can apply for loan modification again despite of already getting denied???

we are worry about this. please advise.
what woulr truly happen to our house? we can't believe that we were approved for 6 months payment arrangement after denying our loan modification.

thank you.
Hi Guest,

The lender can foreclose the property if you're current on your second mortgage and past due on your first loan.

If your modification has been denied, then you are eligible to reapply for loan modification. May be the lender would reconsider your situation and may give you a payment plan which will make it affordable for you to pay off the loan.

Thanks
Posted on: 27th Oct, 2010 12:40 am
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