Posted on: 20th Apr, 2009 09:31 pm
I am single, 53 yo with dropping yearly income for last 5 years. I am approx $300 short every month, therefore I have requested loan modification. The offer came back almost immediately but I am uncomfortable with the terms. My mortgage is being extended to 40 yrs, the interest rate is only lowered for 1 year then higher year 2 then back to todays rate year three and ongoing. Any monies now being accumulated as "owed" are added to the end of the mortgage. I don't forsee my situation changing enough over the next year or two to agree to this. My house market value has dropped approx $70k in the last two years. I owe more than I could sell the house for. Can I negotiate different terms? Should I take the deal and relive the nightmare in approx 18 months...by the way the "deal" is lowering my mortgage payment year 1 to just barely "break even" - no emergency money and barely grocery money. I sure hope someone can shed some light on this for me as I do have to respond within a few days...
Hi pathomps,
If you think the terms of the modified loan is not going to help improve your situation, you should not accept it. As per the new terms, your interest rate will be reduced only for 1 year and from the next year onwards, things are going to be same agian. So, I think you should negotiate with them for better terms on the modified loan.
If you think the terms of the modified loan is not going to help improve your situation, you should not accept it. As per the new terms, your interest rate will be reduced only for 1 year and from the next year onwards, things are going to be same agian. So, I think you should negotiate with them for better terms on the modified loan.