Posted on: 23rd Apr, 2009 11:45 am
we just started the process with a HUD authorized counseling service to apply for a Wacovia modification loans. We're one month behind on payments and were told to stop making mortgage payments during the process which could take from 30 to 90 days. Is it smart or acceptable to not make the payments? should i continue to make mortgage payments while applying for a modification?
do i keep making payment while applying for a loan modification?
Most of the lender seems to respond and work on loan modification when you stop making payments.
But it will in no way gurantee that the lender will make modifications.
There are several facors which come in to play.
Lenders are goign to look at your income and your ability to make payments curretnly and goign forward after making modifications. If they determine that you are able to make payments with out modifications the modifications may not go through.
As you stop making payments, you parobaly will see that your FICO scroe will go down. Lender will report it to the credit agencies and this may happne after 60 - 90 days.
But it will in no way gurantee that the lender will make modifications.
There are several facors which come in to play.
Lenders are goign to look at your income and your ability to make payments curretnly and goign forward after making modifications. If they determine that you are able to make payments with out modifications the modifications may not go through.
As you stop making payments, you parobaly will see that your FICO scroe will go down. Lender will report it to the credit agencies and this may happne after 60 - 90 days.
Hi dan,
It is not mandatory for you to be delinquent on your mortgage payments when you apply for a modification. Lenders do consider delinquency as a factor for loan modification. However, lenders may offer you a modification, if you can prove that you are financially unable to make payments from the next month onwards. Moreover, your hardship letter should explain all the causes for your financial hardship to Wachovia, your lender. This will help you in convincing the lender for the modification of your loan.
It is not mandatory for you to be delinquent on your mortgage payments when you apply for a modification. Lenders do consider delinquency as a factor for loan modification. However, lenders may offer you a modification, if you can prove that you are financially unable to make payments from the next month onwards. Moreover, your hardship letter should explain all the causes for your financial hardship to Wachovia, your lender. This will help you in convincing the lender for the modification of your loan.
I want to apply for Wachovia loan modification. Wachovia is my lender. What documents do I need to give the lender while applying for the modification? should i continue to make mortgage payments while applying for a modification? I'm confused - can anyone help?
Hi Sandra,
Hardship letter is one of the most important documents which one has to produce while applying for modification. If you are going through a financial crisis, then mention it in the hardship letter. If your wages have been reduced, you may furnish your recent pay stubs along with the letter. This will help the lender know your financial situation and depending upon that, he would consider your request. Check out the link to the hardship letter which Adonis has given in his post. This may help you in drafting the letter. Apart from this, the lender will give you some documents to fill out. Fill them out and submit it to the lender on time.
As Adonis has said, it's not essential to be delinquent on your mortgage dues in order to modify the loan. You may keep on paying your dues while you apply for the modification. If your lender suggests you to stop the payments in order to get modification, then you may go ahead with it. However, in case, if your modification does not goes through, then you will have to pay off the dues immediately. If you cannot pay the dues, the lender may foreclose the property.
Take care.
Hardship letter is one of the most important documents which one has to produce while applying for modification. If you are going through a financial crisis, then mention it in the hardship letter. If your wages have been reduced, you may furnish your recent pay stubs along with the letter. This will help the lender know your financial situation and depending upon that, he would consider your request. Check out the link to the hardship letter which Adonis has given in his post. This may help you in drafting the letter. Apart from this, the lender will give you some documents to fill out. Fill them out and submit it to the lender on time.
As Adonis has said, it's not essential to be delinquent on your mortgage dues in order to modify the loan. You may keep on paying your dues while you apply for the modification. If your lender suggests you to stop the payments in order to get modification, then you may go ahead with it. However, in case, if your modification does not goes through, then you will have to pay off the dues immediately. If you cannot pay the dues, the lender may foreclose the property.
Take care.
I wouldn't stop making payments even if your bank suggests it (its horrible they even do this by the way). If you stop making your payments and are declined for a loan modification, then your bank is free and clear to start the foreclosure process as soon as you are denied a modification.
As Adonis has said, it's not essential to be delinquent on your mortgage dues in order to modify the loan. You may keep on paying your dues while you apply for the modification. If your lender suggests you to stop the payments in order to get modification, then you may go ahead with it. However, in case, if your modification does not goes through, then you will have to pay off the dues immediately. If you cannot pay the dues, the lender may foreclose the property.
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Shelly
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Shelly
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I am currently talking to a Loan Modification firm of lawyers. They tell me I don't have to make my mortgage payments anymore. Their fee is $1,500.00. So in order to pay them the first $500.00 I will have to send them my mortgage payment to get started on my Loan Modification, & then they work out a monthly plan to pay the other $500.00 in one month & then the other remaining $500.00 the next month. I have always being on time with my payments & never late, but now my husbands has had 2 major strokes & can not work anymore & I have been laid off from my job & have not found any work as of the present time (I have been out of work for a year). I have, also, had a bad car accident which I broke my neck & 5 vertbrates in my spine. We have a lot of hardship problems in our life right now!! Should I just not make my September 1, 2010 mortgage of $970.00 & send it to the Loan Modification Company/lawyers so they can get started on the LM? They said do not accept any calls from my current mortgage lender (U.S. Bank Mortgage Company). Is this what I should do? Otherwise, we DO NOT have any money to send the LM Co. tfor them to get started on our LM. PLEASE, PLEASE, PLEASE will someone e-mail me back with some answers. I have prayed about this at great length, but I need to hear from someone who is going to be honest with me on what I should do. Thank you & Blessings...Pat Mears
****Again, PLEASE, let me hear from you**** I will be so gratitude & thankful for your expert advice!!!!!! :)
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****Again, PLEASE, let me hear from you**** I will be so gratitude & thankful for your expert advice!!!!!! :)
[Email address deleted as per forum rules. Thanks.]
Hi Pat!
Welcome to forums!
I don't think it is a good option to go with the loan modification company. It has been found that in most of the cases, the loan modification companies turn out to be scams. Rather, it would be better if you could contact your lender and apply for mortgage modification. You won't have to pay any upfront fee in this case.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
I don't think it is a good option to go with the loan modification company. It has been found that in most of the cases, the loan modification companies turn out to be scams. Rather, it would be better if you could contact your lender and apply for mortgage modification. You won't have to pay any upfront fee in this case.
Feel free to ask if you've further queries.
Sussane
my daughter is living in mass going through a company @ lawyer in fla to modify mortgage in mass what is this she recieved paperwork to fill out