Between the Obama plan and the loan modification ads on TV, you’d assume that everyone who need a loan modification can get one. Is that your experience?
If you’ve tried to get a mortgage modification in the past three months, please share your experience with us. Were you offered a modification? What were the terms? Did it reduce the amount you owed? Were there conditions on qualifying? Did you have to pay money in the process?
If you were unsuccessful, what prevented a modification? Were you facing foreclosure? Did the foreclosure go forward anyway? Were you treated politely? Knowledgeably?
Please report your experiences as a comment to this blog.
Mortgage Mod? Hilarious! I have just spent about two weeks trying to get a mortgage mod on my home with no luck. I have a B of A loan with a $730K balance on a home now worth $460K (I just had it appraised). Not only was I denied, I was told that our debt to income ratio is too high! Well of course- that’s why I wanted a loan mod. We have had a steadily decrease in income the last few years and my husband cannot find a job! The worse part is the ONLY thing I asked for was a temporary rate reduction (we are currently at 6.375%) and that our adjustable mortgage be turned into a 30 year fixed (our mortgage will readjust in 4 years- not soon but I know it won’t be worth what we owe now so I won’t be able to refinance). I also told them we could start the 30 years now (we have been paying on the loan for 3 years to the tune of about $125K already). They “reviewed” our situation for a week and called us back and told us that they were denying us but if we wanted to work out a short sell they would be willing. WHAT?? If we short sell they will get AT MOST $460K for this house not including their carrying costs, realtor fees etc.. I DON’T GET IT!! We are willing to keep the house for what we owe on it (I did NOT ask for a principal reduction) and start over on our loan basically giving them $125K that we have paid and start the 30 years over! Who is making these decisions and the Obama administration is crazy if they think this is working. We are stupid for even wanting to keep the house but I am trying to not disrupt my 4 kids lives. I had heard the B of A was “hard” to deal with but stupid I wasn’t expecting…..
I began the modification process October 2008. My mortgage is with Wells Fargo. I later that month attended a foreclosure prevention workshop which had Wells Fargo representatives presenting as well as taking in applications. I was told by the WF representative (after logging in and reasearching my application) that the “investor” was ordering an appraisal on my property. Ater leaving the workshop I decided I needed help and obtained assistance with HUD’s representatives. HUD made a few phone calls to WF to find out that my application was denied by WF because “it was not in the investor’s best interest”. HUD told me to wait again about 30 days or so and we would try again. In the meantime, I contacted Wells Fargo and asked for a copy of the so called appraisal they supposedly ordered back in October 2008. I never received a reply nor a copy of said appraisal.
With the Obama stimulus package coming, I decided to wait about 60 days so the guidelines could come into play under the “home affordability program”. Well, through HUD we submitted again. Nothing happened for about 60 days or so then WF said my application was to old. HUD resubmitted AGAIN with new payroll/budget information and now it has been over a month and we finally received confirmation that our application was received. So, it is now July 2009 and I first started the process October 2008, nine months ago. I think HUD is even getting tired to trying with Wells Fargo. They tell me WF is the most difficult to work with and that they get no where with them. I am worried that if HUD is even giving up, who will assist with what I presume will be a denial, eventually when Wells gets to it.
PS- I forgot to add. The entire time I did get phone calls from Wells offering to “short sale” my home. I don’t get how they could be so on top of offering “short sales” but so far behind in even getting to my file for a modification. But as I told Wells, I will not make it easier for them to take my home away. I am not interested in a short sale just to make it “easy for them” to take my home away.
I have had similiar experience with Litton Loan. Since January 2009, I’ve faxed over my financials so many times, if i did not know any better I would give up. I called frequently only to be told they are waiting for approval. I was denied 2 times since then. The first time, they miscalculated my income, the second time they said I made too much. . . but I am still trying. After the 2nd denial, I lost my job, I sent the executive resolution team an e-mail letting them know and followed up with a call. After explaining to the rep that I lost my job and my husband is the only one working, she immediately said we will not be eligible. I then asked about HOPE and she said I will not be eligible for that program either. I am at the point where I am going to ask my congressman for help dealing with them.
They made me feel that there are no options to save my house. the rep went as far as telling me to borrow the money to pay off my loan (our house is worth $152, 000, we paid $325). I don’t believe the servicers and banks are really trying to help homeowners; they are looking for loopholes to deny modifications and there seems to be many. I am going to continue talking to them to see if they will budge otherwise I planned on filing bankruptcy. One other thing, they do not return calls! They are pro when it comes to ignoring home owners. These lenders/servicers do not feel obligated to help it’s voluntary and they chose not to help. That’s that!
I have read your stories. I have found some good and interesting comments, but I think if you have a good lawyer by your side the whole loan modification procedure can be a lot more simple and less costly.
Mortgage loan modification help
I just started the process in southern california and am starting a daily blog on my experience.
I hope it helps