By: latitia bird

latitia bird — Sun, 11 Sep 2011 20:24:04 +0000

My loan modification was a standard refininance done in 2005 with a 6.375 fixed rate. After a two year battle (dropped calls, incorrect date, dismissed case for no reason, wrong phone numbers, you name it…..) I received a modification which stretched the loan to 40 years and reduced the rate that I pay. The problem? After five years the rate goes from 2 to 3. Year six, 3 to 4, Year seven 3 to 5 and the remaining years are at 5 % fixed. My hardship letter and income statement clearly spelled out that a quarter of my income for the first five years is alimony that will cease at year five! Also, the original note’s interest is still going to accrue throughout the life of the loan, leaving a balloon of $90,000.00 and I had to pay $7,000 to have this done! At issue is the fact that at the beginning of my marriage in 9/2005, I became disabled. I am now permanently disabled and unable to produce any extra income. The 31 % threshold will be far surpassed by year 8, plus taxes and homeowners are now escrowed and sure to increase. Is this legal? Is seems as if this is nothing more than a surefire way to foreclose after five years! I now I sh0uld not have accepted this loan, but after paying a reduced payment, I was also recieving notices to accelerate and owed over $2,000.00 I also was going through what became a nasty divorce, declaring Chapter 13 bankruptcy and trying not to have a Nervous Breakdown! My credit score was in the middle 700′s when I married. Now I am afraid to look, I just now it is really bad. The worst part is the liabilities were not mine, but I was trying to be nice and accepted 90%! One year into the divorce and the alimony has stopped. He is not working. I am going to food banks and can not even pay for gas to go to the doctor, let alone pay for the doctor. In essence, I think I am SOL. Any suggestions? Anyone? signed, clinging to a sinking ship in Sarasota, Florida

By: Tina

Tina — Thu, 28 Oct 2010 19:38:06 +0000

I have been trying to get a loan modification for almost 4 mths. for my 2 homes. I finally just been notified that one of the homes got re-modified and still waiting for info on the other one if that one will go through. I was very lucky and its just a waiting game and i was lucky it worked for me. Saving almost 200.00 a month.

By: jean

jean — Sun, 24 Oct 2010 03:52:18 +0000

This is typical -we all go thru the same long dry waiting. Later we are told not approved.

Comments on: Is It Illegal if My Bank Won’t do a Loan Modification?

By: latitia bird

By: Tina

By: jean