Anyone had any success with Mortgage or HELOC loan modifications?

[shrinkingvioletssad]

Now that the mortgage world has turned upside down, I was thinking of starting a thread about folks getting their mortgages modified. Please share any experiences or advice here. Thank you, and I hope success for everyone in this painful situation

[2ndTimeAround]

vederveder

You have good intentions about starting up a post about modifications. But you need to realize every modification is different. People have different lenders, different interest rates, more or less equity in the home, and possibly late on payments or in foreclosure. A modification is for people experiencing hardships due to the terms of their loan.

I spoke to a person earlier this week, he had a fixed 5.375% fixed rated who wanted me to work on a modification for him.

I told him - would not benefit him and to stay where I was at. He told me it was becoming harder each month to make his payments, I said you need to get another job.

One problem I am seeing a lot - people refinanced a few years ago into stated income loans. That were fixed for a few years, now they are starting to adjust.

They cannot qualify for any type of financing or modification - because they are not making enough money, to prove the ability to pay the loan back.

One file right now - have an elderly lady with a with a great credit score, owns three family rental property. Problem is she is on a fixed income collecting social security, and her renters section 8 tenants. It's a mess because she does not show enough money to support her loan.

Another topic concerning modification companies. Yesterday I had a loan officer friend in Ohio, contact me after his company where he was placing his mods stopped taking credit cards. Found out this is another way banking law officials are cracking down on here-today, gone-tomorrow mod companies - by monitoring excessive credit card transactions.

Three weeks ago was contacted by client, that I did his refinance a few years before. He had a medical hardship (Kidneys replaced, rejection, and replaced again). After 20 months of not paying Indymac, received notice his house was going to be sold on Oct 15th. Started his modification - within three days Indymac agreed to reinstate his loan, but they wanted him to pay $3000 upfront to stop the sale.

He gave us $2500 upfront to work on his modification, he didn't have any money to save his home. My manager discussed with me, we in the business help people keep their homes, and agreed to refund his money so he could stop the sale.

Before you work with any modification company, you need to find out what they can do for you. Ask what is their process in completing a modification. Also ask who will be doing the negotiating of your mortgage. Plus will they be in contact with you. Will they keep your updated?

If you are working with a modification now and have questions regarding a modification. Post them here or PM me. Due to the rules of this forum, prevents me from posting my company name and telephone number....