Loan Modification

[strive4credit]

Whats the formula to insure your modification is approved?

I know there is a certain percentage to calculate to get approved.

How do you calculate it? And what percentage will raise a red flag?

[2ndTimeAround]

Whats the formula to insure your modification is approved?

I know there is a certain percentage to calculate to get approved.

How do you calculate it? And what percentage will raise a red flag?

Not enough information... Lender? Amount Owe? Value?

Understand every modification is different, you can not compare other people situations. They are different.

Your lender is a professional debt collector and will protect their interests first. Anything you say - can and will be used to determine being approved, getting a lower payment, or saving the home from foreclosure.

Modifications are for people with default is imminent situations. You have to show unless the Lender works with the homeowner to lower the payments. They are going to get the house back. If you interest rate is above 7%, there is a stronger chance your Lender might do something. If your interest rate is below 7% and on time. Your Lender is going to say your can afford your mortgage.

To be approved for a loan modification - two things.

1 - you have to be in a verifiable hardship.

2 - the mortgage payment has to be has to be more than 31% of your gross income.

Good Luck.........

[strive4credit]

The lender is a loan servicer (LBPS) 110k. Interest rate 7%

What's a verifiable hardship?

Income approx. 2600 pr/month, mortgage 920.

Edited September 15, 2010 by strive4credit

[2ndTimeAround]

The lender is a loan servicer (LBPS) 110k. Interest rate 7%

What's a verifiable hardship?

Income approx. 2600 pr/month, mortgage 920.

You will have an issue dealing with the servicing agent. Chances are you have tried to call them and they told you they don't do modifications? You need to deal directly with the Lender (investor).

Based on your income = a new payment around $806.00 That is the best you call hope for. Sicne you are at 7%, I have seen most mod's being modified into lower fixed interest rates for the life of the loan.

What is a hardship?

A hardship is like this - You are on a sinking ship with no life preservers. Unless something is done, you are going to go under. (Have told three different individuals this today...)

You have to show the bank unless they work with you, they are going to get your home.... Default is imminent.

..

[jonata]

After talking anonymously with WF re a refi of my 332K first, 44% LTV, Credit Score of 835 (FICO), No income, 200K cash, the loan person said no way they would refi through the WF 3 step program. She said the only real option would be a loan modification. I want to find out as much as possible about the procedure and what it means to my credit score and if there are other realistic options like HAMP.

Thanks,

Jonata

[jonata]

Forgot to say that current loan is 30 yr @ 5.5%. Also have a HELOC bal of 128K @ prime. With both loans LTV is 59%

J

[myhouse]

Good luck with loan mods. From what I've been seeing, lenders would rather foreclose than do a loan mod, no matter how "good" your numbers or your reasoning is.

[strive4credit]

I was denied modification. I think it's because I fudged the numbers apparently too much. They suggested I get into a debt consolidation agreement or file BK.

Does anybody know the magic number to get this done?

My monthly income is about $3000. What should my liabilities be?

[2ndTimeAround]

.......I was denied modification. ....

Last week I read a report from the Presidents office, confirming what I had all ready known. HAMP is failing and people are trying to work working with their Lenders to save their homes. Understand your Lender is the biggest debt collector out there. Anything you say can and will be used against you!

One major problem with the banks - home owners are trusting their Lenders. The Lenders are putting inexperienced personal working on the front line to work with homeowners. Last week read Chase is hiring college grads to work doing loan modifications. http://www.propublica.org/blog/item/want-to-earn-10-12-an-hour-be-a-foreclosure-department-supervisor

These kids are either renting or still living with mommy and daddy. Home owners dealing with people half the age - to save their home from foreclosure..... Ask them an easy question like... "How long do I have before paying principle on an interest only loan? I bet half on them would answer wrong.... .

Because of their lack of experience - like "robots" they are trained to qualify people for a HAMP modifications. Out of the millions of people that applied for HAMP mod, as of September 2010 only 468,000 have been approved.

A solution to this major problem why it takes so loan for a modification to be approved, without evening analyzing the loan, the new bank employees submit for a HAMP modification away. Months later it gets rejected for either being late on the mortgage, or greater then 125% LTV, etc. If the situation was analyzed by somebody who knew what they were doing. The homeowner would be able to work on other programs. Also saving on accumulating interest applied to the principle, making loans harder to afford. It doesn't take a Rocket engineer, or spending millions of dollars for research it understand this.....

--

Your say you owe $110k - the minimum amount of monthly income need to support the loan for a modification is $407.00 You make $3000 = equal a modified payment of $930 that you can afford. The valuation used is 31% of your Gross income.

If your monthly payment is below $930 per month, the mortgage is not the cause of of financial problems. If it is above - what are you showing to your Lender your are in a hardship?

..

[amortgageman]

One major problem with the banks - home owners are trusting their Lenders. The Lenders are putting inexperienced personal working on the front line to work with homeowners. Last week read Chase is hiring college grads to work doing loan modifications. http://www.propublica.org/blog/item/want-to-earn-10-12-an-hour-be-a-foreclosure-department-supervisor

These kids are either renting or still living with mommy and daddy. Home owners dealing with people half the age - to save their home from foreclosure..... Ask them an easy question like... "How long do I have before paying principle on an interest only loan? I bet half on them would answer wrong.... .

Because of their lack of experience - like "robots" they are trained to qualify people for a HAMP modifications. Out of the millions of people that applied for HAMP mod, as of September 2010 only 468,000 have been approved.

A solution to this major problem why it takes so loan for a modification to be approved, without evening analyzing the loan, the new bank employees submit for a HAMP modification away. Months later it gets rejected for either being late on the mortgage, or greater then 125% LTV, etc. If the situation was analyzed by somebody who knew what they were doing. The homeowner would be able to work on other programs. Also saving on accumulating interest applied to the principle, making loans harder to afford. It doesn't take a Rocket engineer, or spending millions of dollars for research it understand this.....

..

That has to be the quote of the week!

How about a flow chart showing all the industry's untrained help taht led to this mess. From the used car salesman that worked for Ameriquest, just because he could sell the fact that the payment would be lower and would save X dollars per month, by consolidating all their credit card debt, and car loans into their new mortgage.

To the appraisers who, if they wanted their business would make the appraisal number come in where it needed to be.

To the title insurance companies that were in such dire need of help, hired inexperienced staff that would place an x in the box for prepayment penalty for a VA loan.

To the closing agents that could only read the title of the page that the homeowner was signing and a brief description of what that paper had in it.

To the lender who would forward copies of the TIL, that should have known that an adjustable rate mortgage must be fully disclosed to the worst possible payment scenario to properly calculate APR within the .0125% required by law.

And since the refinancing and subprime boom has gone away, now the car salesman works selling cars again or running foreclosure resue scams.

The title company employees were laid off and went to work somewhere else.

The subprime lenders all closed down, and working somewhere else.......

Which leaves us in a situation where the growing area is loan servicing and loss prevention jobs being filled by inexperienced help who probably did not even know and still do not know what a mortgage is.

[2ndTimeAround]

......To the lender who would forward copies of the TIL, that should have known that an adjustable rate mortgage must be fully disclosed to the worst possible payment scenario to properly calculate APR within the .0125% required by law.......

One of coworkers was called to testify in court about MERS....

http://scholar.google.com/scholar_case?case=10251615121567378367&hl=en&as_sdt=2&as_vis=1&oi=scholarr

The case was why MERS didn't update their records indicating a second lieu being recorded on a property.

He pointed out the fact,

Prior to 2005, Truth In Lending page had the word "Fixed Rate" on adjustable loans.

He was told after the court - almost all the Loans in America had that mistake of the paperwork. If cases like that surfaced it would collapse the mortgage industry.

[amortgageman]

One of coworkers was called to testify in court about MERS....

http://scholar.google.com/scholar_case?case=10251615121567378367&hl=en&as_sdt=2&as_vis=1&oi=scholarr

The case was why MERS didn't update their records indicating a second lieu being recorded on a property.

He pointed out the fact,

Prior to 2005, Truth In Lending page had the word "Fixed Rate" on adjustable loans.

He was told after the court - almost all the Loans in America had that mistake of the paperwork. If cases like that surfaced it would collapse the mortgage industry.

If these errors are known, then I wonder why every lender, servicer, and owner of these notes would give any hesitation at all to loan modifications. After all, this gives them a chance to establish new paperwork, and make good paper going forward. What a wacked out mess!!!!

[skippy1960]

If these errors are known, then I wonder why every lender, servicer, and owner of these notes would give any hesitation at all to loan modifications. After all, this gives them a chance to establish new paperwork, and make good paper going forward. What a wacked out mess!!!!

Primary reason IMO- Not enough of them are getting called on the sloppy or unlawful paper work. You can bet if they began to loose in court in judicial foreclosure states and folks began walking away with homes, they would change their toon quickly. This is just in state court and non-judicial foreclosure states even worse no oversight at all, unless homeowner is proactive and has money for attorney.

Remember how big the fight was to not change the law that would have allowed BK judges to do cramm downs in the Federal system, that was a proposed soluiton at one time. The lenders and servicers knew once they had to go into Federal court with the shoddy paper work they would suffer.

I

[kimberly]

If you are struggling with high mortgage payments like so many of us you may be looking to get a loan modification. Following these 5 steps you can increase your chances of getting your loan modification approved and lowering your monthly payments.

1st Step - Research & Know Your Numbers

The first step to get approved for a loan modification is to do a bit of research. You need to make sure that you follow the guidelines and criteria to make sure you are given the loan. There are specific calculations your lender will do to determine if you qualify and it is critical that you know how to present your numbers. Spreadsheets(included in the kit) are available to guide you through this calculation ahead of time. You need to minimize the risk of your loan modification being delayed or denied by not having the proper documents prepared. Lenders are very busy and they love to see well prepared loan modifications with all the required information.

2nd Step - Your Hardship Letter is the most important thing! - But you cant overlook any single document

The second step to get approved for a loan modification is to convince your lender to give you the loan modification by showing how you have suffered or will suffer a financial hardship that needs a loan adjustment to be resolved. This is why you must provide a Hardship letter to let the lender know your circumstances without this a loan modification will not be accepted. This document is the most important part of the loan modification process, the kit provides exceptionally well written hardship letters that have been proven to have had success.

3rd Step - Speak to the right person the first time

The Final Step to get approved for a loan modification is to be patient and persistent. Use proper forms of communication and learn how to cut through the line and speak directly to the person that can help you. The complete loan modification kit includes tips on how to avoid the debt collection group and speak to the loan modification experts.

The Complete Loan Modification Kit will guide you through the entire process and provide Hardship Letter Templates, Complete EBook, Financial Calculations Spreadsheet and much more.

[katty72]

we are trying to get a mortgage loan modification but the application we received says under agreement and acknowledgements it says modification or short sale or deed in lieu. when i called them and asked they said that was their standard application and not to worry but i am not sure if we sign it , are we agreeing to a short sale and deed in lieu? i would appreciate any input or advice, thankyou