Loan Modification Programs: What Banks Aren’t Telling You 8781430-businesswoman-making-silence-gesture-girl-shushing Full view

Loan Modification Programs: What Banks Aren’t Telling You

So you’re searching for information on Loan Modification Programs and all you find are sites looking to sell you their services and/or non-profits with generic information on loan modifications and program requirements.

Well, you’re in luck, because today I am going to give you the truth about loan modification programs…and what you’ll discover in this article may shock you.  Read this article carefully before you go off and apply for a loan modification.

First of all,  let’s clear some of the biggest myths that exist out there in the industry right now.

1.  You do not need to pay for a loan modification.  You can do a loan modification on your own with your bank if you can speak mortgage terminology, are experienced with negotiations & can present your arguement like an investment consultant (this is not an exaggeration).

2.  You do not have to be current on your mortgage in order to qualify for a loan mod.  Bank representatives will often tell you that in order to be considered for a loan modification, you have to continue making your payments.  This is absolutely false and quite counter productive.

3.  Just because you qualify for MHA (HAMP) and/or 2MP does not mean the lender is going to give you a permanent mod.  Often times, homeowners will get “preapproved” for a mod, strung along for 3-12 months just to get nothing more then a temporary reduction in their payments, almost like a mini-ARM.  Did you know that in 2009, out of 1,032,837 MHA trial modifications, only 31,382 became permanent?

4.  MHA, HAMP, HAFA & 2MP are not the only programs available to homeowners, so just because you get rejected to these programs does NOT mean that you CANNOT get a modification.  There are what experts call “internal programs” that are basically private modifications made available by the investor (who owns your mortgage note) on a case by case basis.

So let’s briefly discuss the two major loan modification programs out there and their requirements:

MHA (Making Homes Affordable):  MHA is widely known as Obama’s Financial Stability Plan and is the birthplace for programs like HAFA (for Deed-In-Lieu & Short Sale Customers) & HAMP (for Loan Modification Customers).

HAMP (Home Affordable Modification Program) has the following blanket requirements:

1.  Home must be a primary residence

2.  Your mortgage note must be less than 730k

3.  You must be able to document financial distress

4.  You obtained the mortgage before 2009

5.  Your mortgage must exceed 31% of your gross monthly income

6.  The bank must participate in MHA

The reason why I say “blanket” requirements is because most homeowners do not bother to consider the fact that banks are flexible and open to negotiate terms as long as you know what presses their buttons.  For example, you can negotiate a loan modification for rental properties (non primary residences).

So don’t make the mistake of simply giving up on your loan mod just because you don’t qualify for MHA or HAMP and some customer service agent runs your numbers and tells you that you’re not qualified.  Just because you get rejected for these programs does not mean that you cannot obtain a loan modification.  We will get to this later when we discuss the mysterious “internal loan modification program.”

2MP (2nd Lien Loan Modification Program):  This program requires lenders who participate in HAMP to also offer modifications for 2nd loans.  Now don’t be fooled, this does not mean that lenders are required to offer you a permanent modification at desirable terms.  Rather, they are simply required to make the “offer,” which is a very big difference.  Here are the following blanket requirements for the 2MP Program:

1.  Same requirements for HAMP

2.  Can’t be subordinate to a 2nd lien, neither can the loan be a HELOC in 1st position

3.  Can’t be on a 2nd loan where no interest is charged and no payments are due until the first lien is paid in full

4.  The loan cannot be insured, guaranteed, or held by a Federal government agency (e.g. FHA, HUD, VA, and Rural Development).

5.  2012 is the current deadline

While this is a great opportunity to further reduce their payments (by modifying their 2nd loans as well), just because one is qualified for 2MP does not mean that a permanent modification will be given.

What most homeowners must understand is that lenders will do anything & everything to keep you from modifying your loan while keeping you current.  While they may be more then happy to offer you a trial modification, converting that trial mod into a permanent mod is a direct result of aggressive negotiations & understanding the banks alternatives in the event of foreclosure (aka their “hot buttons.”)  Before we go into this further, let’s talk about a 3rd and often overlooked program that most homeowners know nothing about.

The Mysterious “Internal” Program

So what is the mysterious “internal” program?  It is a privately negotiated loan modification where terms are approved or disapproved by the “investor” on a case by case basis.  Who is the investor you ask?  This could range from Freddie Mac, Fannie Mae to some other major lender that you don’t even bank with.

Internal programs are what you want to pursue in the event that you do not “qualify” for MHA/HAMP and/or 2MP.  You may be surprised at how many homeowners are initially rejected from these government-mandated programs.  This is most likely due to the fact that customer service agents will run your numbers in a way that causes there software (yes, literally) to reject your proposal for a loan mod.

Think about it.  Do you really believe that banks are that anxious to permanently lose money on your mortgage?  NO WAY.  Therefore, be wary when you are easily approved for a modification because most likely you may be getting strung along for a temporary modification and not the real thing.

So by now you might be asking, “what are the requirements for an internal modification program with my lender?”  Well, here are some general rules of thumb:

1.  Know exactly what you are doing.  Don’t waste your time trying to adjust your mortgage payments to 2% of your gross monthly income or something ridiculous like that.

2.  Understand foreclosure law as well as your states position on deficiency judgements before you aggressively negotiate your loan mod.  Before you negotiate terms, make sure you understand your alternatives as well as the banks because if you don’t, your lender could very well foreclose on you & pursue you for a deficiency judgement, causing you to lose your home as well as your sanity for the next 5-10 years.

3.  Be able to speak to your lender like an investment consultant.  Discuss the value of your home, what your property would sell for as an REO or at the auction and remind your bank about the cost of foreclosure or repossessing properties for the purpose of selling as an REO.  You need to be able to frame your proposition in the best light as possible, and you can do so by essentially “down playing” your bank’s alternative choices.

4.  Arrange your finances in a way that does not overestimate your income & underestimate your expenses.  Have a well written hardship letter, be organized and do not give the impression that you do not know what you are doing, since an experienced loss mitigator will smell a “newbie” from a mile away.

5.  If you aren’t capable of fulfilling the above requirements, pay someone else to do it.  With what money you ask?  Well, if you default on your payments for 3-6 months,you should have more then enough money to pay for decently-priced loan modification service.  Spending what you would usually pay on your mortgage to get your interest rate and payment amount reduced permanently is a great deal in my opinion.

“..Kevin, I want to talk to you about my property and my loan modification.  Do you recommend pursuing one on my own, using a HUD agency or a loan modification company?  I also want to find out whether I qualify for an internal program..”

This seems to be the question of the day.  Let me be clear.  I am a licensed Short Sale expert, not a loan modification consultant.  I personally am not a fan of homeowners doing modifications on their own or with a HUD agency unless they themselves are willing to prepare the package, present an arguement and aggressively negotiate with the lender until they reach a permanent modification with terms that are agreeable to both parties.  A homeowner should expect to easily spend a few hours a week for 3-12 months pursing a modification.

Your goal, when pursuing a loan modification, should be to quickly circumvent a trial modification and get yourself a permanent modification at the expense of the lender.  That is about the simplest way I can explain it.

My personal recommendation is to get expert consultation with a Loan Modification company with a large track record and stellar closing rate.  Talking to an expert will help you avoid wasting your time & energy taking the wrong approach with your bank.  There are about 4-6 major factors as well as 100+ secondary factors that affect your ability to obtain a successful loan mod.  So be smart, get advice.

 

So get yourself some help, get your loan modified and start saving money.  There are more programs available to you then you might think.  You (or your hired agent) simply need to dig deep enough to find them.

Kevin

Written by SSB

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28 Comments

  • can you recommend a reputable loan modification specialist to help in the Seattle or Bellevue area? Thanks.

    Reply
  • Great Article!

    I have found also that the banks many times would rather do a short sale than a loan modification because they make more money that way. What many people don’t know is that the FDIC working with the Treasury (and Fed) pick up deficiencies, sometimes to the extent that the bank actually makes a tidy profit on a short sale.

    I teach seminars on how to do short sales here in Naples, Florida and the people in the classes are always shocked to hear the truth.

    I also wrote a book on the subject and sell it on my site, http://www.shortsalesinsider.com/.

    Thanks for the excellent and well-written contribution.

    Reply
  • Kevin,
    Your article was well written and very informative. I’m sure anyone in the Seattle area wondering what to do will find all of their answers on your blog.

    Reply
  • While going foe loan modification program, one must seek the assistance loan mod specialist. This will help you a lot during loan modification process. Saves your money and reduce the risk factor. At the end thanks for the advice. Great Job done!

    Reply
  • My husband and myself were just denied a loan modification through Citibank. What a big joke the whole process was it took them over six months faxing and re faxing them information to tell us our home loan was not over what the house was worth. I can not beleive that it took that long when they could of looked at the price of the house first. Thank godness we were putting money away into saving and could get caught up and not have to do a quick sale as they wanted to do next. What a joke!!!

    Reply
  • PEOPLE, DONT BE FOOLED BY THIS PERSON, LOAN MODIFIATIONS CAN BE TOUGH TASK AND PROCESS BUT ITS ABSOLUTELY FREE OF CHARGE TO CUSTOMERS AND NO ONE IS SUPPOSED TO CHARGE MONEY FOR ASSISTING YOU I SUBMITTING YOUR DOCUMENTS AND APPLYING FOR LOAN MODIICATION. THERE ARE A LOT OF PEOPLE WHO SCAMS CUSTOMERS THAT BELIEVE IN SOME SPECIALIST WHO GUARANTEES LOAN MODIFICATION, IF YOU DONT QUALIFY PER TREASURY GUIDELINES THEN NO SPECIALIST, ATTORNEY WILL GET YOU APPROVED FOR IT, ITS SIMPLE AS THAT, YOU CAN READ ONLINE ABOUT SO MANY PEOPLE NOT WANTING TO DEAL WITH THEIR MORTGAGE COMPANY FOR SUCH AND SO REASONS AND HIRED ATTORNEYS OR SO CALLED LOAN MODIFICATION SPECIALISTS, OR SOMEONE ELSE CLAIMING THEY KNOW WHAT THEY ARE DOING AND WILL GET YOU APPROVED AND AT THE END ONLY HAVE TAKEN HUNDREDS AND/OR THOUSANDS OF MONEY AND STILL YOU HAVE GOTTEN DECLINED, AGAIN, MODIFICATION IS STRICTLY BASED ON WHAT TREASURE REQUIRES AND IF YOU DONT MEED THOSE GUIDELINES OR DONT QUALIFY FOR THE SPECIFIC REASON, PAYING MONEY TO SOMEONE TO DO IT FOR YOU WILL NOT GET YOU QUALIFIED, THERE IS A LAW SUIT AGAINST SO CALLED SPECIALIST-DO YOUR REASEARCH BEFORE YOU PAY MONEY TO SOMEONE,

    Reply
  • Hi Suzanne!!

    I think you are partially right. I personally have modified 2 loans on properties for my family and friends. However, it is difficult but not always up to just the treasury guidelines.

    Private investors can make/render decisions on their own regarding their own finances. I have also hade many friends be taken for thousands of dollars as well, with no money in the end. That said, I dont know of anyone willing to work for you for free.

    I disagree that you shouldnt hire a modification specialist. I simply believe that a good modification specialiest will be able to tell you the truth of the risk, the timeline and the costs.

    I have seen the results of hiring good people. So, in many ways I agree and in others I respectfully disagree. My dad used to say, “Son, you get what you pay for!”

    Have a good day!

    Reply
  • FAXING SAME DOCUMENTS-PEOPLE GET A LIFE, YOU ARE NOT SENDING SAME DOCUMENTS, THEY ARE SAME TO YOU BUT FOR YOUR BANK AND INVESTOR-THEY ARE UP TO DATE DOCUMENTS, YOU CANT TELL ME YOUR BANK ACCOUNT STATEMENT IS THE SAME FOR 3 MONTHS IN A ROW??? SO THATS WHY THIS DOCUMENT IS NEEDED TO BE SUBMITTED EVERY 30 DAYS, SINCE INFO ON IT CHANGES EVERY 30 DAYS, YOUR PAY STUBD-SAME THING, THATS WHY SO CALLED SAME INFO FOR YOU IS NEEDED TO BE SUBMITTED EVERY 30 DAYS, PHRASE USED IN THIS SITUATION, WILL BE-UP TO DATE BANK STATEMENT AND PAY INFO IS NEEDED-NOT SAME DOCUMENT…….AND ALSO DONT FORGET EVEN THOU BANKS MAKE MONEY ON YOU B/C THEY RUN YOU PAST DUE DURING THE PROCESS OF MODIFICATION WHICH CAN GO ANYWHERE BETWEEN 3-15MONTHS, ACCORDING TO TREASURY AND THIS IS VERIFIED AT EVERY APPROVAL-ALL THE LATE FEES ARE WAIVED THAT OCURED DURING THE TRIAL PERIOD TILL THE APPROVAL, ONLY FEE YOU END UP PAYING IS FOR A DRIVE BY AND THATS WRITTEN ON EVERY MORTGAGE NOTE IN USA SINCE THE DAY YOU BUY THE HOUSE AND SIGN THAT NOTE, DRIVE BY IS A REQUIREMENT FROM YOUR INVESTOR THAT SAYS” EVERY ACCOUNT TO BE PAST DUE 45 DAYS OR MORE, GETS A DRIVE BY TO MAKE SURE HOUSE IS OCCUPIED” AND IT IS YOUR RESPONSIBILITY TO PAY FOR THE DRIVE BY-YOU LIKE IT OR NOT, EVERY ONE IN USA SIGNS LOAN NOTES WITH THIS REQUIREMENT IN IT; MAKE SURE YOU CLEAR ON WHAT MORTGAGE COMPANY ACCUMULATES AS PAST DUE, YOU ARE IN MOD OR NOT, YOU HAVE TO PAY FOR 45 DAYS PAST DUE FEE FOR DRIVE BY, SO REALLY THE ONLY THING BANKS CHARGE YOU IS INTEREST THAT YOU CURRENTLY HAVE WHILE YOU ARE PAST DUE UNTIL YOU ARE APPROVED FOR THE NEW INTEREST RATE, WHICH BY THE WAY AT THE END ADD TO YOUR OVERALL MORTGAGE BALANCE AND THATS IT, -SO YES THIS IS WHERE THEY MAKE MONEY OFF OF YOU-YOU CAN SAY THAT, BUT AS FAR AS LATE FEES-THEY ARE TAKEN OFF AT THE TIME OF APPROVAL, MAYBE EVERYONE NEEDS TO LEARN HOW TO READ LOAN NOTE DOCUMENTS FIRST, BEFORE CLAIMING THEY GET CHARGED FEES FOR THINGS FROM THE BANK, …….AND TREASURY PAYS EACH MORTGAGE COMPANY FOR EVERY FINALIZED AND APPROVED MOD SO IT IS IN BANK’S INTENTIONS TO GET YOU IN AND OUT QUICKLY, WHY ITS TAKING LONG FOR SOME PEOPLE AND LESS FOR OTHERS???? WELL LETS SEE, IF YOU ARE UNEMPLOYED AND RECEIVING UNEMPLOYEMENT-YOU QUALIFY AND GET ON TRIAL, WELL UNTIL YOU GET AN ACTUAL JOB, WITH LESS OR SAME INCOME-MOD WILL NOT BE REVIEWED FOR APPROVAL-YOU ASK WJY? B/C BASED ON WHAT TREASURY HAS-EVERY MOD WILL BE APPROVED WITH FIXED AND DEFF INCOME-UNEMPLOYEMENT RUNS OUT SOON OR LATER-AND SO ONCE IT RUNS OUT YOU WILL BE BE BACK TO SQUARE ONE AND WHAT YOU GOING TO DO CALL AND APPLY FOR MOD AGAIN, B/C BEFORE YOU GOT MOD APPROVED WITH UNEMPLOYEMENT INCOME AND ALL THIS TIME YOU HAVE BEEN PAYING WITH NO PROBLEM BUT SINCE IT RAN OUT YOU ARE CALLING YOUR MORTGAGE COMPANY TO APPLY FOR MOD AGAIN B/C YOU HAVE NO MORE UNEMPLOYEMENT-RIGHT? WELL TREASURY DOESNT ALLOW THAT AND SO WHEN YOU HAVE FIXED INCOME THATS WHEN YOU CAN BE REVIEWED TO FINALIZED, INSTEAD OF APPROVING YOU ON UNEMPLOYEMENT AND THEN RUNNING IN TO THE SAME PROBLESM AS YOU WOULD SAY, WELL NOW I DONT HAVE MY UNMPLYMNT AND CANT PY FOR HOUSE-THEY WANT YOU TO PAY TRIAL PAYMENTS TO KEEP YOU OUT OF FORECLOSED AND GET YOUR ASS UP AND GO LOOK FOR A JOB, SO ONCE UNMPLYMNT STOPS, YOU HAVE A WORK TO START AND CAN PROVIDE SUFFICIENT INCOME……TO PEOPLE WHO GET DENIED MOSTLY-DONT EXPECT TO OWN A HOME WITH BALANCE OF 500,000.00 AND MAKE 1,000.00 INCOME PER MONTH AND BE APPROVED FOR MOD…..INCOME HAS TO BE SUFFICIENT IN COMPARE WITH YOUR MORTGAGE BALANCE, YES NO ONE IS SAYING YOU HAVE TO MAKE 10,000.00 PER MONTH, AND ITS UNDERSTANDABLE THAT YOU LOST YOUR JOB OR GOT REDUCED HOURS AND THATS OK IF YOU USED TO MAKE 10,000.00 AND NOW ITS ONLY 5,000.00, BUT ACCEPTING A JOB FOR 1,000.00 PER MONTH AND THINKING YOU WILL BE APPROVED FOR MOD WITH THAT INCOME AND THAT BALANCE OF YOUR DEBT, NO WAY THAT WILL HAPPEN AND EVEN TREASURY SAYS IT WILL NOT HAPPEN, YOU HAVE TO HAVE SUFFICIENT INCOME AMOUNT…..AND PEOPLE READ ON GOV BASED WEB SITES ABOUT DIFFERENT TYPES OF MODIFIATIONS BEFORE EVEN APPLYING, FIND OUT WHAT EXCATLY BANK WILL BE LOOKING FOR AND HOW, SINCE AGAIN ALL THAT COMES FROM TREASURY SO YOUR BANK HAS NO CONTROL OF ANYTHING IN THAT CASE, AND AGAIN EVERY BANK BENEFITS ONCE THEY CLOSE AND APPROVE YOU AS THEY CAN GET THEIR MONEY, AND DONT PAY ANY INDIVIDUALS WHO IS OFFERING YOU DEFINITE HELP AND SOLUTION AND RESULT, IF YOU HAVE GRADUATED HIGH SCHOOL-YOU WILL DO JUST FINE FILLING OUT THOSE FORMS AND SUBMITTING DOCUMENTS AS WELL AS SPEAKING WITH MORTGAGE COMPANIES, EVEN GOV WEB SITE ADDRESS USA CITIZENS NOT TO SEEK ASSISTANCE IN THIS PROCESS FROM PEOPLE WHO CHARGE MONEY FOR SOMETHING THEY “CAN” DO FOR YOU THAT YOU “CANT”…DONT FOOL YOURSELF…AND DONT LOOSE MONEY LIKE THAT….

    Reply
    • clarence Ross on

      very good. what company do you work for?

      Reply
    • teresa luttrull on

      I NEED HELP!!! I have made many attempts to get help with a Loan Mod after losing my job a month ago, while iv been looking for work I’m almost 3 months behind , I’m trying everything I can to save my house for my daughter an I , but everyone I talk to wants more money then I have. I need some good advice from someone tthat has experienced the same problem I’m having.
      Thank You, Teresa

      Reply
  • i can go in to details of how private investors work, and you are right they follow their own process and actually they just see where they win more-if they FC on you-will they make more money b/c of equity you currently have, or will they win if they modify your home?, so i agree, just like i can say about FHA or VA loans-they have somewhere their own process too, b/c they are originated somewhere and are considered part of treasury-they follow their rules, FNMA-Freddie are the biggest INV in USA who goes by treasury guidelines

    as far as paying someone to assist you in MOD-sorry but i will not agree with that ever-thats a straight up SCAM of money, if you are talking about getting more info on how it works and how to talk to banks and understand the process-just do your research-do you think or are you saying those “mortgage mod specialists” were born knowing how MOD works?—-NOOOOOOOOOOOOOOOO and so you werent, and i wasnt and million others werent, so all can be learned, its just matter if wanting to get in to something complex as MOD and actually spending some time on research-but when you compare of that work with the results you can get for you and your kids and family,which is saving your home-i think that time should be valuable to find to everyone and research should be conducted to get info needed to apply for MOD and work through the long process-but of course people in USA are lazy and even thou they are not working and seating on their ass all day long and have all the free time, they rather complain and complain without trying to find out whats realy going on and actually get it done, but keep demanding and demanding and complaining-well get on with your life, its your house and you need to think about saving it 1st and no one else, so just b/c people are lazy and dont want to do anything and want things for free, paying someone to do it-is stupid as it can be, as those “specialist” laugh at those who calls them and asks them for help with their MOD, they laugh as hard as they can and take that money and again dont do anything more than just sending a letter of authorization and then telling customer to bring in your pay stubs, bank statements, tax returns, hardship letter, workout package, and they just go ahead and sends that to banks and then once a month call the banks and checks if anything is needed-this is all you pay for to “specialists”

    Reply
    • Suzanna,

      It sure is obvious that you are passionate about making sure that people do not pay another person/company to represent them or to help them with a loan modification. To be clear, it seems that your reasons for passionately telling people to do their loan modifications on their own are that it is something that the homeowner can get all the needed information for on his own; and also because there are persons/companies out there that are scams. Is that about right?

      When your car breaks down do you go and research how to fix it and then do it yourself just because the information is free and you can: and/or is it because there are mechanics out there that are dishonest and run scams? Or do you realize that your personal talents most likely are not or have not been developed in the auto-mechanic fields; and/or that your personal time is more valuable to you spent doing something else? My guess is that you do your due diligence to make sure you are hiring a reputable mechanic to avoid possible scams and then you spend your time making money with your chosen skill set and talents that you in turn use to pay the mechanic. This way you maximize both your use of time, skills, and money as well as the mechanics.

      You probably do the same thing when it comes to eating or do you always make all your meals and never eat out? What about other legal issues you may face? Do you ever hire an attorney for anything or does it make more sense to you that because in this great country it is your legal right to represent yourself in a court of law that you pass on ever using an attorney ( an individual that has made it their life profession to become an expert in law). What about if you have an illness or disease? With rare exception, in our country, everyone has the right to learn medicine so maybe you make the decision that because there are some less than reputable doctors out there that could scam you than you should now become an MD so that you can treat yourself. What about real estate? You don’t legally need a real estate agent to buy and sell property either but people spend 3%-6% all day long to pay someone else to represent them on something as simple as buying or selling a single residential piece of property.

      The point I am trying to make is that just because you have the right and the ability to do something doesn’t mean it is in your best interest to do it. This holds true on many levels. Chances are it will take you a lot more time to do it on your own, going through the learning curve, than someone who all ready knows the process first hand like an expert. Also, chances are you will make many more mistakes doing it for yourself the first time than someone who does dozens of loan modifications each month. This absolutely does mean that you could be denied for a loan modification where an expert would have gotten approval.

      I agree with you that an individual that needs this service should put their home as first priority but to me that doesn’t mean they need to become a loan modification expert or even throw away hours and hours every week for months to do it themselves. The homeowner would be better off taking all those hours and using them in their chosen profession/skill set/talents to generate money to pay an expert or to fix their financial problems. However, as in all things that we decide to hire someone else to do, the homeowner needs to educate themselves enough to be able to properly do their due diligence before hiring anyone to represent themselves on something so important.

      I hope this perspective rings true to the readers despite my hasty and half-assed attempt at explaining it. This country is great because it is a country of community. A successful community is the result of having individuals that become experts in different subjects, fields, and disciplines that use their expertise for the benefit of the rest of the community. In this way, not everyone has to become an expert in everything.

      Rely on the experts out there to save you time, money and sanity; however, never blindly follow anyone or trust that someone is an expert just because they say they are. Learn enough to be able to tell the difference and than ask for referrals from your community to find out who the real experts are.

      Mike Crane

      Reply
  • I am wondering if you get denied for a home mod. and your payments were reduced for the past 8 months now the bank is saying we owe all that money over 6,000 how i am going to come up with that amount and i was having trouble paying 1400.

    Reply
  • MIKE……

    if you had read clearly and throughly you wouldnt have to write out what we need experts for and not, and what we can do ourselves and what not, simple as it can get is:
    1. no loan processor or specialist, will reduce the time of waiting for the final decision, approval and /or denial on your loan modification; due to high volume of account now days, and just the actual process, treasury has set time frames you like it or not, you are current or not and that is between 90-360 days if not longer;
    2. just b/c you hire someone in this specific case loan specialist doesnt guarantee that you will get APPROVED even thou they will tell you that from the beggining, decision comes solely from investor and treasury with certain accounts, not even the mortgage company, slightly when mortgage company can make a decision and that is only when they work on the so called Traditional Mod(in house program);

    when you hire a mechanic to fix your car and as you said research conducted by you is just to make sure he is reliable and knows what he is doing-you know your car will get fixed one way or another, at that body shop or another, (unless its not a totaled car that you are trying to fix); when you hire an attorney for anything, they tell you right about what will the result be-you like it or not but you hire him b/c have no other choice(unless you want to be locked up or whatever for longer than attorney can get for you); when you go out to eat-you go places well known for their good service and food-and with research conducted and words from the family and friends-you will get good service and food most likely; loan modificaiton specialist is not a career for anyone, its just people who have little knowledge in mortgage industry-started calling themselves loan MOD specialists; look around who are those specialists: some are real estate agents; some are short sale/FC agents; some are closing attorneys

    Reply
  • Mina, unfortunatelly, MOD sometimes gets people in more debt than they were originally in and i personally think, MOD is set up for failure in some cases and for some people, even thou it does help a lot of people in USA and has helped, it might not seem like that when u hear media but it is true that it has helped out many people

    Reply
  • Can you tell me that while waiting on the government paperwork for HAMP. We were approved by Wells Fargo. Can we put our home on the market for sale?

    Reply
    • Hi Tom,

      In regard to your inquiry, even if the property has been evaluated and approved for a HAMP modification, there is no constraint to having the home on the market.
      Hope this helps!

      SSB

      Reply
  • Wells fargo have aproved me for an mod twice.Dec.22,2010 they sent me a mod.I was to sign and send back.three months later Wells Fargo sends a email that they are now going to put me in a nother trail period.this would be my 6th time.I have completed on time everything wells fargo has asked me to do.how can they send me a contract then decide they don’t want to do the mod after 3 mobths.is this legal?????????????

    Reply
  • Wells fargo have appproved me for an mod twice.Dec.22,2010 they sent me a mod.I was to sign and send back.three months later Wells Fargo sends a email that they are now going to put me in a nother trial period.this would be my 6th time.I have completed on time everything wells fargo has asked me to do.how can they send me a contract then decide they don’t want to do the mod after 3 mobths.is this legal?????????????

    Reply
    • Kimberly,
      A trial modification is not an official contract. Therefore, there is not a legal binding until a permanent loan modification is accepted.

      You should know that a trial modification may differ from a permanent mod because of taxes, escrow, insurance, amount of the mortgage arrears, and etc. However, it shouldn’t be substantially different. For example, if you are paying 1,600 monthly on your trial, mortgages typically shouldn’t exceed 1,800 as the banks are trying to keep the borrowers payment within 32% of their debt to income ratios.
      Please consult with your attorney for any legal questions.
      Hope this helps!

      SSB

      Reply
  • Dear dear suzanne.!!!!!!! the frustration with faxing the same papers repeadly is more than justified if you receive 2 mediocre checks monthly from Social security. The amounts don’t change so I think the 47 copies of my check deposits for the last 4 months should be sufficient proof. But what do I know?? do you by chance work in the loan modification program, they seem to have that same irrational mindset that you display.

    Reply
  • I just refinanced last month prior to my knowledge of loan modification so I do not qualify for the loan modication according to my lender as my refinanced loan now originates in 2011 instead of 2009. I am retired and my mortgage payment exceeds my income. Are there any other mortgage default prevention programs available?

    Reply
  • Bobbie Warner on

    I have been trying to get a loan mod on my mortgage for 2.5yrs. It has
    been a nightmare. I originally hired a legal firm, as I felt that would be
    wise. NOT so much; aften 22 months, they went out of business
    and left me with the mess. The bank has been inconsistent, in the left
    hand not knowing what the right hand is doing. It is not as easy as you
    may think to get through the process. DO YOUR HOMEWORK and keep
    good records of everything that occurs.

    Reply
    • I agree Bobbie. Getting a permanent loan modification is rare and not easy to obtain. As Mike said it in the comments above, it is like repairing a broken part on your vehicle. It would be better for you to take it to a shop rather than spending days to do a job that can be done in hours with a mechanic.

      However, a legitimate car mechanic is difficult to find also. I am continuously looking for the best realtors, attorneys, and loan modification experts in my area knowing that the type of work needed is extremely difficult especially in the realm of short sales, foreclosures, BK, and loan modifications. I am sorry to hear of your experiences with the legal firm and I hope you find the right experts in your area. Feel free to email me at Peter@seattleshortsaleblog.com with any questions.

      Reply
  • I was over 6 months in the process of applying for a mod when my account manager at B of A went on vacation and his replacement didn’t postpone the sale of my house. He had assured me that it wouldn’t sell as long as I was in the mod process. They had all docs requested for months. B of A requested a recend of sale from Fannie Mae and were denied. B of A’s response was oh well. Nothing we can do.
    I provided everything they requested on time and this was the result.
    Any advise? Maybe an attorney and go after B of A?

    Reply

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