Refinance vs Loan Modification

[kalifornia10]

I came here asking for advise because I honestly don't l know what to do.

Before I signed the/a dotted line I wanted to make sure I was doing the right thing and "not" getting scammed!

My situation in BLACK & WHITE

1st mortgage - $198,000.00, 30 year fixed - 5.625% APR
2nd mortgage - $49,000.00 @ %7.99 APR

2 Acres, fenced, 1850 sq ft. 4 bedroom/3 baths, 2003 custom built spec home- blueprints and all.

Zillow Current estimates $239,000.

FYI... "Outnumbered" (MHA) was released by the US Treasury to help up to 7 to 9 million US homeowners stay in their homes. I am eligible for this mortgage relief, whether if it's a REFI or MOD I have yet to find out. I will let you all know the outcome!

P.S. I am special

edited to add the word "not"

 

[John McGuinness]

So, taxpayers should be resposible to keep you in your house at payments you can "afford"?
Just asking.

 

[Outnumbered]

So, taxpayers should be resposible to keep you in your house at payments you can "afford"?
Just asking.

Watch the attitude FAG!

 

[Outnumbered]

I came here asking for advise because I honestly don't l know what to do.

Before I signed the/a dotted line I wanted to make sure I was doing the right thing and getting scammed!

My situation in BLACK & WHITE

1st mortgage - $198,000.00, 30 year fixed - 5.625% APR
2nd mortgage - $49,000.00 @ %7.99 APR

2 Acres, fenced, 1850 sq ft. 4 bedroom/3 baths, 2003 custom built spec home- blueprints and all.

Zillow Current estimates $239,000.

FYI... "Outnumbered" (MHA) was released by the US Treasury to help up to 7 to 9 million US homeowners stay in their homes. I am eligible for this mortgage relief, whether if it's a REFI or MOD I have yet to find out. I will let you all know the outcome!

P.S. I am special

Well those numbers show you upside down so which is it?:hmm:hmm:hmm

Anyway, yes the program was designed to keep people in their homes as opposed to being foreclosed upon. If you have equity like you said in your original post, than you do not need a mod to avoid foreclosure. It only takes 7% equity to sell a home and walk away clean.

Point being, you don't need a loan mod to get out of this situation. However, if you want to take advantage of the program at the expense of other tax payers why not, right. Its FREE! You go special girl!:thumbsup

 

[kalifornia10]

So, taxpayers should be resposible to keep you in your house at payments you can "afford"?
Just asking.

I don't plan on my situation being permanent. Once business/economy pick up my hours and salary will be restored.

Who is MHA set up for than? People who could NEVER afford to have a mortgage in the first place?

Single, No dependents... trust me I pay my taxes!

Outnumberd, the name f*g is for you only and will only be for you... you started this hater. John's just trying to stir the pot

 

[Outnumbered]

I don't plan on my situation being permanent. Once business/economy pick up my hours and salary will be restored.

Who is MHA set up for than? People who could NEVER afford to have a mortgage in the first place?

Single, No dependents... trust me I pay my taxes!

Outnumberd, the name f*g is for you only and will only be for you... you started this hater. John's just trying to stir the pot

Who's the hater? I never once called you a name or attacked you personally. I just said I don't agree with doing a mod if you have equity. So you start spewing the hate and name calling and I'm the hater:blah: Classic! If you can't stand to hear an opposing opinion don't ask.

BTW, if you are upside down and may loose your house...do the mod. THAT is what they are for. Since your story has changed, I don't know if you have equity or not.

Best of luck to you!:champagne:

 

[kalifornia10]

Well those numbers show you upside down so which is it?:hmm:hmm:hmm

Anyway, yes the program was designed to keep people in their homes as opposed to being foreclosed upon. If you have equity like you said in your original post, than you do not need a mod to avoid foreclosure. It only takes 7% equity to sell a home and walk away clean.

Point being, you don't need a loan mod to get out of this situation. However, if you want to take advantage of the program at the expense of other tax payers why not, right. Its FREE! You go special girl!:thumbsup

From one TAX PAYER to ANOTHER... Thanks for the FREE advise Hot-stuff:champagne:

 

[kalifornia10]

Who's the hater? I never once called you a name or attacked you personally. I just said I don't agree with doing a mod if you have equity. So you start spewing the hate and name calling and I'm the hater:blah: Classic! If you can't stand to hear an opposing opinion don't ask.

BTW, if you are upside down and may loose your house...do the mod. THAT is what they are for. Since your story has changed, I don't know if you have equity or not.

Best of luck to you!:champagne:

'

Dude, spin it how you want but you came out with the holier-than-thou attitude!

My story has not changed. I never said I had equity. I said I wasn't UPSIDE DOWN, now I may be maxed out but that's that!

As of yet... I am not in jeopardy of losing my house, I am current on my payments and I have a little money in the bank. Hopefully my hours will be restored soon... if not I'll have to think about getting a second job. I will not lose my house.

Thanks again Toughguy for your FREE advise

 

[Ivan Dan]

If she has equity to refi, she has equity to sell. People seem to forget that part

You really think anyone with equity that is not a moron would let their house go back to the bank?

I know a great realtor! :skull

 

[Outnumbered]

Excuse me... If you go back a read what I posted before flapping your BIG mouth you'd see that I said my hours and salary were cut 20% which... = "Lost Income"... pfft imagine that!

AND how Dare you IMPLY that I am taking advantage of the system. Taking advantage of the system is for LOSERS!

I am a single woman with ONE income, MY income, I completely support my Father on ONE income, MY income. I bought my house in 2003 with ONE income, MY income, put 20% down. I have a 30 years fixed mortgage with a 5.625% APR, my FICO is 818 and I DONT have 20% equity in my home, I simply stated that I wasn't upside down.

FAG!

No spin and no hate started by me, the proof is in your nasty reply to my comment quoted above. You didn't hear what you wanted and you started the trash talk. Then you call me the hater!

Anyway, as DaGig would say...moving on. This is starting to bore me.

 

[DaveC]

Don't sell the house if you can make the payments still and things might get better in the future. Even with a modification

Selling it makes no sense

Houses are supposed to be long term. It shouldn't be sold except under duress

Besides the govt program was created to keep houses off the market. Prices cannot stabilize until people stop fire sales of houses.

Therefore it would be better to keep the house if she can afford it somehow

 

[Magic28]

...

 

[Nord]

I thought under Obama's plan, if you qualify, they have to re-work your loan? His plan is to help people that are barely getting by (not upside down). If you make the criteria and the govt qualifies you, citi has to re-work your loan with no fault in your court.
Sounds to me you could qualify for the Obama thing.

 

[TOBTEK]

I came here asking for advise because I honestly don't l know what to do.

Before I signed the/a dotted line I wanted to make sure I was doing the right thing and "not" getting scammed!

My situation in BLACK & WHITE

1st mortgage - $198,000.00, 30 year fixed - 5.625% APR
2nd mortgage - $49,000.00 @ %7.99 APR

2 Acres, fenced, 1850 sq ft. 4 bedroom/3 baths, 2003 custom built spec home- blueprints and all.

Zillow Current estimates $239,000.

FYI... "Outnumbered" (MHA) was released by the US Treasury to help up to 7 to 9 million US homeowners stay in their homes. I am eligible for this mortgage relief, whether if it's a REFI or MOD I have yet to find out. I will let you all know the outcome!

P.S. I am special

edited to add the word "not"

I didn't read every single post here ( not into the name calling,,,junk).... BUT I didn't see where anyone calculated your "blended rate"

IF YOUR AT...

$ 198k @ 5.625%
$ 49k @ 7.99%

you effectively have a 247,000 balance at 6.094%. By todays standards.."IF" you can get a refi closed with your loan to value situation, you could SMOKE that 6.094% !

"IF" you were able to get your rate down to 4.5% on that 247k, you would save apx $327.27 a month in interest.


LOAN MODIFICATIONS are wonderful for the some people ! people that have tried to refi, and cant for various reasons. Income, loan to value are to two main reasons. BUT everyone has to remember that mod's are not a long term solution! most are 5 year terms to help the homeowner through this rough patch. I just closed a mod where it was an EXTREME case. $998,000.00 mortgage that was 180ish days past due at 8% interest only. CW agreed to the first two years at 1% interest...NO deferment, 2.5% year 3 & 4 and yr 5 is at 4%....do the math on this one! INSANE! For all that are saying mod's are for only the people that are past due on your mortgage......NOT TRUE! Have closed MANY that were current, as ALL the clients other obligations.

IF you can refi into a FIXED loan product for the next 30years....thats the way to go IF you can. Rates are at all time lows right now. Anyone that can take advantage of theses rates SHOULD. They will not be around for ever.

If I can ever answer any questions for you.... my phone is always on. (760)638-3810 Toby

 

[Lavey29]

I came here asking for advise because I honestly don't l know what to do.

Before I signed the/a dotted line I wanted to make sure I was doing the right thing and "not" getting scammed!

My situation in BLACK & WHITE

1st mortgage - $198,000.00, 30 year fixed - 5.625% APR
2nd mortgage - $49,000.00 @ %7.99 APR

2 Acres, fenced, 1850 sq ft. 4 bedroom/3 baths, 2003 custom built spec home- blueprints and all.

Zillow Current estimates $239,000.

FYI... "Outnumbered" (MHA) was released by the US Treasury to help up to 7 to 9 million US homeowners stay in their homes. I am eligible for this mortgage relief, whether if it's a REFI or MOD I have yet to find out. I will let you all know the outcome!

P.S. I am special

edited to add the word "not"

I kind of have to agree with a few others in the thread. I do not see why you deserve a loan mod. By the numbers you posted, there is no equity in your house. You purchased as an investment for yourself and family and did not buy something that you could not afford at that time based on your income. Virtually everyone's income is less now then previoulsy due to a variety of factors such as employment, cost of living expenses, etc...I make more money then I did several years ago but have less in my account on the net income at the end of the month due to cost of living increases across the board, Does that mean I should get a free loan mod also? Not a chance, I have to deal with it and budget myself accordingly. If you are unable to maintain what you have based on your current income then it is time to sell and downsize to a more afforadable residence. If the Federal government is going to offer loan mods then it should be across the board to "everyone" not those that can't afford their payments or invested in something at a bad time. Thats why it is called an "investment". The only fair thing to do would be to give everyone across the nation a flat interest rate all the same and those that can make it do so and those that can't need to start over. I lowered my rate but had to pay quite a bit to do so. No free loan mod for me. I wish you good luck and hope that everything works out for you and your father but jsut feel that you do not deserve a free hand out more then me or anyone else with a mortgage payment.

 

[ROZ]

If she has equity to refi, she has equity to sell. People seem to forget that part

Not necessarily... Just because someone has 10% equity (as compared to basic neighborhood comps) in his or her home doesn't mean anyone is going to purchase it... I know that my old house comp'd at the higher end of the spectrum based on my improvements, and there ain't no way in hell anyone is going to buy that house at that price when a house down the street that needs a little work is selling for MUCH less. And that folks is why it's better to have the worst house in the neighborhood as compared to having one of the best.

As far as the whole bailout/ obama plan goes... Banks are getting money from the fed regardless. That means we're paying for it regardless. Fuck it and play the game. Do whatever you have to do to get ahead.

I have met a couple people who spent tens of thousands of dollars of their savings and retirement money trying to stay in their home. Money that took YEARS to save was gone in less than 3 years. I say save your retirement and savings and let your house go back to the bank(short or forclose). Rent and get into another house in a few years. It's likely housing will still be less, and you still have your retirement. That's if you didn't loose your ass in the market. Of course this doesn't apply to all situations. Just to those who seriously lost their ass and earn a lot less.

 

[Outnumbered]

Not necessarily... Just because someone has 10% equity (as compared to basic neighborhood comps) in his or her home doesn't mean anyone is going to purchase it... I know that my old house comp'd at the higher end of the spectrum based on my improvements, and there ain't no way in hell anyone is going to buy that house at that price when a house down the street that needs a little work is selling for MUCH less. And that folks is why it's better to have the worst house in the neighborhood as compared to having one of the best. ....

Roz, I've been in real estate for 20 years. Equity is equity. The house is worth what the market will bear--what someone is willing to pay for it. If the agent or appraiser does his job right they will consider the comps that have sold and the fixer listing down the street. In fact, banks now require that listings be included on appraisals. They did this back in the 90's too. There should not be two different values on a home (ie comps vs reality). Its worth what its worth, period. Problem is that when credit is loose things get stupid, crooked agents and appraisers push appraisals and CMA's, then you get told a stupid number like you did on your old house.

In todays lending environment, the lenders are making sure that the appraised value IS what it could/would sell for. No lender is pushing comps, appraisals, etc to make a loan work today. So if she says that XYZ bank said they can do a refi, they are not using inflated numbers. They know that they have to be real because the days of pumped up appraisals to make a loan work are gone for a while.

 

[ROZ]

If the agent or appraiser does his job right they will consider the comps that have sold and the fixer listing down the street.

True.

The house is worth what the market will bear--what someone is willing to pay for it.

But this is all that matters, and the difference could be having enough equity or not.


Also, my post is in general terms and was not intended to reflect this woman's situation. A situation that I guess we really no nothing about.

 

[Outnumbered]

True.



But this is all that matters, and the difference could be having enough equity or not.


Also, my post is in general terms and was not intended to reflect this woman's situation. A situation that I guess we really no nothing about.

Yes, agreed.

 

[angiebaby]

Well those numbers show you upside down so which is it?:hmm:hmm:hmm

Anyway, yes the program was designed to keep people in their homes as opposed to being foreclosed upon. If you have equity like you said in your original post, than you do not need a mod to avoid foreclosure. It only takes 7% equity to sell a home and walk away clean.

Point being, you don't need a loan mod to get out of this situation. However, if you want to take advantage of the program at the expense of other tax payers why not, right. Its FREE! You go special girl!:thumbsup

Just wondering why she should give real estate agents 7% of her equity? If she can get a lower rate, go for it! I'd rather see my tax money go to her than the guy that thought he could have a 700K house on 100K year income, then got a HELOC to buy his 100K boat, 75K sandrail and 50K weekend warrior. Then he's upside down and wants a bailout. That guy can go pound sand.

Good luck, girl.

 

[Wendi]

Whoever tells anyone to STOP making their has payments is giving you some terribly bad advice. Why do you have to stop making your house payment to get a loan modification?? What is a loan modification? Has anyone seen a successful loan modification? I sure haven't. I deal with people everyday telling me "BUT MY BANK said to STOP MAKING MY HOUSE PAYMENT" and then they sold the loan to me where I get the job of foreclosing on them and moving them out of their home. Or selling the note back to them at a discount (which doesn't happen often), only the lower value homes in Ohio. If you can afford your payment the way you purchased it than make it. Everyone has lost tons of equity. I have but I tread on because I love my home. I can afford it. It sucks that I have no equity but oh well.

Oh and beware of the banks telling you they will help you do a loan mod and than three months down the road they sale your note to me....:skull

 

[C-2]

Whoever tells anyone to STOP making their has payments is giving you some terribly bad advice. Why do you have to stop making your house payment to get a loan modification??

I’ll disagree with you on that.
I got my loan modded and have helped several people get loan mods after they made late payments; have been under an NOD; and even had a Trustees Sale scheduled.

If you are not late and a loan mod company says they can get you a loan mod, it will be decent at best. Money well spent, but don’t expect your payment to drop from $3500 to $1500. Their loan mod will save you several hundred dollars and the loan mod company has earned their fee (!).

If you are late (either intentionally or you are truly late) and under an NOD or even dragging 6 months – you stand a good chance of getting a good loan mod. One that WILL drop your payment from $3500 to $1500.

IMO, the difference between a good loan mod and a decent loan mod is the level of risk you are willing to accept.

If you are trying to save credit, your loan mod will be marginal at best.

If your credit is already hurt, or you are willing to trash it and be foreclosed on, your loan mod will be significant.

The deal killer for me is the people who refuse to learn about their loans, their choices and options. “I don’t have time” – geez, it’s your house and roof over your family’s head – what can be more important than that?

Borrowers can get their own loan mods done for free, they just have to be diligent, assertive, and most importantly, informed.

 

[djunkie]

I???ll disagree with you on that.
I got my loan modded and have helped several people get loan mods after they made late payments; have been under an NOD; and even had a Trustees Sale scheduled.

If you are not late and a loan mod company says they can get you a loan mod, it will be decent at best. Money well spent, but don???t expect your payment to drop from $3500 to $1500. Their loan mod will save you several hundred dollars and the loan mod company has earned their fee (!).

If you are late (either intentionally or you are truly late) and under an NOD or even dragging 6 months ??? you stand a good chance of getting a good loan mod. One that WILL drop your payment from $3500 to $1500.

IMO, the difference between a good loan mod and a decent loan mod is the level of risk you are willing to accept.

If you are trying to save credit, your loan mod will be marginal at best.

If your credit is already hurt, or you are willing to trash it and be foreclosed on, your loan mod will be significant.

The deal killer for me is the people who refuse to learn about their loans, their choices and options. ???I don???t have time??? ??? geez, it???s your house and roof over your family???s head ??? what can be more important than that?

Borrowers can get their own loan mods done for free, they just have to be diligent, assertive, and most importantly, informed.

Question for you. Lets just say someone starts making late payments and maybe even misses a few payments, can he be eligible for a mod even if he hasn't had a reduction in his income? I seem to be hearing about a lot of people doing this thinking they're gonna get "bailed out" yet they're income has not changed. May 10% drop at max.
________
Ford Thames 300E

 

[ROZ]

can he be eligible for a mod even if he hasn't had a reduction in his income? I seem to be hearing about a lot of people doing this thinking they're gonna get "bailed out" yet they're income has not changed. May 10% drop at max.

Kinda confused... No reduction or 10% drop in income? lol

There are a lot of people who say they're doing fine not wanting to disclose their financial situation. In some cases even a 10% drop in income may be the difference of making your bills on time if at all. There are a lot of people living paycheck to paycheck.

 

[djunkie]

Kinda confused... No reduction or 10% drop in income? lol

There are a lot of people who say they're doing fine not wanting to disclose their financial situation. In some cases even a 10% drop in income may be the difference of making your bills on time if at all. There are a lot of people living paycheck to paycheck.

Well I don't ask their actual income. I'm talking about people I work with. Most can afford their bills, they are just choosing to try and take advantage of whats going on in our gov. Their are quite a few of them. I know some make more then me yet have mortgages that are less than mine and I make mine just fine. I'm just curious as to what may happen to them.
________
Marijuana Strain Index

 

[Wmc]

I’ll disagree with you on that.
I got my loan modded and have helped several people get loan mods after they made late payments; have been under an NOD; and even had a Trustees Sale scheduled.

If you are not late and a loan mod company says they can get you a loan mod, it will be decent at best. Money well spent, but don’t expect your payment to drop from $3500 to $1500. Their loan mod will save you several hundred dollars and the loan mod company has earned their fee (!).

If you are late (either intentionally or you are truly late) and under an NOD or even dragging 6 months – you stand a good chance of getting a good loan mod. One that WILL drop your payment from $3500 to $1500.

IMO, the difference between a good loan mod and a decent loan mod is the level of risk you are willing to accept.

If you are trying to save credit, your loan mod will be marginal at best.


credit is already hurt, or you are willing to trash it and be foreclosed on, your loan mod will be significant.

The deal killer for me is the people who refuse to learn about their loans, their choices and options. “I don’t have time” – geez, it’s your house and roof over your family’s head – what can be more important than that?

Borrowers can get their own loan mods done for free, they just have to be diligent, assertive, and most importantly, informed.

I said that someone telloing you to stop making your house payment and they can do a loan mod is giving you some really bad advice. Loan mods are not always successful. I deal with people everyday telling me they were in the middle of doing a loan mod with their bank and that bank sold their loan to me and I won't mod them. People are beiing misled everyday. The success rate of loan mods is not high. Neither is the Hope for Homeowners program. If they haven't been making their payments well that is another story. But to tell someone stop making your payment and I will do a loan mod is WRONG IMO!!!! :thumbsdownThis is Wendi

 

[angiebaby]

Question for you. Lets just say someone starts making late payments and maybe even misses a few payments, can he be eligible for a mod even if he hasn't had a reduction in his income? I seem to be hearing about a lot of people doing this thinking they're gonna get "bailed out" yet they're income has not changed. May 10% drop at max.

My point exactly. That person's just looking for a load mod because he made a poor investment and is now upside down. So because paid 1/2 a million for a ticky-tacky track house, and now the house is only worth what it should have been in the first place, HE should get a bail-out. He's just pissed because he made a bad investment. The starter of this thread made a fair investment and had her income go down through no fault of her own. Some say she should give whatever little bit of equity she has to a real estate agent and go rent or buy something smaller, have to pack and deal with lookie lous coming into your house for months, dealing with escrow and hoping the buyers will qualify and all that headache. Oh! And then there are the "home inspectors" who expect you to bring your 15 year old house up to current code at your expense. All that mess to give a couple agents 15-20 grand.

Keep your house, and try for a refi or loan mod.

 

[ROZ]

I said that someone telloing you to stop making your house payment and they can do a loan mod is giving you some really bad advice. Loan mods are not always successful. I deal with people everyday telling me they were in the middle of doing a loan mod with their bank and that bank sold their loan to me and I won't mod them. People are beiing misled everyday. The success rate of loan mods is not high. Neither is the Hope for Homeowners program. If they haven't been making their payments well that is another story. But to tell someone stop making your payment and I will do a loan mod is WRONG IMO!!!! :thumbsdownThis is Wendi

What do you do? Do you yourself actually hold the paper to the home in hopes to sell it, or do you work for a corporation? You keep using "me", so I'm curious.

 

[djunkie]

My point exactly. That person's just looking for a load mod because he made a poor investment and is now upside down. So because paid 1/2 a million for a ticky-tacky track house, and now the house is only worth what it should have been in the first place, HE should get a bail-out. He's just pissed because he made a bad investment. The starter of this thread made a fair investment and had her income go down through no fault of her own. Some say she should give whatever little bit of equity she has to a real estate agent and go rent or buy something smaller, have to pack and deal with lookie lous coming into your house for months, dealing with escrow and hoping the buyers will qualify and all that headache. Oh! And then there are the "home inspectors" who expect you to bring your 15 year old house up to current code at your expense. All that mess to give a couple agents 15-20 grand.

Keep your house, and try for a refi or loan mod.

Hey I resemble that remark. :grumble:
________
Digital Vaporizer

 

[Outnumbered]

Just wondering why she should give real estate agents 7% of her equity? If she can get a lower rate, go for it! I'd rather see my tax money go to her than the guy that thought he could have a 700K house on 100K year income, then got a HELOC to buy his 100K boat, 75K sandrail and 50K weekend warrior. Then he's upside down and wants a bailout. That guy can go pound sand.

Good luck, girl.

1) I never said don't refi for a lower rate--if she can she should. Please don't twist my words.

2) I said if she cannot afford her home than she should sell it.

3) I said that if she has equity enough to sell or refi she should not do a loan mod and take advantage of a system that was designed to save people from foreclosure that have no other way out.

These are my opinions based on what I think is the right thing to do. Obviously some people do not agree. But she asked for advice and I chimed in, only to get flamed because it was not what she wanted to hear. Its OK though, I expected it. Like I said earlier, people today think that everyone owes them something. This is no surprise to me.

 

[Wendi]

What do you do? Do you yourself actually hold the paper to the home in hopes to sell it, or do you work for a corporation? You keep using "me", so I'm curious.

I work for a corporation that is very successful in the scratch and dent industry. But me personally liquidates these bad assets. I deal everyday with people who said they told me to stop making my payment to do a loan mod and then that particular bank sells my company the asset. So now they are 3 mos to 4 mos behind in payments. We don't do loan mods so they either need to reinstate the loan "full amount due" or we short sale, foreclosure, what ever to move them on so we can sell the property. Loan mods are tough and take time, so these people that were hoping for a loan mod are screwed because they can't get the money to reinstate with my company. Don't get me wrong we help them relocate. Give them money to help with moving expenses and rent it just depends on every case.

 

[ROZ]

I work for a corporation that is very successful in the scratch and dent industry. But me personally liquidates these bad assets. I deal everyday with people who said they told me to stop making my payment to do a loan mod and then that particular bank sells my company the asset. So now they are 3 mos to 4 mos behind in payments. We don't do loan mods so they either need to reinstate the loan "full amount due" or we short sale, foreclosure, what ever to move them on so we can sell the property. Loan mods are tough and take time, so these people that were hoping for a loan mod are screwed because they can't get the money to reinstate with my company. Don't get me wrong we help them relocate. Give them money to help with moving expenses and rent it just depends on every case.

So you work for an asset management company like Safeguard, Field Assets, or Cyprexx ?

 

[ROZ]

So now they are 3 mos to 4 mos behind in payments. We don't do loan mods so they either need to reinstate the loan "full amount due" or we short sale, foreclosure, what ever to move them on so we can sell the property. Loan mods are tough and take time, so these people that were hoping for a loan mod are screwed because they can't get the money to reinstate with my company.

Okay, here's my take on this. If someone truly can't afford to make the payments, they'll loose the property no matter what. If they can afford the payments but are playing chicken, they should have kept the money in holding incase bluff is called and need to reinstate.

Either someone can afford to live there or not. It's that simple.

You're not the only one who hears the stories. I've heard them, too. After hearing a story, most of the time it's pretty clear that they can't afford the home or have gone about working with a bank the wrong way.

 

[Wendi]

Okay, here's my take on this. If someone truly can't afford to make the payments, they'll loose the property no matter what. If they can afford the payments but are playing chicken, they should have kept the money in holding incase bluff is called and need to reinstate.

Either someone can afford to live there or not. It's that simple.

You're not the only one who hears the stories. I've heard them, too. After hearing a story, most of the time it's pretty clear that they can't afford the home or have gone about working with a bank the wrong way.

Ok that is a fair statement.

 

[angiebaby]

Hey I resemble that remark. :grumble:

LOL, your house is not a ticky tacky track house. They built them differently back when your house was built. It wasn't "throw it together as fast as you can as cheaply as you can, with as cheap of labor as you can," like it's been for the last 15 years here.

 

[angiebaby]

1) I never said don't refi for a lower rate--if she can she should. Please don't twist my words.

2) I said if she cannot afford her home than she should sell it.

3) I said that if she has equity enough to sell or refi she should not do a loan mod and take advantage of a system that was designed to save people from foreclosure that have no other way out.

These are my opinions based on what I think is the right thing to do. Obviously some people do not agree. But she asked for advice and I chimed in, only to get flamed because it was not what she wanted to hear. Its OK though, I expected it. Like I said earlier, people today think that everyone owes them something. This is no surprise to me.

And it doesn't sound like she has any equity, or at least very little. Your suggestion was that she sell it and give that small amount of equity away, with the loss of income, I suspect it would be very difficult for her to refi. I agree with you that she could sell and get a less expensive house, but then she'd be GIVING away 20 grand or so. I don't think I'd be willing to do that. I would try to get the bank to renegotiate the loan, if I could. She's the type of person the money is there for.

 

[Outnumbered]

I'll go with the unpopular opinion here. If you have 20% equity and cannot afford your house you NEED TO SELL THE HOUSE AND BUY SOMETHING YOU CAN AFFORD or REFI. Why should you get bailed out? Loan mods should be for people who bought in 2005-2006, lost income or job, lost all equity, CANNOT sell or refi, have no other way out.

Flame on but I say it is taking advantage of the system if you do a mod in your situation.

Wrong again...This is what I said...

 

[C-2]

I said that someone telloing you to stop making your house payment and they can do a loan mod is giving you some really bad advice. Loan mods are not always successful. I deal with people everyday telling me they were in the middle of doing a loan mod with their bank and that bank sold their loan to me and I won't mod them. People are beiing misled everyday. The success rate of loan mods is not high. Neither is the Hope for Homeowners program. If they haven't been making their payments well that is another story. But to tell someone stop making your payment and I will do a loan mod is WRONG IMO!!!! :thumbsdownThis is Wendi

Maybe we’re talking about different things. If a loan mod company told me to stop making payments, then I would be apprehensive.

If my bank told me to stop making payments, I would listen.
But as you know, that would be a breach of their Fiduciary duty as servicer. They simply say “we can’t help you because you’re not late”.

I’m sure borrowers, especially the disgruntled type who are not sophisticated enough to get a loan mod by themselves, sometimes embellish what they’re told in the process.

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So how is the scratch and dent biz these days? I imagine now that the six month lovefest with borrowers is over, your’re gonna be bangin’.:bowdown:

 

[C-2]

Okay, here's my take on this. If someone truly can't afford to make the payments, they'll loose the property no matter what. If they can afford the payments but are playing chicken, they should have kept the money in holding incase bluff is called and need to reinstate.

Either someone can afford to live there or not. It's that simple.
.

I agree too.

And it's the people on the brink, those who are dragging late pays, that will get a good mod. If they have income and are willing to stay, they're gonna get modded.