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Home Modify is it real

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I have talked to several people,these people have been on different forms of mortgage modifications.Some were on a trial payment plan.They paid as agreed and still faced foreclosure,law suites were filled in 2008 about the big banks using illegal methods to capture peoples houses.

 

What has people experienced,has any of them worked out?:glare:

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I know of people who have "modified" their mortgages and still lost their homes. Why prolong the agony, waste all that money and still have to move?? READ THE FINE PRINT, AKA THE MICE TYPE. Make sure you understand it 100%.

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Loan modifications seem pretty tricky. There are a lot of hoops to jump through, and any misstep can cause the whole process to be thrown out by the bank.

 

Personally, if I was in a position where I was significantly behind in my mortgage or found my self without any equity in my home (or even upside down), I would seriously consider letting the home go. People really need to look long and hard at whether getting their mortgage current and keeping it current is something they think they can legitimately manage over a long period of time. If it just isn't going to happen, why not bank what you would send to the mortgage company, let the house go into foreclosure, use the savings for a down payment on a rental or apartment, and even possibly file a Chapter 7. You'd be out from underneath an obligation that you simply can't meet with the potential for a truly fresh start.

 

In a previous life, I worked for a small law firm that handled bankruptcies. I would say that 8 out of 10 people that we put into a bankruptcy were individuals that had simply been thrown a curve ball by life that they weren't prepared to handle, such as lost jobs, medical situations or spouses disappearing (injuries and illness being the most prevalent). There is no shame (in my opinion) in realizing when, for whatever reason, its just not going to work. Take the legal remedies that are available and restart your life.

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Some Mortgage Comapnies will do a Cash For Keys, deal. Most of the time, it will take about 3 to 4 months for the mortgage company to go thru the whole process, (from the last house payment to the actual court ordered move out date) to get you out of the house. In that time, the money they will have lost is typically 3 or 4 months house payment and the repairs that will have to be made (when the house is destroyed) and the court costs. Some homeowners will trash and/or destroy a house when they are forced out of their homes. Cash for Keys, is easier and it's a Win-Win for everyone. The mortgage company will give you a move out day, you leave the house in a broom swept condition, meaning you don't have to deep clean, just sweep and vacuum, wipe down the counters and so on. They will come out on an agreed upon date, they will inspect and will cut you a check on the predetermined amount. Probably about a weeks time, you'd have the check in the mail. (I hope I put that into easy to understand words) :pardon:

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It's a PITA. I'm trying to do one and it's much worse than getting the original mortgage. I don't want to let the house go because it will destroy the good credit rating I've worked so hard to establish over the past 10 years. All I want is for my payments to be more affordable with a lower interest rate. I tried a re-finance but that didn't work because I owe so much more that what the house appraised for. My ex talked me into refinancing -- twice -- and not I'm in a big mess and he's nowhere to be found.

 

I'm doing the modification through my mortgage company, so we'll see how it goes.

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Any transaction involving detailed information can be tedious and painful, however, I know people who stuck to the letter of the modification, faxed hundreds of pages to the mortgage company (usually because the bank misplaced it) and told the complete truth in the process. One guy had his loan extended, interest lowered, and part of his payment deferred, his mortgage is $230 now. I realize when you are struggling financially it can seem overwhelming, but stick to it and follow through, the banks don't really want your house, they want your money, keep plugging away folks, and good luck to anyone who is in this process now. It can work, hang in there.yahoo.gif

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I tried a home mortgage modification back in 2009. The process was extremely complicated and it seemed that the mortgage company just did not wish to work with me on anything reasonable for both of us.

 

I ended up just doing a short sale and getting out from under the house. I then just rented a house for 2 years then bought a much bigger house then I previously owned for almost half of what I was previously paying.

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We did not do a modification, but we did refinance using the HARP program. It was a long process, but worth it in the end. Our payment went up a little bit, but we did go from owing 23 more years on our mortgage to only owing 15 years. We also went from a 5.75% interest rate to 3.125% rate.

Edited by tatertot

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Any transaction involving detailed information can be tedious and painful, however, I know people who stuck to the letter of the modification, faxed hundreds of pages to the mortgage company (usually because the bank misplaced it) and told the complete truth in the process. One guy had his loan extended, interest lowered, and part of his payment deferred, his mortgage is $230 now. I realize when you are struggling financially it can seem overwhelming, but stick to it and follow through, the banks don't really want your house, they want your money, keep plugging away folks, and good luck to anyone who is in this process now. It can work, hang in there.yahoo.gif

Good advice. I got my MIL's modified 3 years ago. It was a pain, but it was worth it.

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it worked for us after we lost our business. it took 22 lonnnnggggg months and a zillion things sent in but in the end we saved our home and our payment was lowered by $300.

 

my best advice is to meet every deadline and send in everything they ask for. and just be patient.

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We did it and got it and payment went down a lot. It was a pain faxing all paperwork several times, and it took a few months. But we paid the trial period and now we are doing much better. So for most, id stay stick it out, you will be stressed but hopefully will work out in the end.I love my house and really wanted to stay here and in this school district

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We did not do a modification, but we did refinance using the HARP program. It was a long process, but worth it in the end. Our payment went up a little bit, but we did go from owing 23 more years on our mortgage to only owing 15 years. We also went from a 5.75% interest rate to 3.125% rate.

 

We did the same, went from 17 years to 15 years, 2.78% almost 1/2 what we had before.

 

'course, now I'm gonna owe $$$$ in taxes because my mortgage deduction is half what it was.

 

Oh well...

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I agree lots of paperwork and time, but worth it. My situation (loss of job), my lender has modified my payment by $507 a month. Once I find a job, they will complete a final modification based on my income. Not easy finding a job right now much less than a job with the salary I was making.

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