Loans, Debt & Credit - View Single Post - How Do You Negotiate an Interest Only / ARM Modification

BucketJoe2 · 10-27-2009, 05:10 PM

Hi Everyone, I was recently turned down for HAMP. They have different reasons depending on who I talk with, but I have started to inquire about what else might be available at this stage.

I missed 4 or 5 payments before I was pre-qualified for HAMP. I have an Int Only loan (no principle is being paid down) and it's set to adjust in 6 years. From what I can gather, I passed the NPV test (I live in Florida, so value has dropped) and I have a 70K 2nd owned by Citi as well. When I call the 866 number for LoanSafe I haven't been greeted with suggestions or alternatives. I was told today that there really isn't anything available for me if I was declined for HAMP.

What I can't figure out is how to ask for this modification? If the goal is to reduce the monthly payment, more than likely my payments will be higher. The only thing I can think of is to ask for a payment schedule similar to what was outlined in HAMP. Does anyone have a suggestion on how to approach a modification for an Interest only loan? Eventhough I need to obviously get the principle down, I am also very concerned about adjustable part of the loan as well.

Also, my credit is shot, so I can't do a refi..........

Any help would be greatly appreciated!

10-27-2009, 05:10 PM	#1 (permalink)
BucketJoe2 Member Join Date: Oct 2009 Posts: 13 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	How Do You Negotiate an Interest Only / ARM Modification Hi Everyone, I was recently turned down for HAMP. They have different reasons depending on who I talk with, but I have started to inquire about what else might be available at this stage. I missed 4 or 5 payments before I was pre-qualified for HAMP. I have an Int Only loan (no principle is being paid down) and it's set to adjust in 6 years. From what I can gather, I passed the NPV test (I live in Florida, so value has dropped) and I have a 70K 2nd owned by Citi as well. When I call the 866 number for LoanSafe I haven't been greeted with suggestions or alternatives. I was told today that there really isn't anything available for me if I was declined for HAMP. What I can't figure out is how to ask for this modification? If the goal is to reduce the monthly payment, more than likely my payments will be higher. The only thing I can think of is to ask for a payment schedule similar to what was outlined in HAMP. Does anyone have a suggestion on how to approach a modification for an Interest only loan? Eventhough I need to obviously get the principle down, I am also very concerned about adjustable part of the loan as well. Also, my credit is shot, so I can't do a refi.......... Any help would be greatly appreciated!