Loan Modification Forum - LoanSafe.org - View Single Post

tandknix · 12-08-2008, 12:01 PM

As several others have done, I have contacted NACA to get an update and got the same generic email:

"Our HomeSave Negotiators are working to get your interest rate and/or principal reduced to achieve an affordable payment. While we have been successful for thousands of at-risk homeowners, we are encountering roadblocks with some servicers and investors. They are overwhelmed and some need to be pushed including going to the CEO's personal residences . Since this is personal to you, we need to make it personal to them. We anticipate achieving successful outcomes for the tens of thousands of at-risk homeowners NACA is currently working with.

During the month of December our HomeSave Negotiators will continue to actively work your file. NACA negotiators are dedicated to particular servicers to advocate for your long-term affordable solution. Your local Mortgage Consultant is not involved in these negotiations. In order for us to focus on these files, please do not contact us until the beginning of January. We appreciate your patience and understanding as we advocate on your behalf."

I have been anxiously waiting for my December 1 letter that we have been told we would be getting. So far, no letter. HOWEVER...we did get loan modification papers today. I want to ask your opinions on this please. It SEEMS like a good deal.

If you will remember our original loan was 10.45% ARM after 2 years. Payments are approximately $1550.00 per month. With the economy, DH was forced to take a lower paying job. We can't afford this. Loan mod papers today state:

"The enclosed modification will reduce your interest rate to 6.75%, which will result in a new payment amount of $993.96. This rate will be fixed for a period of five years. At the end of this five-year period, your interest rate will be the higher of 10.45% or the then-current market rate for a 30-year fixed rate Fannie Mae loan. This new rate will be fixed for the remainder of your loan."

Am I reading it right? After 5 years if the Fannie Mae current rate is 12% we will get a 12% rate? Also, after 5 years do we start over with the 30 years or is this 5 years a part of the 30 years?

We have to have this back by December 31 so we have time to think about it. I really want to hear back from NACA. I would much rather have a 6.75% fixed rate for the whole 30 years!

12-08-2008, 12:01 PM	#58 (permalink)
tandknix Senior Member Join Date: Aug 2008 Location: Texas Posts: 204 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Update As several others have done, I have contacted NACA to get an update and got the same generic email: "Our HomeSave Negotiators are working to get your interest rate and/or principal reduced to achieve an affordable payment. While we have been successful for thousands of at-risk homeowners, we are encountering roadblocks with some servicers and investors. They are overwhelmed and some need to be pushed including going to the CEO's personal residences . Since this is personal to you, we need to make it personal to them. We anticipate achieving successful outcomes for the tens of thousands of at-risk homeowners NACA is currently working with. During the month of December our HomeSave Negotiators will continue to actively work your file. NACA negotiators are dedicated to particular servicers to advocate for your long-term affordable solution. Your local Mortgage Consultant is not involved in these negotiations. In order for us to focus on these files, please do not contact us until the beginning of January. We appreciate your patience and understanding as we advocate on your behalf." I have been anxiously waiting for my December 1 letter that we have been told we would be getting. So far, no letter. HOWEVER...we did get loan modification papers today. I want to ask your opinions on this please. It SEEMS like a good deal. If you will remember our original loan was 10.45% ARM after 2 years. Payments are approximately $1550.00 per month. With the economy, DH was forced to take a lower paying job. We can't afford this. Loan mod papers today state: "The enclosed modification will reduce your interest rate to 6.75%, which will result in a new payment amount of $993.96. This rate will be fixed for a period of five years. At the end of this five-year period, your interest rate will be the higher of 10.45% or the then-current market rate for a 30-year fixed rate Fannie Mae loan. This new rate will be fixed for the remainder of your loan." Am I reading it right? After 5 years if the Fannie Mae current rate is 12% we will get a 12% rate? Also, after 5 years do we start over with the 30 years or is this 5 years a part of the 30 years? We have to have this back by December 31 so we have time to think about it. I really want to hear back from NACA. I would much rather have a 6.75% fixed rate for the whole 30 years!