Loan Modification Forum - LoanSafe.org - View Single Post - Is there still no one with a modification offer on the dec. 1???

sandyh · 01-11-2009, 12:00 PM

Seren - is your interest tied to libor and resets each month? If so, that is probably the reason you just see the min payment since libor has gone down. If your min payment is higher than the interest only, then normally you would only have the min only option. That would also explain why your principal is not going up since the neg amortization is not occuring.

This is what is happening to our loan currently, and I am concerned that might be the reason we will be denied. Our interest for Jan was 3.5%, and then for Feb it will be even lower. Our min payment stays the same as that was set with the payment change date, which occurs once every 12 months. We want out though and have a set fixed rate for a period of time - because you just can't depend on the adjustments. For Dec, our interest was 6% (again, min payment stayed the same but for that payment, the min did not cover the interest payment so rev neg occured).
Hope that helps.

01-11-2009, 12:00 PM	#8 (permalink)
sandyh Senior Member Join Date: Dec 2008 Posts: 85 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Is there still no one with a modification offer on the dec. 1??? Seren - is your interest tied to libor and resets each month? If so, that is probably the reason you just see the min payment since libor has gone down. If your min payment is higher than the interest only, then normally you would only have the min only option. That would also explain why your principal is not going up since the neg amortization is not occuring. This is what is happening to our loan currently, and I am concerned that might be the reason we will be denied. Our interest for Jan was 3.5%, and then for Feb it will be even lower. Our min payment stays the same as that was set with the payment change date, which occurs once every 12 months. We want out though and have a set fixed rate for a period of time - because you just can't depend on the adjustments. For Dec, our interest was 6% (again, min payment stayed the same but for that payment, the min did not cover the interest payment so rev neg occured). Hope that helps.