Loans, Debt & Credit - View Single Post - Early in the game but probably need loan mod from Homecomings/GMAC

martialgir · 01-13-2009, 08:18 AM

Professor,

Your suggestion was helpful and I decided to modify what I was going to ask for. I have an interested buyer on the land right now and we are talking about $175k. If I go to Homecomings and offer to pay down the $390k balance, out of the proceeds, to $360k and propose a modification with stepped up payments then I can afford to keep my home. I will be proposing 3% for the first year, 4% for the second, 5% for the third and then the note rate of 6.375 for the life and the loan would be amortized for 30 years. At this level I can afford my payments of around $1800 per month PITI.

Next the credit union would have to agree to settle for $100k instead of a full payoff of $160k. There is not enough equity in the house and land as it is for the credit union to get their money and if I don't sell the land their position is more fragile. I cannot sell the land without both mortgages being removed since they both encumber the property.

Furthermore, I have drafted letters to my four unsecured creditors, balances totally approx. $43k and offering to settle with them for 60% of the balances for a total of $25k among the 4 of them. If all parties do not accept, then I have no choice but to declare BK. I am in Virginia and I am not sure about deficiency balances but I will be looking into the best route if I cannot get consensus. After the commission is paid and delinquent taxes and closing costs are paid, there is only about $1000 left of the $175k.

If everyone agrees, then I will have a mortgage I can afford and a car and tractor loan left for approx. $800 per month total and no unsecured debt. According to the financials I have done, I would have approx. $200 per month left after these three debts based on my net pay.

What is your opinion regarding this plan? Also, do you have a mailing address for Homecomings where I can send a certified letter to the head of loss mitigation and/or a name? I am trying to paper trail all of this so I can take to a lawyer if I have to.

Thanks again.

The one piece of leverage I have is that the division plats are not recorded and I own them.

01-13-2009, 08:18 AM	#5 (permalink)
martialgir Senior Member Join Date: Dec 2008 Posts: 53 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Early in the game but probably need loan mod from Homecomings/GMAC Professor, Your suggestion was helpful and I decided to modify what I was going to ask for. I have an interested buyer on the land right now and we are talking about $175k. If I go to Homecomings and offer to pay down the $390k balance, out of the proceeds, to $360k and propose a modification with stepped up payments then I can afford to keep my home. I will be proposing 3% for the first year, 4% for the second, 5% for the third and then the note rate of 6.375 for the life and the loan would be amortized for 30 years. At this level I can afford my payments of around $1800 per month PITI. Next the credit union would have to agree to settle for $100k instead of a full payoff of $160k. There is not enough equity in the house and land as it is for the credit union to get their money and if I don't sell the land their position is more fragile. I cannot sell the land without both mortgages being removed since they both encumber the property. Furthermore, I have drafted letters to my four unsecured creditors, balances totally approx. $43k and offering to settle with them for 60% of the balances for a total of $25k among the 4 of them. If all parties do not accept, then I have no choice but to declare BK. I am in Virginia and I am not sure about deficiency balances but I will be looking into the best route if I cannot get consensus. After the commission is paid and delinquent taxes and closing costs are paid, there is only about $1000 left of the $175k. If everyone agrees, then I will have a mortgage I can afford and a car and tractor loan left for approx. $800 per month total and no unsecured debt. According to the financials I have done, I would have approx. $200 per month left after these three debts based on my net pay. What is your opinion regarding this plan? Also, do you have a mailing address for Homecomings where I can send a certified letter to the head of loss mitigation and/or a name? I am trying to paper trail all of this so I can take to a lawyer if I have to. Thanks again. The one piece of leverage I have is that the division plats are not recorded and I own them.