Loan Modification Forum - LoanSafe.org - View Single Post - Trying to modify for 7 months, not making any more payments!!

scottdog · 04-25-2009, 12:46 PM

The bailout slowed mods down, it would seem as if the bailout money went to help give out new loans and very little to help re-structure ones like most on these forums have. Imagine if Obamas original plans would have happened, 4% loan mods fixed for 30 years. For most of us that would have saved us hundreds(me being in at 7.5% arm). People would have more money to pay off other debt, do home improvements and just spend a little more freely. Another thing that I have found to be almost hilarious is that even though I am over 4 months now without payments, I have recieved recently a refinance offer from CW to fix my next adjusting rate and lock into low rates!! Who is in charge of this mess? I mean does the right hand know what the left hand is doing in this company?
So heres some numbers I have been looking at:
I owe $240000
My home is now worth 150-170000 maybe
worst case scenaro I've lost 90000 in equity
thats worth about 550 a month in a 30 year fixed at 5.5 just for that 90000
now the interest being paid on that loss of equity is 93000!
which that loss of 90000 in equity if I am willing to eat it would take almost 13 years before I am even knocking down much principal on!
So without ANY lenders doing pricipal reductions isnt it in our best interest to walk away?? Credit unions are giving FHA loans to buyers with foreclosure on their report after about 3 years of good management of other debt. SO if in 3 years I could possibly get another home loan with some money down, and be 10 years ahead of where I would have been if I accepted some crappy mod offer, and I would also be buying back in to a reasonable market price without all the false inflation. This is just what makes sense to me after spending so much time trying to fight to keep a home thats underwater. Now then my home would go empty and sit on the market until CW lists it at a fair price. I believe that by doing this, the market will eventually correct itself. The loss of equity in homes and land had to happen otherwise how will our kids be able to have their own someday? A $240000 house going up in value aprox. 8% a year for say 20 years would be well over a million! It all needs to correct itself otherwise homeownership will be a thing of the past.

04-25-2009, 12:46 PM	#3 (permalink)
scottdog Member Join Date: Jan 2009 Posts: 7 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Trying to modify for 7 months, not making any more payments!! The bailout slowed mods down, it would seem as if the bailout money went to help give out new loans and very little to help re-structure ones like most on these forums have. Imagine if Obamas original plans would have happened, 4% loan mods fixed for 30 years. For most of us that would have saved us hundreds(me being in at 7.5% arm). People would have more money to pay off other debt, do home improvements and just spend a little more freely. Another thing that I have found to be almost hilarious is that even though I am over 4 months now without payments, I have recieved recently a refinance offer from CW to fix my next adjusting rate and lock into low rates!! Who is in charge of this mess? I mean does the right hand know what the left hand is doing in this company? So heres some numbers I have been looking at: I owe $240000 My home is now worth 150-170000 maybe worst case scenaro I've lost 90000 in equity thats worth about 550 a month in a 30 year fixed at 5.5 just for that 90000 now the interest being paid on that loss of equity is 93000! which that loss of 90000 in equity if I am willing to eat it would take almost 13 years before I am even knocking down much principal on! So without ANY lenders doing pricipal reductions isnt it in our best interest to walk away?? Credit unions are giving FHA loans to buyers with foreclosure on their report after about 3 years of good management of other debt. SO if in 3 years I could possibly get another home loan with some money down, and be 10 years ahead of where I would have been if I accepted some crappy mod offer, and I would also be buying back in to a reasonable market price without all the false inflation. This is just what makes sense to me after spending so much time trying to fight to keep a home thats underwater. Now then my home would go empty and sit on the market until CW lists it at a fair price. I believe that by doing this, the market will eventually correct itself. The loss of equity in homes and land had to happen otherwise how will our kids be able to have their own someday? A $240000 house going up in value aprox. 8% a year for say 20 years would be well over a million! It all needs to correct itself otherwise homeownership will be a thing of the past.