First off, I’ve been visiting this forum for a couple months now and I’m very grateful for it. I’ve learned a lot. Thank you.
Here are my specs:
I bought my house in 2006 at the peak of the market for $408k. I put 20% down (about $90k) and financed the remaining amount for 30 years at 6.15%. My current mortgage is about $2,550 per month. Not a Fannie Mae or Freddie Mac investment. As everyone is aware the market here in Florida has fallen apart and you can now buy my home for a little under $150,000. I currently owe $327k. Add a pay cut and this has all been really difficult to swallow.
I called WaMu (now Chase) and talked to them about a loan modification on Feb. 7th. I faxed my paperwork within a couple of days and called to confirm about 2 weeks later. Thankfully, they didn’t lose any paperwork and verified they had received it. Step 1 complete.
From here I called at least once a week to see if there were any updates. Nothing happened until Friday, March 20th. I didn’t get a call from Chase, but from a local appraiser who wanted to make an appointment to appraise and take pictures of my home. I called Chase right after I got off the phone with the appraiser to see what was up. The representative told me I’ve been assigned a councilor and had been approved for a forbearance agreement and he said I was “Pre-approved” for the new government modification program. However, I was told that I would need to complete a three month forbearance agreement @ $2,200 per month “to prove” I could make steady payments before I could start the government plan. I haven’t made any payments for February or March. I wanted to talk to my assigned councilor but she wasn’t in the office. He gave me her contact information and I’m going to call her on Monday.
Why would I have to complete three month forbearance before I can start the government program? Taking my payment down $350 is nice but still not practical for my situation. My payment would need to be around $1750 to be at the magic 31% mark. I’d just like to get some advice on how to proceed from here.
I’d appreciate any opinions.