Been on this form for a while now and have experience with foreclosures, but none when it comes to the hamster wheel and in applying for modifications. With the latest government/bank settlement it sounds like there may be a chance to reduce the principle or get my payment lower. The owner of my loan is not Fannie or Freddie, so thought I would give it a go.
The start of my plan is to call the bank and tell them I want to pay the property tax myself and to send the impound money to me. After that it gets a bit fuzzy.
Here are the options I am looking at:
- Request a loan modification or principle reduction to a reasonable amount. What are the new requirements for this to happen? I understand I must be current at the time of application, but once the process starts do I have to continue to pay?
- Hang on to the property as long as possible before foreclosure. If the first option does not materialize, what do I need to do to keep it as long as possible?
Thanks, this should be fun!