help on loan modification

[kheng]

Hello All,

I am new here I have 2 loan from B of A 1st 400k and 2nd 240k.I am living in San Jose CA my house now is underwater is about 400k now i am behind 2 payment. I give loan office to do modifition loan and my documment after she review she said the 1st is belong fremax and the 2nd belong to invester.and the1st willing to work with me but the 2nd is not going to so what I need to do please help.
thanks
Kheang

[Moe Bedard]

Hi Kheang,


Welcome to the forum and thank you for joining...........

If the first is going to modify your loan because it is FreddieMac, you would need to see first what the modification is and then see if it is something that you will be able to afford. Once you receive the modification on the first.........you can try again on the second because it should be able to help your financials being able to use the new modified payment.

Bank of America Loss Mitigation
1-800-936-6362

[kheng]

Hi ***,
Thank you for taking your time to reply to our help! I have an other question I'd like to ask you. When you said that we can try to apply again for the 2nd loan, so do you mean try to modify like the 1st loan through feddimac?
I am paying 6.25% of $417,000 on the 1st loan, and 8% of $238,000 on the second one. I keep thinking that if I am just be able to modify the first loan which is about the market value right now, and still get hit because the second loan amount and interest are too high!!! I love the house, I do not want to let it go, but it burdens me every day, every night. I can not stop thinking about this. Hopelessly, I just post it in. Again, I really appreciate your reply. Thank millions!!!!!!!!!!!!

[Moe Bedard]

They don't modify the loan to the current value..........what they do is lower the interest rate, extend the term, and they may offer what is called a principle forbearance which is when they take a portion of the principle and put it at the back end of the loan in a balloon payment that would be due if you were to sell or refinance the property. The amount that is remaining would be amortized at the rate that you get modified to...........but this type of workout is not offered in many cases.........we are mostly just seeing the rate reduction and the loan term extended usually from 30 years to 40 years to lower the payment.

This is why I had suggested to work on this one first..........because if the investor on the second sees that you have the modification in place on your first.........they might be more willing to offer you some type of modification on your second.

[kheng]

Hi ***,

Thank you for your reply, we will try and let you know how it is going.