What should i do? - Loan Modification Forum

spiritipoo · 02-23-2009, 04:09 PM

First of all i am so glad I found this site. Heres my story I had a heart attack back in nov. 07 and to make a long story short i am no longer able to work. So i am now on s.s.d. and fell behind on my house payment in sept. 08
i am 3 months behind but have paying my payment on time since dec.08 so i called cw and was told i may be able get a loan mod. Well after a number of calls and a different story each time I got my loan mod. today via fed-ex. I was on a fixed rate of 7.17% for 30 years. Now they are offering me a Step Interest only starting @ 5.625% for a year then 6% for 12 months then 6.375 for 12 then 6.75% for 12 then 7.25% for 12 then 7.75% for 12 then 8.0 for 48 months then principal and interest at 8.0 for the remainder of the loan. The cap is 8.0%. Is this okay or what should I do? I owe 241,500 now and with mod. would owe 247,700. Plz advise. Thank you

Dan Bailey · 02-23-2009, 04:22 PM

Spiritpoo
Glad you found the forum and posted.

Honestly, we cannot advise you to "take" or "Not Take" the offer. That is something you will have to consider according to your financial situation.

If you feel that the offer is not going to work for you, you can contact NACA:https://www.naca.com/refinance/refinanceSubmission.jsp a non-profit homeowners advocacy group, run the numbers with them and see if they think you can get a better modification.

Hang in there, good luck and keep us updated.

spiritipoo · 02-23-2009, 05:29 PM

Thx for the reply. I am just So Confused on what to do. Thx again.

sherman · 02-23-2009, 05:31 PM

I would go with NACA. This mod in my opinion is only a temporary fix and could put you back in the same position or worse in the end. Reading about your situation it sounds like NACA is your best option. Did they figure the mod on your current income?

spiritipoo · 02-23-2009, 06:08 PM

Yes they told me so.

sherman · 02-23-2009, 06:29 PM

spiritpoo, NACA can try and get you an interest rate that is a fixed and hopefully much lower rate. You can fill out the information on the NACA website and set up a phone counseling appointment with them or attend a workshop if there is one near by where you live. I would fill out the information and see what numbers they can run for you before signing that mod offer. Dan posted the link above.

dthom · 02-23-2009, 06:49 PM

I agree with Dan, no one can tell you what you should or shouldn't do, it is a very personal decision. But if you really are not comfortable with the mod offer, then you can give NACA a call and let them run the numbers and see what they can offer you. We got a very good offer from NACA and are just waiting on CW to respond to their offer.
Good Luck,no matter which way you decide to go.

spiritipoo · 02-24-2009, 10:06 AM

Just wanted to thank you all for your input. I have had many sleepness nights thinking about all this.

02-23-2009, 04:09 PM	#1 (permalink)
spiritipoo Junior Member Join Date: Feb 2009 Posts: 4 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	What should i do? First of all i am so glad I found this site. Heres my story I had a heart attack back in nov. 07 and to make a long story short i am no longer able to work. So i am now on s.s.d. and fell behind on my house payment in sept. 08 i am 3 months behind but have paying my payment on time since dec.08 so i called cw and was told i may be able get a loan mod. Well after a number of calls and a different story each time I got my loan mod. today via fed-ex. I was on a fixed rate of 7.17% for 30 years. Now they are offering me a Step Interest only starting @ 5.625% for a year then 6% for 12 months then 6.375 for 12 then 6.75% for 12 then 7.25% for 12 then 7.75% for 12 then 8.0 for 48 months then principal and interest at 8.0 for the remainder of the loan. The cap is 8.0%. Is this okay or what should I do? I owe 241,500 now and with mod. would owe 247,700. Plz advise. Thank you

02-23-2009, 04:22 PM	#2 (permalink)
Dan Bailey Loan Safe Moderator & Homeowner Guide Join Date: May 2008 Location: Wilmington NC Posts: 1,407 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: What should i do? Spiritpoo Glad you found the forum and posted. Honestly, we cannot advise you to "take" or "Not Take" the offer. That is something you will have to consider according to your financial situation. If you feel that the offer is not going to work for you, you can contact NACA:https://www.naca.com/refinance/refinanceSubmission.jsp a non-profit homeowners advocacy group, run the numbers with them and see if they think you can get a better modification. Hang in there, good luck and keep us updated. __________________ Loansafe saved my home!! I may be alot of things, but I do know the difference between reply and forward.

02-23-2009, 05:29 PM	#3 (permalink)
spiritipoo Junior Member Join Date: Feb 2009 Posts: 4 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: What should i do? Thx for the reply. I am just So Confused on what to do. Thx again.

02-23-2009, 05:31 PM	#4 (permalink)
sherman Senior Member Join Date: Dec 2008 Posts: 65 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: What should i do? I would go with NACA. This mod in my opinion is only a temporary fix and could put you back in the same position or worse in the end. Reading about your situation it sounds like NACA is your best option. Did they figure the mod on your current income?

02-23-2009, 06:08 PM	#5 (permalink)
spiritipoo Junior Member Join Date: Feb 2009 Posts: 4 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: What should i do? Yes they told me so.

02-23-2009, 06:29 PM	#6 (permalink)
sherman Senior Member Join Date: Dec 2008 Posts: 65 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: What should i do? spiritpoo, NACA can try and get you an interest rate that is a fixed and hopefully much lower rate. You can fill out the information on the NACA website and set up a phone counseling appointment with them or attend a workshop if there is one near by where you live. I would fill out the information and see what numbers they can run for you before signing that mod offer. Dan posted the link above.

02-23-2009, 06:49 PM	#7 (permalink)
dthom Senior Member Join Date: Oct 2008 Location: St.Clair Shores,Michigan Posts: 699 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: What should i do? I agree with Dan, no one can tell you what you should or shouldn't do, it is a very personal decision. But if you really are not comfortable with the mod offer, then you can give NACA a call and let them run the numbers and see what they can offer you. We got a very good offer from NACA and are just waiting on CW to respond to their offer. Good Luck,no matter which way you decide to go.

02-24-2009, 10:06 AM	#8 (permalink)
spiritipoo Junior Member Join Date: Feb 2009 Posts: 4 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: What should i do? Just wanted to thank you all for your input. I have had many sleepness nights thinking about all this.

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