http://www.loansafe.org/forum/ en Fri, 20 Nov 2009 22:42:14 GMT vBulletin 60 http://www.loansafe.org/forum/images/misc/rss.jpg http://www.loansafe.org/forum/ http://www.loansafe.org/forum/loan-modification/19081-hardship-letter.html Fri, 20 Nov 2009 22:02:06 GMT hi folks,
it's amazing what you can find on the net when you look! finding this site just a few days ago has already been a huge resource. thanks!

i have a written a rough draft of a hardship letter and i am looking for some feedback. this is for an investment property--3 family.

thanks in advance for your time! rcn68


Respectfully, this is not a threat, but a promise. If my current loan which is a 7.75% interest only product, is not modified and quickly, I will no longer be able to maintain and keep up the flawless payment history that you’ve come accustomed to. If you feel a modification is not warranted in this situation, then please, by all means, prepare to own another abandoned property, as it would not be financially, physically or emotionally worth maintaining the stagnant motion of spinning my wheels to keep this property. We are in the middle of one of the worst real estate corrections in recent history, unemployment is above 10%, bankruptcies and foreclosures are reaching historical records monthly and the value and equity of property is almost non-existent if you bought within the last 5 years. Why am I telling you what you already know? Well, these are a few of the many reasons that are pushing me closer and closer to not being able to keep these properties. The value of my property is almost 100 thousand dollars less than what I paid for it, only 5 short years ago. That coupled with an interest only loan that is not bringing down the principal, leaving zero equity to try and refinance the traditional way. The rents have been lowered to keep tenants and new tenants are paying substantially less due to the amount of rental inventory in the local market. And now comes the other foot dropping, my company has just filed for bankruptcy and I face the possibility of being part of the over 10% unemployed. Once that happens, there will be no additional funds available to cover the current monthly loss. As you can see in your records, I have not missed a payment nor have any 30 day late payments. That is because I have been diligently striving to make the payments as to not damage my credit worthiness. However, as I have just explained, the commitment to maintain a flawless business relationship with Aurora Mortgage is becoming very close to being compromised. This letter is sent in good faith to PROACTIVELY prevent what will be a bad situation. I am seeking your help to remove the 7.75 interest only loan to a principal and interest product, allowing for the continuation of this relationship. ]]> Loan Modification rcn68 http://www.loansafe.org/forum/loan-modification/19081-hardship-letter.html http://www.loansafe.org/forum/loan-modification/19067-gmac-mod-approved-questions-about-next-steps.html Fri, 20 Nov 2009 19:14:22 GMT Hello. My GMAC loan was approved for modification. I just completed the 4-month trial period and successfully made all my payments etc. I called... Hello. My GMAC loan was approved for modification. I just completed the 4-month trial period and successfully made all my payments etc. I called over the phoen and received confirmation that my mod was approved. I am expecting to see the documents today or tomorrow. I have questions, but I will outline some details.

Loan value is approximately: 357K
Before modification: 5.25% FIXED
Payment before mod: $2480
Rate after mod: 3.875% (5 years)

Essentially, the savings are $286 per month. I've heard of better outcomes, but anything helps.

Terms: 3.875% rate for 5 years; Year 6: 4.875%; Year 7 resets to original rate of 5.25%.

I have questions. :confused:

1. Do you have any insight about the terms of this modification and is there anything I should expect from this point forward?

2. Can I negotiate these terms? I've heard of some people getting rates that are permanently fixed at the reduced rate. Is there any chance of getting a permanently reduce and fixed rate?

3. I've heard "stories" that some people are locked into their mortgages if they accept modification. A co-worker says he must stay in hsi hosue for 10 years if he accepts his modification, or there are penalties. Are there any looming things I need to be on the lookout for, such as pre-payment penalties or contractual language that will be of concern, if I sign off on these documents??

4. My wife works part-time and is on the verge of becoming unemployed. We have 3 kids age 5 and under, so she is a stay at home mom. In the event that she loses her net income of $1300 per month, am I eligible to apply for a 2nd loan modification, or am I "stuck" in this loan modification until it resets? (I am working a 2nd job already, as I took a substantial pay reduction at my full-time job.)

Thanks in advance. I will be lurking. ]]> Loan Modification jsturner78 http://www.loansafe.org/forum/loan-modification/19067-gmac-mod-approved-questions-about-next-steps.html http://www.loansafe.org/forum/loan-modification/19063-how-banks-view-loan-modifications.html Fri, 20 Nov 2009 17:32:32 GMT I found this article the other day, I think it provides good information about the way banks handle the Loan Modification process: How Banks View... I found this article the other day, I think it provides good information about the way banks handle the Loan Modification process:

How Banks View Loan Modifications - Mandelman Matters

Comments?


P.S. I tried searching for this article to see if it had been discussed here before, couldn't find it. If duplicate, please merge them. Thanks. ]]> Loan Modification otrora http://www.loansafe.org/forum/loan-modification/19063-how-banks-view-loan-modifications.html http://www.loansafe.org/forum/loan-modification/19062-npv-test-vs-doing-right-thing.html Fri, 20 Nov 2009 17:21:54 GMT I have two mortgages and trying to get the first modified. LTV is about 50% on this loan and 50% on the second mortgage. I can afford the... I have two mortgages and trying to get the first modified. LTV is about 50% on this loan and 50% on the second mortgage.

I can afford the payment, but I had originally got behind because I was trying to pay all my credit cards too and robbing Peter to pay Paul you could say. We stopped paying the cards and are most likely going to file bk. We want to keep our house and move on.

It has been almost a year later and I am now working with the executive office to see what they can do.

Bascially, even though I am at 100% CLTV, wouldn't the first just take and satisfy their lien on a foreclosure sale first so they would lose no money in a f/c situation? Or would they do what they could to help us stay in our house?

I know they are looking at their investors, stockholders, and the bottom line, so it really didn't occur to me until now about how it would all go down in a f/c situation and now I am really scared. ]]> Loan Modification northcoastgirl http://www.loansafe.org/forum/loan-modification/19062-npv-test-vs-doing-right-thing.html http://www.loansafe.org/forum/loan-modification/19055-wells-fargo-hamp-destroyed-our-credit-looking-other-people-has-happened.html Fri, 20 Nov 2009 14:11:07 GMT My wife and I received a letter in August from Wells stating we were eligible for the HAMP plan and that we should call to set up the trial payments,... My wife and I received a letter in August from Wells stating we were eligible for the HAMP plan and that we should call to set up the trial payments, no mention of credit. We called and were set up with three trial payments to be made on the 15th of each month, we set up automatic withdrawals with Wells so we would not chance being late with any of them. In our original letter we received it stated we would be receiving a letter with all the terms and conditions of the HAMP plan. We never got that letter, when I asked for it I was told "we do not need that at this time" exact wording. I was smart enough to record the phone conversation. We just made out 2nd trial payment on time, have confirmation #'s from Wells. Our account page states payment as being on time. Now comes the fun part, we are getting letters at our house stating we have not made a mortgage payment in 2 months and to boot when I ran my credit report I found Wells has reported us as 2 months no pay. I spoke to Experian and they told us Wells has trashed our credit score, down 250 points now. We called Wells, spoke to customer service, loss mitagation, even the executive team in the president's office, not surprisingly none of them know how to fix this or will even acknowdelge they made a mistake. My wife and I have hired a law firm as of this past Tuesday who informed us Wells is breaking several federal laws regarding credit reporting. If you do not receive anything in writing regarding credit and the ramifications of HAMP they cannot report anything legally to the credit people. We are looking for more people that this is happening to or has happened to. If you are in HAMP with Wells Fargo please check your credit score as Wells may be destroying your credit also through no fault of your own. ]]> Loan Modification seadoo44 http://www.loansafe.org/forum/loan-modification/19055-wells-fargo-hamp-destroyed-our-credit-looking-other-people-has-happened.html http://www.loansafe.org/forum/loan-modification/19052-obama-comments-mortgage-modifications.html Fri, 20 Nov 2009 09:09:42 GMT Obama Comments on Mortgage Modifications CNN Ed Henry with Obama in China (I think I forgot to post this from a few days ago) Question Why...

Obama Comments on Mortgage Modifications

CNN Ed Henry with Obama in China

(I think I forgot to post this from a few days ago)

Question
Why tax money to banks but lending more, not refinance foreclosed homes etc

Obama Answer
The bank bailout was the right thing to do in a crisis -we had to be sure there was not a complete melt down which would have been even worse. As I have said in the past I supported President Bush's decision (for the bank bail outs).

Once we got them (banks) in a place that they were no longer in crisis, the problem was things were put together so quickly last year that there weren't as many strings attached as we would have liked.

So what we have tried to do is create some structures after the fact that would impose more accountability, more discipline. The most obvious example the rules on executive pay. But it is hard to to when a lot of these banks got well and paid the money back. So we now no longer have leverage.

This is why I think it so important moving forward to make sure we have a financial regulatory framework that protects consumers, making sure that they are not getting gouged, make sure there is a lot of clarity in regards to mortgages.

In the meantime on an emergency basis we are trying to do everything we can to poke, prod, incentivise banks to help responsible homeowners through no fault of their own are finding it very hard for them to pay for their mortgages. To make sure that businesses are getting loans and we have massively expanded small business lending through the SBA. Those are all steps that were taken.

But look, I understand people's frustrations. The American people have gone through a very tough year. My job as President is to help navigate through this tough year. People who don't have a job, people that have lost their home .. I'd be mad too.

They expect me to something about it. My job is to do within the institutional constraints we have and the resource constraints we have because we also inherited a structural deficit of several trillion dollars, to try and make the best decisions possible to help as many people as possible.
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-- ]]> Loan Modification davephx http://www.loansafe.org/forum/loan-modification/19052-obama-comments-mortgage-modifications.html http://www.loansafe.org/forum/loan-modification/19039-b-hast-told-me-not-pay-3-months.html Fri, 20 Nov 2009 03:23:30 GMT Anyone heard of this?? i am in the middle of the HAMP process (just got the paperwork for my 3 month trial) which starts in March. I was told by my... Anyone heard of this?? i am in the middle of the HAMP process (just got the paperwork for my 3 month trial) which starts in March. I was told by my negotiator to NOT pay from now until March when the trial begins??? I asked why and was told that i need to be in "distress" to be given the mod? maybe i need to do this,but i have never missed a payment yet. Everything she said made sense until that bomb was dropped. Any takers on this? ]]> Loan Modification guajome125 http://www.loansafe.org/forum/loan-modification/19039-b-hast-told-me-not-pay-3-months.html http://www.loansafe.org/forum/loan-modification/19037-confused.html Fri, 20 Nov 2009 03:16:15 GMT ok, now my lender over the phone tells me that we do not qualify for mod. but working on some other programs. now we get fedx packet of gov. loan mod... ok, now my lender over the phone tells me that we do not qualify for mod. but working on some other programs. now we get fedx packet of gov. loan mod program paper work to fill out. and they give us a pretrial amount to pay. make new hardship letter,payroll stubs and also we need to seek housing counseling as part of the agreement. no cost counseling.now this is a trial period plan. now what? the new trial period payment is about 700.00 less than we pay now. what happens after the trial period is over? does payment stay the same or what? ]]> Loan Modification ill1965 http://www.loansafe.org/forum/loan-modification/19037-confused.html http://www.loansafe.org/forum/loan-modification/19032-new-program-loan-mod-principal-reduction.html Fri, 20 Nov 2009 02:35:06 GMT I came across this before 2months and thought it was a scam. But I heard this from an other Investor today and want to check if anyone has comments... I came across this before 2months and thought it was a scam. But I heard this from an other Investor today and want to check if anyone has comments about this:

The company says they are buying loans from the lenders in bulk for a discount, usually convincing lenders that they are bad loans and some " soon to be bad loans" to get a steep discount. ... and they will refinance it back to us at 90% of today's Market price. Yes, not only your house is not upside down anymore, you will have 10% equity and have the rest 90% financed at today's rates.

I thought it is too good to be true. It also had a $2000 fee upfront and I did not proceed. Anyone here confirm that it is a scam? ]]> Loan Modification aruna http://www.loansafe.org/forum/loan-modification/19032-new-program-loan-mod-principal-reduction.html