Loan Mod without Hardship - Loan Modification Forum

dogatemy · 03-25-2009, 03:21 PM

Greetings,

Has anyone upside down in their mortgage requested a loan modification without a hardship? I owe $125k purchase money and 35k non-purchase money HELOC on a house worth $70k. I have paid about $30k in interest on the primary mortgage and $5k in PMI. The bank terminated my HELOC during remodeling (demolition) of my kitchen leaving me with a house that I cannot sell, refinance or justify finishing. I called Chase once to talk about re-instating my HELOC but they said lack of a kitchen would put me in default (25% interest?) and advised me not to call back. The primary is with Citi backed by Freddie.

If they gave me $50k-$70k off the principal, refinanced the first and second back into the loan at a reasonable interest rate then I can finish the kitchen. From a business perspective they would still make back their principal (and then some) in interest payments and avoid another foreclosure. For some reason I suspect the logic may escape them so I thought someone here could offer their opinions based on past experience.

03-25-2009, 03:21 PM	#1 (permalink)
dogatemy Senior Member Join Date: Mar 2009 Location: Phoenix, AZ Posts: 315 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Loan Mod without Hardship Greetings, Has anyone upside down in their mortgage requested a loan modification without a hardship? I owe $125k purchase money and 35k non-purchase money HELOC on a house worth $70k. I have paid about $30k in interest on the primary mortgage and $5k in PMI. The bank terminated my HELOC during remodeling (demolition) of my kitchen leaving me with a house that I cannot sell, refinance or justify finishing. I called Chase once to talk about re-instating my HELOC but they said lack of a kitchen would put me in default (25% interest?) and advised me not to call back. The primary is with Citi backed by Freddie. If they gave me $50k-$70k off the principal, refinanced the first and second back into the loan at a reasonable interest rate then I can finish the kitchen. From a business perspective they would still make back their principal (and then some) in interest payments and avoid another foreclosure. For some reason I suspect the logic may escape them so I thought someone here could offer their opinions based on past experience.

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