7 Year Balloon Resets In Aug 2010 Issues With 2nd Lien Help! - Loan Modification Forum

pastydon76 · 06-26-2009, 09:46 AM

Well 1st of all my house is in the wonderful state of Michigan. That is the # 1 problem. I tried the Keep America home program, but my LTV is 125%. Great! They will only look at you if your < 105%. Currently, I am in a 7/1 Ballon Arm at 4.3% interest. Payments about $650. Plus I did the 20% piggy back HELOC, to eliminate PMI. Never late with payments, and only have a car payment. No credit cards. Since my LTV is bad, I have the option to reset the ballon next August 2010 to a 23 year loan. I would like to do, but I didn't make one requirement. I have a 2 lien the HELOC. I heard the banks make exceptions, but that doesn't sound to promising. I spoke to a real estate agent, and he told me to be a good little soilder and pay the mortage. When it comes time to reset, indicate you have a 2nd lien and it would be great if they forgo the requirement. If not, he told me to walk away and rent. My credit is important to me, and I would hate to do it but unfortunatley I am out of options. Any help or ideas would be appreciated.

balloonman · 07-07-2009, 07:19 PM

Pastydon, I also have a 7 year conforming balloon due to reset in March 2010. If your loan is owned by Freddie Mac, they should be willing to reset your loan INSPITE of the second lien. I know that directly contradicts what is written on your note, and also what will be written in the form letter your lender sends you next month, (12 months from deadline).

I recommend you call your loan servicer and confirm what I have said.

Here is a link to the Freddie Mac seller/servicer guide that confirmed everything Indymac(OneWest) told me over the phone about my 7 conforming year balloon.Thye would not confirm in writing (apart from a brief e mail) what they had told me "because the rules might change". Hence I wanted to get some real confirmation from somewhere.

By the way I not only have a second lien since getting the 7 year balloon, it is now also a rental property.

review chapter 83:11 and exhibit 85. I believe the only thing they will want from you is a 12 or maybe 24 month on-time payment history.

Click on "ALL REGS" just below "Access the guide"

Single-Family Forms and the Guide - Freddie Mac

Here is the freddie mac web- page for determining if they own your loan.

https://ww3.freddiemac.com/corporate/

06-26-2009, 09:46 AM	#1 (permalink)
pastydon76 Junior Member Join Date: Jun 2009 Posts: 1 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	7 Year Balloon Resets In Aug 2010 Issues With 2nd Lien Help! Well 1st of all my house is in the wonderful state of Michigan. That is the # 1 problem. I tried the Keep America home program, but my LTV is 125%. Great! They will only look at you if your < 105%. Currently, I am in a 7/1 Ballon Arm at 4.3% interest. Payments about $650. Plus I did the 20% piggy back HELOC, to eliminate PMI. Never late with payments, and only have a car payment. No credit cards. Since my LTV is bad, I have the option to reset the ballon next August 2010 to a 23 year loan. I would like to do, but I didn't make one requirement. I have a 2 lien the HELOC. I heard the banks make exceptions, but that doesn't sound to promising. I spoke to a real estate agent, and he told me to be a good little soilder and pay the mortage. When it comes time to reset, indicate you have a 2nd lien and it would be great if they forgo the requirement. If not, he told me to walk away and rent. My credit is important to me, and I would hate to do it but unfortunatley I am out of options. Any help or ideas would be appreciated.

07-07-2009, 07:19 PM	#2 (permalink)
balloonman Member Join Date: Jan 2009 Posts: 6 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: 7 Year Balloon Resets In Aug 2010 Issues With 2nd Lien Help! Pastydon, I also have a 7 year conforming balloon due to reset in March 2010. If your loan is owned by Freddie Mac, they should be willing to reset your loan INSPITE of the second lien. I know that directly contradicts what is written on your note, and also what will be written in the form letter your lender sends you next month, (12 months from deadline). I recommend you call your loan servicer and confirm what I have said. Here is a link to the Freddie Mac seller/servicer guide that confirmed everything Indymac(OneWest) told me over the phone about my 7 conforming year balloon.Thye would not confirm in writing (apart from a brief e mail) what they had told me "because the rules might change". Hence I wanted to get some real confirmation from somewhere. By the way I not only have a second lien since getting the 7 year balloon, it is now also a rental property. review chapter 83:11 and exhibit 85. I believe the only thing they will want from you is a 12 or maybe 24 month on-time payment history. Click on "ALL REGS" just below "Access the guide" Single-Family Forms and the Guide - Freddie Mac Here is the freddie mac web- page for determining if they own your loan. https://ww3.freddiemac.com/corporate/

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