Modification while current

[bigpoppy]

Has anyone had success with a loan modification while being current on their note? we have never been late or missed any payments, but NEED some help, and soon...just curious as to whether or not we should try for a modification while current. Thanks in advance, BP in so. cal.

[B Stevens]

Wells Fargo gave me a quasi modification. I am on an I/O loan @ 5.25% for 5 years (490,000) They reduced my interest rate to 3% for 60 months but I am still on the I/O loan. Saves me about $950 a month. I was never late on my payments. Credit isn't bad. It took 8 months of submitting info and reapplying 3 times to get that.

It wasn't easy. It wasn't quick. It isn't a long term fix. Over the next 5 years, I will be rethinking what credit means. The only thing good credit gets you is more debt.

[rlhoneydew]

I applied for a loan mod with Saxon two months before our loan was going to adjust to a payment that we would not be able to afford.... Applied in March '09 and it looks like we will be getting our final docs this week, yeah! It is a HAMP modification. We were never late, or missed a payment. Our hardship was our adjustable loan, and some medical bills.

So yes, I believe it is totally possible to obtain a loan mod without being delinquent.... Our final terms should be 2% for 5 years, then it will adjust 1% each year after that until it reaches the cap, which will be in the low 5%. Also, we had an interest only loan, now we will actually be paying down on the principle!

Good Luck!!

[bigpoppy]

I just got off the phone with provident funding, they are telling me there is nothing I can do..the loan will adjust in Jan/10, and go up about 350 bucks a month..we are really having trouble with it as it is now. They keep telling me that there is nothing I can do....my loan is not a freddy/fanny funded loan, so they dont want to help us.

[whalemania]

We modified while current. For us saved about 4-500 per month, after taking into consideration we get a smaller tax rebate from interest deductions on our taxes.

Also, be prepared to have your credit ruined, even if you are current. Get all your credit BEFORE modifying as they require to become deliquent before they modify it.

[St.LouisBlues]

very rare and not usually good terms the best mods are from way behind

[Evan Bedard]

very rare and not usually good terms the best mods are from way behind

Well this is true to some point, but you will find quite a few homeowners here who have acheived an excellent modification without missing a single payment..

[nitag]

Last year I was able to get a modification while current. This year nope not so lucky.. Had to be 31 days late.. I was able to get my parents on a trial modification while current with Chase, however being on a trial mod will make them late.. It's a catch 22..

[Evan Bedard]

Last year I was able to get a modification while current. This year nope not so lucky.. Had to be 31 days late.. I was able to get my parents on a trial modification while current with Chase, however being on a trial mod will make them late.. It's a catch 22..

How far into the trial period are your parents?

[debo0187]

so far I have gotten a trial mod while being current, they guaranteed me since I am current, it will not affect credit.

[rlhoneydew]

Originally Posted by debo0187

so far I have gotten a trial mod while being current, they guaranteed me since I am current, it will not affect credit.

I was current when beginning my Trial Payments with Saxon. I was still reported delinquent.... I didn't find out until I checked my credit reports.

They said it was an error, and shouldn't have happened. My report was supposedly fixed on Oct 15th... Haven't had the opportunity to re-check my score - but I will.

Point is, check your score anyhow... & if they report you late, make sure to let them know they need to fix it!

[MyHAMP]

Originally Posted by rlhoneydew

I applied for a loan mod with Saxon two months before our loan was going to adjust to a payment that we would not be able to afford.... Applied in March '09 and it looks like we will be getting our final docs this week, yeah! It is a HAMP modification. We were never late, or missed a payment. Our hardship was our adjustable loan, and some medical bills.

So yes, I believe it is totally possible to obtain a loan mod without being delinquent.... Our final terms should be 2% for 5 years, then it will adjust 1% each year after that until it reaches the cap, which will be in the low 5%. Also, we had an interest only loan, now we will actually be paying down on the principle!

Good Luck!!

Congrats, rlhoneydew!

So these mods are starting to trickle down. Slowly but surely..

[caralyn]

Depends on your lender. If you are with IndyMac/OneWest, probably not (at least that's what we've been told for the past 6 months.

[rlhoneydew]

Originally Posted by MyHAMP

Congrats, rlhoneydew!

So these mods are starting to trickle down. Slowly but surely..

Thanks MyHAMP!
My permanent loan modification documents with Saxon arrived today (as they promised)!!!!!!! We already ran down and had them notarized.

I have never felt such a sense of relief....

I know that many others will achieve successful modifications. I am no one special, just another person wanting to hold onto their home .

DO NOT GIVE UP!

[MichiganBlues]

Originally Posted by rlhoneydew

My permanent loan modification documents with Saxon arrived today (as they promised)!!!!!!! We already ran down and had them notarized.

Yippee!!!!!!

I'm so happy for you, honeydew. Working on this since March, WOW, that is 7 months of balancing on a high wire and it sounds like you kept your cool the whole time.

Now a question (or 2 or 3)...are you skipping any payments in btwn the trial and the permanent? How long did it take once it went into underwriting? Is there a lot of small print on the final modification, ie, is there any kind of a balloon payment at the end of the loan or any other little nasties?

Of course, we would probably sign whatever they sent, we're in no position to get sassy and can't wait to get where you are right now...

Grinning from ear to ear!


(I wanted to put even more smilies in but the darn program wouldn't let me! )

[rlhoneydew]

Hi Michiganblues!
Thank you so much for all the happy faces.... too funny, I tried to put more also, but got an error . I am glad to hear from you.... We are on the same time line with Saxon ("Satan" as I have seen you post, ha )!?

To answer your questions:

Our 1st payment is due 11/1 (well, will pay on 11/16). Our last trial payment was October.... So we didn't get to skip a payment between trial payments and perm payments(bummer).... Looks like some others here got to do that?!

They "said" our file was in underwriting in month 3 (August)..... got the 2 month "extended plan" as you know. I hate to say it, but I honestly think the extra 2 months was to give them time to get their act together, and blame it on us. Cannot be sure of course, but must wonder.....

As far as the paperwork is concerned, for us personally, there is no balloon payment. Our loan is for 28 years... since we have been with Saxon for 2 years paying a stupid interest rate for an interest only loan (suppose cannot blame anyone but ourselves for that , we signed the papers assuming we would refinance in a couple years, yeah right!?) Amazingly, the document are so very simple!? Not anything like when you first buy your home.... Also no "little nasties" that I can see... (you crack me up ) My escrow is still a little higher than is should be, but it will be re-evaluated at the end of the year. Our Payment is still hundreds below what is was... Even when it reaches the cap, it will still be lower than our payments were before the adjustments were to begin in June.

I AM CROSSING MY FINGERS THAT SAXON IS GRACIOUS TO YOU AS WELL.... YOU DESERVE IT! HONESTLY, THIS SITUATION HAS RENEWED MY FAITH IN THEM (MANY WILL NOT LIKE THAT COMMENT, BUT I CANNOT HELP BUT SAY IT!)

Please keep me updated on your progress... If I can answer any other questions, fire away!

I believe I may actually sleep through the night tonight?!

[momsgig]

Originally Posted by Evan Bedard

Well this is true to some point, but you will find quite a few homeowners here who have acheived an excellent modification without missing a single payment..

We are in the process of modifying to 2% for 5, roughly 1% increase in years 6, 7 & 8 at which point it caps. We have an 800 credit rating, have never been late. The bank is working with us as our income has dropped to 50% of what it was in prior years. I think they're helping us greatly until the economy turns and our income starts to increase again and so far we're happy with their cooperation.

[Sunbeam]

Originally Posted by bigpoppy

Has anyone had success with a loan modification while being current on their note? we have never been late or missed any payments, but NEED some help, and soon...just curious as to whether or not we should try for a modification while current. Thanks in advance, BP in so. cal.

We just got a traditional mod from Citi on our first mortgage. The original terms were 5.65% ARM. We modified to 4.5% 40 years. We were current. We started the process in Feb 2009. I had to push hard in order to get this. Turned down several times....wrote letters to Freddie Mac and my congressperson. No real tiral period. Our negotiator put our regular payments into a holding account starting in September and it all came together last week. Good luck and let me know if you have any questions. I posted most info under "Wit's End", citimortage section of this fabulous site.

[davephx]

Sunbeam - Looks like can't send direct messages here other than posting.

Congrats. I posted under your original wits end thread in the Citi section you may want to look at. I think serviers that come thru like in your case should be given credit and since folks with Citi would be more likely to see as encouragement under the Citi sub topic than on other places since there are so many thousands of posts.

[MALIZNA]

Yes I personally know 2 friends who got permanent mods, both were current, saw the documents.. GREEN TREE with the step mortgage starting at 2 percent for 5 years and US BANK same... Both were current

[freediykits]

Wow I'm sorry to hear that your bank will not negotiate a modification for you. Its not secret that getting approved for a loan mod is alot more difficult o accomplish if your still current on your mortgage. I would persist a little more with your lender and try to speak to a supervisor on this matter. Most banks seemed to be to pre occupied with homeowners who have already defaulted, and spend less energy on the ones who are trying to stay current and keep thier credit score. I wish i had more to say to help you, but it looks as though your in a sticky situation if your lender refuses to offer help.

Good luck with your situation...

[M Van Meter]

We're current...and are trying for the 3rd time with GMAC. Our hardship is job losses, etc. Hubs is back to work but making less money. We tried the mod before while he was collecting unemployment but they denied us. Said we had to have 9 months unemployment income to qualify. I hope we are successful this time

[LA_tokoloshe]

I managed to get a mod without missing a payment. I think its an excellent deal.

Here's the thread:

GMAC Permanent Loan Mod SUCCESS