OPTION ONE/AHMSI Loan Mod reduced rate by 2.5%

[jarlyn]

Well it took almost 6 months from the time that I initiated the loan modification process with AHMSI so that I can reduce my 11.5% interest rate ($4,000 monthly payment). I had to pay a fee of $500 in order for me to get in line for the investor to to review my file. They said it woul take 10 days and it actually took 20. I just got word from them that they will modify my loan from 11.5% to 9.0% which really doesn't seem to help much considering that my debt load is still very burdensome still showing a negative of about $1200.00. They said since I wasn't late making a payment I am not that much of a hardship. even though I am negative each month by $1700.

Should I be satisfied with this reduction in interest of only 2.5percent given my situation and consider myself lucky? Is there anything else I can do?

[schwefls]

Hi Jarlyn welcome to our forum:

I wnated to stop in and say hello. By days end someone will be reaching out to you to address your questions and provide you with some additional advice. In the interim please hang in there.

[Val Rye]

Hello jarlyn,

Congratulations on getting an offer from your lender. If your budget is realistic, then tell them how much of a payment you can afford.

Just because you have been able to keep current with your loan, doesn't mean they are not at risk of you not being able to make the payments in the future. Like most homeowners, we are using savings, and credit card limits to stay current. With all of these options depleted, the lenders need to make payments to fit our current budget.

Depending on your communication with your lender, I would ask your lender for a lower rate, or maybe a different term. (maybe an interest only, if it means being able to make the payment and keep the home). Don't think it can hurt to ask. Better to ask now, then to start this process over when things get difficult again.

I wish you the best ! ! Please let us know if you decide to ask.

[TXHomeowner]

Hi Jarlyn - I think it's a personal decision whether, or not, to accept a modification offer. Nine percent is high, but if it's fixed for the life of the loan and you can afford to pay it...then you might consider it.

Hope this helps-
-TX

[elpjohnson]

Jarlyn....

I agree that this is a personal decision that can only be made by you, however, you should try to get a more affordable rate if you are in the red by $1700 per month. A modification should make your financial situation better and make your mortgage payment more affordable....if it were me, I would try to get something a bit lower than 9%, just so I could stay in my home.

Good luck and God bless!

[rmorris12]

I think I read somewhere you can't modify your loan twice with these guys (I might be wrong). Think twice what you sign, as I will never forget with the crap that I got myself into too. Its like dealing with the devil.

I hope you things work out for you!

[Lisaw]

Hi Jarlyn,
If it were me I would refuse their offer and renegotiate, I have found that to work. They count on you just taking their offer to be done with it, but fight for what you need it is the only way you will win! It is pointless to accept the offer that you cannot afford because you will end up in the same position again, get an attorney or someone with experience to negotiate for you.

Good Luck !! Lisa