Loan modification - ARM to fixed?

[chopps]

Hello,

I found this site doing some searches for loan modifications and really like the forums here!

I'm in a 5/1 arm that was refinanced 11 months ago from 9% on 450k and a HELOC for 100K. I'm in CA. The bank is US Bank.

We are negative equity and refinancing isn't an option now. All i would like to do is lock in a 30 fixed rate because when this adjusts we probably wont be able to afford it.

We are current and can pay the mortgage.

I think we would be a good candidate for a loan modification. What do you think?

I'm doing research and when the time comes to call them I want to be knowledgeable about this and have everything in order.


Thanks

[Moe Bedard]

Hi chopps,


Welcome to the forum and thank you for joining................

You would need to begin by putting together a hardship letter........click on the link for samples to help with that.........
Examples of a Hardship Letter

then you would need to call US Bank and ask what options the investor on your loan would have for a modification...........
US Bank
1-888-780-3997

Please keep us posted on your progress............

[LHarveyMadman]

chopps,

Your situation is exactly like mine - ARM (interest-only) not due to adjust for a while (though sooner than yours), looking to fix the rate, unable to refinance due to insufficient equity. I was not behind (but I technically am now, because my lender told me to stop making payments during the modification process), and was able to afford the current payments. I was just looking for some long-term security.

I got a modification in which they cut my rate to 3.25% for 5 years, after which it will revert to my initial ARM rate of 6.25% and stay there for the life of the loan. It was just what I was looking for.

What is your current interest rate, and what are the index, margin, and limits for the future adjustments? Is this an interest-only loan?

Since you're not behind, you might have difficulty getting someone to listen to your story by cold-calling. It didn't work for me; I eventually sent an email message to select high level executives. That is what got the ball rolling for my modification.

[chopps]

Hi LHarvey,

I saw your post and that gave me some hope because our situations are pretty similar. I think i would be a good candidate since i have the ability to make the payments but probably wont in the future.

Did you get the emails from this board? Im with US Bank so im not sure where to find the executives emails.

[Moe Bedard]

LHARVEY is Bank of America............two different servicers.

[chopps]

think it would be worthwhile to start with some of these people?

Correspondent Lending

[Moe Bedard]

it doesn't hurt and if nothing else they may forward it to the correct people.

[LHarveyMadman]

Thanks, ***, for filling in that important detail about my experience.

chopps, it's worth a shot trying to negotiate a fixed rate from your ARM. In my letter, I emphasized the fact that I was unable to get a conventional refinance due to the equity issue. Since I was trying to move from an interest-only ARM to a fully-amortized loan, I actually suggested a modification that would have increased my monthly payments by a small amount, but with an overall decrease in interest rate. They didn't accept my proposal, but offered something that was quite beneficial to me.

Good luck!

[Brighter tomorrow]

Interjecting my note here because it relates to ARM to Fixed (somewhat
The story: I just had HomeQ approve a modification. I have been speaking to NACA also. This loan mod was given to me with my docs plainly showing my tax deductions on my paycheck are at 9!! This is so I can have extra income. Now I need to go to a normal # which won't be a problem to afford the mortgage but it will be tight. The first concern is that HomeQ only mod for 5 years at 5.75 from my 7.8%. Taxes are included and my payment is lower. Good....BUT...NACA says that that is still predatory. HomeQ says they only modify not refinance. They say their purpose is to place me in a better position to refi later. Later the rates may be worse than they are now if the Gov can't keep them down that long. NACA gives me an 80% chance that they can get me a 4.5% fixed for 30 years!!!!. I want to have them negotiate with HomeQ but the problem is....HomeQ has a demand letter over my head which according to my orginal note they can do so that must be paid (late fees and catch up o $7,000) by the 20th of this month. Now...NACA needs to see me with "normal" deductions for 30 days before they can intervene. If I refuse HomeQ's offer, it takes me out of their mod loop and the demand letter goes back into affect. It is only on hold because I'm being considered for the mod. I'll be set up for foreclosure. I don't know what to do. I feel that taking it puts me in a temporary better position because I can get caught up on everything and have 5 years to get my credit right. What if I point out to HomeQ that I am claiming 9? Am I giving too much info and they say "no" this time? That may buy me time to show a normal deduction and HomeQ may even re-calculate. This could be good or bad. Any suggestions or experience with this from anyone?

[my2ty]

what happened? I am in the same situation. Naca needs more time and I am running out. Sale date 4/7/09.

[Brighter tomorrow]

Well....they modified it for 5 years and NACA is supposed to re-negotiate once I have had the modification for 6 months. 5 years is just buying time and I'll be in the same mess after that. If your sale date is coming up, I was told by NACA that they have an "emergency" list to put cases like yours on to expedite the process. I have heard of people being able to stop that process. Hang on and work on it every day deligentely.

[chopps]

Well..i called US Bank again and no love whatsoever. Says there is nothing i can do in terms of refininacing my ARM with negative equity. All i want is to refi to a 30 year fixed to essetianlly keep us in our house. How am i going to refi in 3 years when it comes due? Is the market REALLY going to come back 30+% in that time. Very unlikely.

Any suggestions on how to approach them so they could modifiy my ARM to a fixed loan?

Im current..never late, good credit. Im trying to propose a win for us and a win for them.

[LHarveyMadman]

What did you try in terms of negotiating a fixed rate? Did you send a letter to corporate headquarters?

[chopps]

I didn't send a letter..i called them a half hour ago. Do they handle letters differently?

[LHarveyMadman]

They might....I can't say since I wasn't negotiating with US Bank. I can tell you that when I tried calling my lender, I got turned away repeatedly because I wasn't in a hardship situation (yet). That's the same situation you're in now. My letter is what finally got the ball rolling.

Write a letter. You won't know if you don't try. I don't think anyone has any email addresses for the US Bank execs. You'll have to send it snail mail, I guess.

[chopps]

do you have a link to a thread about you going through the process? I would like to read it.

[LHarveyMadman]

Here's the link to "my" thread, but I don't think it really contains much useful information. It's kind of morphed into a general B of A discussion thread.

Bank of America loan mod -SUCCESS!!