Starting Loan Mod with Aurora Loan Services

[cdelgado13]

Hello,

First of all, thank you for this forum it has been extremely helpful. I have been reading up on the relevant posts as I start my loan mod process with Aurora.

Background:
I own three properties in Los Angeles. I live in one, I rent a triplex out, and I own another home where my mother lives. The loan with Aurora is for the property where my mother lives. Here are the specifics on the Aurora loan:

Loan Type: 40 Year Option ARM
Balance: $334,254
Current interest rate: 5.25%
Estimated property value: $250,000
Financial Situation: My current budget leaves me with a $200 monthly surplus. I help support my mother since she is 70 years old and only gets about $900/mo in Social Security benefits.

I am simply looking to lock in the current rate or a lower rate to help me with my payments and prevent my balance from going up any further since I have been making payments under interest only.

I called Aurora today to start the process, and they told me they would have to see my financials to see if I would quality (expected) but told me that they might not be able to get me the same or lower rate (unexpected). And the rep mentioned the loan would have to become a fully-amortized loan.

My question is: Do you think these are really my options or are they playing hard ball? I feel like the options presented to me were very limited and were made to discourage me from applying? Your help is appreciated. Thank you.

[Cat Damiano]

HI cdelgado13,



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

The options are up to the investor on your loan and what they are willing to do for a modification................
Because your loan is already amortized over 40 years, which is what they would extend a 30 year term to for a lower payment, and you are paying interest only at 5.25% a modification may in fact raise your payment which won't be of any help.........that part is correct........depending on the investor on your loan..........they may require to fully amortize the payment and escrow for taxes and insurance.


If this is your only property and is the owner occupied principle residence you may want to see if NACA can help you instead...........
click on the link for the info..........
https://www.naca.com/refinance/refinanceTenStep.jsp

[cdelgado13]

Thanks for the response Cat.

I guess my concern is that the rate is low now, but in the future when rates go up it will make my payments really tough to handle and we might not have loan-remod options then. Are investors not willing to do interest-only at 40 years? Or, in my situation would they be willing to lower the loan balance since I am upside down and put me in a fully amortized loan with escrow account? That seems like a win-win.

[Cat Damiano]

investors are not willing to write down balances.......that would entail an immediate loss and they are just not doing it.

I would suggest if this is your only property going through NACA to see if they can help.

[cdelgado13]

Understood, thank you.