unsuccessful loan mod - Loan Modification Forum

robertnelly · 03-06-2009, 08:32 AM

I currnetly have my first mortgage with WAMU and a second with an other lender, our houses value has plometed from my purchase price of $560,000 to about $370,000. My first mortgage is an interst only loan of 6.625% I currently owe $447,000 and $110,000 on the second. I requested a loan mod from WAMU and they accepted to help me out, well I just got my paperwork from them and they're trying to put me in fixed rate mortgage at my current interest rate of 6.625%. That means that my payment will go up $500, when I explained to them that all I want is a fixed rate mortgage at the current interest rate they said that it wasn't possible and that I should consider selling my house. My wife and I have excellent credit last time I checked is was over 750 for each. Can anyone tell me if there's hope for us

Dan Bailey · 03-06-2009, 08:48 AM

robert,
Glad you found the forum and posted.

getting payments lower than interest only is nigh on impossible. They did give you a fixed at the same "low" rate of 6.625%. Your payment went up because you would now be paying into principle also.

Credit does not come into consideration for loan modification...it does for re-financing (which, you could not do due to the houses value being so low now)

Are you behind on payments now?

robertnelly · 03-06-2009, 08:56 AM

thanks Dan for answering, no i'm not behind on my payments. But can't they offer a lowere interest rate than 6.625%

robertnelly · 03-06-2009, 09:02 AM

I understand my payment was going to go up at that interest rate, but why not lower my interest rate and face the possiblity of losing more money if i walk away from the house

Dan Bailey · 03-06-2009, 09:08 AM

That is their investors guidelines.

They really dont lose money if you walk away, plus- they see you are not behind.

You may want to find out if your invester is Fannie or Freddie:FannieMae or FreddieMac? Check Here to Find Out

If so, you would be in a good position for the obama plan (refinancing). Then I would suggest hold out for a month and contact them again. http://www.financialstability.gov/docs/counselor_qa.pdf

robertnelly · 03-06-2009, 09:31 AM

Dan should I give this months mortgage payment

Dan Bailey · 03-06-2009, 09:37 AM

loansafe always recomends making your payments if possible. Especially stay current if you will fit into the new plan.

03-06-2009, 08:32 AM	#1 (permalink)
robertnelly Junior Member Join Date: Mar 2009 Posts: 4 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	unsuccessful loan mod I currnetly have my first mortgage with WAMU and a second with an other lender, our houses value has plometed from my purchase price of $560,000 to about $370,000. My first mortgage is an interst only loan of 6.625% I currently owe $447,000 and $110,000 on the second. I requested a loan mod from WAMU and they accepted to help me out, well I just got my paperwork from them and they're trying to put me in fixed rate mortgage at my current interest rate of 6.625%. That means that my payment will go up $500, when I explained to them that all I want is a fixed rate mortgage at the current interest rate they said that it wasn't possible and that I should consider selling my house. My wife and I have excellent credit last time I checked is was over 750 for each. Can anyone tell me if there's hope for us

03-06-2009, 08:48 AM	#2 (permalink)
Dan Bailey Loan Safe Moderator & Homeowner Guide Join Date: May 2008 Location: Wilmington NC Posts: 1,407 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: unsuccessful loan mod robert, Glad you found the forum and posted. getting payments lower than interest only is nigh on impossible. They did give you a fixed at the same "low" rate of 6.625%. Your payment went up because you would now be paying into principle also. Credit does not come into consideration for loan modification...it does for re-financing (which, you could not do due to the houses value being so low now) Are you behind on payments now? __________________ Loansafe saved my home!! I may be alot of things, but I do know the difference between reply and forward.

03-06-2009, 08:56 AM	#3 (permalink)
robertnelly Junior Member Join Date: Mar 2009 Posts: 4 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: unsuccessful loan mod thanks Dan for answering, no i'm not behind on my payments. But can't they offer a lowere interest rate than 6.625%

03-06-2009, 09:02 AM	#4 (permalink)
robertnelly Junior Member Join Date: Mar 2009 Posts: 4 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: unsuccessful loan mod I understand my payment was going to go up at that interest rate, but why not lower my interest rate and face the possiblity of losing more money if i walk away from the house

03-06-2009, 09:08 AM	#5 (permalink)
Dan Bailey Loan Safe Moderator & Homeowner Guide Join Date: May 2008 Location: Wilmington NC Posts: 1,407 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: unsuccessful loan mod That is their investors guidelines. They really dont lose money if you walk away, plus- they see you are not behind. You may want to find out if your invester is Fannie or Freddie:FannieMae or FreddieMac? Check Here to Find Out If so, you would be in a good position for the obama plan (refinancing). Then I would suggest hold out for a month and contact them again. http://www.financialstability.gov/docs/counselor_qa.pdf __________________ Loansafe saved my home!! I may be alot of things, but I do know the difference between reply and forward.

03-06-2009, 09:31 AM	#6 (permalink)
robertnelly Junior Member Join Date: Mar 2009 Posts: 4 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: unsuccessful loan mod Dan should I give this months mortgage payment

03-06-2009, 09:37 AM	#7 (permalink)
Dan Bailey Loan Safe Moderator & Homeowner Guide Join Date: May 2008 Location: Wilmington NC Posts: 1,407 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: unsuccessful loan mod loansafe always recomends making your payments if possible. Especially stay current if you will fit into the new plan. __________________ Loansafe saved my home!! I may be alot of things, but I do know the difference between reply and forward.

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