NEVER LATE with First Franklin

[laurandmatt]

My wife and I purchased our first home 2 years ago. The terms were changed at the closing table and we ended up with a mortage with First Franklin containing terms of 2 year fixed and then APR of over 9% for 50 years. We also have a second with them. Obviously the rates are steep but that is what we signed up for.

We have always expected to refinance after 2 years so we have made it a priority to never be late on any payments including all bills and credit cards. We have managed this even though I lost my job twice this year and am now on unemployment. After the adjustment things will be very tight. My wife has good credit and mine is average for some reason it dropped 100 points after I lost my job even though never late on anything. We do not have a Fanny or Freddie backed loan so the Obama plan is not an option.

My question to those of you kind enough to give advise is what are our options now. Is it possible to refinance with another lender and get out of this loan like we had planned with only her income which is less than we had together when we first purchased. Should we try to work with First Franklin and do a loan mod? Or another option that I have not thought of yet. And finally does anyone know if First Franklin will be participating in any part of the Obama program. First Franklin will not disclose who owns our loan which I have learned is standard procedure however they did state that our loan has never been sold.

Thank you in advance for your time.

[Dan Bailey]

laurandmatt,
Glad you found the forum and posted.

Refinancing may be an option IF your home is not underwater now (home value NOW as opposed to loan amount) that would be the first thing to check. Home values are nothing what they were two years ago.

Second, to check if your invester is frannie or Freddie, go here:FannieMae or FreddieMac? Check Here to Find Out

Participation in the "obama plan" is voluntary for any other investors besides frannie and freddie. It has bnot been enough time to determine who will or will not participate.

[laurandmatt]

Thank you for the fast reply! We are not underwater we have approx. 30,000 in equity on a house value of 260,000 according to zillow. I have inquired with both Fanny and Freddie and neither is our investor.

[Dan Bailey]

Well, nothing precludes you from trying for a re-finance, it may be hard with the reduction in income, but you can go for it.

If that does not work out, the next step would be to try for a modification based upon your hardship of losing the source of imcome that you had previously.

Way to start that owould be to send a hardship letter to the serviser, an example is shown here :Examples of a Hardship Letter .
Contacting the lender, letting them know verbally that you are going to be encountering financeial problems, and sending this letter in will start the process of obtaining a mod.

[laurandmatt]

I just contacted First Franklin and they are sending modification docs. They stated that they are participating in all available programs for modification. I hope that this means the "Obama" modification plan.

I told them that I was unemployed and not currently at risk of late payment however when my loan adjusts in June I may have a problem if the adjustment is substantial. From what I have read the new loan cannot exceed 31% of gross monthly income including interest, taxes, insurance, and HOA dues.

One additional question I have is if unemployment income is considered gross monthly income or not.

I have read threads concering mods at First Franklin. If anyone is in the same situation and has info on their progress or needs info on communications I have had please respond.

[Moe Bedard]

because the guidelines are so new..........they just came out on March 4th.........you would need to ask FF if they are able to use that for your income.........