Old 10-03-2009, 07:47 AM   #1 (permalink)
Junior Member
  
 
capo77's Avatar
 
Join Date: Oct 2009
Posts: 1
Nominated 0 Times in 0 Posts
TOTW/F/M Award(s): 0
capo77 is on a distinguished road
AHMSI---how to start loan modification?

We have a "pick-a-payment" type loan from American Home Mortgage and have been paying on it for the past 2 years, 2 months at the minimum payment. The difference between the minimum payment and interest only payment are $1,200 more and we can not afford that and definitely can not afford the fully amoritized payment. We have always paid this loan on time at it's minimum rate and just found out this week that our payments will change due to recap once the loan amount reaches 120% of the original loan. According to the calculations of my original broker, he said we have about 30 months until the rate gets adjusted due to the recap at 120%. I have some questions for those of you who have experience dealing with this situation....

1.) Does a loan modification hurt your credit rating?
2.) Do you have to be late paying your loan?
3.) Re: financial hardship....we do not have a financial hardship paying the minimum payment, but if we were all of a sudden required to pay $1200 more than the minimum, we would NOT be able to....Question: Do we have to wait until they adjust it?
4.) How do I begin the loan modification process?

Thank you in advance for your help,

Tina


capo77 is offline  
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote Share with Facebook
Old 10-03-2009, 01:50 PM   #2 (permalink)
Founder
  
 
Moe Bedard's Avatar
 
Join Date: Aug 2007
Location: Southern California
Posts: 16,887
Nominated 0 Times in 0 Posts
TOTW/F/M Award(s): 0
Moe Bedard has a reputation beyond reputeMoe Bedard has a reputation beyond reputeMoe Bedard has a reputation beyond reputeMoe Bedard has a reputation beyond reputeMoe Bedard has a reputation beyond reputeMoe Bedard has a reputation beyond reputeMoe Bedard has a reputation beyond reputeMoe Bedard has a reputation beyond reputeMoe Bedard has a reputation beyond reputeMoe Bedard has a reputation beyond reputeMoe Bedard has a reputation beyond repute
Re: AHMSI---how to start loan modification?

Hello and welcome Tina!

Quote:
1.) Does a loan modification hurt your credit rating?
As lenders clamp down, credit scores take a hit | LoanWorkout.org

Will a loan modification lower my credit score & Wells Fargo questions?

Starting in September, there's a new guideline for how lenders can report a loan modification to credit bureaus. They can classify it as a "partial payment" of your mortgage. And that can be a big negative mark on your credit report.

Depending upon what else is in your credit history, this partial payment status "can lower somebody's FICO score by over 50 points," said Craig Watts, spokesman for FICO, formerly known as Fair Isaac Corp. and the developer of the most widely used credit score.

The "partial payment" status can stay on your credit report for seven years, says John Ulzheimer, president of educational services at Credit.com. "You have to make a decision, because modifying your loan is going to hit your credit," he said. FICO scores are the most widely used credit scores. Lenders do use a variety of other credit scores and each one may react differently to a loan modification.

Quote:
2.) Do you have to be late paying your loan?
95-98% of the loan modification I have seen were for borrowers who were late. For borrowers who were on time and tried to get a loan mod, maybe 5% at most.

Quote:
3.) Re: financial hardship....we do not have a financial hardship paying the minimum payment, but if we were all of a sudden required to pay $1200 more than the minimum, we would NOT be able to....Question: Do we have to wait until they adjust it?
No, but it will be one of the hardest fights of your life to get help before then. Not impossible, but darn close.

Quote:
4.) How do I begin the loan modification process?
Please download my e-book in my signature and that will help you a lot!!
__________________
Moe Bedard
Founder

LoanSafe.org "America's #1 Home Loan Forum"
LoanWorkout.org "America's # Loan Modification Blog"


Get My FREE Loan Modification E-Book | Please donate to LoanSafe.org | Loan Modification Training For Attorneys | Rate Your Mortgage Servicer


The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. Most of the information you find here is easily available on the internet. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Please Read our Privacy Policy and Legal Disclaimer Here.
Moe Bedard is offline  
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote Share with Facebook
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Trackbacks are On
Pingbacks are On
Refbacks are On



All times are GMT -7. The time now is 09:12 AM.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2009, Jelsoft Enterprises Ltd.
SEO by vBSEO 3.2.0
Copyright 2009 LoanSafe.org and MoeSeo Inc. All Rights Reserved. Home Loan, Loan Modification & Foreclosure Help Forum - LoanSafe.org

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100