help w/ NEG AM loan????? thanks

[2blessed2stress]

Hi everyone. My mother-in-law is in a situation w/ American Home Mortgage/Option One and wanted some advice.
She's in a neg am loan, current on payments but paying the level below the interest only payments (therefore her principal is increasing each month). She currently owes around 150k w/ a value around 110k or so. She can currently afford those payments however if she stays in the loan it will cap out in a few years and lose it. Also, in December her rate will adjust again to a payment she can barely afford.
She submit a loan mod request to AHM and it was denied. I recommended that she reapply since some of her financials have changed and would now show a small surplus versus the deficit in her first request. This week she spoke to a VP at the bank and was told due to the restrictions on her loan she does not qualify for a loan modification at all. She also doesn't qualify for the H4H/FHA secured loan as AHM/Option One isn't approving any at this time.
Several people had suggested she just ride it out to see what happens after the first of the year w/ the new bail out.
She has excellent credit but is unable to refinance for the aforementioned reasons.
Recently she has been contacted by a 3rd party loan modification team. They are making promises that they can help, etc. I told her to be cautious since they charge a fee and based on what others on the board have posted.
We would appreciate any suggestions you have.
thanks!

[Moe Bedard]

Can not comment on any outside companies on the forum............but I will tell you that unless the company uses a licensed attorney that you can verify through the state bar........... I would be wary.........also keep in mind that the modifications are up to the investor on the loan and if she keeps getting denied based on financials..............there isn't anything that a third party will be able to do to turn that around......other than obtain their fees.....

the company that you mentioned also has a catch 22 in their contract set up so that you have to pay them even if the outcome happens to be short sale...............which you wouldn't need to pay for to be told that would be your only other option before foreclosure.........


if she wants to give it a try with a third party..................have her try NACA...............they have their own program available to help that they present to the investor.................

NACA

[socaljager]

wait a month or so and apply again. Hopefully the investor restrictions will be lifted. if not, apply again in a month and so on. with the updated financials, of course. it is true that a 3rd party can't help if there are investor restrictions.