We just made our first payment on our new modified loan!

[momma020406]

My husband and I bought our house in Dec. 2006 with a 9.3% interest rate, our payment is $1797.93 a month. We paid on time for almost the full two years but the last couple months my husbands income has gone down about $800 - $1000 a month and we are now two months behind. I have been paying them money each month and applied over a month ago for a loan mod. We finally received a phone call from the person assigned to our loan and he said it is looking good and we should find out before xmas. I'm really nervous and really have no idea what the process is all about. I'm hoping our payment will go down. They told me I probably won't have to make a payment till Feb. and said I don't need to send one this month but I have a tought time trusting that. Should I pay anyway? Can anyone tell me what to expect? Thanks

[Dan Bailey]

momma,
Glad you found the forum!
If you have been working with someone (the person you had assigned to your loan) on a regular basis, I would contact them again to verify the months of not having to make a payment. This is not unheard of though-once granted a modification. They usually give a month or two grace period.

[momma020406]

I haven't really been working with him on a regular basis cause I've only talked to him once after contacting him for a month but it was just the other day and he told my I shouldn't need to but he'll let me know within the next two weeks. I am going to make sure though.

[elpjohnson]

momma.....

Welcome to the forum and thanks so much for joining.....the decision to make payments or not is totally up to you and is a personal one.....we cannot advise you, however, I would call your negotiator at AHMSI to find out if they apply the payments during a modification or if they put it in suspense until the modification is complete and make your decision based on that.....I made payments during my modification process and they put it in suspense and applied it as my first payment for my modification. I would definitely call them regularly for a status report and to let them know you are on top of things

[elpjohnson]

I forgot to ask....who is your negotiator?

[momma020406]

We had a $200,000 loan through Option One which of course has changed to AHMS. Our payment was $1797 a month with a 9.3% int. rate and work slowed down for my husband so we got a month to two months behind. I didn't even ask for the mod., they offered. I submitted the paper work in Oct. and kept in contact with them and we heard the week before xmas that we were approved. Our new payment amount would be $1235 a month and we didn't have to make any payments till Feb. 1st. Our new loan amount is $205,000 but with a Interest rate of 4% now we will have that paid back down to $200,000 within a year. Our int. rate will go up half a % each year till it reaches 6% and then it will stay at that for the life of the loan. Our payment will still never be close to what it was so I'm happy. I just wanted to share my good ending because I know I liked hearing that it worked out for other people because it gave me hope. Make sure you keep calling them and that you do everything they ask very promptly and hopefully it will work for you too! Good Luck!

[strive2win]

Many congrats! I know it feels awesome!

[surfdoggy1234]

Hi Momma....did they ask for a processing fee to do the mod??