Short Pay Loan ?

**davidross61** · 10-07-2008, 08:33 AM

Hello, I'm trying to find out if I should consider a phone solicitor call I received from (Name Removed). The call was unsolicited and offered to handle a loan modification with Select Portfolio Service.

My situation is as follows: I was in a variable rate 3/1 arm after I took 40K in equity leaving 20% untapped in the house as I was retiring out of the military and wanted to pay credit card debt off. I was going to be a full time college student for several years and would have to live on the cards til I graduate till then (In nursing school and graduate may 09). Rate went up last dec to 11.5% and was strugling to pay note. Finally called S and P and told them they could have the house back if they didnt come down in the rate They did a loan modification and brought it back to 8.5% and thats where its at now. My questions are: 1. Has anyone heard of (Name Removed) located in south florida? 2. And should I even try to remodify the mortgage as S and P has allrady given me one. I can barely afford the mortgage now but I graduate in may next year and income will go up. Also the house was appraised last Feb, for 150K which is what I owe on the house, but then the refinacing fell thru because they devalued the house to 140K stating there is a 6 months glut of housing in pensacola Fl.

Thanks for any help

**Maurice Bedard** · 10-07-2008, 08:40 AM

David,

If you have already done a modification with SPS............then you can do this on your own............these companies make guarantees on things that they just can't achieve and take your money.

What you need to do is to call SPS and ask what options the investor on your loan has.............

SPS Loan Resolution
1-888-818-6032.

**davidross61** · 10-21-2008, 11:43 AM

I just got off the phone with SPS about trying to modify my mortgage. I had a 3/1 arm and was getting buried in debt last year and went thru them to modify the loan last year and they put me on a fixed 8.5%. The reason i called today was to try to negotiate down my intrest rate. The resonce was no. If i wanted a lower rate i needed to have done it prior to geting the fixed 8.5%. The person on the phone sugested I try to get refinanced from another lender. I explained that I was up side down in the house, I owe 150K and the last apprasal was for 140K, and the market has gone down from there as it was in Feb of 08.
The customer service rep sugested I try to get a Short Pay Loan? Anyone heard of it? She said i get a refinance company to refinance for the current market value and see if SPS will accept the offered amount and then SPS has the option of accepting, refusing, or accepting with provisions. I have never heard of this and wondering if this works, or is the damage to my credit make this a non-starter?

Thanks,
David

**Maurice Bedard** · 10-21-2008, 12:21 PM

David...........

They are most likely referring to the H4H (Hope for Homeowners) FHA program...........you would need to see if you meet the criteria and then apply for a loan using an FHA approved lender.............the current investor on your loan will then have the option of accepting the new loan........

click on the link for the info and to see if you meet the criteria........

HOPE for Homeowners