EMC says I cannot modify loan because investor guidelines will not go below 7.75%, is that true?

[mdclancy]

We were in repayment plan for 6 months with EMC mortgage. My husband had lost his job and we could not make the normal payment so they put us in a repayment plan. Said is we made our payments on time we'd be eligible for modification at the end of the 6 month period. In January tried to modify and we were told the investor guidelines do not allow the rate to drop below 7.75%. So if we "modify" our loan to that rate our payment increases to 4300 per month! Our home is not worth what is owed on it and the loan modifiers at EMC have been very degrading to us through the process. I've had to do all the follow ups with calls every week until 30 days later the rep working on the mod got on the phone and said you were denied so deed the house over. I was just wondering if this is true. That we willbe unable to modify because the ivesotr guidelines will not allow them to go below 7.75%. If this is true, then I will need to prceed with my next course of action. The irony of it all is if they invesotr would drop the rate to 5% we could afford to make the monthly payment. I would think they'd want to keep the homeowner in the home and not loose even more money to foreclosure. Any imnput is appreciated

[Moe Bedard]

Hi mdclancy,


welcome to the forum and thank you for joining.......

The modification given is up to the investor...........due to pooling and servicing legal agreements that are in place between an investor and servicer..................the servicer would have to adhere to the guidelines are that put in place by the investor.


If this is the only property that you own............you can try NACA and see if they may be able to help you..............they are a HUD approved counseling agency and their Home Save modification services are free.....
here is the link for the info.........
https://www.naca.com/refinance/refinanceTenStep.jsp