Strange modification offer...need advice!! - Loan Modification Forum

ASanders · 08-07-2009, 10:48 AM

Homestreet bank has offered to take my late payments and fees and add them to the principal of the loan. Then we would have slightly higher payments starting Sept 1st with what is essentially a new loan. The strange part of this is that the guy KNOWS we are going to foreclose. He told me to take the deal just so we can put off the foreclosure a little longer. He says he is trying to help. (We would get to miss 3 months of payments again before the foreclosure process started.)

He is sending papers to sign and notarize. My question is, does this sound fishy to you? I am worried that there will be something in the papers regarding the "new" loan that will make our foreclosure harder once it comes. Does anyone have any suggestions as to what to look for in the paperwork? Should we sign them? Or should we just go ahead and foreclose now?

Oregon bond loan, fixed 30 year 5.25% Owned by rural housing so not able to lower interest rate or extend. Owe $255; house is now worth $150 or so. Any advice greatly appreciated!!!!

ugh_2009 · 08-07-2009, 11:06 AM

Quote:

Originally Posted by ASanders

My question is, does this sound fishy to you?

Yes!!

What state are you in? Are you currently underwater?

Definitely have an attorney look at the docs before signing.

ASanders · 08-07-2009, 12:54 PM

I am in Oregon and we are almost $100,000 underwater. Husband lost job last Jan and we couldn't keep up with the payments. I will see if I can make an appt. with an attorney!

ugh_2009 · 08-07-2009, 01:09 PM

Hmm, so you are in a non-recourse state, underwater and they offer you a "refi".. This sounds very very fishy.

Social Apocalypse · 08-08-2009, 05:05 PM

DANGER DANGER DANGER! They probably are trying to prepare a "NEW LOAN" so that they can create a NEW NOTE because they DON'T HAVE ONE!!! THEN they will be able to foreclose without issue on you. BE VERY CAREFUL. Banks NEVER give things away and certainly, with all of the pain and suffering we have all been through to get any kind of help with NO response, I would be very skeptical. GET legal help. I am in Washington, and I could go on for PAGES about the hardship. I bet they can't produce your note, and they are trying to make a new one. Check it out!!

ASanders · 08-08-2009, 10:44 PM

Thank you everyone! You have verified that my paranoia is true, LOL. I don't think I will even open the new loan offer. Foreclosure, here we come and it is a relief!

SillyWorld · 08-08-2009, 10:51 PM

Quote:

Originally Posted by ASanders

Thank you everyone! You have verified that my paranoia is true, LOL. I don't think I will even open the new loan offer. Foreclosure, here we come and it is a relief!

Good Luck! and if your gonna walk make sure you save CASH under the matrass and do not keep any in a Bank if your mortgage is same banmk they can take it all...And to start a new loan would make your Norecourse a possible recourse, then foreclose on 2 new loan they can come after you for the difference they loose from an auction

08-07-2009, 10:48 AM	#1 (permalink)
ASanders Member Join Date: Jun 2009 Posts: 6 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Strange modification offer...need advice!! Homestreet bank has offered to take my late payments and fees and add them to the principal of the loan. Then we would have slightly higher payments starting Sept 1st with what is essentially a new loan. The strange part of this is that the guy KNOWS we are going to foreclose. He told me to take the deal just so we can put off the foreclosure a little longer. He says he is trying to help. (We would get to miss 3 months of payments again before the foreclosure process started.) He is sending papers to sign and notarize. My question is, does this sound fishy to you? I am worried that there will be something in the papers regarding the "new" loan that will make our foreclosure harder once it comes. Does anyone have any suggestions as to what to look for in the paperwork? Should we sign them? Or should we just go ahead and foreclose now? Oregon bond loan, fixed 30 year 5.25% Owned by rural housing so not able to lower interest rate or extend. Owe $255; house is now worth $150 or so. Any advice greatly appreciated!!!!

08-07-2009, 12:54 PM	#3 (permalink)
ASanders Member Join Date: Jun 2009 Posts: 6 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Strange modification offer...need advice!! I am in Oregon and we are almost $100,000 underwater. Husband lost job last Jan and we couldn't keep up with the payments. I will see if I can make an appt. with an attorney!

08-07-2009, 01:09 PM	#4 (permalink)
ugh_2009 Senior Member Join Date: Jun 2009 Posts: 126 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Strange modification offer...need advice!! Hmm, so you are in a non-recourse state, underwater and they offer you a "refi".. This sounds very very fishy. __________________ .

08-08-2009, 05:05 PM	#5 (permalink)
Social Apocalypse Senior Member Join Date: Mar 2009 Location: Washington State Posts: 270 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Strange modification offer...need advice!! DANGER DANGER DANGER! They probably are trying to prepare a "NEW LOAN" so that they can create a NEW NOTE because they DON'T HAVE ONE!!! THEN they will be able to foreclose without issue on you. BE VERY CAREFUL. Banks NEVER give things away and certainly, with all of the pain and suffering we have all been through to get any kind of help with NO response, I would be very skeptical. GET legal help. I am in Washington, and I could go on for PAGES about the hardship. I bet they can't produce your note, and they are trying to make a new one. Check it out!!

08-08-2009, 10:44 PM	#6 (permalink)
ASanders Member Join Date: Jun 2009 Posts: 6 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Strange modification offer...need advice!! Thank you everyone! You have verified that my paranoia is true, LOL. I don't think I will even open the new loan offer. Foreclosure, here we come and it is a relief!

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