Clueless in CT - Loan Modification Forum

59Cottage · 11-03-2009, 04:48 PM

We have no idea what we are heading into. Hoping someone give some clues.

We bought our house in Oct 2007 for $267,000. FHA first-time homebuyers loan with no money down. We paid our mortgage to Wells Fargo.
July 2008 - refinanced for a better rate. The mortgage was then paid to somebody Franklin.
February 2009 - refinanced for a better rate again and got cash out. Mortgage is now $300,000 and paid to MetLife. The appraisal on the house at that time was $315,000

The loan has PMI. There is also an escrow account that pays our taxes and homeowners insurance.

In March 2009, my husband's boss did company-wide paycuts to the tune of 25% of his salary. I also had to stop working as our special-needs daughter's health was beginning to decline. I cannot go back to work in the foreseeable future due to these health issues. We struggled all summer to pay our mortgage and are now maxed out on credit cards and have no money in the bank.

Because this is our first month of not paying, MetLife won't talk to us. Even if they did modify our loan, we would need it to be half of what our current payment is to enable us to stay. Should we bother asking for a modification? We would be willing to sign a 50-yr refinance if that was even possible. I've heard that the HOPE for Homeowners program requires you to pay the government half or more of any proceeds from the future sale of your house if you get a loan mod. Is this true?

We cannot sell the house outright because the value declined sharply since February and we are now told it is worth $245,000.

From reading these forums, it seems like Deed in Lieu is just not happening. Is it worth offering that? What are the steps to take and what are the outcomes of doing that?

What if we just move out? If there is a court date, what would they want from us? What about the PMI? I'm guessing the lender is going to just throw us into foreclosure so they can collect the insurance, right? When we refinanced, we got checks from the closed escrow accounts - would we get that again or will that money go straight to MetLife?

The mortgage is in my husband's name only. The title is in both of our names. Will "foreclosure" show up on my credit report? If so, should I take my name off the title now?

Who do we give the keys to?

heidi79 · 11-03-2009, 07:25 PM

search under metlife on the site and see what you can find as far as the experience of others with them. i don't think they participate in the hamp program, not sure, the loan less than i year old so i doubt it falls under those guidelines anyway, the only way would be an internal modification with metlife. hoping for the payment to be cut 50% is probably not going to happen. you'll probably get more attention from them as you fall behind.

definitely, though, if you'd like to keep the house call them and communicate the problem you are going through.

11-03-2009, 04:48 PM	#1 (permalink)
59Cottage Member Join Date: Oct 2009 Posts: 12 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Clueless in CT We have no idea what we are heading into. Hoping someone give some clues. We bought our house in Oct 2007 for $267,000. FHA first-time homebuyers loan with no money down. We paid our mortgage to Wells Fargo. July 2008 - refinanced for a better rate. The mortgage was then paid to somebody Franklin. February 2009 - refinanced for a better rate again and got cash out. Mortgage is now $300,000 and paid to MetLife. The appraisal on the house at that time was $315,000 The loan has PMI. There is also an escrow account that pays our taxes and homeowners insurance. In March 2009, my husband's boss did company-wide paycuts to the tune of 25% of his salary. I also had to stop working as our special-needs daughter's health was beginning to decline. I cannot go back to work in the foreseeable future due to these health issues. We struggled all summer to pay our mortgage and are now maxed out on credit cards and have no money in the bank. Because this is our first month of not paying, MetLife won't talk to us. Even if they did modify our loan, we would need it to be half of what our current payment is to enable us to stay. Should we bother asking for a modification? We would be willing to sign a 50-yr refinance if that was even possible. I've heard that the HOPE for Homeowners program requires you to pay the government half or more of any proceeds from the future sale of your house if you get a loan mod. Is this true? We cannot sell the house outright because the value declined sharply since February and we are now told it is worth $245,000. From reading these forums, it seems like Deed in Lieu is just not happening. Is it worth offering that? What are the steps to take and what are the outcomes of doing that? What if we just move out? If there is a court date, what would they want from us? What about the PMI? I'm guessing the lender is going to just throw us into foreclosure so they can collect the insurance, right? When we refinanced, we got checks from the closed escrow accounts - would we get that again or will that money go straight to MetLife? The mortgage is in my husband's name only. The title is in both of our names. Will "foreclosure" show up on my credit report? If so, should I take my name off the title now? Who do we give the keys to?

11-03-2009, 07:25 PM	#2 (permalink)
heidi79 Senior Member Join Date: Jan 2009 Location: Miami, Florida Posts: 250 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Clueless in CT search under metlife on the site and see what you can find as far as the experience of others with them. i don't think they participate in the hamp program, not sure, the loan less than i year old so i doubt it falls under those guidelines anyway, the only way would be an internal modification with metlife. hoping for the payment to be cut 50% is probably not going to happen. you'll probably get more attention from them as you fall behind. definitely, though, if you'd like to keep the house call them and communicate the problem you are going through.

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