Need advice on modification letter

[Missy9117]

hello
I found this site the other day and found itvery informational. We are3 months behind on our payments and are on a repayment plan was advised in februar to ask for a loan mod because we are on an ARM. so we sent in everything and yesterday recieved our letter explaining that our rate would drop from 12.75% to 7.5% but states annually what does that mean? our principle jumped up to around 10000.00 more. It says our first payment will be due July 1st and all we need to do is sign and send in $500 but they say we are in default and that they could still forclose, I also made another payment since the date of letter and and want to know where that payment will go and there is nothing stating about the past due amounts, what about my repayment plan, I have the payments due on the end of each month does that mean I will have one due on June 30 and then one due on July 1? I have tried calling the person on the letter but have to leave a message, Want to know if this is a good thing, we want to stay in our home.

thanks
all stressed out

[Moe Bedard]

Hi Missy,

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

Without actually looking at the letter it is hard to say what it all means..........

Call Litton direct at this contact number and check and make sure that it is a legitimate offer and that they sent it out direct from their offices........they should be able to let you know how you can proceed with payments and such..........

Executive Resolution Team
Direct: 1-713-218-4592
Fax: 1-713-966-8852

[Missy9117]

I called and they said yes they did send one out then forwarded me onto the extension who is the rep over us. Guess what I had to leave a message.
Can you kind of tell me how a loan modification works? Do you have the direct line to the loss mitigation dept for litton?

thanks

[Moe Bedard]

You will have to wait for for that person to call you back to get the direct number and extension............they are the ones with you file........

A modification changes or freezes the rate on your loan according to what the investor on your loan will allow.........