Central Mortgage

[jason.inct]

Can I also get some opinions please as I have become very stressed given the market.

I purchased my home a little over 3 years ago for $550k, it is a two-family but I reside in one unit. I recently had it appraised in an attempt to refi but the value came at roughly $470k. I have a first with Central Mortgage for $440k and a second with Chase for $80k. My mortgage rep told me at the time that I would need around $75k to refi, something I just don't have liquid. My Central mortgage is at 5.75% (interest only) and adjusts in 2 yrs, my 2nd with Chase is at 7.75%.

I have attempted to call Central to discuss a potential modification but have been told I need to call back around 4-5 months from the adjustment date. While my situation is not as dire as some as I am making my payments, my personality is one that worries about variables.

I have perfect credit, and roughly $40k liquid. My fear is that once my Central adjusts and becomes Principle and Interest my monthly debt payments will far exceed my income. I have no other debt besides my house.

I have read comments from others who have received the same message, when I call back in 18 months, will they be willing to work something out? Does anyone have any insight or experience calling back at a later date? How about someone who has not paid late or has liquid funds, will they be will to work with them?

I am very hesitant to lower my liquid funds as my house is over 100 yrs old and the potential for work is always looming.

Any reponse would be greatly appreciated!!

Jason

[Moe Bedard]

Hi Jason,


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

Modifications are given by the investors on the loan in cases where there was/is a hardship present...........having 40k and no other debt isn't really going to be considered a hardship..........

You don't have to be in default for the modification............but you would have to prove the hardship......
also the interest rates that you have right now are lower than most modifications.........so if the adjustment 2yrs down the road is going to cause the hardship..........you might need to wait to get closer to that timeframe.......

[jason.inct]

Thanks for the reply ***