Help with loan mod

[Here4Help]

Here is my situation:

I own a rental property that has an 80/20 stated income (because my boyfriend had no credit) loan on it. The first is with Indy Mac (6.8%) and the second is with City Mortgage (9.5%).

I also have a primary residence that has an 80/20 stated income loan on it. The first is with Aurora (6.3%) and the second is with National City (8.5%).

Back in October of 07 I lost my job and was unable to find one that paid anywhere near what I was making when I purchased these homes. I ended up taking a job that pays $450.00 a month less than what I originally made and after months of not having enough money and having to use my credit cards for everything, I am realizing that I am in a very bad spot.

I would like some advice on a loan modification. What are my options? Do I just work on the primary residence or can I do something on the rental property also? Do I only talk to the first mortgage company or do I talk to the second also? Any help/suggestions would be appreciated.

I did call Aurora and spoke to a really nice man who went through the process with me. He said to go ahead and send everything in but that they probably would not be able to help me because my interest rate is low and they do not adjust the principal. I also am current on all of the loans (which won't be for long if I don't get help). He also said to try my second mortgage.

Again, any help/suggestions would be appreciated. Thanks.

[Moe Bedard]

Here4Help,


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

The interest rates on the loans are low............so the advice given was good.......and if they are interest only as well.....a modification could end up raising the payment............

If you can get some relief on the seconds would that even help?

Is the second with City or Citi?

[Here4Help]

The second is with National City Mortgage. Do you know if any of these companies have been known to lower the principal balance? A co worker of mine just did a loan mod on her Wells Fargo loan and they kept her interest rate the same, but lowered her principal to what the property is currently worth.

[Moe Bedard]

Not sure............it depends entirely on the investor on the loan and not the servicer.............

You would need to call and get the process started............

National City Mortgage
Homeowner's Assistance
1-800-523-8654
Fax- 1-937-910-4138

[Here4Help]

What about the rental property? Should I try something with all the companies at once?

[Here4Help]

What about the rental property? Should I try something with all the companies at once? or should I concentrate on just one?

I can tell by my interest rates that the only thing that would probably help would be if the principal was lowered. Unless I could get the second mortgage on both houses to come down to 6% each. That would help.

What do you think I should do?

[Moe Bedard]

The IndyMac rate is also very low too...............you can try, but I don't know that they will work on it...........it depends on the investor........

Is the other second City or Citi

[Here4Help]

The second on the primary is National City Mortgage, the second on the rental is Citi Mortage.

[Here4Help]

Ok, thanks for the help!