Foreclosure should not be an option

[GESun]

We are new to this forum and are looking for some advice for loan modifications. Here is our current situation:

1)We have 1^st and 2^nd mortgages on our primary residence (CA) and 4 rental properties (OK).

2)Primary Residence Mortgage:
a.1^st loan Chase Home Finance 5/1 ARM 5.375% (exp in 14 months)
b.2^nd loan CitiMortgage Inc. FRHEL w/15 YR BLN 5.999%

3) Rental Properties:
a.Two properties
i.1^st loan Homecomings Financial 30Year Fixed 8.00%
ii.2^nd loan CitiMortgage FRHEL w/ 15 YR BLN 12.15%

b.Two properties
i.1^st loan Aurora Loan Services 30 Year Fixed 8.125%

4) Property value for our primary residence has decreased significantly leaving us with very little, if any equity. We are not able to refinance.
5)All rental properties are negative cash flow.

Although we are current with making all our payments at this time, our income has decreased significantly in this economy (after expenses, we have a surplus of $150-$200/month). We are concerned that when our 5/1 ARM expires we will no longer be able to make those payments.

We would like to be proactive and not foreclose on our home. We have tried to do a loan mod with Chase and they have denied our request because we have not defaulted on any of our payments. How should we proceed with the loan mod process with Chase or any of the other lenders if we’ve already been denied once?

[Moe Bedard]

Hi GESun,



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

Since the modifications are up to the investors on the loans..... you would need to ask what options the investors have on your loan, they may be able to extend the rate out for a longer period than 2yrs. They look at a modification like an emergency room and the most severe hardship will get the attention first.

On your primary residence you may also be able to try going through the non profit NACA to see if they can help...........click on the link for the info.......
https://www.naca.com/refinance/refinanceTenStep.jsp

[LHarveyMadman]

Have you considered selling one or more of your rental properties, using the proceeds to pay down your debt on your primary residence, and then refinancing into a fixed rate mortgage?