Central Mortgage Modification

[shazar]

Hi all,
After several month struggle with Central Mortgage Company, I finally got a loan mod. offer. The mod is based on the original loan amount plus amortized amount, plus about $10K finance charges, plus deliquent property taxes. On top of all that CMC charged me about $1500 for the modification without disclosing it to me ever.
Currently I'm upside down for about $200k with a low fixed income. Had an excellent credit -before my min. payment jumped almost 3 fold- and never made a late payment. I was tiring to get a loan mod based on current value of my home.
I can afford to make the payment for the first 2 years, however as of 3rd year I'll be in the same situation that I'm in now, not being able to make the payments while I'll be carrying a bigger mortgage.
CMC is giving the option for short sale while they continue the foreclosure process.
Is this all make sense?! Am I being toyed here? Do you think I should go for short sale? Please help, anyone?!!

[Moe Bedard]

Hi shazar,


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


The modifications given are up to the investors on the loan........they are not doing modifications down to the current value of a home.........if you are in default, the default amounts with be added to the principle balance.
If they are offering to approve a short sale, that is very hard to get......so you may want to get your home on the market with an agent well versed in short sale negotiation so that you have the time to sell before there is a foreclosure date.

[shazar]

Thanks for the response.
So you're telling me that Central Mortgae preferes to loose about $300K in foreclusear, rather than give me an affordable fix rate modification. I'll be happy with 40 years fixed rate! I'm just trying to understand their logic. CMC is not going to lose a penny, if gives me loan I can afford. After all these people are the onc who convince me I can afford this house in the first place!

[HopingtoFind]

Hello shazar,


My question would be why not just take the modification that you're being offered right now if you can afford it for at least the next two years. Things will be changing very fast in the near future and two years is a long time....

[shazar]

The impact of going through this process has been so devistating on my family that I can't see us going through this again in 2 years. I don't see the market can change so rapidly in 2 years. Basically, I've lost hope! I don't see government do anything for us.

[Moe Bedard]

If all you want is a low fixed rate for the life of the loan, and this is an owner occupied principle residence and you don't own any other property.........you may want to try NACA instead of having to accept a modification that will set you up to fail for the long term..............

click on the link for the info..............
https://www.naca.com/refinance/refinanceTenStep.jsp

[shazar]

Thanks for your advise. I'll follow up with NACA.

[HopingtoFind]

Just curious what is the interest rate that they are offering you 1st, 2nd and 3rd years? Also, what is the interest rate that you currently have? I am assuming it is variable at this point and they're offering you fixed.

[shazar]

My current rate is: 6.75%. I kept paying minimum payment until November Howere CMC considers me being behind about 5 month.The Mod rate offer is:
1st and 2nd year: 2.25%
3rd and 4th year:3.25%
5th year: 5.25
as of begining of the 6th year for 30 years fix 6.5%
My issue is that I can't afford the payment after 2nd year with my current incom.

[HopingtoFind]

Originally Posted by shazar

My current rate is: 6.75%. I kept paying minimum payment until November Howere CMC considers me being behind about 5 month.The Mod rate offer is:
1st and 2nd year: 2.25%
3rd and 4th year:3.25%
5th year: 5.25
as of begining of the 6th year for 30 years fix 6.5%
My issue is that I can't afford the payment after 2nd year with my current incom.

Your mod offer looks good and along the lines of what others have been offered. I think the problem here is that you're upside down and your ideal situation would be to reduce the principal and they are not doing it at this point. I would doubt that you can get a better deal then you have already gotten, but I might be wrong. I guess it is worth a try.