Litton's Re-modification offer..Dismayed.

[kislanya]

Hi!
New here posting but have done quite a bit of research here before submitting my re-mod package to Litton on Nov. 12-08.
In a nutshell, we have a 30 yr. fixed 6.65%, mortgage payment
1,122.10 which includes taxes/home owners ins. of 197.67.

In June-08 my husband's company cutback all o.t. which was
considerable. He took a p/t job but losing that o.t. was bad.
For the last 15 years I have been receiving long term disability
from my job and with that check and my social security, I was
able to always make the mortgage payment...never late once in
10 years.

By August we were past the grace period, September missed that month and got to October and paid one month. I knew that when I turned 65 on Dec.4th, I was going to lose that long term disability check and spoke with Litton. They suggest the re-mod process and submitted everything 11/12/08.

Today I was told by Litton via phone that I would be receiving the package no later then 2 weeks. I wheedled the lady to give me the particulars. She said my interest was reduced to 4.49%
which only reduced my mortgage payment by about $167.00.
So instead of paying $1,122.10, it will be $955.51 thereabouts.

It seems hardly worth all the work in preparing the paperwork.
Is this unusual or not. Plus they are charging me $921.00 contribution fee? for the re-mod package.
Thanks, Kislanya

[Lisa in MN]

Kislanya,
Only you can decide if it is something you can live with, and is worth it. It is a good mod, considering your original terms were pretty good.
Charging for a mod fee I think is pretty typical. Kind of like a good faith thing.
( Could I use the word "good" one more time in this post????)

Lisa in MN

[kislanya]

Hi Lisa!
Well that's the point, can we 'live' in the realistic
definition of that word.
Our net income without that disability check is reduced to
$2,348.00. With the mortgage payment where
it was we were at $1,228.10 net for the month
for expenses. And we found out that my husband's
health insurance through work ended in November.
He is without coverage, I have Medicare.

The fee being charged is really high if I am already
having problems paying the mortgage.
The rents in apartments here are about the same
as my mortgage payment with less room by far.
Pay less rent? move to areas where crime is
rampant.

We have about two weeks to make a decision.
Not sure waht to do..but thanks for the reply..
Kislanya

[RetroBoats]

It sounds like a very good offer. My sister did a conventional refinance, just for a lower interest didn't have any loan issues. She got 4.75 % and was very happy. Your 4.49 % offer is great...might be that you need other solutions.

[kislanya]

What would those solutions be? sure it's a nice
interest rate but hardly effects the mortgage
payment by much.
We can realistically manage $750.00 not 955.51.
And that 921.00 contributory(?) fee is impossible,
don't have that at all.