How did you get a 2% fixed loan modification?

[oc949]

I am very pleased to hear about the large number of people who apparently got their loans modified to 2% fixed for the life of the loan, which is greater than 26 years for most people.

For the benefit of all of us, can you please summarize how you believe you secured this deal? For example:

1. Were you in an exotic Option ARM loan before?
2. Was your debt to income much higher than ~30%?
3. Was your loan backed by Freddie or Fannie?
4. Did you work through NACA? An attorney? Directly with the lender?
5. Did you file your loan mod request between April and June 2009?
6. How many times did you file and reject other loan mod offers from the lender before you got your fixed 2% modification?

Fixed 2% modifications still appear to be the exception rather than the norm. For those of you who have them, how do you believe you got them?

[Moe Bedard]

I ma going to chime in here because I have seen a lot of modification and know the details, before and after.

1. Were you in an exotic Option ARM loan before?

Usually these loans are portfolio loans and owned by the mortgage servicer who is also the lender. Giving them more flexibility on terms.

2. Was your debt to income much higher than ~30%?

Most always. This debt to income deal is just a phenomenon and means nothing. I have seen 20% and 80% debt to income ratios.

3. Was your loan backed by Freddie or Fannie?

Most of the time, no. Fannie and Freddie are not so kind.

4. Did you work through NACA? An attorney? Directly with the lender?

All the above.

5. Did you file your loan mod request between April and June 2009?

I started seeing 2% mods around mid 2008

6. How many times did you file and reject other loan mod offers from the lender before you got your fixed 2% modification?

Usually never. But on occasion yes.

[oc949]

Originally Posted by Moe Bedard

I ma going to chime in here because I have seen a lot of modification and know the details, before and after.

Usually these loans are portfolio loans and owned by the mortgage servicer who is also the lender. Giving them more flexibility on terms.

Moe, thank you for your reply. So am I correct in understanding that the "secret" (if there is one) to securing a 2% fixed loan modification for the life of the loan is related to who owns the loan and how much flexibility you can expect from them?

And is there a quick and easy way to tell who owns your loan, besides calling the lender with this question?

[Moe Bedard]

Yes and the hardship. Who owns the loans weighs the most and then hardship plays a key factor. Most often, the homeowner was hit hard with a job loss of either spouse, job income cut dramatically, possibly fraud and or predatory lending on behalf of the lender played a factor and an attorney was involved.

There is no easy way to tell. Usually by the servicer and experience with servicers we are able to tell. For example, Countrywide, now B of A services much of their own loans and for other entities. But it would be a safe bet that there is a 50-60 plus% chance they own it and the same with Wells who may be at 95% or Chase at 80%. A company like ASC who never was lender so they don't own any of the loans or OCWEN, AHMSI also do not own the loans. But I have also seen 2% with these servicers.

[Moe Bedard]

Oh, and negative amortization mortgages AKA Option ARM's are usually always a portfolio loan. So, if you have one, most likely your servicer owns it.

If your lender is out of business, obviously they no longer own it, but it may have been bought by a B of A or AHMSI.....