WooHoo! Option One Success!!! - Loan Modification Forum

Ragdoll · 02-28-2008, 05:45 PM

I finally got the call! My modification from Option One is official. It's a step rate:
1st year at 6.85%
2nd year at 7.375%
3rd year at 7.875%
4th year at 8.375% FIXED for the remainder of the loan.

No good faith money or down payment needed. First payment due on MAY 1st!! Includes taxes, insurance, and most importantly the delinquent amount owed! I am not falling behind again. I have built up an emergency fund for any unexpected expenses.

The rate even at the 4th year is better than the 9.15% we had. And that was supposed to adjust March first. I'm so happy that I know what the payments will be, not based on the fluctuating LIBOR.

Time to start cleaning up our credit! Off to have a glass of wine, I'm not waiting for my hubby either

Andrew · 02-28-2008, 06:33 PM

CONGRATS!!! Way to go, all your hard work finally paid off.

elpjohnson · 02-28-2008, 07:34 PM

Ragdoll....I m so happy for you!! Congratulations!

02-28-2008, 08:18 PM

WooHoo You ROCK!!!!!

CONGRATULATIONS !!!!!!!!!!!!

I am SOOOOOOOO HAPPPPPYYYYYY for YOU and your FAMILY !!!!!!!!

Take it easy on that Wine, it will go to your head at times like this...

Moe Bedard · 02-28-2008, 10:15 PM

WAY TO GO RAGDOLL! I love this job. Sweeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeet!

Moe Bedard · 02-29-2008, 12:51 AM

Ragdoll,
That is such.......

Gr8 News!!!!!!!!

Ragdoll · 02-29-2008, 08:52 AM

Thanks you guys! I really appriciate this site and all the support & help that you have offered me.

My negotiator actually thanked me for my patience. He also said that it is amazing how these modifications have grown. They went from never doing them, to being overwhelmed with requests. They are getting done though. So hang in there everyone

farawayangel · 02-29-2008, 09:28 AM

I am very happy for you. Someone finally got through to option one.
I have a question. With the national rate so low ( I think it is 5.87 now) why is your rate that you got so high still? Poppy can you answer this one for me. It would seem their rate would had been lower then what they got? But it is lower because that started out with 9 points. I was just wondering.

Ragdoll · 02-29-2008, 09:42 AM

I'm not sure how they come up with the rates. I was 3 months behind, owed taxes and all the fun stuff that goes along with that! They probably can't take less than what the investors want. And they want to make money, I don't blame them. They could have taken my house, it is still worth more than my mortgage.

My negotiator did tell me that if we get our credit scores up, we can fix it at one of the lower rates, so that is what we will be trying to do. Paying on time will help, we have no other bad debt, or any other debt for that matter. I'm hoping to be able to fix the rate at the second step. This whole process proved to me that I can take control!

02-29-2008, 11:18 AM

Simply put it is a function of mitigating the anticipated return to the investor to allow them to approve the modification. National rates have little bearing on a loan that was approved 2 to 3 years ago.....the program now is to modify to a manageable situation for both parties, that is the borrower can afford it and the investor/lender/servicer can swallow the losses of anticipated stream of income on this loan and every other one that they are going to have to do...

It is the happy medium theory...the cost of funds today are only a small consideration and rather moot at that. They, the investors, were promised an anticipated stream of income to purchase the loan and make more money available for more loans that that time, now that stream of income is curtailed, as such they have to provide viable solutions in the rate they are modifying to as they, the investors, also have "people" to answer to that have invested further on down the flow of these investments/CDO's/Trusts in this equation in those loans that they have committed an anticipated stream of income to.

All in all that was an excellent modification and the borrower is well served and saved. That is the goal, save the borrower and make the investor willing to "eat" some of the losses, which give the number of loans involved are extensive if they are all added into one basket....

JulesK · 03-02-2008, 10:15 AM

RagDoll- CONGRATULATIONS! It's great to read the Success Stories. It keeps my hopes high and teaches me that patience will endure. Congrats again.

Ragdoll · 03-02-2008, 01:40 PM

Thanks Jules, yes patience is key, I guess. Although I stressed every day, for most of the day for months & months. My husband even landed in the emergency room due to exaustion from working overtime, and anxiety about all this mortgage crap. It's hard not to worry. I'm still trying to come down from it all, lol. I think I will feel better after all the paperwork is signed & done.

One thing that is exciting for us is the fact that our first payment isn't due until May 1st! We are going to keep stashing paychecks into savings, so we won't be living paycheck to paycheck anymore. We can afford the monthly payment too!

Best wishes to everyone going through this process

pbbobkanobi · 03-03-2008, 03:24 PM

Woohoo! mmmmmm...wine.

mreedlaw · 03-04-2008, 05:37 AM

Congrats Ragdoll - it looks like you've hit the formula of patience + persistence + proactiveness (and throw in a little LoanSafe.org for some flavor) = loan modification.

luvmyhouse · 03-05-2008, 12:32 PM

Woohoo!!! Great news!! I'll have a glass of wine in your honor!! :-)

want2keepmyhome · 03-05-2008, 05:30 PM

CONGRATULATIONS!

It gives the rest of us the hope that we will get through this mess too! Like you, my husband and I have already started with a bit of a savings account. It's not much, but it's a start. I've started on some of the credit clean up too and will continue to do so.

This site is definitely a great source of support during trying times.

Enjoy YOUR home!

Ragdoll · 03-07-2008, 03:05 PM

Just wanted to give an "update" on our modification. We are still waiting for the paperwork, lol. It's been a week. Hopefully it will be completed without too much more of a wait. I'm so tired of waiting!

Anyway this past week my hubby and I have sat down and REALLY made a serious budget. It actually feels great to deal with our financial situation, instead of the usual tension and dread.

Keep on fighting everyone!!

03-07-2008, 04:09 PM

If by Saturday you have not received it, call them, the one week wait is a bit excessive....they can fax this to you as well.

So, call Monday and then request that they fax to you the agreement as well as get the tracking number on the modification agreement.

want2keepmyhome · 03-07-2008, 04:52 PM

Glad you are posting "updates" as well, at least I can see what I have in store!

At least there is a light at the end of the tunnel!

Ragdoll · 03-07-2008, 09:02 PM

Oh Poppy, do I really have to call?!!! I thought I was done, waaaaaa

When I last spoke with them, I asked if I was going to have to hurry up & return the paperwork within 48 hours or anything. My negotiator chuckled & said, "no rush, just don't take 30 days!" Really, no strict time frame. He called me before it was sent to document. So I expected it to take about a week, as he stated. BUT next week I will call, even if I don't want to. Thanks, mom... I mean Poppy!!

03-07-2008, 09:05 PM

Mom, probably old enough at this late stage....you are all kids up here...anyway, yes Call.....

They are not doing their job and when they do not do their job, call, call, call....those are the house rules....

02-28-2008, 05:45 PM	#1 (permalink)
Ragdoll Senior Member Join Date: Jan 2008 Posts: 61 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	WooHoo! Option One Success!!! I finally got the call! My modification from Option One is official. It's a step rate: 1st year at 6.85% 2nd year at 7.375% 3rd year at 7.875% 4th year at 8.375% FIXED for the remainder of the loan. No good faith money or down payment needed. First payment due on MAY 1st!! Includes taxes, insurance, and most importantly the delinquent amount owed! I am not falling behind again. I have built up an emergency fund for any unexpected expenses. The rate even at the 4th year is better than the 9.15% we had. And that was supposed to adjust March first. I'm so happy that I know what the payments will be, not based on the fluctuating LIBOR. Time to start cleaning up our credit! Off to have a glass of wine, I'm not waiting for my hubby either

02-28-2008, 06:33 PM	#2 (permalink)
Andrew Successful Homeowner Join Date: Aug 2007 Posts: 696 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: WooHoo! I Got Modified! CONGRATS!!! Way to go, all your hard work finally paid off. __________________ Andrew P.

02-28-2008, 07:34 PM	#3 (permalink)
elpjohnson Successful Homeowner / Loan Safe Guide Join Date: Dec 2007 Location: Gold Country, Northern California Posts: 1,025 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: WooHoo! I Got Modified! Ragdoll....I m so happy for you!! Congratulations! __________________ Erika 10 Month Success Story With Option One.

02-28-2008, 08:18 PM	#4 (permalink)
Mary Salzer Guest Posts: n/a	Re: WooHoo! I Got Modified! WooHoo You ROCK!!!!! CONGRATULATIONS !!!!!!!!!!!! I am SOOOOOOOO HAPPPPPYYYYYY for YOU and your FAMILY !!!!!!!! Take it easy on that Wine, it will go to your head at times like this...

02-28-2008, 10:15 PM	#5 (permalink)
Moe Bedard Founder Join Date: Aug 2007 Location: Southern California Posts: 16,887 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: WooHoo! I Got Modified! WAY TO GO RAGDOLL! I love this job. Sweeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeet! __________________ Moe Bedard Founder LoanSafe.org "America's #1 Home Loan Forum" LoanWorkout.org "America's # Loan Modification Blog" Get My FREE Loan Modification E-Book \| Please donate to LoanSafe.org \| Loan Modification Training For Attorneys \| Rate Your Mortgage Servicer The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. Most of the information you find here is easily available on the internet. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Please Read our Privacy Policy and Legal Disclaimer Here.

02-29-2008, 08:52 AM	#7 (permalink)
Ragdoll Senior Member Join Date: Jan 2008 Posts: 61 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: WooHoo! I Got Modified! Thanks you guys! I really appriciate this site and all the support & help that you have offered me. My negotiator actually thanked me for my patience. He also said that it is amazing how these modifications have grown. They went from never doing them, to being overwhelmed with requests. They are getting done though. So hang in there everyone

02-29-2008, 09:28 AM	#8 (permalink)
farawayangel Senior Member Join Date: Feb 2008 Posts: 40 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: WooHoo! I Got Modified! I am very happy for you. Someone finally got through to option one. I have a question. With the national rate so low ( I think it is 5.87 now) why is your rate that you got so high still? Poppy can you answer this one for me. It would seem their rate would had been lower then what they got? But it is lower because that started out with 9 points. I was just wondering.

02-29-2008, 09:42 AM	#9 (permalink)
Ragdoll Senior Member Join Date: Jan 2008 Posts: 61 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: WooHoo! I Got Modified! I'm not sure how they come up with the rates. I was 3 months behind, owed taxes and all the fun stuff that goes along with that! They probably can't take less than what the investors want. And they want to make money, I don't blame them. They could have taken my house, it is still worth more than my mortgage. My negotiator did tell me that if we get our credit scores up, we can fix it at one of the lower rates, so that is what we will be trying to do. Paying on time will help, we have no other bad debt, or any other debt for that matter. I'm hoping to be able to fix the rate at the second step. This whole process proved to me that I can take control!

02-29-2008, 11:18 AM	#10 (permalink)
Mary Salzer Guest Posts: n/a	Re: WooHoo! I Got Modified! Simply put it is a function of mitigating the anticipated return to the investor to allow them to approve the modification. National rates have little bearing on a loan that was approved 2 to 3 years ago.....the program now is to modify to a manageable situation for both parties, that is the borrower can afford it and the investor/lender/servicer can swallow the losses of anticipated stream of income on this loan and every other one that they are going to have to do... It is the happy medium theory...the cost of funds today are only a small consideration and rather moot at that. They, the investors, were promised an anticipated stream of income to purchase the loan and make more money available for more loans that that time, now that stream of income is curtailed, as such they have to provide viable solutions in the rate they are modifying to as they, the investors, also have "people" to answer to that have invested further on down the flow of these investments/CDO's/Trusts in this equation in those loans that they have committed an anticipated stream of income to. All in all that was an excellent modification and the borrower is well served and saved. That is the goal, save the borrower and make the investor willing to "eat" some of the losses, which give the number of loans involved are extensive if they are all added into one basket....

03-02-2008, 10:15 AM	#11 (permalink)
JulesK Senior Member Join Date: Feb 2008 Location: CA Posts: 42 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: WooHoo! I Got Modified! RagDoll- CONGRATULATIONS! It's great to read the Success Stories. It keeps my hopes high and teaches me that patience will endure. Congrats again.

03-02-2008, 01:40 PM	#12 (permalink)
Ragdoll Senior Member Join Date: Jan 2008 Posts: 61 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: WooHoo! I Got Modified! Thanks Jules, yes patience is key, I guess. Although I stressed every day, for most of the day for months & months. My husband even landed in the emergency room due to exaustion from working overtime, and anxiety about all this mortgage crap. It's hard not to worry. I'm still trying to come down from it all, lol. I think I will feel better after all the paperwork is signed & done. One thing that is exciting for us is the fact that our first payment isn't due until May 1st! We are going to keep stashing paychecks into savings, so we won't be living paycheck to paycheck anymore. We can afford the monthly payment too! Best wishes to everyone going through this process

03-03-2008, 03:24 PM	#13 (permalink)
pbbobkanobi Successful Homeowner Still Fighting HSBC Join Date: Sep 2007 Posts: 139 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: WooHoo! I Got Modified! Woohoo! mmmmmm...wine. __________________ Bob

03-04-2008, 05:37 AM	#14 (permalink)
mreedlaw Senior Member Join Date: Jan 2008 Location: Frederick, MD Posts: 224 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: WooHoo! I Got Modified! Congrats Ragdoll - it looks like you've hit the formula of patience + persistence + proactiveness (and throw in a little LoanSafe.org for some flavor) = loan modification.

03-05-2008, 12:32 PM	#15 (permalink)
luvmyhouse Senior Member Join Date: Sep 2007 Posts: 54 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: WooHoo! I Got Modified! Woohoo!!! Great news!! I'll have a glass of wine in your honor!! :-)

03-05-2008, 05:30 PM	#16 (permalink)
want2keepmyhome Senior Member Join Date: Feb 2008 Location: Baltimore, MD Posts: 66 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: WooHoo! I Got Modified! CONGRATULATIONS! It gives the rest of us the hope that we will get through this mess too! Like you, my husband and I have already started with a bit of a savings account. It's not much, but it's a start. I've started on some of the credit clean up too and will continue to do so. This site is definitely a great source of support during trying times. Enjoy YOUR home!

03-07-2008, 03:05 PM	#17 (permalink)
Ragdoll Senior Member Join Date: Jan 2008 Posts: 61 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: WooHoo! Option One Success!!! Just wanted to give an "update" on our modification. We are still waiting for the paperwork, lol. It's been a week. Hopefully it will be completed without too much more of a wait. I'm so tired of waiting! Anyway this past week my hubby and I have sat down and REALLY made a serious budget. It actually feels great to deal with our financial situation, instead of the usual tension and dread. Keep on fighting everyone!!

03-07-2008, 04:09 PM	#18 (permalink)
Mary Salzer Guest Posts: n/a	Re: WooHoo! Option One Success!!! If by Saturday you have not received it, call them, the one week wait is a bit excessive....they can fax this to you as well. So, call Monday and then request that they fax to you the agreement as well as get the tracking number on the modification agreement.

03-07-2008, 04:52 PM	#19 (permalink)
want2keepmyhome Senior Member Join Date: Feb 2008 Location: Baltimore, MD Posts: 66 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: WooHoo! Option One Success!!! Glad you are posting "updates" as well, at least I can see what I have in store! At least there is a light at the end of the tunnel!

03-07-2008, 09:02 PM	#20 (permalink)
Ragdoll Senior Member Join Date: Jan 2008 Posts: 61 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: WooHoo! Option One Success!!! Oh Poppy, do I really have to call?!!! I thought I was done, waaaaaa When I last spoke with them, I asked if I was going to have to hurry up & return the paperwork within 48 hours or anything. My negotiator chuckled & said, "no rush, just don't take 30 days!" Really, no strict time frame. He called me before it was sent to document. So I expected it to take about a week, as he stated. BUT next week I will call, even if I don't want to. Thanks, mom... I mean Poppy!!

03-07-2008, 09:05 PM	#21 (permalink)
Mary Salzer Guest Posts: n/a	Re: WooHoo! Option One Success!!! Mom, probably old enough at this late stage....you are all kids up here...anyway, yes Call..... They are not doing their job and when they do not do their job, call, call, call....those are the house rules....

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