MorEquity Modification SUCCESS!!!

[Sparker65]

Hi,

I found this forum in January by googling loan modification success stories. At the time, I was attempting to see how I could get our mortgage modified and how to go about doing it. I contacted MorEquity in January to see about a loan mod, but I was told they did not do them if you were in bankruptcy. I was devistated. Needless to say, there is hope when you think there is none.

Here's my story. We have been in a Chp 13 bankruptcy for 4 years now and we had a mortgage that was adjusting every 6 months. We got our loan in Nov, 2001 and it was fixed for 2 years. Our rate started out at 7.37% but rose to 12.12% last year. Our payment went from $1573 to $2613 in a matter of 3 years. MorEquity had been nothing but trouble every since we filed the BK and the rising rate and payment did not help. We almost lost our home several times trying to keep up with the payments, utilities, food, medicine, etc.

I believe grace and mercy was on our side because MorEquity out of the clear blue, contacted our attorney on September 9, 2008 stating they wanted to modify our mortgage. Our attorney called me and gave me the name of a gentleman with MorEquity to start the process. I will admit, I thought it was a trick but our attorney stated he was told by an attorney for MorEqutiy this modification would happen.

I contacted them the same day, submitted all the required documentation and a hardship letter. The guy working on the modification told me it would take 30 days to process. He also told me to put what type of modification I was seeking in the letter. I asked for a fixed rate of 5% to 6.5%, waive all late fees, and any accrued interest on the loan.

Well, exactly 30 days to the day on October 9, 2008 our attorney contacted me and stated he had received the modification documents form MorEquity. Our new loan principal was set back to the original loan amount when we got the home, our interest rate was set to 7.37% fixed and the remaining term of the loan is 23 years. So, they did not increase our loan balance or extend our loan term. I wish we could have received a better rate, but believe me I am very happy with the new rate. Our new payment is $1716.

I just wanted to let everyone know to keep hanging in there regardless of your situation. Never give up hope, even if it looks bad. I never ever expected MorEquity to contact us for a modification. I had almost resigned myself to believing we would lose our home. I had been praying day and night for someone to help us out of our loan situation. I thank God for his grace and mercy.

[Maia7]

AWESOME! Congrats Sparker65. It's is truly amazing when things just work out so well after going so wrong, for so long. I'm really happy for you and thanks for being an inspiration to our fellows still working on getting out of the quicksand.


Maia

[Chazzy]

i am so happy for you prayer works i hope your story pushes other homeowners to hang in there and never give up hope

[Sparker65]

Thanks to both of you. Yes, our prayers were truly answered. I have told so many people facing rising rates about this site and my success with my mortgage company. My Aunt found out yesterday she has been approved for a modification. She and her husband have a rate of 12.5% and it is killing them. They are also retired. They had to file a chapter 13 bankruptcy 2 years ago, so their funds are tight. I'm glad so many people are getting help, but there is still too many losing their homes.

[Mom2threepanicked]

Congrats on your mod!!! That is great!

[jhn_plsn]

Since Ch 13 is repayment using disposable income and you were not through the plan yet did your BK payment change?

[Sparker65]

Originally Posted by jhn_plsn

Since Ch 13 is repayment using disposable income and you were not through the plan yet did your BK payment change?

Sorry to reply so late. I'm seldom on this site now. No, our BK13 payments did not change. The Trustee had to approve the modification, so I'm sure they would have increased our payments if necessary. Our BK13 payment was based on the mortgage prior to the ARM adjusting. If anything, our BK13 payments should have gone during the last 3 years since our mortgage had increased $1200 per month.