Home Loans and Support

BB and T Nightmare

Discussion in 'Stop Foreclosure and Tell Us Your Story' started by wvufan, Nov 30, 2009.

  1. wvufan

    wvufan LoanSafe Member

    We applied for a construction loan with BB and T in 2006. The conditions of our approval were that we sell our current home, put at least an additional $100K down and modify 80% LTV.

    It became obvious shortly after construction began that the market was shifting. We had both homes on the market and fortunately our previous home sold but for far less than we had anticipated. We did not have any additional money to put down on the house and didn't have 80% LTV.

    We moved into the new construction house and it took over 1 year to modify the loan into a permanent loan. Jumbo rates were high and our payment would actually go up and we were already in a house that we couldn't afford. We have been in constant contact with BB and T since 2006 that this house is not affordable. We finally modified the construction loan and based on our situation they kept our loan "in house", no PMI, interest rate at 5.5 and to increase to 6 in January 2010 and extended the loan to 40 years. We made it clear that we did not think this was a permanent solution and one year later...we were correct.

    We submitted a modification request to BB and T last week.

    Here is our problem. I do not think they will modify our loan because we are not late. We are 200K underwater in this house (we live in Florida). We can't sell it and I don't know if it makes sense to keep it. I think it will only make sense to stay here if they will reduce our rate to 2%, 3% at the most. Even though we are not late, it is taking a financial toll to stay in this house. We stopped contributing to 401K, taken on credit card debt and just one major expense away from not making our house payment.

    If we are denied the modification, we are seriously considering not making any more payments after December. We will ruin our perfect credit but then again, that is what got us in this mess in the first place. I think a modification is more likely once we become delinquent.

    My hardship letter was in a nut shell, "we didn't meet your qualifications to buy this house in 2006 and we certainly don't now".

    Has anyone had any experiences with BB and T with a modification?

    Any advice in general???????
  2. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    Hi wvufan welcome and thank you for joining.

    First off I would like to say that it will be very difficult to achieve a fixed rate at 2 or 3%. We have seen it happen before but it is very rare, most modifications we see end up around a 4-5% rate.

    If you feel that it will still be very hard to afford the home you may want to consider a short sale. Some people have completed a successfull short sale without even missing a payment and doing very little damage to their credit..
  3. wvufan

    wvufan LoanSafe Member


    Thanks for the info. We have considered a short sale and may go that route. It just seems ridiculous that they would favor a short sale over drastically reducing my rate or a principal reduction. In essence, I want them to short sale the house to me!

    Actually 4% would work but I am hopeful for less. Financially, I know it does not make sense to remain in a house that is atleast 200K underwater, but if the terms were favorable then we would stay.

    This forum is very helpful and its a relief that we are not the only ones in this situation. I think the "stigma" of not making mortgage payments, short sales, foreclosures keeps people from reaching out to one another. We began over the holidays telling family and friends that we are seeking a modification and if that is not possible then we would either short sale or foreclose. It was amazing the support we received and how many people said to stop throwing good money to bad.

    Thanks for your reply!!!

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