Home Loans and Support

Can I Do Another Loan Modification

Discussion in 'Option One Mortgage - American Home Mortgage Servi' started by maxygirl, Feb 2, 2009.

  1. maxygirl

    maxygirl LoanSafe Member

    I'm new to this forum. I've read quite a few of the threads posted and would like to know if someone can do a second modification within a year? My husband and I did a modification on our mortgage with Option One last March. At the time our interest rate was lowered to 5% for 1 year along with an additional $20,000 added to our mortgage. We were financially able to handle the mortgage. Unfortunately I didn't read the terms carefully and now our rate goes to 6% in March, 2009, for a year, raising our payment $150. The problem I have is my husband and I separated and I'm keeping the house with my 2 sons. I'm behind 3 months as of today - and called AHMSI last week and asked if I could do another modification? The rep said "no" not until March, 2009 and then I'd be behind 4 months. I'm on disability, receive money from a boarder and my one son, who works. I called Hope Alliance and they said keep calling AHMSI and talk to the loss mitigation dept. and tell them the terms they set up are not allowing you to keep the home. If I was able to do another modification, I wouldn't have any problems making the payments. HOPE said 3%/4% is realistic. The rep at AHMSI said this is hurting my credit and I said it's already in the toilet. Was reading the newspaper about what the House passed about CRAMDOWN - letting a bankruptcy judge set the terms of your mortgage. Do I tell AHMSI I'll file Chapter 13 and the bankruptcy judge will set the new terms. Fortunately I live in Illinois where it takes about 9 months to a year before a foreclosure would be finalized. Anyone with suggestions would be greatly appreciated.
  2. Moe

    Moe Call 1-800-779-4547 Staff Member Loan Safe Mortgage

    Hi maxygirl,

    Welcome to the forum and thank you for joining................

    Unfortunately, they will only do one modification a year..........and some investors will only consider one..........but in three weeks it will March anyway...........so call in and try again..........
  3. 1gringo1

    1gringo1 LoanSafe Member

    This is very interesting as i am being considered for another loan mod from wells fargo and I broke this in December. They said it didn;t matter, I paid the good faith 1 month payment, faxed all the documents and they actually received them the 1st time-all i have to do is call in once a month again, and hold on to the next months payments as this would only be a partial payments if i sent them in.
  4. socaljager

    socaljager LoanSafe Member

    Did your seperation occur after your first modification? If so, I would contact your original negotiator and tell them that your circumstances have changed significantly since your first modification, and you would like to be reconsidered for another mod a bit early. Since it takes AT LEAST 30 days to complete, it would be a year, anyhow. If you don't know who your negotiator was, contact Customer Service and have them look it up for you and give you their direct extension. Keep in mind that the negotiator may not call you back for up to a week if you have to leave a message. They are burried.

    I would not mention Chapter 13. If they think there is a possibilty you will file, it could have adverse effect on your ability to reapply at all. (they DO record the phone calls and what you state to them about your situation) It's not worth it if you only have one more month until you can reapply again.
  5. 1gringo1

    1gringo1 LoanSafe Member

    I was supposed to start making payments in december for my mod, didn't do it. This is a va loan with a 6% thru wells fargo. So i called today and informed them that I paid 1 month payment as a good faith as agreed upon, and they concurred also they received all the faxed documents for the expence the 1st time. Last year it took 15 times before they received my faxes. Told me to hold on to the rest of payments till they make a decision. Va says more than 1 mod has to be approved by them. I'll keep my mouth shut and hope congress does something more than they can do which may be happening. So its actually been 2 months since i broke the mod payment:eek:
  6. Coloradofury

    Coloradofury LoanSafe Member

    Gringo - I've been resonding to folks all morning and haven't posted our situation yet - similar to yours.

    We had a mod late last year - October timeframe. We were so happy to finally have a decent payment after a year of busting our butts to get something out of OOMC and then AHMSI. We weren't thrilled with the fact that it was another flippin BALLOON but we knew we had 5 years before we'd deal with that. However, these are the same terms that got us in the initial mess (in addition to job loss, legal bills/custody battle, etc.). We had a7% jump to 10% and mtg bill went from $1700 up to $2800.

    Anyway, in our workout, we lowered our payments to $1500 a mo at 5% lock for 5yrs. But we are now facing bankruptcy for the legal issues, and obviously this is such an easy choice since our credit took the biggest hit through the mod negotiations (when we were told very clearly we would not be helped if we remained current on our loan - turned out to be very true).

    So our dilemma - do we include our home in the chpt7 or try to get another workout? Is it possible when we've only made 3 payments on the new loan?

    Any progress on your dilemma? ColoradoFury

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