Loan Mod Received, Questions

Rc3

LoanSafe Member
Nov 19, 2015
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Ok so after 7 months we were actually approved! That's the good news and regardless I will take it but I had a few questions. I am a numbers guy so the monthly amount doesnt make sense to me.

My previous mortgage was 30 years at 6.375% (horrible I know but I did a no doc loan long ago and at the time it worked but then I couldnt refinance as planned due to other issues) paying $1400 including taxes but not insurance or PMI.

My new amount is 40 years @ $1375 so slightly lower which I dont care about my issue was trying to catch up on the amount I was behind.

40 years at 1375, about $400 is taxes so that means 40 years @ 975 is my mortgage. at say 5% that is like a $200,000 loan??? My current balance is $143k, How did they add $57k to my principle? I am guessing I am missing something?
 
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Rc3

LoanSafe Member
Nov 19, 2015
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3
8
46
Just to clarify, they also paid out our taxes for the year so really I guess our balance is more like $150k, but still those mod number seem off
 

Rc3

LoanSafe Member
Nov 19, 2015
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ok and we were not approved for a hamp mod, in reading it says standard mod.
 

Rc3

LoanSafe Member
Nov 19, 2015
36
3
8
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I just talked to my rep. I wasnt given a hamp mod, a standard mod which means all my terms remain the same. They basically took what I owed ($143k) then added on my taxes paid and interest accrued to give me a new balance of $154k. That was then done as a 40 year loan at my existing rate which is 6.375 so that is why my payments are almost the same as prior. No incentives since it is not a hamp loan. Not ideal but it gets us caught up with $15k saved for emergency. 1st payment is due 9/1. I plan to make these trial payments, get everything on track in my life then make a settlement offer on my HELOC that was discharged which I read you can do for 10-20%. After that I will deal with my horrible rate by refinancing which shouldnt be an issue. In a year I expect to owe $152k on this and assuming I settle the HELOC for whatever my home value was $233k and my income is now verifiable so I should be able to refine this to a better rate/term. So happy to have a plan in place. Good luck and I'd expect something soon since we started about the same time.
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
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Congratulations Rc3!

I'm glad you finally have a loan modification in place and can put this to rest for now so you can get your life back on track.

I wish you the best!