Original Loan - Fannie Mae, Current Loan Isn't

[Gee]

Good evening,

My original loan in 2005 was under Fannie Mae, since then it got sold 2 separate times to investors and is not currently under Fannie Mae. Being that the original loan was created a very questionable mortgage time (undocumented loans, 80/20's, approval for higher loans than homeowners could pay etc), am I eligible for anything?

My loan is currently w Wells and I was advised that only my current loan situation is a factor. I have almost $65k in back payments, owe more on the home than it is worth, got scammed by a third party (who got me approved for HAMP) but advised not to pay as she "appeals" a lower rate which in turn the bank said the mod is off the table because I never signed the final paperwork, I resubmitted on my own and was denied due to ability to pay (my financial situation changed from when I originally stop paying) and now can't resubmit unless I get approved by the reentry team (but something had to change in my financial situation from the last mod submission in June until now). Now everything looks good on paper financially but I still have the 65k and 6.5 interest

Might be more info than what you need but wanted to give you a clearer picture of my situation.

Thank you

 

[Moe Bedard]

Hello Gee,

The only way to get approved for a loan modification is if you do not have the ability to pay the current rate and payment but can afford a reduced rate and payment. So if you can afford to make the current payment, you are not eligible.

You are only eligible if you cannot make the current payment but can make the payment once they modify the loan rate which reduces the payment. When you cannot make the payment, the lender is at risk of a loss on that loan and that is when the perform loss mitigation on the loan which is done to prevent a loss to investors and not done to save your home.

With that said, you could have a 10% interest rate and if you can make that payment, then they will not modify the loan.

 

[Gee]

Thanks Moe, what options are there for the 65k in back payments so I don't foreclose?

Hello Gee,

The only way to get approved for a loan modification is if you do not have the ability to pay the current rate and payment but can afford a reduced rate and payment. So if you can afford to make the current payment, you are not eligible.

You are only eligible if you cannot make the current payment but can make the payment once they modify the loan rate which reduces the payment. When you cannot make the payment, the lender is at risk of a loss on that loan and that is when the perform loss mitigation on the loan which is done to prevent a loss to investors and not done to save your home.

With that said, you could have a 10% interest rate and if you can make that payment, then they will not modify the loan.