Recast Our Mortgage

Cindarz

LoanSafe Member
Mar 23, 2010
25
0
1
We were lucky enough to have been approved for a HAMP about 6 years ago, after 1 1/2 years of paperwork.

Now WF has sent us a letter saying we can recast our loan. We have always paid on time, collected our $10,000 but I don't see where a recast will help, it only appears to save us $70 a month but cost us $10,000 more in interest over the length of the loan.

The last step, of our step up interest is (4 1/2 % ) for the length of the loan, and will make our payment on the present loan difficult to make. Can we reapply for a new HAMP or ask for lower interest?

Also we filed chapter 7 before we were approved and never signed a reaffirmation on the loan. Will and new loan or recast reaffirm our mortgage?

Thank you for your time Cindarz
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,850
466
1,000
49
Southern California
www.loansafe.org
Hello Cinarz,

It looks like mortgage recast will not help you much, and as you pointed out, it will cost you $10,000 more in interest. A loan recast will not reaffirm your mortgage unless you were to sign a reaffirmation agreement with Wells Fargo which I suggest you never do.

You can reapply for a loan modification, but it will be tough to obtain a new one. A 4.5% interest rate is still a great rate. I suggest you first look at cutting down other expenses before you reapply to see if it is absolutely necessary because applying for a new loan modification will be stressful and take a lot of time.
 

Cindarz

LoanSafe Member
Mar 23, 2010
25
0
1
Thank you again Moe, you have helped us through many problems. We thought the same thing, (do nothing). We have tried for a reverse mortgage but prices here in Virginia have not bounced back much, so we are low on the appraisal. We will wait and see. For now we can keep paying. When the time comes, if need be, we can walk away, since we have no reaffirmation . Glad you are there to help us all. Cindarz
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,850
466
1,000
49
Southern California
www.loansafe.org
You are very welcome Cindarz. Thank you so much for the kind words. It means a lot to me :)

That sounds like a good plan. Maybe before you walk away, you try one last time for a loan modification. I have seen many people get 2 loan mods before so it is by no means impossible. But just hard to do and can take a lot of time.

I wish you and yours the best! Keep your head up and keep moving forward. Maybe peace be with you along the journey.
 

mrsjohnson

LoanSafe Member
Sep 9, 2015
16
8
3
52
We were lucky enough to have been approved for a HAMP about 6 years ago, after 1 1/2 years of paperwork.

Now WF has sent us a letter saying we can recast our loan. We have always paid on time, collected our $10,000 but I don't see where a recast will help, it only appears to save us $70 a month but cost us $10,000 more in interest over the length of the loan.

The last step, of our step up interest is (4 1/2 % ) for the length of the loan, and will make our payment on the present loan difficult to make. Can we reapply for a new HAMP or ask for lower interest?

Also we filed chapter 7 before we were approved and never signed a reaffirmation on the loan. Will and new loan or recast reaffirm our mortgage?

Thank you for your time Cindarz
Hi Cindarz,

This is probably a little late but the recast doesn't mean that you will pay additional interest; the amount will still be the same as it was after your HAMP mod. What the recast does is simply lower your monthly payments under the same term. If you do not take the recast, you will save interest but again, if you do take it, you will not be adding any more interest on to your loan or extending your term.