Loan Modification | Foreclosure Prevention

y asked:


I own a single family home with an adjustable rate mortgage is about to adjust again in September. I want to refinance the house, but with the home values down according to my lender I owe more on the home then the property is worth. I tried to do the loan modification though our lender (Countywide), but since we were not behind in our payment and according to them we make to much money and we can afford to pay the payments, they will not help us. We don’t know what to do now, come September we may not be able to afford the payments. We where trying to be pro-active and do something before the loan adjusted and we lost control. It seems everything that I have read on-line is all about helping people with mortgages that are already behind in payments, in forclosure or repos. There is nothing on-line about helping people that are NOT behind in payment and just want to get out of the bad loan that they are in. My mortgage company does not seem to get this, nor does anybody else. If we walk from the property the leader is stuck with another forclosure, but if they work with us we can stay in the home and make the payment. Win, Win. We just want to get into a fix mortgage and be able to pay down the principle. Advice please.

AZip asked:


I have a 6% interest-only adjustable rate mortgage through Chase that was originally in the amount of $504,000.00. (Thus, my original monthly payment due was $2420.)

In the past few months, I’ve made principal reduction payments in the amount of 317,323.69, leaving me with a new principal of $186,676.31. (Thus, my new monthly payment amount is $933.38)

So my question is: am I better off making another one-time principal payment in the amount of $50,000, or should I increase my monthly “fixed additional principal payment” by $2000?

Thanks so much for your help!!!
Thanks for the advice! One additional point though: currently that $50,000 is an HSBC online savings account collecting 3.5% interest.

Does that change things?