Loan Modification | Foreclosure Prevention

Posh asked:


Could you please help me with my mortgage modification, I need to know if debt to income ratio is a factor in being approved. I also would like to know how much of a reduction the mortgage company can approve. Thank you.

Spec asked:


We are looking at refinancing due to an adjustable loan that the interest rate keeps going up every 6 months, its now 10.025%. We dont want to get stuck in another bad deal and I want to know which Mortgage company is best going to suit our needs and be honest with us. Is there a website that rates mortgage companys?

deoarby asked:


I have been with the same mortgage company for almost four years. I started with an adjustable mortgage. After two years the rates and payments shot up. I modified with them to a two year fixed. This expires in August. Last November, I filed a Chapter 13 bankruptcy, which includes the mortgage. My attorney says to either work on another modification with the company I have, or to seek out a refinance somewhere else. Has anyone out there been in similar situations? What did you do? Any recommendations on a good company to go with?

Lisa H asked:


We fell behind on our mortgage. After talking with the mortgage company about our finances they will not consider a loan modification as our monthly expenses exceed our take home pay. They recommended we consider short sale or if that fails a deed in lieu. We both have jobs, just too many expenses. We are meeting with a realtor next week but have a question about it. The mortgage co. said we shouldn’t send them payments because they would be rejected as it won’t be enough to cover minimum due. The realtor said we don’t want to have a bunch of money sitting in the bank and we can’t just withdraw a bunch of money cause they will question where it went. We will be paying off other bills but still have money left. They know we get paychecks and can’t really hide the money. They have already told us the won’t consider loan modification. We are not in preforclosure yet. He also said we should not do minor repairs to the house. Any advice on how we should handle this.
They have already returned payments to us because it wasn’t for the full amount to bring the loan current. We were going to try loan modification but that would make our payments higher than the current. We sent them 2 months worth of payments but even with that as of today we would be 2 months behind so she said they will most likely return that payment & we will get a pre-foreclosure notice. The lady I spoke with a supervisor and trust me, if you’ve ever dealt with Countrywide you’d know they are a bunch of idiots & this lady was the first person out of probably 10 people we talked with that actually helped! She was the only one who went thru everything and explained it all. I don’t want to go into details on those issues. But yes, because we won’t be paying a mortgage we will have extra money and we will pay off other debt. But we don’t want to have a bunch of extra cash lying around for them to come after us for more. If this makes sense.
Charles, thank you for your help. You touched on good points. We are already in default (as I said above), we have talked to the mitigation dept. We have had payments returned and have been informed most likely what we sent them a couple weeks ago will be returned. Once we are able to pay off all other debt we will have enough money to afford the house payments, but come next year we’ll have a child in college so any extra money will go towards those loans. I just wanted to make sure what this realtor told us was true. You have been a great help Charles. Thanks!

vanillacoke asked:


My girlfriend was behind on her mortgage and her mortgage company offered her a loan modification at the same rate she has paying 9.69. She wants to take it just to get rid of the stress. I don’t think she should take it. Please help her with some suggestions, before she agrees to it.