Loan Modification

Anonymous · ‎03-16-2009

I got my house with a high interest rate, I have never been late on my mortgage payments. I see that many people had gotten their loans modify to a lower rate (4 to 5%), my rate is 9.37%, I have called Wells Fargo and they said that I don't "qualify" for a loan modification, I called one of the legal groups that offer loan modification services and they told me that I must skip a payment to be "eligible" for this benefit.

I really want a lower rate but I don't want a late payment on my credit report, has anybody succeeded modifying their loan without skipping a payment?

Thank you.

Anonymous · ‎03-16-2009

I've not done loan modification and have no input on it except that I think it is crazy that you must default before they will help.

However, have you considered re-fi'ing?

ETA: I found this link on another thread, might be worth checking out. http://www.financialstability.gov/makinghomeaffordable/

Message Edited by sidewinder on 03-16-2009 09:32 AM

Anonymous · ‎03-16-2009

Refi unfortunately it is not an option now since the property has lost value (2.5 years old), now it is worth a lot less than we originally paid, therefore we have very little equity.

The only solution that I see is a loan modification but I don't want to skip a payment. I have work really hard to improve my credit and this will ruin it.

Lel · ‎03-16-2009

I received a loan modification without missing any payments.

Calling the loss mitigation number of your lender is probably not going to get you anywhere. The customer service personnel "triage" the phone calls, and it's pretty standard practice to turn away anyone who isn't late on his or her loan. There are, unfortunately, thousands of others who are late, and those are the folks who are going to get the attention of the analysts.

I tried calling at least 3 or 4 times, and was told each time that nothing could be done for me. I finally wrote a letter to my lender, sent it by email to some top-level executives, and in about a week I received a call with an offer to modify my loan.

For strategies on how to go about writing your letter, trying visiting LoanSafe.org

Anonymous · ‎03-16-2009

This what I did to avoid the late payment,

I called and asked for a moratorium on my account.

what that allowed me to do, was skip 3 payments with no reporting to CB, and no late fees.

then I just had to fill out some hardship papers for the modification.

It's been a month and I'm still waiting.

the only catch is, they want all 3 back payments when the fourth one is due, and that was not a problem,

I just banked the money until it was due.

Anonymous · ‎03-16-2009

I'm trying to figure out what/how to do this as well.

Bought my first house in August of last year - value has stayed pretty level -

Laid off in November, finally have an offer, but it is about 25K less than my previous salary, making it difficult, if not impossible to afford my payment. So far, I have not been late, and I do not want late pays on my credit, but its just a matter of time until the $1500 shortage per month catches up with me....

Anonymous · ‎06-23-2009

I appreciate this question being asked as I too have been trying to get someone from Wells Fargo to respond to many, many phone calls for a loan modification. Advice from the mandatory credit counselor was to be at least 3 months behind in mortgage payments.. Do I really need to ruin my credit to get help? My reason for needing the loan modification is a serious car accident has left me disabled and unable to work for the past couple of years. Due to the brain injury I incurred I will not return to my former level of employment and will work part time at best. I give this information as background not as some sob story.

I am current on my payments, have an excellent 26 year credit record and a Fico score of 780. I now live on Social Security Disability, which is one third of my former income. I have drained my savings and now pulling from my 401k which I know I am not suppose to do. I cannot refinance due to my lowered income and one credit card with a $9,000 balance. I used the card to pay for medication ($600 a month) and COBRA ($800 a month) before Medicare kicked in. My home is valued at $190,000 with a $121,300 balance left on the mortgage.

According to the Obama mortgage program guidelines, I qualify however if I cannot get Wells Fargo to respond to make the initial meeting to get things rolling of what value is it? I do not want to go into foreclosure and lose the equity I have built up. Also if I sell I still need to live somewhere and rent is as much or more than what I pay in my current mortgage, which includes insurance and taxes.

I tried the online program the Fico site offers but Wells Fargo is not one of the lenders they work with. Thank you for your patience in reading through this. I do not have anyone to sort this out with other than adult children who I do not want to burden.

I will try the websites suggested by previous writers and look into the moratorium idea. Any suggestion would be appreciated.

(Edited to increase font size and improve readability - Lel)

Message Edited by Lel on 06-23-2009 03:11 PM

Anonymous · ‎06-23-2009

most companies will not talk to you until your account is in default or you have some sort of hardship.. Occasionally someone will get lucky otherwise. Loan moifications are not mreally meant for someone who can afford their paymnent but is just upset that rates have dropped. They are for people who have had something happen that keeps them from being able to afford their payments.

Have you checked into the gov't programs that help refi loans with good history but little to know equity?

Anonymous · ‎06-23-2009

Those are the programs I wrote about. You have to go through the lender who holds your mortgage. Wells Fargo will not return phone calls to refinance under those programs either.

Watchmann · ‎06-23-2009

@Anonymous wrote:
I got my house with a high interest rate, I have never been late on my mortgage payments. I see that many people had gotten their loans modify to a lower rate (4 to 5%), my rate is 9.37%, I have called Wells Fargo and they said that I don't "qualify" for a loan modification, I called one of the legal groups that offer loan modification services and they told me that I must skip a payment to be "eligible" for this benefit.

I really want a lower rate but I don't want a late payment on my credit report, has anybody succeeded modifying their loan without skipping a payment?

Thank you.

RealityCheck, you really need a reality check. You bought a house and signed for a loan for a 9.37% rate. You have been making payments and have not missed any payments. Why should the people who loaned you the money now give you a lower rate just because you want one? A 9.37% rate is not that far out of line with historical patterns, but we have now injected this notion into the system that home owners now have the right to demand a lower interest rate because 'they want one'. That's crazy. You signed a contract and have been making payments, why should you get a break on your interest rate?