topic Re: Loan Modification? (Well sort of) in Mortgage Loans

Loan Modification? (Well sort of)

Hoss416 — Fri, 10 Jul 2009 09:02:14 GMT

I'm in kind of a unique situation. I'm currently deployed and under SSCRA my mortgage interest rate is reduced down to 6% from 7% for the duration of my deployment. My civilian pay (I'm a reservist) is less than what I make here and about 10k less than what I made when I qualified for the mortgage due to a job change. I'm going to ask my lender to leave it at 6% permanently when my tour is up so that I don't end up falling behind. Crrently my DTI is around 55% due to the mortgage. I have never been late, my FICO's are all in the mid 700's but I'm about 27k upsidedown in equtiy so refi is not an option, otherwise I would use my VA loan. I'm scheduled to deploy again about a year after I get back home so they would just have to re-adjust it again at that time. I'm looking for some opinions on how to go about it.

Re: Loan Modification? (Well sort of)

Lel — Fri, 10 Jul 2009 16:20:12 GMT

Does your lender participate in the Making Home Affordable plan? If so, you could contact your lender to apply for a modification.

I don't know how your SSCRA relief is going to play into this. It will probably confuse the first modification analyst with whom you speak.

Re: Loan Modification? (Well sort of)

Hoss416 — Fri, 10 Jul 2009 17:52:01 GMT

Not sure if they participate, I will have to check the website. I was just curious if anyone had a modification done by just stating their situation prior to any late payments and if a lender would be willing to keep a rate at which it is already reduced to just under different circumstances. I never had to produce orders to prove I was deploying so I thought maybe they would do the same for this. I guess the only real way to find out is to ask Provident Funding. I would hate to get into the spot where I'm making late payments and then start the process, just hoping that being honest and proactive will payoff.

And I'm sure it will take awhile for me to explain to them that the rate they see on the screen is not the rate on my contract. Maybe that will buy me some bonus points for bringing that to their attention, as I will be calling to let them know my orders are up anyway. I will call and talk directly to the loss midigation dept. when I get home, I think they were the ones who initially lowered the rate.

Re: Loan Modification? (Well sort of)

Lel — Fri, 10 Jul 2009 18:30:17 GMT

Hoss416 wrote:

Not sure if they participate, I will have to check the website. I was just curious if anyone had a modification done by just stating their situation prior to any late payments and if a lender would be willing to keep a rate at which it is already reduced to just under different circumstances. I never had to produce orders to prove I was deploying so I thought maybe they would do the same for this. I guess the only real way to find out is to ask Provident Funding. I would hate to get into the spot where I'm making late payments and then start the process, just hoping that being honest and proactive will payoff.

And I'm sure it will take awhile for me to explain to them that the rate they see on the screen is not the rate on my contract. Maybe that will buy me some bonus points for bringing that to their attention, as I will be calling to let them know my orders are up anyway. I will call and talk directly to the loss midigation dept. when I get home, I think they were the ones who initially lowered the rate.

Contrary to popular belief, you do NOT have to be late to be considered for loan modification. Some people have intentionally gone late to try to force a modification, and it has backfired on them - no modification and and a credit score that is tanked.

If you call your lender's loss mitigation number, you might be told that since you're not late, you can't get modified. That's only a half-truth. The CSRs give more attention to people who are late, but if you have a legitimate case for modification before you miss payments, then it is still possible to get modified.

You might want to consider composing a letter to be sent to Provident. Trying to explain it over the phone might be hard.

Re: Loan Modification? (Well sort of)

Hoss416 — Sat, 11 Jul 2009 05:12:36 GMT

That is sound advice, I will do that. Thanks for your input and help.