NFCU has offered me a mortgage modification

[geronimo2008]

As i said I have requested written conformation.  I simply will not proceed unless I ahve it.  The inquiry itself woudl not be a deal breaker  but other aspects would be.

[Walt_K]

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@geronimo2008 wrote:

As i said I have requested written conformation.  I simply will not proceed unless I ahve it.  The inquiry itself woudl not be a deal breaker  but other aspects would be.

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My point was just that any written confirmation you get will be of limited value unless you specify exactly what you want confirmed.  Clearly they will continue to report to the CRAs, so a written confirmation that they will not report to any CRA does not mean much.  I understand that you may have been paraphrasing, but was just offering some additional suggestions on what I would be looking for before moving forward with the transaction.  Best of luck.

[geronimo2008]

I did sdpecify.  They will report the loan to the CRAs but they will not report that it has been modified.  

like I sais i will report back to folks as I get something from them and as this progresses.   If it works as they say there is no real down side.   I save every month for the remaining term of the loan and nothing adverse is reported.

As i said above though I am skeptical.  And even if everything is in writing if they do report something in a way that can affect my score-----or even make my next auto lender wonder what on----- I am not sure it would bea simple matter to get it corrected.

[MarineVietVet]

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@geronimo2008 wrote:

I did sdpecify.  They will report the loan to the CRAs but they will not report that it has been modified.  

like I sais i will report back to folks as I get something from them and as this progresses.   If it works as they say there is no real down side.   I save every month for the remaining term of the loan and nothing adverse is reported.

As i said above though I am skeptical.  And even if everything is in writing if they do report something in a way that can affect my score-----or even make my next auto lender wonder what on----- I am not sure it would bea simple matter to get it corrected.

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I would remain that way. IMO it's not worth what might happen if it's reported wrong. What a headache it would probably be to fix this if they don't do what they say they would.

I personally wouldn't do it but of course the final decision is yours alone to make. If you do go through with this please let us know how it works out.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[geronimo2008]

I understand that there is potential for something to go wrong but we are talking about a loan that ends  in April 2020.  I have been paying it off on an accelerated basis but if I stop that and pay only the new payment I save $100 a month or $10,800 dollars .  If I continue to pay on an accelerated basis I would likely not pay the loan off until December 2015.  In that case i "only" save $4900.

Either way it isa substantial amount of monry and that return deserves to be looked at in this equation.  Let's see how it goes as I get the package from them etc.

[Anonymous]

Just to confirm here... they're not modifying the actual amount of the loan (the principal), they are just changing the interest rate. Correct? This is like a refinance as opposed to some sort of debt forgiveness.

I had a friend who was not financially in distress (but he was underwater on the house) and his bank contacted him out of the blue and offered to lower his interest rate. He was shocked by this, and in the end, he was thrilled with the outcome. So, I know that it is possible for this to happen.

I am not providing advice here as to whether this particular situation is a good deal, since we don't really know all the facts. However, one thing I'd try to get in writing is that this is a "refinance".

[geronimo2008]

Actullay it is NOT a refinance. It isa loan modification that lowers the interest rate (and therefore payment) for the term of the loan.  That is why there are no points or other fees that might be involved in a refi.

What hey have told me verbally is that they will NOT report any change to the laon that they will simply continue to report whether I am paying as agreed.

I will report back when I see the paperwork and whenever I have other news.

[geronimo2008]

Ok the package arrived today.  It is as has been explained to me.  First the offer as it is described:

Mortgage modification not a refinance

No change in term and no way to take "money out"  

The term is the same but the rate has dropped herefore the payment

A $750 fee is standard but has been waived in this case

now what is reported

They will NOT report this as a modifI will monitor my report before and after the change to see how it is implemented and whether my score changes.

[GregB]

I have had a number of customers and friends that have had unsolicited offers from their mortgage companies. They are all people with stellar credit scores, perfect history and good equity positions. They are very, very well qualified including one that was considering paying off the balance with money in CDs in the same bank.

There were no catches or negative results. All were easy and fast.

None of them were NFCU.

I think they are just trying to keep good customers that could easily go get a new mortgage at better terms.

[Walt_K]

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@GregB wrote:

I have had a number of customers and friends that have had unsolicited offers from their mortgage companies. They are all people with stellar credit scores, perfect history and good equity positions. They are very, very well qualified including one that was considering paying off the balance with money in CDs in the same bank.

There were no catches or negative results. All were easy and fast.

None of them were NFCU.

I think they are just trying to keep good customers that could easily go get a new mortgage at better terms.

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This is as it should be.  There's no reason a bank can't change the terms of a loan without adverse reporting.  I think a lot of us have just read so many accounts where this has gone horribly south that we are very leary of entering into these modifications.