Refinancing after Permanent Loan Mod?

[Pigeyex]

I understand, JM-AM -- I do appreciate your replies thus far.

It seems like most (all?) of the hard data out there about various credit repair outcomes have to do with the difference between a SHORT SALE and a FORECLOSURE on your credit scores.  Not much empirical (or even anecdotal) evidence about PERMANENT MODIFICATIONS.  Maybe because they have been such a small % of all modifications (most are temporary), and because principle reductions have been downright RARE until just recently, I dunno.  Just want to manage my own -- and my wife's -- expectations as to how long it will take before we can refinance this bad boy.  )

Pigeye

[JM-AM]

Personally I would see how scores are and if qualify just apply and see outcome. I look at it this way.

The INQ will ding your scores but if your turned down because of some type of waiting period your scores will rebound from that INQ ding before you apply again. If no waiting period and nothing else to reject a modification that we are unaware of then you would be good to go.

Also if no late payments in last 12 months on mortgage. Probably no getting around that if you been late trying to get modification.

[Anonymous]

You must look at everyline in those documents to see what the stipulations are to secure the entire amount of the reduction. Most times. when the amount is that high, they will split the reduction up in 1/3rds and give you a portion off every year on the anniversary of the first trial payment. If needed, you may contact a housing counselor that can go over that paperwork for you and advise on when would be a great time to refi.

Generally, you would need to show 12 mths of good payment history on your current mortgage to get approved after a loan modification. Some may need for the mod to be 24 mths old. Depends on lender.

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@JM-AM wrote:
Still hoping some one with modification experience would comment.

I do not do modifications so my limited knowledge is useless.

I do remember a few articles speaking on this subject I just cant think of outcomes.

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[Anonymous]

So what was the outcome of this?  i am in the same boat and was told i have to wait 4 years!!  it seems every year they keep changing the bleeping rules.

[Pigeyex]

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@Anonymous wrote:

So what was the outcome of this?  i am in the same boat and was told i have to wait 4 years!!  it seems every year they keep changing the bleeping rules.

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We were able to refinance in April of 2014 without issue. 

[Anonymous]

How long has it been since the loan mod was complete and how did the current refi (if you dont mind)?  Mine has hit the 2 year mark, but i am getting all kinds of differnet answers from banks.

[Pigeyex]

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@Anonymous wrote:

How long has it been since the loan mod was complete and how did the current refi (if you dont mind)?  Mine has hit the 2 year mark, but i am getting all kinds of differnet answers from banks.

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Did a 3-month temporary loan modification in Nov of 2012.  Got the permanent mod in Feb of 2013.  Refi'd in April fo 2014.

[Anonymous]

I had a permanent loan modification in 2009 and still have it.  It was under the HAMP program with Chase.  The loan is with FanniMae.

It reduced my interest rate for the first 5 years and then it adjusts upward by 1% each year for the next 3 years.  It was at 2.5 for the first 5 years, this year it is 3.5%.

It also forgave my Heloc (2nd mortgage) completely.

The Lis Pendens was released after the first three months trial payments were received.  I had to go to my bank and get a certified check and send it CMRRR for the trial period, then they would accept online payments again.

I received a principal reduction on 1k each of the first 5 years for ontime payments.  Next month, I receive a 5k principal reduction for ontime payments since inception, so a total of 10k.

The only time I notice anything on my CRs is when I get the free full reports and down in the comments section, it does mention that it was a permanent modification under a Federal Government program.  I am not aware of any other notation on any report from any CRA and no 'hit' on score.

The last of the baddies for lates is rolling off in the next couple months and scores are improving.  Scores were in the mid and low 500s n 2009 with several other lates including 6 CCC COs and an auto repo.  Now in the 680, 691, and 709 range.

I am still happy with the results of the Loan Mod and intend to keep the house.

Question for the OP - did you stay with original lender when you did a refi?

hth

[Anonymous]

Does anybody know if laws have changed? I am stuck in underwriting and saying since I had a loan mod they can't close the deal. It's now been three years since the mod went final

[Pigeyex]

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@Anonymous wrote:
Does anybody know if laws have changed? I am stuck in underwriting and saying since I had a loan mod they can't close the deal. It's now been three years since the mod went final

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I would recommend you go with an independent mortgage broker.  That's what I did.  He dealt with various investors, large and small, and knew which ones to approach with my loan where I would have the best chance of success considering my profile.  Some investors are more conservative than others.

Considering the sheer # of Americans who went thru the foreclosure hell from '07 - '09 (and beyond), the definitions of what constitutes an attractive mortgage applicant have changed.  Money always finds a source -- these people HAVE to write loans.  Is your profile otherwise decent?  What's your FICO score?  How long in current job?  Debt-to-income ratio?  HH income, etc?

Maybe my situation was different in that all of those other things (except for my FICO score, which was only fair -- upper 600s) were excellent.

Pigeye