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Transcript of live chat on loan modification

People facing payment challenges on their home mortgages

People facing payment challenges on their home mortgages attend a two-day event in Phoenix to see if they qualify for a home loan modification. (March 30, 2011) Photo Credit: Getty Images

Newsday's real estate reporter Ellan Yan with special guests Joan LaFemina of Community Development Corp. of Long Island and Migdalia Murati, of the Federal Housing Administration recently answered reader questions via a live chat about loan modifications. Check out the full transcript below.

  Loan Modification Chat (07/15/2011) 
12:01
Hi everyone, welcome to Newsday's loan modification live chat. My name is Ellen Yan, I cover real estate, and am here with Joan LaFemina, who runs foreclosure prevention efforts for the Community Development Corp. of Long Island, and Midgalia Murati, a loss mitigation liaison with the Federal Housing Administration, which is part of the U.S. Department of Housing and Urban Development. Thanks for joining us. We welcome your questions, stories and tips for distressed borrowers.
Friday July 15, 2011 12:01 
12:01
[Comment From John John : ] 
i bought a house 5 years ago @ 6.3% and been trying to refinance with bank of america for some time now. i owe $236k but the value of the house drop to 199k. my finances are good and my credit is 800 but i dont qualify any program to refinance and they want me to make up the difference in a regular refinance. what can i do? should i try other banks? quicken loans? be late on payments so i qualify?
Friday July 15, 2011 12:01 John
12:02
Joan LaFemina: John: The key to a refinance under the Federal HAMP Program is the investor on the loan. The refinance program is called HARP and applies to Fannie Mae and Freddie Mac loans only. HARP allows for a refinance when the home has negative equity (such as yours) ...
Friday July 15, 2011 12:02 
12:02
[Comment From Deb F Deb F : ] 
How often would a lender allow you to do a loan modification? We had a modification done approx 18 months and now that rates are lower I would like to take advantage of the lower rates/
Friday July 15, 2011 12:02 Deb F
12:03
[Comment From jenn jenn : ] 
In 2005, I bought a bungalo in Rocky Point for 189k. I invested 150k. I tried to refinance with Wells Fargo two months ago and I couldn't because I had no equity. My house was appraised at 181k. My interest rate is ridiculous and all I want is a better rate. What can I do?
Friday July 15, 2011 12:03 jenn
12:03
JLA: John: if you do not qualify for HARP then a refinance may be out of the question when the equity is not there...you should not be late on purpose as there is no guarantee that a modification of the loan is possible. The best suggestion I can make is to meet with a HUD certified counselor to review your options.
Friday July 15, 2011 12:03 
12:06
[Comment From geo geo : ] 
cost of modifing
Friday July 15, 2011 12:06 geo
12:06
[Comment From geo geo : ] 
8.5% down to 4.375 @ flat rate $2000
Friday July 15, 2011 12:06 geo
12:06
[Comment From geo geo : ] 
How quickly can you get one
Friday July 15, 2011 12:06 geo
12:06
Migdalia Murati: Deb F. If your loan is a government guaranteed loan, FHA, a delinquent borrower who has experienced an actual hardship qualifies for a loan modification. If the borrower has experienced another hardship than a loan modification may be considered however there must be a real and new hardship event.
Friday July 15, 2011 12:06 
12:07
JLA: Jenn: similar answer to John (answer above) regarding refinance options. Modifications are available for a homeowner who has experienced hardship even if they are current (except FHA loans). Modifications can lower the rate, extend the term or include a forbearance. Reach out to your mortgage servicer (bank) Options are different for different loan types (i.e. Fannie, Freddie, FHA, private investor etc) Good Luck
Friday July 15, 2011 12:07 
12:08
EY: geo, it can take months to get a trial mod, which shud last three months, then if u pay on time, they will consider making the changes permanent. i have heard of borrowers getting loan mods two to three years after submitting application, partly because lenders lose paperwork or documents not sent in, never the same person on ur case....
Friday July 15, 2011 12:08 
12:08
[Comment From sarah sarah : ] 
also, how/where can you really find out who owns, not just services your mortgage? we looked on the fannie/freddie website, but were told often your loan doesn't even shouw up on there...so where else can we look? This is key to the HAMP program you are speaking about.
Friday July 15, 2011 12:08 sarah
12:08
[Comment From sarah sarah : ] 
hello i bought my house in 2005 and put down over 30%. we still had what was considered a jumbo loan, which is not owned by freddie mae or fannie mac. despite the fact i have an 800 credit rating and i pay my bills ontime, i cannot refinance because my house has lost value. (it missed the 80/20 amt. by 40,000) Are there any other programs out there? I feel like I am being penalized for doing everything right. Like many other people, our income has decreased substantially in the last 3 years, but because we pay our bills on time we seem eligible for nothing. Suggestions?
Friday July 15, 2011 12:08 sarah
12:09
[Comment From Linda T. Linda T. : ] 
Approximately a year an a half ago my husband and I applied over the phone for a modification. At that time they approved us and verbally put us on a trial period. This period lasted for over a year. On March 28th they finaly send us a letter saying that that were not able to approve our modification because they claimed they were not the first lien holder on the property. This reason was not our fault as we did not know that when the bank took over the mortgage from the previous bank they never received a mortgage release/discharge. My husband and I never new this as we were paying the new mortgage holder sense 2003. I finally straighten this mess out and now were back in modification, infact I am now told we are up with the underwriters. Due to this process talking so long the bank is saying we have accumulated a tremendous amount of late fees. My husband and I have lived in the home for 30 years. It is our retirment. Is there anyway we can reduce those fees once we are approved for modification?
Friday July 15, 2011 12:09 Linda T.
12:10
JLA: Sarah 1 investor issue: The best way is to call the servicer and ask - if they do not disclose you can request the investor in writing from the servicer.
Friday July 15, 2011 12:10 
12:10
[Comment From K K : ] 
I bought my house in 2005 at 5.75% interest rate.. I have about 17 years left on the mortgage because of the extra payments i make etc... Can i do a loan mod. even if i make alot of money and can afford the payments with no issues? Thank you.
Friday July 15, 2011 12:10 K
12:10
ey: K, lenders are unlikely to do loan mods if u are not struggling with payments. sorry
Friday July 15, 2011 12:10 
12:10
[Comment From Julia Julia : ] 
How do you start the modification process?
Friday July 15, 2011 12:10 Julia
12:11
MM: K: No, loan modifications are available for Borrowers who are experiencing an actual hardship. You might want to speak with a HUD approved housing counseling agency for guidance.
Friday July 15, 2011 12:11 
12:11
ey, julia, go to makinghomeaffordable.gov... that has an initial eligibility test and also describes various programs for people who have different needs, from no job to no equity....
Friday July 15, 2011 12:11 
12:12
JLA: Linda: The late fees are waived under HAMP but not alternative or in-house modifications - that will be determine by the type of modification you receive but cannot be negotiated once you sign for the modification.
Friday July 15, 2011 12:12 
12:12
MM: Julia, the first step would be to seek counseling by a HUD approved housing counseling agency. Please make sure the counseling agency is HUD approved. In order to qualify for a loan modification the borrower must have experienced an actual hardship. For example, a loss in income, medical situation etc.
Friday July 15, 2011 12:12 
12:13
ey: julia, also, i wud urge u to go to a HUD approved nonprofit, which would negotiate for u with the lender. this is free. go to hud.gov for a list of nonprofits. i will also post a list at the end of the live chat
Friday July 15, 2011 12:13 
12:13
[Comment From Jennifer Jennifer : ] 
I have a very similar situation as John. But my mortgage was originally Countrywide and is now BoA so we don't qualify for the gov't (Fannie/Freddie) programs. We bought in August 2006 (!!) and paid $605 for a house now worth approx $370 - and our mortgage is still $480. We recently refinanced but we are still getting clobbered.
Friday July 15, 2011 12:13 Jennifer
12:14
ey - jennifer, lenders have their own 'in-house' loan mod plans. if u dont qualify, for federal programs, lenders are supposed to see what they can do for you.
Friday July 15, 2011 12:14 
12:14
JLA: K: hardship is the key to request any workout/modification of a mortgage loan, hardship is an involuntary financial circumstance that affects our ability to pay the mortgage - soemtimes meeting with a non-profit housing counselor can help you determine if modification is an option and what if any hardship exists. It can be very helpful.
Friday July 15, 2011 12:14 
12:16
[Comment From Brigid Brigid : ] 
Hi Yan, My particular situation is complex, I bought my house in 2007 for 409.000. It now is estimated at 274.000. When I took my mortgage out it was done like this, One mortgage was 350.000 with a variable rate due to expire in 10years. and the other was taken out as a home equity line of credit.I was supposed to pay off the equity line of credit first and then "refinance" but of course that fell thru. I am the sole owner on the mortgage. I make 40,000 a year , obviously I would never be able to afford this so of course my husband and his salary are involved but not on paper. We are afraid to lose our home soon. We tried several times to modify, w our lender INDY MAC they have told us time and time again that we make too much money. We only want to modify and get into a mortgage to feel safer. We have gone thru indy mac at the nassau coliseum , written all our financials and sent them via email to no avail. Apparantly you have to actually ruin your credit to get anything done. I have never been in default nor been late w my payments. Is there ANY help for someone like me??
Friday July 15, 2011 12:16 Brigid
12:16
[Comment From JCM JCM : ] 
Last year my company proposed a new contract with the union work force and we all took a 10% pay cut is that something to be consider in a loan motification? is that enough to be considered a hardship?
Friday July 15, 2011 12:16 JCM
12:17
[Comment From Jenn Jenn : ] 
Thank you, but what can you do if you do not have a fannie mae or freddie mac?
Friday July 15, 2011 12:17 Jenn
12:17
MM: JCM: Yes, a hardship can be a loss of income, increase in expenses or medical situation in conjunction with your income, expenses etc.
Friday July 15, 2011 12:17 
12:18
[Comment From billy billy : ] 
where is the best place to fund an HUD advisor?
Friday July 15, 2011 12:18 billy
12:18
ey - brigid, have u tried going to a nonprofit for help? go to HUD.gov for a list of nonprofs on LI. even tho ur hubby is not on mortgage on paper, if u both can pay, lenders prolly wont do a loan mod. are u just worried or unable to pay
Friday July 15, 2011 12:18 
12:19
MM: Billy, best place is www.hud.gov or you can call at 800-569-4287,
Friday July 15, 2011 12:19 
12:19
[Comment From John F. John F. : ] 
What does your financial picture have to look like to qualify for a loan modification. I am 4 months behind on payments after being furloughed for two months and forclosure has started so i cannot pay less than the full amount due. I can afford the regular payment if the past due amount was re-packaged in a loan modification.
Friday July 15, 2011 12:19 John F.
12:19
JLA: Jenn: non fannie non freddie loans can still be modified but not refinanced under HARP - if you have already attempted to reach out to servicer to no avail try housing counseling - it is free can validate the step you have already taken and help you determine personal options. Servicers will modify non Freddie/Fannie if the situation is right
Friday July 15, 2011 12:19 
12:19
ey - john f, the federal homeowners rescue program has been gearing more and more help toward the jobless and those who have lost income....
Friday July 15, 2011 12:19 
12:20
[Comment From billy billy : ] 
what do you do, when you do have positive equity, medium credit rating, lowered income, but are making, and just want to lower rates, Wells Fargo has denied me 4 times
Friday July 15, 2011 12:20 billy
12:20
MM: Billy, I would suggest you contact a HUD approved counseling agency, www.hud.gov or 1-800-569-4287, the services are free and can walk you through all the available programs
Friday July 15, 2011 12:20 
12:21
ey - john, there is a new program called emergency homeowners loan program, which gives u up to $50,000 in interest free loan or makes payments for u for up to 2 yrs, whichever comes first. initial deadline is july 22. go to findehlp.org for a nonprof approved to do this
Friday July 15, 2011 12:21 
12:21
[Comment From Mark Mark : ] 
Anyway to tell if you have a Fannie Mae or Freddie Mac loans? MY house value has dropped over 50K and we have been in negative equity for 2-3 years now.
Friday July 15, 2011 12:21 Mark
12:21
JLA: John F: if still furloughed you can apply for EHLP the HUD program for unemployed/underemployed and that would be bring your loan current if you are accepted - then the program continues to make payments going forward until you get back to work. If you do not qualify for EHLP you need to be back at work before a permanent modification can be offered. The income in the home is key to a workout.
Friday July 15, 2011 12:21 
12:21
[Comment From Dee Dee : ] 
I've been attempting to modify my loan with Chase for nearly 3 years - about a year and a half ago, I was given a temp. modification, but the mod. wasn't approved. Now, I'm making the second payment on another trial mod. What are the next steps, what can I expect?
Friday July 15, 2011 12:21 Dee
12:23
ey - mark, go to makinghomeaffordable.gov and there will be a link that will allow u to check. or contact hopenow.org 24/7 for a counselor who can help u thru that
Friday July 15, 2011 12:23 
12:23
MM: Dee, Depending on the loan type meaning if it is an FHA loan or conventional will dictate what the next steps are however the loan is an FHA loan the lender must notify what are the next steps because they are required to evaluate your loan on a monthly basis.
Friday July 15, 2011 12:23 
12:23
[Comment From LUTRICIA LUTRICIA : ] 
MY MORTGAGE IS 10YRS OLD AT 7.5, IS IT WORTH TRYING TO MODIFY
Friday July 15, 2011 12:23 LUTRICIA
12:24
[Comment From Nutty Mommy Nutty Mommy : ] 
My friend lost her husband in January 2011. The deed to the home was in both of their names although the mortgage was only in her husband's name because he was the only one employed when he refinanced about 10 years ago. My friend was a stay at home Mom and is still looking for employment. She has been paying the mortgage every month with her savings and life insurance proceeds and hasn't missed a payment although it is becoming extremely difficult to pay over $3,000 a month (this is principal, taxes and insurance). The bank has not been notified of her husband's death because she is afraid they will take some kind of action against her. Is there anyway to modify this mortgage (her interest rate is 6.78%) even if she is unemployed right now? She does not want to lose this home. Thank you for your response.
Friday July 15, 2011 12:24 Nutty Mommy
12:24
JLA; Dee: if this is a non FHA loan and Chase it will very likely become a permanent modification (terms will be similar only change may be escrow amoutn) as long as they are able to verify all that was given to them previously. Good Luck...
Friday July 15, 2011 12:24 
12:24
MM: Nutty Mom, I would strongly suggest she meet with a HUD approved housing counseling agency asap, www.hud.gov or call 1-800-569-4287.
Friday July 15, 2011 12:24 
12:25
e - lutricia, u have to be struggling to qualify for a loan mod or u can try to refi, either under the federal making home affordable program or just shopping on ur own with lenders. if u plan to live in ur house for several more yrs, it wud be worth it but first, run the numbers with lenders or google for mortgage calculators to figure savings urself.....
Friday July 15, 2011 12:25 
12:26
ey -- lutricia, also u can make more payments, which wud cut the amount of interest u pay over the life of the loan. that way, u dont have to go to the trouble of finding a good refi and paying all those closing costs.
Friday July 15, 2011 12:26 
12:27
MM: Trudy, 1) go to a HUD approved counseling agency www.hud.gov or call 1-800-569-4287. If the loan is an FHA loan you are eligible for Loss Mitigation services and there are a variety of programs available. However, if it is a conventional a housing counseling agency will be able to guide you either way.
Friday July 15, 2011 12:27 
12:27
[Comment From Sueann Sueann : ] 
Joan: I recently applied for a loan modification with my mortgage company (Ba[...]nk of America) and was declined due to my debt ratio not being enough. I am not certain how they came to this conclusion, however; we simply do not have enough money to make our monthly expenses. I was hoping you can direct me to a program, if any available, besides the loan modification that can lower our monthly mortgage amount. We currently own a condo for about 6 years now and to put this property on the market today we would be losing around $60,000, which is just not an option right now. Hoping to see a brighter side to this soon. Thanks!
Friday July 15, 2011 12:27 Sueann
12:28
[Comment From IAN IAN : ] 
I CONTACTED A GENTLEMAN NAMED JONATHON LYONS AND HE SPECIALIZES IN THESE SITUATIONS, AND HE SAYS HE HAS A TEAM OF MITIGATORS, AND MANIPCIATORS WHO WILL FIGHT FOR THE HOMEOWNERS BEHALF TO GET A PERM. MODIFICATION...IS THIS TRUE??
Friday July 15, 2011 12:28 IAN
12:29
JLA: Sueann: two part answer. First the debt ratio cannot be too low on other debt only on the mortgage payment ratio which is the housing ration - the mortgage payment must be at least 31% of the gross monthly income and the other debts cannot exceed 55% - so if the debt ration is above that it is recommended that you reduce the debt first otherwise even a modification would not be affordable long term...
Friday July 15, 2011 12:29 
12:29
[Comment From Barbara Barbara : ] 
During the loan modification application and the process until the lender advise[...]s the homeowner that they have been approved or denied - can the lender start foreclosure proceedings? if yes, how does the homeowner stop such proceedings? If the application is denied - is the homeowner given time and an opportunity to pay the past due amount before foreclosure ? can the lender force the homeowner to sell at a short sale price - if the lender thinks that the homeowner cannot afford the monthly payment? How does the lender determine if the monthly payment can be reduced - is it income and expenses formula - or other
Friday July 15, 2011 12:29 Barbara
12:29
ey -barbara, the obama admin has told lenders to halt foreclosure proceedings while they are trying to do loan mods. they are not supposed to go on both tracks.....
Friday July 15, 2011 12:29 
12:30
MM: IAN, there are HUD approved housing counseling agencies that are FREE! of charge. I would suggest you speak with a HUD approved housing counseling agency who can mitigate on your behalf. www.hud.gov 1-800-569-4287. No one can guarantee a loan modification because only the lender can make that decision!!! Beware
Friday July 15, 2011 12:30 
12:30
[Comment From Rebecca Rebecca : ] 
We have applied and been denied for the HAMP/HARP and Loan Modification. We were told me were denied for loan mod because we are not in immenint defalt, yet we have cleaned out our savings and if we do not get our monthly payments reduced, we will lose our home. We have never been late on payments or bills. The bank told us that we have to not pay for 60 days then reapply. However, there is no guarentee, so we are being forced then to take a risk, and then have to pay fees if we are not approved. We have tried everything and feel like doing the right thing is getting us no where. What can we do?? I have contacted making home affordable, and they have done nothing
Friday July 15, 2011 12:30 Rebecca
12:31
ey - barbara, but even if they do, the foreclosure process in NY state courts is now the longest in the nation, an average of 966 days. plus the foreclosure scandals have slowed down the process also. let the judge know u/lender are in loan mod negotiations and judge will likely not approve auction of house until loan mod efforts seem dead
Friday July 15, 2011 12:31 
12:32
MM: Rebecca, if the loan is a FHA loan please contact the National Servicing Center at 1-877-622-8525, also reach out to a HUD approved housing counseling agency for guidance, www.hud.gov 1-800-569-4287
Friday July 15, 2011 12:32 
12:32
JLA: Sueann: if there truly is equity a straight or normal refinance may be an option however debt will be considered during that as well. meeting with a counselor can help and they will review your financial situation - when there is equity in a property it will change your options sometimes. Not always the best property for a modification as the servicer looks at "cheaper to modify or cheaper to foreclose" ...
Friday July 15, 2011 12:32 
12:33
MM: Sueann, if a delinquent borrower owns additional property you do not qualify for a loan modification. I would suggest you speak with a HUD approved housing counseling agency, www.hud.gov for a listing.
Friday July 15, 2011 12:33 
12:35
[Comment From Jennifer Jennifer : ] 
What is a person supposed to do when there house is worth less than their mortgage, even though they put 150k into the home? With a high interest rate, and no equity, how can I refinance?
Friday July 15, 2011 12:35 Jennifer
12:35
[Comment From Mark Mark : ] 
What lenders would take on a loan refi at a reduce interest rate that is in negative equity?
Friday July 15, 2011 12:35 Mark
12:36
ey: mark, that is what the Home Affordable Refinance Program is supposed to do under the federal homeowners rescue program. lenders get incentives for doing this. makinghomeaffordable.gov.
Friday July 15, 2011 12:36 
12:36
MM: Jennifer, it sounds like you may qualify for some assistance depending on the type of loan you have. There are various programs available for borrower's just like you. Please reach out a local HUD approved housing counseling agency www.hud.gov for a listing or 1-800-569-4287 to receive FREE guidance.
Friday July 15, 2011 12:36 
12:36
JLA: Rebecca: Your frustration is obvious and valid in many ways. It is a catch 22 - being current is not a priority for a modification to the servicer and your savings at the time you applied likely prevented you from getting a mod. Worth trying to reach out for mortgage counseling - it will either again validate what you have done or help to advocate for you at the servicer to request a modification, as counselors we help homeowners make the right request to the servicer to get it reviewed properly when we can . Investor will make a difference as well as FHA has limitations on being current.
Friday July 15, 2011 12:36 
12:37
[Comment From Nick Nick : ] 
Have a mortgage w/First National bank of Long Island. 5.7% fixed. 13 yrs. left to pay. Recently loss my wife almost 2 yrs. now. Around $90,000 left to pay. Looking for a little relief. Do not want the expense of a re-finance. Is it possible to get a modification and would I be a candidate? Only one income now .
Friday July 15, 2011 12:37 Nick
12:37
[Comment From trips trips : ] 
Hi, we were offered a home loan modification and were told that our credit would take a substantial hit, which my wife and I do not want to have happen. The Broker then told us that they could work out a situation where our mortgage would be reduced by about $700 a month, and all we would have to pay out of pocket would be $3000 for the attorney, and our credit wouldn't be affected, does that sound legitimate
Friday July 15, 2011 12:37 trips
12:38
ey - trips, i wud suggest running this by a nonprofit. loan mods under the federal making home affordable program shud not cost u anything.....
Friday July 15, 2011 12:38 
12:39
[Comment From Deb F Deb F : ] 
That does not help. How does a homeowner go about getting a better interest rate? Are you saying the only option is to refinance?
Friday July 15, 2011 12:39 Deb F
12:39
ey - trips, if u are short of money, why pay the attorney $3,000? also, state law now sez attorneys/loan mod firms cannot charge money upfront to do loan mods.
Friday July 15, 2011 12:39 
12:39
MM: Deb F. we cannot tell you which option to pursue however you need to seek professional guidance where you can review all of your options.
Friday July 15, 2011 12:39 
12:40
[Comment From billy billy : ] 
I have had hardship, lower income, but still scraping by to make mortgage . I keep on getting declined, where else can I go?
Friday July 15, 2011 12:40 billy
12:40
JLA: Nick: Sorry for your loss, death of a borrower is a valid hardship and is considered for a modification depending on investor (key is to know investor - fannie /freddie/fha etc) - it sounds like you have equity and it may mean refinance is the only option if turned down for a modification - always get at least 3 quotes and shop around - go to where you do your banking first and meet with a loan officer to get an idea what they will charge - fees can be negotiated on refi
Friday July 15, 2011 12:40 
12:41
[Comment From Jennifer Jennifer : ] 
I started looking into the load modification process with BoA but was scared [...]off when some people had mentioned that a modification could destroy our credit. My husband relies on credit cards to run his deteriorating business, so we can't risk that. Is it still possible to do a modification without risking credit scores? 2) Are there any other reasons to be aware of to NOT do a modification? We recently refinanced but it is still not enough, so I would like to look into modification if it is feasible...
Friday July 15, 2011 12:41 Jennifer
12:41
MM: Billy, I am sorry that you are having a rough time. If your loan is an FHA loan you are eligible for a variety of loss mitigation options that can help you. Also seek guidance through a HUD approved housing counseling agency which is free. www.hud.gov 1-800-569-4287. Good luck
Friday July 15, 2011 12:41 
12:42
JLA: Rebecca - if freddie mac then HARP is the option as long as you have been current the past year ?
Friday July 15, 2011 12:42 
12:42
ey - jennifer, it will ruin ur credit.... when u get a trial loan mod with a lower payment, that is paying less than ur mortgage contract terms so many lenders report u to the credit buros. if u are not delinquent, i wud ask the lender about this before u sign any trial mod agreement and negotiate with them so they dont report u
Friday July 15, 2011 12:42 
12:42
[Comment From Larry Larry : ] 
I have a home with a jumbo first mortgage and a second mortgage-According to the Nassau County Assessor's office my house is worth less than the amount due on the first mortgage. Any plans out there that can help in this situation. My wife, who is on the mortgage is gainfully employed. I am not on the mortgage and am underemployed for the last few years.
Friday July 15, 2011 12:42 Larry
12:44
MM: Larry, I would suggest you speak with a local HUD approved housing counseling agency because they can provide you guidance on all the programs that are available out there. If it is an FHA loan you can go directly to the National Servicing Center 1-877-622-8525 or for more info on housing counseling agencies 1-800-569-4287 or www.hud.gov to find one close to you. Goood luck
Friday July 15, 2011 12:44 
12:44
[Comment From moe moe : ] 
We ;have applied and been denied for a modification saying we make to little. I had gone to a lawyer for a free consultation and he said that if we hired him we don't pay our mortgage for about a year and half, that is how long the process takes, and we won't lose our home and basically that they fight for us and most likely will get approved. Is this the best way to go, the bank def doesn't want to help us and we are going through our savings, had only 1 late but caught up
Friday July 15, 2011 12:44 moe
12:45
[Comment From Joe Joe : ] 
I recently replied to a radio ad and was told I make too much money to modify my upside down loan. Not sure why that has anything to do with modifying a loan that isn't right but I'm wondering what kind of options I have beside stopping my payments and ruining my credit.
Friday July 15, 2011 12:45 Joe
12:45
ey - moe, u can go to a nonprofit for free, who wud negotiate for u and likely have their own direct contacts with the lenders. if u can pay and have caught up, going delinquent will affect u when u try to get credit, etc......
Friday July 15, 2011 12:45 
12:46
MM: Joe, BEWARE, first you can speak with your lender directly for FREE, or go to a HUD approved counseling agency. Only a lender can tell you whether or not you are eligible for a loan modification. www.hud.gov 1-800-569-4287
Friday July 15, 2011 12:46 
12:46
ey -- moe, lots of lenders will say no at first, then another division of the lender sez yes... homeowners who have been denied keep on trying and some of them say they get loan mods two after fighting for them.
Friday July 15, 2011 12:46 
12:46
JLA: Jennifer: sometimes the mortgage is not the only area to address. Overall debt and budget may be the area to pursue. Debt management (not the questionable debt consolidation) may be worth looking at (nationally accredited only even hud if possible) sitting with a counselor is a good start as they review your budget and provide strategies for lowering over all debt. Housing counselors will do as well and we have a financial fitness class at CDC that helps to reduce debt and think differently about money. go to our web site www.cdcli.org
Friday July 15, 2011 12:46 
12:47
[Comment From RALPHIE RALPHIE : ] 
I CONSULTED A MOD COMPANY, AND THE GENTLEMAN SAID HE HEADS A 35 MAN SALES FORCE THAT SPECIFICALLY DEALS IN FHA LOANS- AND HIS LEGAL BEAGLE GROUP OF ATTORNEYS CAN GET THIS INTO HAMP. WHAT CAN I EXPECT?
Friday July 15, 2011 12:47 RALPHIE
12:47
[Comment From Fran Fran : ] 
We applied for a modification with our mortgage company and they denied us because they said my husband's salary supports our payment. Are they really allowed to deny us based on that when the mortgage rates have dropped so much lower than when we got our mortgage?
Friday July 15, 2011 12:47 Fran
12:48
MM: Ralphie, BEWARE, no one can guarantee or modify a loan only the lender can. You can receive free assistance through a HUD approved housing counseling agency, www.hud.gov or 1-800-569-4287.
Friday July 15, 2011 12:48 
12:48
[Comment From Anon Anon : ] 
I have a friend who was called by her mortgage company and told she can have a free modification to reduce the rate. How would I find out if I can get something like this?
Friday July 15, 2011 12:48 Anon
12:48
ey - fran, yes, they can deny for any reason. if u are not struggling, they will likely not help u cuz there are so many out there who are in big distress. in their eyes, u signed a contract and there seems to be no reason why u cant stick to it... frustrating, i know. only option is a refi, try to get what's called CEMA so u dont have to pay taxes on loan again. CEMA treats refi as if u are just redrafting terms of original mortgage
Friday July 15, 2011 12:48 
12:49
[Comment From GK GK : ] 
Is a modification different from a refinance?
Friday July 15, 2011 12:49 GK
12:49
MM: Anon, call them, real simple give them a call. Remember that modifications by a lender are free and are available to those borrowers that have experienced some type of hardship.
Friday July 15, 2011 12:49 
12:49
ey -- gk, mod is different from refi. refi is considered a new mortgage, with closing costs, etc.... mod is changing the terms of the original mortgage. shud be free.
Friday July 15, 2011 12:49 
12:49
[Comment From Rebecca Rebecca : ] 
Is it worth getting a lawyer to help get approved for a loan mod?
Friday July 15, 2011 12:49 Rebecca
12:50
JLA: Barbara: they can move forward with foreclosure action since the timeline in NY is well over 12-24 months and even 4 years in some cases so they do move forward. They are NOT permitted to set a sale date while under review for HAMP or other...they will not foreclose (set sale date) while under review and if they do report them to OCC Office of the Controller of the Currency at www.helpwithmybank.gov - you do get notice and time to move on they cannot force short sale only actual sale (foreclosure)
Friday July 15, 2011 12:50 
12:50
[Comment From Anon Anon : ] 
I've heard of situations where the home is no longer worth the value the owner paid and the banks are "forgiving" the difference. is this real? how do i find out more info?
Friday July 15, 2011 12:50 Anon
12:50
[Comment From Markus Markus : ] 
How can I tell if I have an FHA loan?
Friday July 15, 2011 12:50 Markus
12:51
[Comment From moe moe : ] 
what non profit organziation would i contact?? And I don't want to have our credit ruined by doing so thank you
Friday July 15, 2011 12:51 moe
12:51
MM: Rebecca, you do not need a lawyer for a loan modification, The lawyer will charge you fees for the "service" and they cannot guarantee to get you a modification. Remember a lender which you made the loan with can agree to a loan modification. if you need further assistance contact a HUD approved housing counseling agency www.hud.gov or 1-800-569-4287
Friday July 15, 2011 12:51 
12:52
ey - anon, yes it is true but all depends on ur situation and the lender. they can cut down the principal. look for a local nonprofit at hud.gov
Friday July 15, 2011 12:52 
12:53
[Comment From Jennifer Jennifer : ] 
When we were considering refinance 6 months ago, we called our lender (BoA) and they flat-out said no way would they refinance with us - we were too big of a risk. We ended up hiring a broker who worked with a variety of lenders, and we paid pretty reasonable fees to get our mortgage down from 8.75 to 4.25 (going for an ARM instead of fixed). Guess who our "new" mortgage turned out to be with? BoA. Can anyone explain that?
Friday July 15, 2011 12:53 Jennifer
12:53
MM: Markus, on the top of your original loan application will show if FHA is selected. If you are still not sure call the National Servicing Center at 1-877-622-8525 and if you qualify they can provide you some guidance as well.
Friday July 15, 2011 12:53 
12:54
JLA: Moe: re: not for profit - you can go to HUD 1-800-569-4287 for HUD certified or call NY State Banking to find NY legitimate mortgage counselors. Income is income and the best way to ensure that the attorney is not giving you misinformation is to meet with a counselor. There are good attorneys but math is math and sometimes being in limbo (not enough income right now) is what is needed to get additional employment and save the home)
Friday July 15, 2011 12:54 
12:54
ey - jennifer, dont look for reason on why lenders do what they do... part of the problem is they are swamped and many have hired multiplied staff by three or four fold but training is lacking.....also, it depends on which person u get at the lender. some are better than others
Friday July 15, 2011 12:54 
12:54
[Comment From Barbara Barbara : ] 
Last fall I applied for a loan modification and after waiting 5 months for an answer I was turned down because I wasn't behind in my payments. My interest rate is 8.625%. I've been keeping current by using my savings but I can't keep doing this. If I stop paying for a while am I guaranteed a reduction or do I just ruin my credit? Help!
Friday July 15, 2011 12:54 Barbara
12:57
[Comment From moe moe : ] 
do i go through the same bank, my mortgage holder again
Friday July 15, 2011 12:57 moe
12:58
JLA: Jennifer: without knowing all details regarding your personal credit and other issues I cannot say - it could have been a misinformed representative when you called the first time - hard to say - Bank of America is the largest lender/servicer right now in America and services at least a fifth of all loans out there. They do help us when we reach out to help a homeowner but are so large sometimes there can be issues with individual reps. .
Friday July 15, 2011 12:58 
12:58
ey - moe, if u are doing loan mod, u have to go thru same bank cuz they hold ur loan and have to agree to change terms. if u want a refi, u can go to any lender
Friday July 15, 2011 12:58 
12:58
MM: Barbara, I can only speak if it is an FHA loan..if the loan is an FHA loan a lender cannot deny you assistance if your are not late. If you are not sure if it is an FHA loan call the National Servicing Center at 1-877-622-8525 and they can verify if it is. If the loan is a conventional loan contact a local HUD approved counseling agency that can provide you with info on all the programs available, www.hud.gov 1-877-622-8525
Friday July 15, 2011 12:58 
12:59
[Comment From PAUL PAUL : ] 
I WAS TOLD THAT IN ADDITION TO A LOAN MODIFICATION, THERE ARE PROGRAMS THAT WOULD ALLOW ME TO GET EQUITY OUT AS WELL FROM THE MOD...TRUE?
Friday July 15, 2011 12:59 PAUL
1:00
[Comment From Rebecca Rebecca : ] 
Is it worth us reapplying for the loan modification prog after already being denied bc we have never been late? Our debt to income ratio is high, and we have never defaulted. Should we default for 60 days then do it again? I feel like our debt ratio would be too high to get approved. However, my parents help us out on months that we are short. If they reduced our payments, we would be fine.
Friday July 15, 2011 1:00 Rebecca
1:02
ey - rebecca, see answer to john above. if u default, that will have other ramifications. but if u can live w/wrecked credit and be on time with debts for more than two yrs, ur credit rating goes back up. a lot of these sort of decisions are personal ones.
Friday July 15, 2011 1:02 
1:02
JLA: Paul: You cannot access equity in a home unless you refinance a loan - modification is designed to help a homeowner who has experienced hardship paying and taking equity out only increases the debt owed so the quick answer is no - it cannot be accessed during a modification. The goal of the mod is to get you back on track and save the home.
Friday July 15, 2011 1:02 
1:02
MM: To all borrowers, please be aware there is a difference between a conventional and FHA loan. If the loan is an FHA, the FHA approved Servicers are required to review delinquent borrowers for all Loss Mitigation programs. It is part of their requirements however as a delinquent borrower you cannot select which option you want. You will be reviewed for all options and provided one that best suits your current situation. There are free services through a HUD approved housing counseling agency FREE, www.hud.gov or 1-877-622-8525. If you are not sure if your loan is an FHA loan call the National Servicing Center 1-877-622-8525.
Friday July 15, 2011 1:02 
1:03
[Comment From R R : ] 
If I am a good customer and have no "financial distress," will my lender consider giving me a lower rate? It seems unfair to be punished for doing what I am supposed to be doing.
Friday July 15, 2011 1:03 R
1:04
MM: Blue, I am sorry to hear that you are going through a rough time. Have you spoken with a HUD approved counseling agency. They can walk you through the process and tell you what programs are available. In order to qualify for a loan modification you must have experienced an actual hardship, for example a loss in income, an increase in expenses, a medical situation etc. www.hud.gov or call 1-8800-569-4287 and find a local counseling agency. Good luck
Friday July 15, 2011 1:04 
1:04
ey - r, that is the "moral hazard'' that was the big debate before the banks got their big bailout and before the homeowners rescue program was approved. it is frustrating for people who can pay, were careful or didnt have any calamity, such as layoff or health issues. i say buy some shortcake and champagne and make a toast to urself.
Friday July 15, 2011 1:04 
1:04
JLA: Barbara: Savings are considered when applying for a mod as well as hardship and the nature of hardship - or imminent default reason (temporary or permanent)
Friday July 15, 2011 1:04 
1:05
[Comment From Markus Markus : ] 
My loan was with Countrywide and now BOA but the rate is still at 9%. I also just fought off a foreclosure by borrowing money to get current. My credit is shot and the house is worth less than the loan. My wife also lost her job ober a year ago and is working part time. We just can't keep up with the high mortgage payment. Just wondering if I would be a good candidate for a loan mod?
Friday July 15, 2011 1:05 Markus
1:05
[Comment From The Mask The Mask : ] 
I called my mortgage holder and they said I should apply for a modification. I am going through a divorce, the settlement would make it very difficult for my spouse to keep the house without a modification. When i fill out the forms is it from the point of view of the spouse being divorced? My mortgage is 6.25%. Its an intererest only loan.
Friday July 15, 2011 1:05 The Mask
1:06
MM: Markus, it sounds like you may qualify but there is a process. I would strongly suggest you get some FREE help with a local HUD approved housing counselor. www.hud.gov or call 1-800-569-4287, also call the NSC number I previously gave you to find out if you have an FHA loan.
Friday July 15, 2011 1:06 
1:07
ey -- blue, yes, homeowners have told me they've gotten loan mods but sometimes after more than two yrs of calling, fighting, submitting documents... if u think ur home is worth saving, i wud just say hang in there. u just have to be patient. also contact a nonprofit cuz they can fight/negotiate for u so that u are not calling the lenders every day for progress... also they know the ins and outs more
Friday July 15, 2011 1:07 
1:08
[Comment From Blue Blue : ] 
Do people really get these loan modification b/c I really don't hear of many who do? There are alot of pple on here who get denied as well as myself b/c our banks want us to default so they can take over our property. I really wanna stay in my home what will these hot lines do for me? Sorry but this has been a tough process :(
Friday July 15, 2011 1:08 Blue
1:09
JLA: The Mask: modification request should include anyone who is currently on the loan unless one party can prove they no longer have access to those funds. The application would then be applied for without the income. Often with divorce it is challenging to get a mod to happen as the mortgage servicer asks all income for all borrowers. It is up to the individual who resides in the home to prove enough income to adequately pay a modified loan (sometimes the income left in the home is not enough even for a modified loan) - as the servicer wants to help with primary residence (owner occupied)
Friday July 15, 2011 1:09 
1:14
JLA: Blue: Denials do happen and sometimes they are legit and sometimes they are not - we often have to escalate a homeowner's case when the servicer has not given a proper review and force the servicer to take a second look. Even we get frustrated with the process as counselors. Hang in there if the home is worth fighting for...the flip side is sometimes the income is truly not enough to afford a modified mortgage (even with zero percent interest) - best way to get this validated and know exactly where you stand is to meet with a counselor face to face to review your personal financial options with your home. They will be honest and help you explore if keeping the home is possible. This crisis hits home for everyone, family, friends and neighbors. You are not alone and support through counseling can help.
Friday July 15, 2011 1:14 
1:15
JLA: Blue: sometimes waiting until income increases or can be properly documented will help above all other things to do ...
Friday July 15, 2011 1:15 
1:16
[Comment From the mask the mask : ] 
on the divorce question, if the spouse says I am receiving xxx and have income of xxx would that be sufficient?
Friday July 15, 2011 1:16 the mask
1:17
ey - to all, these are some links and brief descriptions of programs that mite help u:

Emergency Homeowners Loan Program. An interest-free loan of up to $50,000 or up to two years, whichever comes first. It's from the U.S. Department of Housing and Urban Development, and minimal or partial payments are still required monthly by borrower. Aimed at those who lost jobs, income or savings due to medical emergencies. Deadline for eligibility screening is July 22. Contact a participating nonprofit at findehlp.org or at 1-855-346-3345.
-------------------------------------------------
Home Affordable Foreclosure Alternatives (HAFA). Part of the federal Making Home Affordable rescue plan, HAFA gives incentives to lenders who agree to do short sales, in which they take less than owed on a mortgage when the seller finds a buyer. It also gives incentives for lenders to take the deed on the house in lieu of foreclosing. makinghomeaffordable.gov/programs/exit-gracefully/Pages/default.aspx
-------------------------------------------------------
Home Affordable Modification Program (HAMP). The most well-known program under the federal Making Home Affordable rescue effort, HAMP gives incentives to lenders, borrowers, investors and loan servicers to lower monthly payments to 31 percent of gross (pre-tax) income. This may be done by one change or several modifications, including reducing the principal, bringing down the rate to as low as 2 percent and increasing the mortgage term to 40 years. A trial period on the loan modification is required, and if the borrower pays on time, the modification is likely to become permanent. But lenders have sometimes refused to make the changes permanent, despite on-time payments, or have changed the terms they're offering on the permanent modification. makinghomeaffordable.gov/programs/lower-payments/Pages/default.aspx
-----------------------------------------------------------
The Servicemembers Civil Relief Act gives military families foreclosure protection and mortgage relief during war time. For example, the federal law requires lenders to give military families an interest rate that's no higher than 6 percent. Also, a foreclosure is invalid without a court order if it's done during the borrower's military service or within nine months of the borrower's exit from the service. Active-duty service members and their families don't have to update lenders on their military status to avoid foreclosure. Contact 800-342-9647 or militaryonesource.com/scra.
----------------------------------------------------
Home Affordable Refinance Program (HARP). Part of the federal Making Home Affordable rescue plan, HARP gives lenders incentives to refinance mortgages of homeowners who have no or little equity in their homes. Applicants must be current on payments and be able to pay refinance fees. makinghomeaffordable.gov/programs/fallen-value-help/Pages/default.aspx
---------------------------------------------------------
Home Affordable Unemployment Program (UP). Jobless homeowners get reprieve from paying full mortgage bill each month, part of the Making Home Affordable outreach. They make small or partial payments for a minimum of 12 months. makinghomeaffordable.gov/programs/unemployed-help/Pages/up.aspx
--------------------------------------------------------
Nonprofit counseling agencies. Some nonprofits have housing counselors trained under the standards of the U.S. Department of Housing and Urban Development. Each state has HUD-approved counselors, and they negotiate loan modifications and credit payment plans for borrowers for free. A list of HUD-approved agencies by state is at hud.gov/offices/hsg/sfh/hcc/hcs.cfm
-----------------------------------------------------------------
NeighborWorks America. A national network of community agencies, NeighborWorks has become one of the most known referral and information hotlines for troubled borrowers. They have information on loan scam alerts and more. nw.org or 202-220-2300
----------------------------------------------------------------
Hope Now. Alliance of nonprofit, industry and government agencies to help distressed borrowers. It runs the 24-hour Hope Now hotline, which is answered seven days a week by a nonprofit counselor somewhere in the country. Spanish speakers available. hopenow.com 888-995-HOPE (4673)
----------------------------------------------------------------
Hope LoanPort. This online system sprung out of the Hope Now alliance in 2009 and lets participating lenders and nonprofits to scan in borrowers' loan modification applications and required documents. This was a response to the common complaint of missing paperwork, but the system also shows the status of each case, whether certain lenders have systemic bottlenecks in turning around cases and other information aimed at identifying problems. Find a participating nonprofit at hopeloanportal.org/counselor.php

Friday July 15, 2011 1:17 
1:18
JLA: The Mask: income needs to be real and is always documented by bank statements showing deposits and in the case of alimony/child support/divorce must have legal separation papers or divorce decree to prove amount being received is consistent although some lenders will accept a statement it is rare unless bank statements can back this up.
Friday July 15, 2011 1:18 
1:18
[Comment From Peter Dee Peter Dee : ] 
I am coming late...are there counselors to see with no cost? Where?
Friday July 15, 2011 1:18 Peter Dee
1:18
ey -- peter dee, yes, go to hud.gov for a list of approved counselors
Friday July 15, 2011 1:18 
1:18
[Comment From Barbara Barbara : ] 
Is is worth trying again to get a loan modificaation? IT's Bank of America. When I was denied for not being laate they said to appeal it so I did but then ws denied again for too much savings. Why am I not considered a hardship case due to death of spouse and loss of income? How do I find a counsellor to help me? I've talked to so many people on the phone and I go round and round and end up back where I started. very frustrating.
Friday July 15, 2011 1:18 Barbara
1:19
ey- barbara, go to hud.gov for a list of approved counselors in ur area
Friday July 15, 2011 1:19 
1:19
[Comment From Disgruntled BOA Mortgage Disgruntled BOA Mortgage : ] 
Does a homeowner have any recourse when their bank tells them the investor(s) who owns their loan will not participate in a Loan Modification Program?
Friday July 15, 2011 1:19 Disgruntled BOA Mortgage
1:20
[Comment From Cynthia Cynthia : ] 
My husband is on unemployment and I am working part time. Do we qualify for a loan modification? We have not missed any loan payments.
Friday July 15, 2011 1:20 Cynthia
1:20
ey - cynthia, yes it sounds like u qualify if ur monthly mortgage payments are more than 31 percent of ur gross (pre-tax) income. but there are lots of other factors and everyone is different. i suggest getting free help from nonprofit counselors. go to hud.gov for list of counselors in ur area
Friday July 15, 2011 1:20 
1:21
JLA: Disgruntled: investors who own the loan have most of the rights - if you receive notice of court action against you that is the opportunity to have your say in court. So attend! that is one of the few ways to make the investor answer to the referee and if they act in bad faith to request a bad faith hearing to push them to help (of course assuming the income is enough to qualify)
Friday July 15, 2011 1:21 
1:21
[Comment From alicia alicia : ] 
with a loan modification, is the original amount owed on the mortgage held in abeyance or forgiven when modifying the payment term.
Friday July 15, 2011 1:21 alicia
1:22
ey -- alicia, there are different types of loan mods... they mite tack on what u owe in a lump sum to be paid later, perhaps at end of the mortgage term.....
Friday July 15, 2011 1:22 
1:23
ey- alicia, they might also reduce the principal amount u owe or lower rate to as low as 2 percent. if u dont qualify for the federal homeowners rescue program, lenders are supposed to see if their own programs can help u.
Friday July 15, 2011 1:23 
1:24
JLA: Cynthia: When on unemployment there are no permanent modification programs, but there is the EHLP program (must be 3 months or more late to apply) hurry though only open until July 22nd got to www.ehlp@nw.org to find one of the local agencies that have the application and can submit for you. When on unemployment the servicer will sometimes only offer a forbearance or a temporary plan and only by reaching out to them can you know for sure -
Friday July 15, 2011 1:24 
1:24
[Comment From Johnny Spot Johnny Spot : ] 
Generally how bad of a hit does your credit take if you ever get a modification? Right now I have very little left. Whenever I apply for increases on a CC or even a consolidation loan I get denied.
Friday July 15, 2011 1:24 Johnny Spot
1:25
ey - chris, u prolly wont get a loan mod unless u had some sort of hardship. because u got ur loan not so long ago, a refi so soon mite not make $$ sense. also, lenders want to make sure ur prop values have not gone down a lot and they want to see 20 percent equity usually for a refi
Friday July 15, 2011 1:25 
1:27
[Comment From TBONE TBONE : ] 
can i do a mod on a rental property
Friday July 15, 2011 1:27 TBONE
1:27
ey - tbone, u can try to negotiate with lender on a rental property outside of the federal homeowners rescue program. that is just for owner-occupied homes
Friday July 15, 2011 1:27 
1:27
JLA: Johhny Spot credit is impacted in the first 3 months of delinquency after 3 months the impact remains somewhat the same - the # is based on what your number was before the lateness - HAMP/MHA trial mods result in at least 3 months late and do affect but the bottom line is if it helps to save the home credit can be repaired. You can attend CDCLI's Financial Fitness Health and Wealth class and rebuild after credit issues, bankruptcy, debt issues, www.cdcli.org or even just let time go by and pay existing debt on time for the future - credit repairs with time.
Friday July 15, 2011 1:27 
1:27
[Comment From mac mac : ] 
Hello...what are the laws for doing a loan mod or REFI after filing for bankruptcy? I've heard differing opinions on how long you have to wait after filing..
Friday July 15, 2011 1:27 mac
1:30
[Comment From mac mac : ] 
My bankrupcy was all business and I was able to keep my house after filing. Ive never been late but am concerned about having 20% equity in my home
Friday July 15, 2011 1:30 mac
1:31
JLA: mac: depends on BK 7 or BK 13 - bankruptcy protects the individual from actions so there are special departments at servicers to help homeowner who are in Bankruptcy. We have helped folks who have had or are in bankruptcy and the permanent mod cannot happen while going through Chapter 7 it must be discharged, in order for servicer to work with Ch13 must have permission from the attorney who is handling it
Friday July 15, 2011 1:31 
1:31
[Comment From TBONE TBONE : ] 
howabout for non own occupied
Friday July 15, 2011 1:31 TBONE
1:32
[Comment From Chris Chris : ] 
I put 15% down on a 30-yr mortgage i started in feb of 2010. My interest rate is locked at 5%. Is it worth if for me to try to get a loan modification or possibly refinance? I'm weighing the options due to the potiental closing cost.
Friday July 15, 2011 1:32 Chris
1:33
JLA: T-bone: non owener occupied homes may be eligible for what is called an "in-house" mod. It looks at affordability and ratios as well as overall budget. The same consideration at the servicer is used: is it cheaper to modify or cheaper to foreclose - if there is equity in nonowner occupied it may not qualify
Friday July 15, 2011 1:33 
1:35
[Comment From Fred Fred : ] 
divorced a year ago house is for sale via short sale concidering neither could a[...]fford payments alone. with consent of my ex wife am I able to get a loan modification and have my ex's name removed from the deed/mortgage. she would be willing she just wants to walk away from the house. we havent made payments in over a year as suggested by realtor to move the sale.
Friday July 15, 2011 1:35 Fred
1:36
JLA: Fred: unfortunately even with a mod you cannot remove a name from the mortgage - you can remove someone from the deed - she must vacate the property if her income is not to be used if she is on the mortgage note - then you can apply for a modification
Friday July 15, 2011 1:36 
1:38
ey - tbarbara -- it looks like u really need someone who can guide u thru all this or actually negotiate for u once u hand in all paperwork, etc. it's so tuff to say what cud or shud happen in a live chat cuz everyone's situation is so unique. go to hud.gov for a list of approved housing counselors in ur area. it's free. they have more experience than u and they know the games that lenders play, etc.
Friday July 15, 2011 1:38 
1:41
JLA: Broadcast to all and thank you www.hud.gov to find a NY counselor: Homeowners often ask am I eligible for a mod? - there are certain things that apply in most cases - cannot advise unless we know the details but...if your mortgage payment is more than 65% of your gross monthly income there is not enough income right now to qualify and the other thing is the "bank" servicer assesses does this make financial sens for me to modify - if you feel you can create a valid argument to them (on paper or in court) it is worth fighting for your home...good luck
Friday July 15, 2011 1:41 
1:41
ey -- to all thanks to all for participating. u have made our fingers tired. just remember there is no reason why u have to be alone in this cuz there are nonprofits who can do a lot of this for you and know what to expect. this live chat transcript will be available at newsday.com/realli. earlier in the live chat, i posted some numbers, links, programs. if u have any questions or want to contact me, i'm at 631-843-2892 and yan@newsday.com. good luck to all ---ellen
Friday July 15, 2011 1:41 
1:42
 

 
 
 

 

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