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Has anyone had a successful loan modification?

We are going to loose our house in Aug. We tried a loan modification on our own, and we were turned down by the bank. I want to find someone to help us do one, but I am to afraid of getting scammed. Does anyone have any helpful advice?

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bobkatc

Asked by bobkatc at 11:07 AM on May. 11, 2011 in Money & Work

Level 2 (4 Credits)
Answers (11)
  • Everyone I know who has done this have lost their home. Good luck. Be careful.
    Anonymous

    Answer by Anonymous at 11:08 AM on May. 11, 2011

  • We were also turned down by our bank so we let them take the house...
    charlotsomtimes

    Answer by charlotsomtimes at 11:19 AM on May. 11, 2011

  • 2 years in the modification process with no avail. We are giving up this summer... It's to stressful to 'sit and wait' for two damn years.
    Anonymous

    Answer by Anonymous at 11:23 AM on May. 11, 2011

  • I believe we have been the only true success story but ours wasn't a loan modification. We had a principle reduction. There were many factors involved. First, our mortgage company went under and the parent company (GMAC) took over our loan. They said they had too many loans on the books and needed to sell them but everyone was upside down on their houses so they looked for ppl who qualified for the different programs available. It just so happened that we qualified; no late payments, one person out of work, baby on the way, certain % of debt to income in student loans, ect... SERIOUSLY CRAZY QUALIFICATIONS. Either way, about 6 months worth of headaches later and $0 out of our pockets, they reduced our principle by over $100k and dropped our payment from about an $1800 ARM loan to a $700/ mo FHA loan. The only draw back was that we have a ding on our credit.
    Mel_in_PHX

    Answer by Mel_in_PHX at 11:28 AM on May. 11, 2011

  • But we were lucky... GMAC came to us and we didn't pay a dime. Our loan officer said, "this is your one get of of jail free card. You had the right shaped peg to fit in the right shaped hole." I haven't heard of anyone else getting this lucky. I had one co-worker who paid several thousands to have his interest rate reduced.
    Mel_in_PHX

    Answer by Mel_in_PHX at 11:30 AM on May. 11, 2011

  • I had a successful loan modification, but I did it myself thru the bank. The process went pretty smoothly, but I work in the mortgage industry so I had a bit of an advantage as far as knowing the things they would be looking for so I could make my case strong. Did they tell you why you were denied the modification? In my situation, my DH was laid off, I had a baby and worked reduced hours due to becoming a mom and because the mortgage business tanked and my hours were cut, and I had a lot of other debt to offset what I was able to pay per month. When I began the process there was literature I received and I know there was a free, government sponsored place I could call to get free advice. I didn't call but I am sure you could find this resource with a little looking on the internet and at least be able to talk to someone who isn't going to rip you off. I would be very wary of paying someone to do a loan mod for you. Good luck.
    MaryMW

    Answer by MaryMW at 1:29 PM on May. 11, 2011

  • Our loan modification was denied. We lost our home last summer. We put $50,000 down. Huge loss for us. I wish they were more helpful.
    Anonymous

    Answer by Anonymous at 4:37 PM on May. 11, 2011

  • Ditto Mel in Phx's response - the bank came to me and offered a loan mod - no fees, no points, no closing. I jumped at the offer. But I was one of those square pegs ...
    tasches

    Answer by tasches at 5:57 PM on May. 11, 2011

  • We did our 3 month loan modification, and mad our payments on time. Then the bank came back and denied it because we would not pay off enough of the loan in time. They told us to come back once he found a job. So when he did finally find a job we went back to them and they told us that we did not qualify. I called the government hope helpline and they tell us that we do qualify. I am convinced that the bank wants to take our house, because it is over half paid for, and they can sell it for more then what our loan is and make money off of it. There is a HUD agency by us that we can get free help from, but they only take so many people a day, and the people start lining up at 5:00 AM. We can't go and get the kids off to school, and my husband can't go and miss work, especially when there is no guarantee that we will be able to get in. He is the sole provider for our family. I am looking for work.
    bobkatc

    Comment by bobkatc (original poster) at 10:40 AM on May. 12, 2011

  • We have been on a loan Mod for almost 2 years. Our house literally had a forclosure sale date, but by the good grace of GOD we got a miracle. The new Obama law came thru for us and we have been on this since. I spoke to the loan retention dept and was told as long as we continue doing what we have been we should not have any problems getting a final approval. When we bought our house we were financed thru Country Wide. What a mess we went thru with them. When they went under BOA took over. What a long frustrating 2 years we have been thru. I wish you all the luck and hope for the best.
    busyasabee

    Answer by busyasabee at 4:14 PM on May. 15, 2011

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