So, why would my mortgage company agree to a loan mod?

They're reducing my interest rate from approx 6% to 2.5% for 10 years and then it goes up to 4% for the balance of the loan.

I am ecstatic!

Is their a fee you had to pay?

and spoke to them. Told them of hardships (hospital bills, legal bills, etc.) and filled out their paperwork and was shocked when they agreed to a modification. I almost fell off the bed when I answered my mobile phone.

I'm guessing that they'd rather get a house payment then go through a foreclosure.

I am thrilled! I get to keep my beautiful house and make payments and live the dream!

And my guy's child support will end in a few years....we can actually have a savings accounT!

Given the reality, "hospital bills, legal bills", they likely came to the conclusion that you could not afford the mortgage as it was.

If they foreclosed, they would get the house - in a market where selling it would be very tough. They would incur costs in foreclosing and in selling the house.

I assume that until this point, you likely were conscientious in paying your mortgage - so they could assume that you would do so on with the new terms. It must be that the income stream generated by this new agreement is greater than the money they would make foreclosing.

At any rate, congratulations to you in holding on to your home.

Yes, we did pay our mortgage on time...very twisted history on the house....would take 3 pages to explain it all.

Thanks for the congrats!

to be less than their loss for not giving the concession.

Yes, that should be a good deal for you, but from the creditor's POV, the question is whether if they do a hundred of these, will they average out with more or less in the long run?

It's an awesome deal for me and my guy and my family, who love to come over and spend family time with us.

Our yard is the bomb and the kids love to play ball back there and lick popsicles and watch the veggies grow....We live in my Mom and Dad's home and it would have been devastating to lose it. I have so many pics of the grandkids in their Poppy's bed.....

I don't know much about the creditor's POV....hope others get the same deal that I got.

We got a 2% loan, with a reduction of nearly $90,000 in our principal!

Good for you!

I feel for people that don't talk to their mortgage companies. They will work with you......don't avoid their calls!

we requested a modification, filled out the papers, and got a better deal
than we were bargaining for.

Some people have bought into the PR that somehow Modifications are a nightmare,
and so they haven't bothered to try.....
If they had tried, they'd have come up with a different result than what's been
put out there!

but it starts with an O.....never heard of them before my other company sold them my loan...

nt

:pals:

nt

Got an amazing deal from a company that has a reputation for poor service practices. It all appears to be on the up-and-up too. The loan information has been changed on my credit report(s) and they are reporting correctly. Good stuff...

ON EDIT: No teaser APR here though. ...4% fixed for the life of the note.

I am happy for you!

:-)

with.

this is the mortgage company's program.....who woulda thought?

the banks to do something from what I've heard

have in their inventory, I'm surprised it took this long for them to wake up. They should be bending over backwards to keep people in their homes and paying something on the mortgage. It's far better than getting a house that produces no return at all. Banks don't want to own these foreclosure turkeys. That's not their business.

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modification. http://www.newconceptmortgage.ca/articles/outside/2007-nov-penalty_charges.html (This is an old article. You probably can find something newer out there.)

We thought we might do one when I got some money from my parents' estate, but it turned out what we saved would be evened out pretty much by the penalties and fees. :shrug: (I'm no expert on this, it's just what came up in our case.)

Thanks

but after researching mortgage/foreclosure fraud for nearly 3 years, I’m simply hoping there are sound reasons for your joy.

It’s certainly possible that you have a legitimate mortgage that wasn’t securitized, it’s just not likely from what I have seen.

Is your mortgage a MERS mortgage?

Did your mortgage company have you sign a new agreement? Did that agreement have a clause whereby you agreed not to sue because of lost or problematic documents?

Have you checked your land records recently to see if any new documents were filed?

How do you know who owns your loan and has the authority to modify the loan?

Too often these darn mortgage servicing companies will offer a loan modification while simultaneously bringing a foreclosure action against homeowners. There is no reason to trust these companies, especially Ocwen.

If this loan modification isn’t genuine, there is still a way for homeowners to correct any problems. I only mean to caution you not disturb you.

I’m certainly happy for you but it worried me as I thought it possible that a month from now I could read about how you were foreclosed after such a nice loan modification.

I don’t want to see any more homeowners defrauded. Hopefully you are among the 18% or so with a legitimate mortgage and a clear Title.

When the next phone call comes in, I will mention what you have written.

I've gone as high up as the Vice Prez of the loan modification department at OneWest Bank. Didn't even ask for a principal reduction, just asked them to fix my $200,000+ upside down mortgage to a 30 year fixed. Forget about the $185,000 in interest they've made off of me over the last 5+ years, just start me on a new 30 year term...

Nope, VP Boomer Bean (Austin, TX) refused to do anything saying that I'm not late on payments and I would need to be late with hardships for them to even consider a "modification".

As far as I'm concerned, they can burn in hell.

Just a normal Joe Shmo from Cocomo that pays his bills on time every damn month and asks for just a crumb that's fallen to the floor and still gets denied.