Need help with my situation

HI,
I tried last year to do a loan mod with National City, they claimed I didn't earn enough. Well duh!! that is why I am asking for help. I now earn even less because I lost my job and now they say, you have no verifiable income so you can't get a modification yet they won't count the rental income I earn from the two units behind my house. Frustrating as hell, I can't afford the fees the loan mod companies are asking for upfront, an attorney looked at my docs for free but he said until I get a job he doesn't think they will work with me. I am now late on my second and hope this will force them to work with me. I am in this postion because tenants on other properties are not paying, huge loss on one for damages, loss of job and I bought alll my properties before 2004. When people don't pay you the domino effect starts and the banks won't talk to you until you are late and they keep saying the law says that you have t have an income for them to do a loan mod. It isn't the law it is their policy.If a loan mod company were that good they wouldn't ask for upfront fees and would only charge if they were successful. ANy help right now would be appreciated.

Edited: 06/26/2010 at 07:48AM

Mike C

Real Estate Investor · Ohio

221 posts
1 award
50 influence

Apr 29 '09, 11:51 PM

Teena,

Save your money. A loan mod company cannot get you a mod if your lender won't give you one. Unfortunately, you just don't make enough money to support the loan and that is why they won't do a loan mod. Being late on your second won't help you to negotiate with the first. All it will do is further hurt your credit.

My only advice would be to sell it as fast as you can. Not what you want to hear probably but good luck.

Mike C

Edited: 06/26/2010 at 07:51AM by Mike C

Fredrick Scott

Real Estate Broker · Irvine, California

6 posts
50 influence

Apr 29 '09, 11:51 PM

Hello,

I have written an article for people in situations like yours. Take some time to read it as it will help you alot. See what you need is a forbarance procedure and believe it or not you can get this from your lender even though you dont have a job, you just have to have some knowledge and be willing to do a little work. Read the article at: http://acaciacoinc.com/blog/2009/04/16/ive-lost-my-job-i-dont-want-to-lose-my-home/

Edited: 06/26/2010 at 07:59AM

Teena Colebrook

3 posts
50 influence

Apr 29 '09, 11:51 PM

Hi,
I asked for help as I am behind on my large second, lost my job, read the responses so here is update. First a loan mod company would be great if we could pay them after they have successfully completed the modification. We can then afford to pay and I would be glad to pay $5k to someone who succesfully completes a loan modification or a settlement of the debt. Of course I would have to make payments on it in my situation but I would do it. If I had the money now I would be paying the mortgage. I am letting 3 rentals go into foreclosure as the banks won't yet work with me to modify the loans and they are upside down. My own home is different, I can afford the first with the tenants paying (i live in a triplex), I just can't afford the 2nd now I have lost my job and tenants not paying, trying to evict, homes not selling etc. National City kept saying they would work on a settlement if I caught up on my payments but they wouldn't put it in writing. I had someone who has agreed to settle my debt for me at 20% on the dollar and settle in 5 days, they faxed the offer as requested but got no response. I gave the bank permission to talk to this person, they refuse to answer his calls. They kept saying you have to keep up payments before it goes out of my department. First acting nice then nasty when I said I couldn't pay because I can't conjure money out of thin air. If the banks would actually assign you a specialist who would listen to you and help you with a work out I could save all my properties and pay everything I owe but I need either a 4-6 month payment holiday or a reduced interest rate for 1-3 years and I could get back on my feet by selling everything I own. I will try now calling every day and seeing what happens. I did negotiate a large credit card debt (this was for real estate repairs not silly spending) with BofA for 20c on the dollar, they actually were very nice and very helpful and it is one big weight off my mind. Thank you for everyone who gives input.

Edited: 06/26/2010 at 08:05AM

Dwan Twayford

· Bailey, Colorado

39 posts
2 awards
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May 18 '09, 01:00 AM

maybe the reason they collect the upfront fee is to be sure that portion of loan will be safe, because there are some customer that won't be able to pay their loan.

Edited: 06/26/2010 at 08:15AM

Dick Green

Residential Real Estate Broker · Conroe, Texas

1,596 posts
4 awards
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May 20 '09, 02:15 PM

What's more important to you? Peace of mind is more valuable than stuff. If you can have stuff and peace...it's more fun.

Liquidating burdensome assets can be quite liberating. I would unload the rentals....short if need be. Get rid of the non-paying tenants. Tell them "gotta go, gotta go! No pay! No Stay!

Go 13 on the tri-plex til you get back on your feet. You'll bounce back.
Good Luck!

Edited: 06/26/2010 at 08:17AM

JR Belmont

Real Estate Appraiser · Arizona

7 posts
50 influence

May 23 '09, 01:56 AM

I was in the loan mod biz before and I can tell you that loan mod is only a band aid solution. Most of the loan mods that I was succesful at doing actually increase the balance (ie: forebearance, terms, etc) I agree with Dick Green. Go 13. Cram down your 1st and if you have a 2nd., get it stripped. Good luck.

Edited: 06/26/2010 at 08:19AM

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