Loan Modification?

33 Replies

Originally posted by Bad Money:
I am upside down on two houses, but I have never missed a payment. I recently went on disability and am facing a financial crisis. I contacted both lenders (B of A, Citimortgage) and they will modify for 2.65 points and $3500 closing costs - $7000 - 8000
up front! Obviously I can't pay this. My son thinks I should let the rental house go into foreclosure - I have always paid my bills and have great credit (I have run up my credit cards keeping up with mortgage payments), at my age (62) I am loathe to destroy my credit - any ideas?


You should consult a third party for help, you may be able to qualify for a loan mod.

Originally posted by Al Ber:
You should consult a third party for help, you may be able to qualify for a loan mod.
It appears that you have missed (not read) the entire conversation in this thread, judged by this statement. Most loan mod companies (third parties) are fraquds and scams.

I totally agree. You have to be very careful with many of the loan modification companies out there. [LINK REMOVED] may be able to help you; they even offer loan forensic auditing. There is another good company but unfortunately, I can’t recall the name. If I can locate the name, I’ll post it in comments for you. I hope everything works out for you!

Several claim to do forensic loan audits as well, but most of those are not much better. Most use software programs which can not possibly do the work of a real audit performed by hand, by an experienced attorney.

Originally posted by nationwidepi:
Several claim to do forensic loan audits as well, but most of those are not much better. Most use software programs which can not possibly do the work of a real audit performed by hand, by an experienced attorney.


Just like in any business derision you have to do your due diligence. There are legitimate companies that know the process of negotiation, have an attorney and deliver results with a money back guarantee.

So AL no matter how much due diligence you do when it comes to loan mods its just way too much trouble.

Just like in any business derision you have to do your due diligence. There are legitimate companies that know the process of negotiation, have an attorney and deliver results with a money back guarantee.

Al-

I have been helping my uncle do a loan mod with ING DIRECT. He has a loan balance of $610K @ 5.25% I/O Pmt of $2667. Value has dropped down to $450K. We have tried three times but still failed.

First time my uncle applied himself and ING said he doesnt qualify due to his income. This was BS because with his wife's income (whose not on the current mortgage) would make it enough to qualify for a loan mod.

Second time we hired a attorney from Anaheim Ca who charged $2500 and wasted 3 months and said they still got the same answer as first time but I don't really think they did anything but they hardly commmunicated with us maybe once every 2 weeks just making it seem like they were working on it. Finally after 90 days after no results, we asked for our refund and then got the run around for another 2 weeks. No one seemed to transfer our calls to so called "accounting department" for our refund. Then we emailed accounting lady few times and received a response by saying our refund is in the process and normally takes 4-8 weeks. So after all this we have realized loan mod attorneys are just as CROOKS like any company or individuals that would offer these services but will take your money and run. We learned it the hard way.

We were so mad at this point! So we just called bofa to dispute the credit card charges since this firm has not performed but instead has given us more run around. (good thing my uncle paid with his VISA card)

Third time we worked with a non-profit HUD agency at no cost. These people only wasted about 2 weeks but got us a response, still no results. HUD agency forwarded us a copy of the email response. here it is:

So I have reviewed the Mann’s situation and before I am going to be able to bring this to my credit committee the borrower will have to become current and pay the late fees. He has the ability to do so as their 7 month CD which matured in January will mature again in July. It is a total of $15,358.23 right now and they owe us $14,150.64 in late payments and late charges. This will still leave them with upwards of $14,000 in their other accounts so it is pretty obvious they made a conscious decision not to pay us. If I were to submit this now, when the credit committee saw that the borrower had the ability to pay, they will say no regardless of the hardship and send it right back to me. If they become current I will have a better chance of getting something approved (keep in mind I can’t guarantee it as the credit committee has the final say).

Please relay this message to the borrower and advise I have to put this on hold until I receive certified funds in the amount of $14,150.64 made payable to ING Direct sent to the following address:

ING Direct.

We all know what this means. I taught the whole point of a loan mod is that borrower is in hardship including property thats $160K upside down right?

Now why would the borrower throw his savings to catch up on arrears when we have tried 3 times to get this loan modified but this LENDER just doesn't want to budge. That money is kept for a rainy day especially if my uncle has a family of 3 kids. I mean savings are for rainy days. right?

Anyways.....I'm thinking we should give this one last try since property is in NOD status now but with ONLY someone who has delivered and shown results and will show proof maybe a settlement or something showing before and after.

Any input would be greatly appreciated.
Sorry for the long post.....

-M. Mannz

^ I told you not to waste 4 months trying to modify the loan on your uncle's property. I told you that it wasn't going to work.

That house (Palomino Common) needs to be listed for short-sale. We'll try to negotiate with the bank for $360,000, and find an end-buyer for $420,000+.

The clock is ticking. It's been 5 months of non-payment, the house will foreclose in the next 4 months...then they will lose the house completely. By doing a short-sale, we can minimize the damage that is done to your uncle's credit rating.

Originally posted by Mike C:
I need to stop posting in the foreclosure areas. A new poster asks for help, gets solicited by multiple consultants and then never comes back after a few days. We then question the consultant about what they are saying and they always say the same things: How valuable they are and how bad the banks handle everything. But they can’t back it up. The endless cycle continues on forever. Believe what you want as far as success rates. We all understand were you are coming from.
Reminds me of the bulk REO threads Mike, very similar BS.
These poor, unsuspecting homeowners, all swimming in a small pool filled with sharks!

Someone commented that I have not responded to the various posts. I have been reading the replies - that is why I asked the question. Other than those who are selling a service, it seems that there really isn't much that an individual can do. I have tried contacting the bank, but was just basically blown off. I don't want to ruin a lifetime of paid bills and a good credit rating, but basically my choices are foreclosure or even bankruptcy.

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