Has anyone been successful in modifying their mortgage or HELOC rate with their current lender?
Yes, I have just recently modified my mortgage from a 12.75% ARM to a 6% ARM. (It’s not an interest-only loan, by the way). I did manage to fulfill a forebearance agreement first on delinquent payments, then was able to achieve loan modification to a 6% interest rate. It’s still an ARM, but I am going to use the next 12 months to get my FICO up so I can refinance (maybe a new lender) to a fixed.
I first had to go through my finances with my lender to make sure I could afford the loan in the first place. Once they established I could afford the loan, we were able to proceed with the modification. How can I help you?
I am currently trying to do a loan modification as well. There ia an attorney who has contacted me and she claims she can get my loan modified as well as get my back mortgage payments added back into my mortgage and bring my loan down from 12.25 ARM to something much lower. My current mortgage payment is 2650 and she claims it shouldn’t be more than 1300. My house is worth 245,000, I still owe 217,000. My credit is so bad right now I don’t know if it will ever recover enough to refinance. I just wanted to know if I should deal with this woman (she charges one month’s mortgage payment for her services) or is there some free help out there. Lost and drowning.
I just completed a loan modification. My FICO is pretty low also. I worked directly with my mortgage company’s Home Retention Team to do it. I was able to negotiate from a 12:75% ARM to a 6% ARM. So you can work directly with your mortgage company without hiring a lawyer to negotiate for you.
That said, there were definitely times during the modification negotiations when I wished I had a lawyer to make sure I understood everything properly and was not missing something. Ideally, I would say save some expense by negotiating on your own if possible (it will take some time and effort of course), however, before signing anything, take any modification offer to a lawyer and have them read the papers over to make sure everything is in your best interests. Have you contacted your mortgage company?
A few years ago, my now ex husband and I were able to modify our mortgage by dealing directly with the mortgage company. We had to fill out all kinds of financial paperwork and there was a fee but right now I can’t remember what it was. I would be careful dealing with someone who solicited you for business. I am always afraid after hearing those horror stories about people unknowingly signing their house away. Frankly, I would not trust it. Your payment sounds right.
My mortgage is $150K and with PMI, insurance and taxes being paid by escrow, I pay $1285.00 a month with a good Fixed rate through Wells Fargo. You know the old saying… If it sounds to good to be true, it usually is. And Why is your ARM at 12.25%? ARMs are based on things like the Libor plus an index. Mine is 2.25% + libor, which places it at 6.75.