Like many we waited in anticipation of the outcome of the Trial Payment Period of the loan modification workout package. We were hopeful as they gave us an affordable trial monthly mortgage amount and said that our new payment may be just as close to this amount after the trial payment period had been completed and approved.
Well, low and behold we were approved for the Loan Modification. But that was short lived as we looked thru the approved package. The actual loan modification is really a Catch-22 in disguise.
Here is what they did to get that AFFORDABLE target amount that they thought we needed to be in:
1) They Reduced our APR to 2% (for first 5 years, then goes up 1% each year thereafter until it reaches 5.5%, stays fixed after that)
2) They extended our loan term to 40 year adjustable.
3) Our new monthly payment is higher than the Trail Payment by 250.
3) They added all missed payments in arears to the end of the loan.
4) The total loan amount is now higher, no principal reduction here.
5) Even though the county reasessed the property value to the market, the bank did not adjust the principal loan amount to reflect this. They are still keeping the original loan amount when first purchased and not current market value.
This modification experience is like buying a new car, they only ask you what your target monthly payment needs to be and they make some interesting financial juggling to make that happen. They don't actually reduce the price of the car, they simply extend the terms, try to get you a lower rate, and possibly have you increase your down payment. It's a well proven system and scam that works well and has done so for decades.
So now we are wondering if we should still seek a short sale and take the loss. Because if our loan balance was never reduced to the current market, the we will continue to pay a mortgage that builds no equity, no value, and no incentive other than to keep the roof over our heads. We are still in a home that is worth only a 1/4 of what we paid for. Even with this loan modification the loan amount vs the home value are still way upside down. Perhaps our lender is using smoke and mirrors and is not playing by the government0s plan. Right now my wife an I feel empty inside. Let down once again by these
corrupt banking & financial institutions. Hopefully our administration is keeping check & balances on these loan modification programs and takes a look at these practices. If anyone else has any new info they can share regarding what is happening with their modification I'd love to hear it. Good luck
on your end.
Mr. Upside Down
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Sometime its hard to arrive
Sometime its hard to arrive at a decision whether you would like to go for a new home or does it make sense to buy a foreclosed or a bank owned home. I think apart from the value of the property you should also consider whether you would like that property to be your residence for a long time to come. With the first time home buyers' tax credit benefit having expired sales of new homes are dropping. So whatever decision you make on a loan modification taking legal advise could help a lot.
Keith
Pierce County Real Estate
Thanks for the post
"Thank your posting this. On my opinion, Managing our monetary accounts these days is not as simple as it was way back a years ago. Thanks again for sharing this post
- Ace (home equity loans)"
The number of people making
The number of people making payments online is on the rise and will only continue to grow. Therefore it is highly important online business or all those business accepting card payment must adhere to PCI compliance. It is in the best interest of businesses to adhere to pci security standards.
When it come to giving kids
When it come to giving kids money parents need to be just that extra bit careful. If you child has erratic behavior and keeps asking for money then you need to be sure where that money is being spent.
This can often be signs of the child using money for drugs and alcohol. And if that your child needs to stay away from bad friends then you might want to consider putting the child into a therapeutic boarding schools. The health and the well being of your child is very important if you as a family would like to live a peaceful life one that is filled with joy.
Keith.
How do I start a cash loan
How do I start a cash loan business?
Bosco - Doing business in Germany
Managing your financial and
Managing your financial and bank accounts these days is not as easy as it was some years ago. Banks have reduced interest rates on deposits and have increased account maintenance and operating costs therefore for small business its makes good sense to use a Basic Bank Account.
Bryan
Thanks for the good
Thanks for the good post..
easy payday loan
Thanks for the good
Thanks for the good post..
easy payday loan
Loan Modification Programs
Any loan modification program fed to countless people can either be beneficial or destructive in any way possible. Financial changes can prove to be very detrimental when trying to help people with their debts or loans - the conventional method of offering loans is always advantageous to users who're comfortable with standard payment methods thus, alleviating confusions between banks and clients per se. Financial thesis papers have a take on this but, more and more loan clients are quickly shifting to this type of financial strategy. Is it that practical? Can you really achieve success with this mode without any constraints going over one's pockets?
What is the procedure for
What is the procedure for loan modification?
Henry - milwaukee movers
What is the procedure for
What is the procedure for loan modification?
Mark - berlin property
Pasadena criminal attorney
Pasadena criminal attorney
How would the tax credit the
How would the tax credit the government is talking about giving us work?
Thank You
high interest savings account
Let's not forget that the
Let's not forget that the people in the loan consolidation business are no better than those in the dog tags for dogs business - at the end of the day they're there to make money off somebody. use your own judgement and consult a financial advisor like an attorney or someone with credibility.
loan modification Florida
The loan modification Florida experts at the Law Offices of Thomas J. Sherwood will help you stay in your home.
What should I do to get Loan
What should I do to get Loan Modification if I am not currently employed?
Daniel - san diego real estate
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Well it's only a catch 22 if
Well it's only a catch 22 if you are put in one from a lawyer or company not looking out for your best interest and just theirs. I know someone who does mods and wont deal with people to far in debt and haven't made payments for people border line struggling it's a great way to reduce your payments, even a cash advance could help in some cases.