Forclosure/modifications

I just pulled my home out of forclosure with a modification. They gave us a lower interest rate, and renewed our mortgage. Our new mortgage is $10,000 higher than the original, but it took care of what was past due, and gave us a fresh start.
Word of advice, follow through with all the paperwork, return everything immediatly, and call them frequently after you send the stuff back in...
Our company never sent the forclosure cancellation to the sheriff's office, so we kept getting letters saying our home was being put up for auction in July, when we were already making payments on the new loan.... scary!!!

Good Luck

We just tried a modification with Chase to try to reduce our $3000 mortgage payment, but we were denied because they said our income was too high. In order to get a modification you need to show that your mortgage is more than 31% of your income.

Well, call a realtor ASAP. I am not sure what stage you are at, but you could do a short sale. This is where you find a buyer and work with the bank to agree to sell it at a certain price. I am not sure what a modification can do, I have never had to deal with that. It takes a long time for a home ot forclose. It is sad to me that these banks do not work well with people who are facing such situations. Having a realtor will help you get your home sold faster and will let them deal with the bank. However, if it does not sell it does end up in forclosure. Doing a short sell, I believe, will not effect your credit as does a forclosue...

I live in Florida, I have Chase (was of course WAMU first) I did the modification process, due to various personal reasons, I got behind on my mortgage - with NO intention to default. It took a long time, I started it last year - end of last year actually. Finally finalized for July. I printed out the paperwork off of the website, got all the information they requested. It all wasn't easy. I would send in the paperwork with ALL the requested information, they would send me notices stating they didn't recieve certain information - whcih I know they did - and resent it again - just as requested. I'd get packets in the mail stating: Complete these forms. The SAME forms I sent in TWICE. so I did it anyway. I think I sent in the same forms and same requested information like 3 times! I got a letter stating what my trial period payments would be and made those as instructed. It all finalized like I said this month and it should be modified starting in July. My house dropped in value SIGNIFICANTLY. I was very happy to be able to do this and keep my home. It takes a while but I was lucky to be accepted.
Good Luck

I modified our home loan because we had a high interest rate it took us a little over a year, check it out call your loan company a realtor can maybe advise you but your best bet is work with your lender, there the ones with the control. Best of luck to you.

Yes - I work with folks who save their homes all the time. You need to request the modification paperwork (if you haven't already) immediately and get that sent in to see if you qualify. Also, you don't indicate if the foreclosure process has started or if the sheriff's sale has been held yet. Typically, the process in MN is:

1. you default on the loan
2. lender sends you notice for right to cure default
3. lender initiates foreclosure proceeding
4. sheriff's sale is set
5. sheriff's sale is held (typically you have up until right before the sale to reinstate your mortgage through repayment of the past due amounts)
6. once the sheriff's sale is held, you are in your redemption period, which is 6 months long in most cases in MN (there are a few instances that probably do not apply to you that it is longer/shorter). Redemption means that you must pay the whole loan in full to stop the proceeding through getting another loan or cash. This isn't to say that the lender wouldn't work with you, but they don't HAVE to at this point. You can live in the home, without making payments, until the end of the redemption period. You do NOT have to move out when the sheriff's sale is held - you still have 6 months left.

You also have the option of filing a Ch 13 bky. This is a way to make up the past due amounts on the home. If you are planning on filing a Ch 13, make sure that you do so BEFORE the sheriff's sale - otherwise the lender can object. However, to file a Ch 13, you must be able to start making the regular monthly mortgage payments on the month that the bky is filed (and cannot miss any while in the bky) and be able to pay down the past due amounts as well. A Ch 13 will not modify the terms of the mortgage.

Finally, you may want to see if your home is even worth saving - many homes are not. If your mortgage(s) balance are substantially higher than the TRUE value of the home (check out your tax statement for an idea), then you may want to consider saving your money, living in the home until the very end, and using those savings to find something new.

Good luck!

There is a making homs affordable program (you can google on line for website). You need to start with your mortgage company. If they offer no assistance, you can contact HUD. I am in the same boat and I getting frustrated with my bank....Also, I believe your loan has to be serviced by Freddie/Frannie Mac to qualify. My bank actually could find that out, but offered little more assistance. I have another call into the banker that actually helped with the mortgage to see if he knows anything!!

Yes it is possible but you need to contact Chase. A modification only can be done thru your mortgage co. & you have to be with freddie mac or fannie mae & if you don't know if it is they will be able to tell you. It is a long & irritating process, so be prepared to get the run around, send in duplicates etc, but if you truly want to save your home & credit just keep all the paperwork out & do whatever they ask of you.

My friend recently did a modification (wells fargo) & she has never been late on her mortgage or any other bills & it took her about 8 months from start to finish. She was able to stretch her term to 40 years & got a step interest rate, she is at 2.5 % for 2 years then it goes up slightly. She has lowered her monthly payments by $400.

Good luck