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sometimesmommy
Always in my heart.....
Member since 11/06 6686 total posts
Name:
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BETH/Mod experts-Modifications
From your experience is this Obama HAMP program really helping people who need it most?
We were lucky to manuever the maze and got it done on our own. However it seems that mose banks are not working with people. I actually read an article that said banks are starting to walk away from properties as well, not foreclosing but basically doing nada. Is that true?
My friends definitely need the help-they are in suffolk county and just had a realtor asessment. Houses are selling in the low 200k's while they paid 350K and struggling but the lender is being stubborn while they do have a valid hardship--decreased income. Seems like most people arnt getting help without a lawyer?
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Posted 8/26/10 9:33 AM  |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: BETH/Mod experts-Modifications
I had a valid hardship without DH working and they still turned me down.
It took 9 months for them to finally turn me down for the lst time.
You have to be destitute and have no assets and be 6 months behind. Then they may consider forebearance which will crush your credit.
I have a bad taste in my mouth for this program and the banks.
I hate them all.
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| Posted 8/26/10 9:45 AM |
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LuckySV
LIF Adult
Member since 10/05 4675 total posts
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Re: BETH/Mod experts-Modifications
Posted by Blu-ize
I have a bad taste in my mouth for this program and the banks.
Same here.
You really need to have nothing. While they say that you don't have to be behind on payments it seems like the banks won't really do anything until you are.
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| Posted 8/26/10 9:56 AM |
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sometimesmommy
Always in my heart.....
Member since 11/06 6686 total posts
Name:
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Re: BETH/Mod experts-Modifications
Posted by Blu-ize
I had a valid hardship without DH working and they still turned me down.
It took 9 months for them to finally turn me down for the lst time.
You have to be destitute and have no assets and be 6 months behind. Then they may consider forebearance which will crush your credit.
I have a bad taste in my mouth for this program and the banks.
I hate them all.
For us we were not behind and have healthy 401Ks but had a hardship b/c of my medical. Before we get the mod paperwork we had to be current (Thats a term of the mod for most places)-Our loan is through a private investor and not one of the big banks. This seems to be the difference. And I bet anything is the key.
My friends dont have any assets but are 2 mths behind which seems like they should qualify
Message edited 8/26/2010 10:09:53 AM.
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| Posted 8/26/10 10:09 AM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: BETH/Mod experts-Modifications
Posted by sometimesmommy
Posted by Blu-ize
I had a valid hardship without DH working and they still turned me down.
It took 9 months for them to finally turn me down for the lst time.
You have to be destitute and have no assets and be 6 months behind. Then they may consider forebearance which will crush your credit.
I have a bad taste in my mouth for this program and the banks.
I hate them all.
For us we were not behind and have healthy 401Ks but had a hardship b/c of my medical. Before we get the mod paperwork we had to be current (Thats a term of the mod for most places)-Our loan is through a private investor and not one of the big banks. This seems to be the difference. And I bet anything is the key.
My friends dont have any assets but are 2 mths behind which seems like they should qualify
Yes Freddie Mac owns our loan and that was the criteria they set. We met the 31% rule with just my income. I also have a home in AZ which is so underwater but that bank wouldn't help either.
It took both of our incomes to get approved but they aer denying us because of one income. Makes no sense.
Message edited 8/26/2010 10:16:59 AM.
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| Posted 8/26/10 10:15 AM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: BETH/Mod experts-Modifications
I am very fed up with the current program
I don't think it helps people and I think the banks are being very short-sighted
I have gotten them done for about 75% of my clients
but it seems that lately they are making it nearly impossible to get done
I have had to contact the excutitve team at almost every bank to even get answers lately
at the end of the day- it's not up to the bank- it's up to the investor- some require you to be behind- so require you to be current- there is no 1 size fits all answer
ETA- banks are def foreclosing- Long Island has one the longest turn around times for foreclosures- 25 months
and don't be mistaken- you might continue to live in the house during that time- but the bank will come after you for every dollar they spent and every stamp on the envelope- plus interest and it could take up to 5 years to get the judgement- and by then you moved on and BAM - $650k judgement on you $300K loan
the best thing to do is pro-active and either try to mod or do a short sale
if anyone needs more personal questions answered you can FM me
Message edited 8/26/2010 11:06:17 AM.
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| Posted 8/26/10 10:25 AM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: BETH/Mod experts-Modifications
I also recently learned that 93% of the people who have been approved for mods end up being behind again
the program does not work on so many levels
my new feelings are - instead of trying to hold on to something you really can't afford- sell it and move on
I know people first reaction is that is so harsh- but it's the reality
I have a client fighting to hold on to a property in shirely that will never be worth what he owes
he barely gets by now
he could rent something similar for half his mortgage and have a quality of life - instead of struggling to even pay a modified payment
it makes more sense in the long run to short sell the house
regroup
and buy again in 2 or 3 years when your situation improves
this is a short term soluation that causes more issues for people IMO
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| Posted 8/26/10 10:30 AM |
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sometimesmommy
Always in my heart.....
Member since 11/06 6686 total posts
Name:
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Re: BETH/Mod experts-Modifications
Posted by Beth
I also recently learned that 93% of the people who have been approved for mods end up being behind again
the program does not work on so many levels
my new feelings are - instead of trying to hold on to something you really can't afford- sell it and move on
I know people first reaction is that is so harsh- but it's the reality
I have a client fighting to hold on to a property in shirely that will never be worth what he owes
he barely gets by now
he could rent something similar for half his mortgage and have a quality of life - instead of struggling to even pay a modified payment
it makes more sense in the long run to short sell the house
regroup
and buy again in 2 or 3 years when your situation improves
this is a short term soluation that causes more issues for people IMO
ITA-The Mods have to make sense. I dont understand how DH ended up saving a little over 1300.00 but friends in similar situations only get a couple of hundred. The program is inconsistent. I even heard of a lady who had her mod paperwork almost doen and her loan was sold. The new lender wouldnt honor the terms.
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| Posted 8/26/10 10:57 AM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: BETH/Mod experts-Modifications
Posted by sometimesmommy
The program is inconsistent. I even heard of a lady who had her mod paperwork almost doen and her loan was sold. The new lender wouldnt honor the terms.
I have seen this first hand
my old broker just called me- he just returned from a Bank Conference
default rates at up to 8.5%
in 2008-2009 they were in the 3%
that proves it's not working
he sells bank owned houses- he is begging me to come back to work there
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| Posted 8/26/10 11:05 AM |
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sometimesmommy
Always in my heart.....
Member since 11/06 6686 total posts
Name:
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Re: BETH/Mod experts-Modifications
Posted by Beth
Posted by sometimesmommy
The program is inconsistent. I even heard of a lady who had her mod paperwork almost doen and her loan was sold. The new lender wouldnt honor the terms.
I have seen this first hand
my old broker just called me- he just returned from a Bank Conference
default rates at up to 8.5%
in 2008-2009 they were in the 3%
that proves it's not working
he sells bank owned houses- he is begging me to come back to work there
Wow I am realizing just how lucky we got. It makes everything seem like a big lie. How buying a home in your best investment.
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| Posted 8/26/10 11:10 AM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: BETH/Mod experts-Modifications
Posted by sometimesmommy
It makes everything seem like a big lie. How buying a home in your best investment.
buying a home you can afford is a great investment
buying a home with a no money down adjustable mortgage is a horrible investment
people forgot that houses are LONG term investments
buying a house you can't afford- then pulling the equity is is a horrible idea
Past generations never used their homes as ATMS or expected to get rich over night from buying a home
Buying a home/real estate is a and always will be a great way to build - weath- over time- not over night
look at all the wealthy people in this country- they made their money mostly in real estate
Message edited 8/26/2010 11:19:36 AM.
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| Posted 8/26/10 11:17 AM |
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sometimesmommy
Always in my heart.....
Member since 11/06 6686 total posts
Name:
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Re: BETH/Mod experts-Modifications
Posted by Beth
Posted by sometimesmommy
It makes everything seem like a big lie. How buying a home in your best investment.
buying a home you can afford is a great investment
buying a home with a no money down adjustable mortgage is a horrible investment
people forgot that houses are LONG term investments
buying a house you can't afford- then pulling the equity is is a horrible idea
Past generations never used their homes as ATMS or expected to get rich over night from buying a home
Buying a home/real estate is a and always will be a great way to build - weath- over time- not over night
look at all the wealthy people in this country- they made their money mostly in real estate
This is true but at the same time many older folks are affected as well. I know people who have bought thier homes many years ago and were paying on time but the economy gave a double whammy. Their 401K was halved (Still recovering) and then one lost their job. The banks wont help them refi because they dont have enough equity--those are the ones I am looking at and shaking my head that there has to be a better way.
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| Posted 8/26/10 11:23 AM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: BETH/Mod experts-Modifications
Posted by sometimesmommy
[
This is true but at the same time many older folks are affected as well. I know people who have bought thier homes many years ago and were paying on time but the economy gave a double whammy. Their 401K was halved (Still recovering) and then one lost their job. The banks wont help them refi because they dont have enough equity--those are the ones I am looking at and shaking my head that there has to be a better way.
Bad stuff can always happen and have an effect on people
in most cases like this- they probably refied and therefore have a much high mortgage then they orginally did
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| Posted 8/26/10 11:38 AM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: BETH/Mod experts-Modifications
Posted by sometimesmommy
This is true but at the same time many older folks are affected as well. I know people who have bought thier homes many years ago and were paying on time but the economy gave a double whammy. Their 401K was halved (Still recovering) and then one lost their job. The banks wont help them refi because they dont have enough equity--those are the ones I am looking at and shaking my head that there has to be a better way.
I can understand being dealt blows, but nobody's 401k should be halved. The market right now is sitting at around 10k, on average pretty much where it has been for the last 10 years. There have been times where it was low (7000-8000), and other times where it has been high (12000-13000). But the current 10k mark is where it's been.
The only people that suffered 50% 401k losses are the people that invested in questionable company stock (that went under), or people that got burnt on Madoff-like scams.
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| Posted 8/26/10 2:54 PM |
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sometimesmommy
Always in my heart.....
Member since 11/06 6686 total posts
Name:
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Re: BETH/Mod experts-Modifications
Posted by ave1024
Posted by sometimesmommy
This is true but at the same time many older folks are affected as well. I know people who have bought thier homes many years ago and were paying on time but the economy gave a double whammy. Their 401K was halved (Still recovering) and then one lost their job. The banks wont help them refi because they dont have enough equity--those are the ones I am looking at and shaking my head that there has to be a better way.
I can understand being dealt blows, but nobody's 401k should be halved. The market right now is sitting at around 10k, on average pretty much where it has been for the last 10 years. There have been times where it was low (7000-8000), and other times where it has been high (12000-13000). But the current 10k mark is where it's been.
The only people that suffered 50% 401k losses are the people that invested in questionable company stock (that went under), or people that got burnt on Madoff-like scams.
Obviously I dont know exact numbers but the point is they took a blow to their 401Ks and dont have as many years to rebuild.
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| Posted 8/26/10 2:57 PM |
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