Financing in 60417>Question Details

Synthia Noble, Real Estate Pro in Crete, IL

Question for banks. Why are banks not modifying loans? In our situation, we have a 10 year mortgage with

Asked by Synthia Noble, Crete, IL Tue Jun 23, 2009

Harris Bank for our primary residence. We want to modify to a 30 year loan. Harris will not work with us. They have hired an attorney and are starting the foreclosure process. Why would a bank prefer to spend the money on foreclosing on a house that is worth less than the mortgage? When they have a family that is willing to continue paying on the mortgage just modifying it from a 10 year to a 30 year? that is simply bad business

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Is the Harp 2 or maybe the new Harp 3 that is coming out right for you? I help a lot of my clients save their homes from foreclosure by using this program! And I do a lot of work with Harris in Illinois. Here are the guidelines: http://www.vickisdreamhomes.com/HARP_2/page_2499602.html. Good luck to you! If you have questions, I'm a call away.
0 votes Thank Flag Link Sun Aug 11, 2013
UPDATE - just this week we received approval of a loan modification from Harris on our first mortgage. they went from a 10 year to a 40 year mortgage and dropped the rate. the only hitch is that the program is temporary - it follows the obama guidelines. In six months Harris hopes to have their permanent program in place and we have to apply again. In the meantime we get to stay in our house - it only took 9 months to get the loan modification.
0 votes Thank Flag Link Wed Oct 21, 2009
With all due respect to the answers suggesting you visit the Making Home Affordable site, I have to say that before anyone sends soneone to that site they do a trial call. I get hundreds of calls from frustrated homeowners that call HOPE, the Making Home Affordable program, ACORN, NACA and any other "FREE" help allegedly available. It doesnt work. YES , it doesnt work. Try calling yourself and give them all your information to see what results you get. If they do help you PLEASE share this with me and I will be the first one to post it every where. MY email is araines@saveyourhomeorg.com /

My suggestion is that as a homeowner you stay on top of the news. Write to your Public Officials, demand that this situation is addressed and look at the reports that just came out indicating how little progress is being made to offer homeowners loan modifications. Lenders/Servicers are sitting on all the funds issued so they can help homeowners but they will find any excuse to deny a request. Its no secret that the Investor that owns the Loan loses nothing by foreclosing on the house.

I do this for a living! Every day I help homeowners get loan modifications and avoid foreclosure. It is one of the most difficult tasks I have yet to encounter. Banks are not eager to help. The person at the other end of the line has nothing to gain or lose by helping a homeowner. They are overwhelmed with work and its not their fault that we are in this mess. Please people get real and stop sending people to sites like "Making Home Affordable"

Sincerely,

Adriana Raines
0 votes Thank Flag Link Tue Sep 8, 2009
Its all about the math and the ability to repay the loan. If you can not prove that you are recovering from a hardship and have returned to steady employment , forget it. Read my article tomorrow in the NWHerald. You will be floored! Over 58% of all loan mods are coming back with payments MORE then the existing payments! Yes MORE then your normal monthly payment. OMG. These lenders are awful. Synthia go here...you sound like a perfect candidate for this program: http://makinghomeaffordable.gov/eligibility.html

Best of luck!

Vicki Watzlawick
Broker Owner/Foreclosure Expert
Exit Platinum Realty
0 votes Thank Flag Link Tue Jun 23, 2009
That's a tricky question.

It's hard to say why a bank would want to spend the money, there are so many variables to your relationship with them. I am a little surprised in that you have asked to go from a 10 year to a 30 year and they aren't willing to help out.

How long have you been paying on this mortgage? Is there any chance you can refinance through another lender?
0 votes Thank Flag Link Tue Jun 23, 2009
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