Foreclosure in 95206>Question Details

Lisa W, Home Owner in 95206

Can my lender bump my interest percentage to 18 during a modification even after the home loan is brought current?

Asked by Lisa W, 95206 Mon Mar 14, 2011

I brought my home loan current paying all the fees. They said they could legally charge 18percent during the modification process..which is now well over 10 months. The loan has been current for over 5 months. The loan itself is $57,000 for a home worth over $200,000 so they are at no risk. I needed the modification only to change the due date to january instead of May. (I pay yearly) but interest quarterly. They kept telling me the modification was approved but when I received no paperwork...they are now just ignoring me. My son is an attorney but not a real estate attorney so he's not sure of the route to take.

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11
It would help to know who your lender is. This is not a standard operating procedure for most reasonable and ethical lenders.
0 votes Thank Flag Link Thu Mar 17, 2011
Lisa this still doesn't sound right. I wish I could guess what you got yourself into, but I'm at a loss.

Happy funding, Rudi
Web Reference: http://www.umboc.com
0 votes Thank Flag Link Thu Mar 17, 2011
Well, they keep calling it a loan modification? Technically all I needed was an extension for 6 mos in order to make my loan current. Which is what I did.
0 votes Thank Flag Link Wed Mar 16, 2011
Ditto what Rudi said.
Your post doesn't make sense, please clarify.
Web Reference: http://WeFixRates.Com
0 votes Thank Flag Link Tue Mar 15, 2011
I don't know what you are involved in. To qualify for a loan modification you have to owe more on your mortgage than what the home is worth. If your home is worth $200,000 and your loan balance is only $57,000 you do not qualify.

Happy funding, Rudi
Web Reference: http://www.umboc.com
0 votes Thank Flag Link Tue Mar 15, 2011
Hello Lisa,

Contact a good Real Estate Attorney through your son NOW! Please do not wait. There should be remedy available to you legally.
Web Reference: http://www.buyvegasnow.com
0 votes Thank Flag Link Tue Mar 15, 2011
Lisa,
This doesnt sound good at all. 18%? WOW. How is it they are charging you 18%. What kind of Loan did you have(fixed, adjustable)? Who is the lender? I would pull out and review your original NOTE and loan papers. Please take the time to review them and respond to them after doing so. I have never heard of a lender being able to change the rate to 18% in these "modern" times. Even in the days of subprime loans, many had caps as to how high the rate could go in a 1 year period.

In terms of the modification, I wouldn't trust a thing the say until you have the confirmation in writing. You may need to consult a RE attorney if you do not understand the NOTE.
Good Luck,
David McKeever
Broker
McKeever Real Estate
Stockton, Ca
0 votes Thank Flag Link Mon Mar 14, 2011
Sounds shady -- no paperwork after the mod was approved? I'd contact the lender and demand it in writing and tell them you are giving them a 48 hours to Fed/Ex your documents to you before you go to the attorney general. Make good on your promise if they miss the deadline.

Good luck and hope you do have that modification you were approved for.

Sandy Farmer
Realtor, GRI, CSSN
John Hall & Associates
homesales411.com
0 votes Thank Flag Link Mon Mar 14, 2011
Who's the lender? Something sounds kinda funny here. Especially if your'e already in a LM process.
0 votes Thank Flag Link Mon Mar 14, 2011
The problem is they ARE still charging me 18 percent interest because they say it is still in the modification process. I haven't seen any paperwork, they keep telling me it's approved, but Still no documentation ....meanwhile the 18 percent just keeps adding up.
0 votes Thank Flag Link Mon Mar 14, 2011
Best thing to do here is have your son ally with a RE attorney. Sounds like you're squabbling over principal. If you really want the home it's not a stiff penalty to pay (Jan to May).
0 votes Thank Flag Link Mon Mar 14, 2011
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