Foreclosure in 90035>Question Details

Ronnie Elias…, Both Buyer and Seller in Los Angeles, CA

mortgage breakdown?

Asked by Ronnie Eliason, Los Angeles, CA Mon Jun 23, 2008

I I purchased a 3 unit in LA in 05 and got tied into a negative am. loan that is coming due in 2 months.This will double my mortgage and as of now I will not be able to afford the new mortgage.My mortgage is with EMC who have setup a loan modification department just for people who are going through these rough times or who have bad loans.I submitted all the necessary them in Feb.08 for them to review my loan and asked for a modification of a new interest rate. After five long trying months of continous phone calls, I received an answer." Sorry unable to approve your request as your income does not support your ability to make payments under the modified terms".They recommended two options,one was a short sale and the other was to deed the property back to the bank,or of course to sell the property.I my deepest heart of hearts I thought that these companies were willing to work with owners and I would never receive a rejection as this.

Help the community by answering this question:


If you can afford to make the payments, then why would they a loan modification for you. Although many people did get taken advantage of with these loans, is saying there will always be those that try to take care of the situation. I also would suggest doing a shortsale or seeing if the lender will accept a deed-in-leui.
0 votes Thank Flag Link Wed Sep 24, 2008

Your house is in LA which I'm sure is worth alot if in a good aera of LA. It always makes me deepingly saddedned to hear questions of your at the end of the day because I was there when these products were out and everyone thought they were great! THerefore Im not going to give you nobel-peace prize winning advice. I will say you are in the same boat as many americans and you HAVE to make the wisest decisions to get out of it and lose the least amount of money if it comes down to it.

Most likely you are in a option ARM, which you have 4 different payments you can make per month, if choose to make the lowest payment every month your mortgage balance accrues. I don;t know how this product was presented to you, (Most likely in 2005), but it is a very risky product if you do not understand its full capacity it can be detrimential.

I would try to work with the mortgage company as much as you can..These days they might not even be able to stay alive in this business the way things have been going. On the other hand, mortgage help is oin the way and I believe most Americans will see relief from this tradegy that plaguded this market. Therefore, I think you need to keep your head up, contact the mortgage company, try to negoiatite the best possible results and make your best effort to try to get out of the situation. It sounds like like the broker put you into a stated loan and possibly inflated your income. Either way, its not the end of the world and you will get out of this!!!!!!

I think there is going to be alot of government money on the way for situationas exactly like this!

Brent Bester
Mortgage Professional
0 votes Thank Flag Link Mon Jun 23, 2008
Ronnie I am going to tell you what others won't...the bank is not there to help you due to the fact that they don't know how. These loan modification specialists are people that walked in from the street and told them they could do it (loan modifications). If you need some real help with a loan modification please e-mail me at, I can help your loan get modified. I know exactly what paperwork the bank needs and how to package it to make it work for you. If you can still save your property, don't sell, I am sure you have worked too hard and long for that to be your first choice.

Good Luck,
0 votes Thank Flag Link Mon Jun 23, 2008
Lenders truly do try to accommodate home owners who are in financial trouble, albeit for their won sake. There is nothing altruistic about their motives. What made it impossible was the negative amortization loan. The problem is that, while your property was declining in value, your loan principal was increasing. Hence, you cannot currently qualify for the loan. Or is it that the property will no longer appraise for the current debt?

The lenders options are your best options, how ever unpleasant they may be. Which ever option you take, be sure that your debt will be forgiven.
0 votes Thank Flag Link Mon Jun 23, 2008
I'm sorry to hear about your situation, but I can help. The media sells the stories of how anyone can get help from their lender, but the new programs dont work for everyone in your situation. Feel free to call me anytime to discuss the options available to you and how we can get it done.

Jimmy Hutchinson
Atmosphere Realty
0 votes Thank Flag Link Mon Jun 23, 2008
Hi Ronnie,
Unfortunately, you are not the only one who is in that predicament. And I have had so many clients telling me the same story. I would advise you to regroup and since the bank only gave you two options, I would urge you to consider a short sale. If you want I can meet with you and explain the advantages and disadvantages of your two options. Best Of Luck to You!
0 votes Thank Flag Link Mon Jun 23, 2008
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