Why won't the bank do a loan modification? My brother took out a construction loan in 04 that has a ARM. He

Asked by Hopefuels, 54495 Mon Dec 29, 2008

is self employed contractor and built the home himself and did a fine job but the interest rate reset this past year and he can not afford the higher monthly payment. He has repeatedly tried to negotiate with the lender to keep the payment the same as before for now. They refuse to negotiate. His income took a dive because of the economy in construction but he wants to honor the mortgage until he can sell it. Has been unable to sell it and is behind in payments. They have begun foreclosure. I may not know all the details but why would a lender NOT be willing to do a loan modification if he has repeatedly tried to work with them? He can only deal with the lender by phone as it is the loss mitigation call center for a large lendor. They do not have a local office. Is there something I can tell him or I could get involved to help them consider renegoitating terms?

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Debby Thomps…, Agent, Wauwatosa, WI
Tue Dec 30, 2008
Tell your brother to short sale the home. He needs to be working with an agent that knows how to do that. A short sale is selling the home for less then he owes on it. When they get an offer the bank will have to approve it.
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Dallas Texas, Agent, Dallas, TN
Mon Dec 29, 2008
Lender will usually forward a package of info. for his completion regarding hardship. If he is not receiving a response from his "assigned staff member lender" request for another associate OR if all else fails contact the Pres. office of mortgage company amazing how quickly AT TIMES things can change ;)
Good luck
Web Reference:  http://www.lynn911.com
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The Hagley G…, Agent, Pleasanton, CA
Mon Dec 29, 2008
have him shoot me an e-mail and I will send him forms that the lenders will recognize and may be more likely to respond to....for a loan modification. Contact me through the site below.
Web Reference:  http://www.cindihagley.com
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