i am 2 months behind on morgage my payment is almost 1,800.00 dollars a month, i want to do a loan

Asked by Rick Culbertson, 33912 Mon Nov 17, 2008

modafacation, my lender told me they wont do a modafacation until im current, should i pay almost 4k and try to do a modafacation or just save the money to find a place to rent

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29
Scott Baker, ABR e-Pro’s answer
Scott Baker,…, Agent, West Chester, OH
Wed Nov 19, 2008
Rick,
Take a good look at your credit score, if you can, save it. Real Estate is local, I don't know how rentals are in your area but they are probably in abundance. That being said, if you can do a modification that you can afford, not just today but 6 months from now, it might be a good idea. You have to live somewhere, if you can get the modification close to price of a rental, save your credit and have a tax write off with the interest, seems like it might be a win situation.
2 votes
David A Podg…, Agent, Delray Beach, FL
Fri Nov 28, 2008
if you decide to rent, remember that with two lates, you're going to have problem finding someone that will take you with your current credit issues
also... if you just give up, you will have major financial issues from the foreclosure for 7 years.
You may consider working with a bankruptsy/foreclosure attorney to help you negotiate with the bank

if you're not getting the answer from the person you call at the lender, just get up to the next level of management! there is always someone else better to talk to
1 vote
J, Home Buyer, Chandler, AZ
Thu Nov 20, 2008
Victor: I live in Asia and have lived here for years, where I run a translating business. I have been watching this real estate mess from a distance and nothing you can say will dissuade me from believing that anyone who stands between someone buying and selling something is non-essential.

When we bought our place here, we paid cash for it. We went to the local-area office, paid the taxes directly, and received the keys directly from the buyer. It was over in half a day. The 'listing agent', a person with a large map on her wall who ran a sort of a clearing house for places for sale, received a small fee -- about $400. Our purchase price was about $150K so you do the math.

America is changing. There will be less of a need for those who simply position themselves as a middleman with a smooth tongue and a nice tie to siphon off a share of an amount that is highly inflated by easy access to cheap money. If everyone paid cash, where would prices be? What would your commission be then?

Having to spend 40 - 50% of your gross income on housing -- those days are ending. Taxes HAVE TO go up. Interest rates will go up too - which will either stagnate housing prices or drive them down. How much payment can people afford at 15% interest? We'll see.

The problem is that anyone a buyer associates himself with has a conflict of interest - the broker, agents like you, the banks, the insurance companies, and the seller: they all want the sale to go through and will say anything - drag out any platitude they can think of. Everyone wants the buyer to incur a lifetime of debt: 30 years - 40 years what does it matter to them? The debt is the buyer's problem.

No more, mate. Americans need to slim down - in more ways than one. Cutting out the fat will become popular. So, learn a skill - learn a foreign language or learn some programming skills. My point to the person asking the question is that most here have the interests of the housing industry at heart. All I can say to him is this: get out of debt and stay out, if you can, if you ever want to experience true freedom.
1 vote
James Wheeler, , Tampa, FL
Tue Nov 18, 2008
If you still have some household income, you should definitely try to save your home with a loan modification. There's a lot of misinformation and bad advice going around. Loan modifications really can result in affordable payments that are sustainable in the long-term. The loan modifications that do NOT work are usually the absurd deals foisted by many lenders and loan servicers on naive struggling homeowners who try to work something out with them directly, instead of getting professional help.

Your experience (being told by your lender that you need to pay thousands of dollars you don't have, to bring your loan current, before they'll even talk about a modification) is unfortunately all too common. Trying to come up with that money in a lump sum could doom you and make it even harder to pay your future monthly payments, right? And to make matters worse, many lenders do not follow through with any modified terms once you bring your balance current, ignoring you instead and pushing you into the same situation a few months later (Countrywide is particularly notorious for this).

There is a better way. Loan modifications can be done without having to beg, borrow and steal to catch up first on your arrearages (the payments you're behind on). Your lender may say they won't negotiate, or they may offer something like a take-it-or-leave-it half point reduction in your interest rate that makes no real difference (yet they'll brag to the press and to the government that you're one of the thousands of people they've "helped"). But loan modifications can truly result in dramatically lower monthly payments - permanently. To help achieve a desirable, sustainable outcome, so you avoid foreclosure and keep the roof over your head, you can work with professionals who will represent you in the process and level the playing field. And you can be treated with dignity and respect. For a free consultation, call me: James Wheeler, 813-600-3428.
1 vote
Scott Faletti, , 60423
Fri Nov 28, 2008
Rick, The 1st thing you shoud be asking yourself is ? WHY AM I 2 MO'S BEHIND ON MY MORTGAGE. Based on your honest overall answer , all these comments from Realtors mortgage brokers mean nothing. I'm a Realtor and the best advice i can give you is get your property appraised and find out what the current value or your home is. 2nd figure out your debt to income ratio and see if you can afford your home . If you can't , it's best to short sale your property. If you can afford it try your best to work with your lender or seek professional help to assist with modifying your loan. BEST OF LUCK ,SCOTT (ILLINOIS)
0 votes
Victor Kamin…, Agent, Edison, NJ
Sun Nov 23, 2008
Whatever you say Steve, male ego? Are you a guy or girl?

I don't want to argue with you because no matter what I say it will obviously be a losing proposition because, well you know it all as a "Realtor / Investor / Short Sale specialist" which I find to be a strange way to refer to yourself. You should be a Realtor when dealing with your client and a Short Sale specialist as well but an Investor, there may be a conflict of interest there or danger of it. Whether that's the case or not, I don't think that's the best way to introduce yourself to potential clients, I'm a "Realtor / Investor / Short Sale specialist", sounds a little pathetic, what if you also do commercial real estate and specialize in 1031 exchanges and other areas too, do you add those to your introduction as well? lol..


Have you listened to a single word I said or the question asked by Rick? That's the problem with realtors many like to speak and hear their own voice before letting the client finish their thought because they "think" they know what the client is about to say.

Listen to Rick's question before you answer it. Gather enough data to evaluate the situation in a meaningful way, they answer it.

By the way it seems everyone else here seems to agree with me except you, hmm....

Anyway, I'm wrong and your right now be on your way "ya know it all"... What an ego!
0 votes
Steve Dancer, Agent, KINGWOOD, TX
Sun Nov 23, 2008
Wow Victor,

Our primary purpose is to help people who ask questions. Not to satisfy male ego's. I would strongly suggest you recoil your ego, take a step back and really learn something in an area of expertise that you are clearly lacking in. A question asked is a question answered. I or the person asking the question does not deserve your condesending opionion of me or my expertise. They clearly deserve an answer from a knowledgable person who is experienced in dealing with pre-foreclosure issues. You can disagree if you have real on hands knowledge about the approach, but you do not have the right to prevail your ego scented opinion if you do not have on hands knowledge or expertise.

With a response like that it sounds as though your a bit insecure about Short Sales & Investing. And your knowledge of such is clearly limited. Dealing in this business on a daily basis the following is real information not hyped banter from a limited knowledge base:

1. Evidence is clear only about 20% of Loan Mod applicants get approved. As of this date. This may go higher with new efforts by the governtment and lenders. I am hopeful this is the case
2. Evidence is clear that of those approved for Loan Mods the recitavisim rate is around 70%. People who are approved for Loan Mods, Forebearances etc. fall out within 3- 6 months and are facing foreclosure again. Having given their lender thousands of dollars to end up at my office 3-6 months later asking for Short Sale help or seeking an attorney for bankruptcy to stop the foreclosure because they cannot keep the Modification Agreement with their lender.
3. In our area (Greater Houston Texas MLS) 90% of the people who respond to our marketing or that are referred are in NEGATIVE EQUITY positions. Some are upside down by 20-25% and counting. Even if they were approved for a Loan Mod or Forebearance they would essentially be paying rent at best for the next 5 years while they wait for their negative equity to be absorbed back at least to a -0- equity position.

We used to always advise our clients to seek out a Loan Mod first before Short Sale. However, with the high rate of recitavism we experienced and the industry as a whole as well, we cannot look our clients in the eyes and tell them this is the best thing them. We advise them in depth of Loand Mods & Short Sales and let them make a qualified decision for themselves like any good Realtor / Investor / Short Sale specialist would do. Disclosures in Hand and on the table. No hands slapped just shaking our hands for being up front with them which is lacking in our business.

Thanks,
Steve
0 votes
Jan Boyer, Agent, Chantilly, VA
Sat Nov 22, 2008
Hi Rick:

I would suggest that you call the government housing counseling office. They are equipped to handle this for you and will not charge you a fee for doing the modification. If you have had a hardship such as a job loss, hospitalized or some other hardship, they are there to help you. Also if you owe more than what the home is worth or an adjustable rate mortgage that has or is getting ready to adjust to a higher payment. I would not pay the 4k to do a loan modification. Call 1-888-995-HOPE.

Good Luck
Web Reference:  http://www.995hope.org
0 votes
Blakethan, , Royal Oak, MI
Fri Nov 21, 2008
That is not true, Do not pay them $4,000, If structured properly, all lenders will do modifications, the key is structuring it so they have no questions, a complete file submitted will get their attention.

Patrick Weirmier
Operations Manager
Mac-Clair Lending
586-574-0200 Direct Line
586-651-1567 Cell
0 votes
Victor Kamin…, Agent, Edison, NJ
Fri Nov 21, 2008
Rick take advise from a few of the seasoned agents, I'm sure you'll agree in the advent of the real estate boom everyone and their mother has become a real estate agent thinking they're going to get rich quick and we still have not quite thinned the heard out of all of them yet. Those are the folks that jumped into real estate without taking any classes about real estate, only attended seminars and office meetings and now think they are experts.

Some appearing to give good advice here:
Patricia Harris suggesting you may have been a victim of a predatory lender
Tom Stevens, Mortgage Consultant who basically said the same thing as me with the addition of asking for a forbearance arrangement.

I would always first suggest speaking with your lender but once again be careful who you speak with, they have many departments and you'll usually speak with someone fist in customer service aka collections in many cases, not the key point people to talk to. When calling don't give any personal info at first if you can avoid it just ask to speak with someone about getting a loan modification or ask for someone in their work out or loss mitigation departments. It's always who you know, in this case who you speak to.

To: J just "J" how mysterious! lol...
Interesting comment you made once again all the way from Asia? Where about in Asia?
Congratulations on your purchase in Asia, hope it was the real owner that sold the home to you or did anyone check? In the "States" we have a lot of safe guards in place and that is why there is such a process when transferring a deed. You need to make sure the person selling it has the right to sell it and that the person who sold it to them had that right as well otherwise someone can come out of nowhere and make a claim and your out, your entire investment.

A realtor is not just "anyone standing between someone buying and selling something" and as you put it making us "non-essential", we never claimed to be "essential" Realtors are Negotiators, Facilitators, should also be Marketing Specialists for the niche product sellers look to sell.

Do you believe Marketing / Advertising firms are "non-essential" as well? they stand between someone buying and selling something in that the product will not be marketed to the audience looking to purchase it without them, that can also be said for the media, the television networks, newspapers, radio, etc. By the way as a home seller with an inventory of only one (1) item in stock do you have the budget to advertise and market the way a real estate firm does? and would you?

As a career realtor I never discourage FSBO's quite the opposite, I even give some advice to them and go so far to offer how to classes to them in the hopes if they should choose to turn to a Realtor in the future they would pick me. We are not all slimy stereotypical used snake oil salespeople like you seem to believe. We have a place in the market and for more than 100 years been organized in the form of an association. The National Association of Realtors or NAR.

To: Steve Dancer
Oh boy...! First don't put words in my mouth! Where did I say anyone was "Dead Wrong"?

As a Realtor, I'll assume fairly new because as your profile says "Realtor / Investor" and short sale expert, yet you seem to get angry at the list of questions I advised Rick to ask anyone claiming to be a short sale "Expert" hmmm...

Of course YOUR first answer is always going to be "Sell...Sell...Sell..." I like to analyze each situation on a case by case basis, that's just good business practice. You choose to go the other way on that making broad sweeping decisions that a Short Sale is Always the best way to go, I think that is just bad advice but what do I know.

As a Realtor you should probably know better, ask your broker about giving advice like this and he or she will probably slap your hand. You need to be more careful when giving out advice, especially without disclosures of any kind. You have a liability on your hands when you "always" advise you've gotta sell without doing any work and examining each individual situation on a case by case basis, it's careless and will always certainly guaranty that if anyway falls behind on their payments their best option is to forget it because they will lose the house anyway. Is that what you are saying? That is just "Fear Mongering" and much like predatory lending is the equivalent from the real estate agents standpoint.

In the persons case who asked this question, Rick didn't say how much his house is worth nor how much he purchased it for yet you are advising him what to do without any detailed knowledge or insight to his particular situation. "Sounds careless to me!"

I suppose there may be "some" merit to why "J" thinks real estate is not local and Realtors are a useless component of the real estate transaction. He said that just a few responses before your comment and your really not helping me out here buddy! ;-P
Web Reference:  http://www.MarivicRealty.com
0 votes
Patricia Har…, Agent, Hiram, GA
Fri Nov 21, 2008
It sounds to me like you may be in a predatory loan. Most reputable lenders will send you a Homeowners Assistance package when you are delinquent and contact them about a loan modification. This package includes your options and forms for financials. If you obtained your loan prior to Jan 2008 you may qualify for the National Homesavers program. Check on the HUD website for further information and counseling. Hope Now is another program you might want to check out. Good luck!
0 votes
..., , Lexington, MA
Fri Nov 21, 2008
I agree with those who say talk with your bank. If you feel that the situation that caused you to be behind has been resolved and you can resume mortgage payments, definitely ask for either a modification or forebearance arrangement.

If down the road you wish to look at refinancing options your bank isn't offering, let me know.

Tom Stevens
phone 888-4-1-lowrate x 25 (888-415-6972 x 25)
TomStevensMortgageConsulting.com
0 votes
Steve Dancer, Agent, KINGWOOD, TX
Fri Nov 21, 2008
Reply,

Sorry Victor, but when you have the nerve to say somebody is dead wrong you had better be dead right.

I am a Realtor, Investor & Short Sale Specialist. I have Short Sale Appointments in my offices every week that have paid their Lenders Thousands and are still facing Foreclosure. I speak on behalf of my clients that have gone through this emotional hell. I am sure If I forwarded your message to them they would also give you a mouthful.

Bottom Line: Shorts Sales today are the best solution for late payers and negative equity situations. If anyone is in this situation we would be happy to help!!!

Thanks
Steve
Steved@YourRealtorsForLifeTexas.com
0 votes
Victor Kamin…, Agent, Edison, NJ
Thu Nov 20, 2008
That's an Excellent point Don, If you have no choice but to sell or just choose to go that route make sure your agent has experience doing short sales. Asking a few of these questions may weed out the fluff.

Have you ever taken any short sale classes? When?
Explain the process to me now in detail?
How many have they completed successfully while representing the seller?
How many short sale listings do they have now?
What is their list to sell ratio?
What is the market absorbtion rate in your area? (May give an idea how much competition is currently out there and how long it may take to sell your home. Statistically speaking that is. This needs research they will not be able to answer immediately, maybe can give a guestimate though)
Is the agent a FULL TIME Realtor, you definately don't want a part timer handling this type of sale.
Do they have any licensed assistants working with them to handle the volume of of short sales if they say they are doing a lot?


Just a few questions off the top of my head to ask any perspective short sale agent before chosing them as your representative.

Steve, lenders don't charge to do loan modifications, at least up front. Steves other points are valid and another thing to keep in mind is loan modifications are usually only temporary. Meaning they will only buy you a little more time. Loan restructuring however is another animal.

Contact http://www.hopenow.com the purpose of this organization is to help, they are a non profit, so don't be shy or embarassed to call them.
0 votes
Steve Dancer, Agent, KINGWOOD, TX
Thu Nov 20, 2008
You Should Strongly Consider A Short Sale. 2 months behind in today's lending market could only be had with hard money lenders. They wouls charge anywher from 12 -18% interest.

Further, if your home is like so many that the equity has fallen or is possibly negative now then the Short Sale may be your best option. Why??? It may take up to 5 years to regian the equity you have lost like most of our Short Sale clients. Why not Short Sale now. Let the Lender take the loss and then maybe a year from now go back and buy with FHA financing and then you buy at the reduced market price at that time and not be upside down. Further, you avoid a possible foreclosure.

I am not in favor or Load Mods. So many Lenders take 2-5 thousand dollars from borrowers and then either do not fully approve the loan mod or even after the loan mod is done 3 months later our clients call us to help stop a foreclosure because they could not keep the terms.

We are Licencesd Realtors as well as Short Sale Specialist. We would be happy to help you.

Thanks,

Steve Dancer
steved820@gmail.com
0 votes
Don Yosef Ma…, Agent, Highland Park, IL
Thu Nov 20, 2008
Dear Rick C,
Find a Realtor that is very knowledgable in how short sales work, In some area's is not surprising that 20-30 % of the listings in some area's are all short sales like Skokie. I have the knowledge and experience with dealing with banks if you are going to sale. The foreclosure propcess won't begin until you are 90 days late and the whole process of foreclosure takes a minum of 7 months from beginning to end. So you should have enough time to sell your home . If I can be of any help just let me know. Short sales are a very tricky business. Moist realtor's don't have a clue what they are about or how to go about dealing with them . I have several listings that are short sales and you wouldn't believe how many realtor's who bring me offers I have to explain the process to them . Alot of the times their clients call me since their realtor couldn't explain the process clearly to them.
Good luck & G-d Bless
Donald Yosef marcus
Century 21 MB
Chicago & Northbrook
DonYo770@aol.com
0 votes
Victor Kamin…, Agent, Edison, NJ
Thu Nov 20, 2008
Geeze "J" you sound a bit uppity with that answer.

What's your problem? Made a few bad decisions yourself that you'd like not to take ANY responsibility for?

In my neck of the woods, someone with that tone would be called a nasty name but we're all above that here.
I can give you full access to the MLS and you'd still not be able to do half of what I can, it's not just about data but also how you use it and the knowledge possessed by a professional to implement it. Not to mention the liability coverage we carry for errors and omissions which you undoubtedly won’t spring for selling by owner I'm sure of. On another note, when Rick purchased the home how exactly would going FSBO have helped him? That’s just a ridiculous comment.

"Think" before you speak in such a nasty tone, it's unbecoming and doesn't reflect well on you.

Real Estate "is" local, economic factors can have an effect on local real estate but if you think about it, different areas have been affected at different degrees wouldn't you agree?

If that ain't local, what would "YOU" call it?

The Internet will never carry the "Full" MLS in such a way that all the data is available to you, you'll still need to call a realtor to obtain the juicy details. Data is a valuable commodity and what you see on the Internet isn't all the listings out there, the Broker of Record for each company must decide "if" they choose to disseminate the data in such a way to allow others to publish it as they will and in turn use that data to attract people like you who will create what is called traffic and thus create a wanting from paid advertisers to sell advertising on the sites much like this one. Only some of the money generated to support this site also comes from "REALTORS" that which to advertise here as well.

Besides you are SO WAY OFF TRACK here, the question asked was about a Loan and modification of it, NOT finding mls property data on the Internet!!!! Wise up ya silly goose and stop bein' so darn angry.

************************
RICK CULBERTSON:
************************
Only work with the bank to do the modification no 3rd parties.
Find out it it's even worth it to do a loan mod, what is you home really worth in this market and how much do you owe on it? Are those two figures way off base? Find out if the bank will not only do a loan mod but restructure you loan. Many banks will restructure the loan in such a way that they actually lower the amount that is owed on the property. Kind of like a short sale where they will forgive some of the debt like they would with a short sale anyway. That is perhaps another option that may make getting caught up worth it for you. Get everything in writing if they agree to do that, if you're not talking to the right people they may just be debt collectors looking to get what they can out of you, I get those folks calling me from the banks sometimes when I'm managing a short sale.

WHO have you been speaking to at the bank?
Ask to speak with someone in the loss mitigation department or the short sale department so that they can assign a negotiator to your case. There are many options, in the end if the bank is not helpful, contact a realtor to try and do a short sale and if you still can't sell it for many possible reasons. Offer up a deed in lieu of foreclosure then use that $4K to rent.

By the way if your mortgage is $1800 a month and you are 2 months behind and you have the $4K, why aren't you repaying your mortgage obligations? Has something happened in your life causing a hardship which is preventing you from being able to continue making the payments?

Take my advice and I think someone else here mentioned it, contact http://www.hopenow.com they have assistance available from professionals, even attorneys on staff to help answer any questions you may have and might be able to do a better job speaking with your mortgage company requesting that loan mod.

Good Luck and God Bless...
Web Reference:  http://www.MarivicRealty.com
0 votes
Deborah Tupin, Home Buyer, Rocklin, CA
Thu Nov 20, 2008
My husband saw this coming and we sold our house about one week before prices started dropping about two and a half years ago. We rent a house that would have cost us over $800,000 at the time we moved in. I am happy with our rental payments. Our house model is now selling for $500,000. It will take a many years before our rental payments come anywhere near that $300,000 loss.
We looked into buying last winter. We made an offer of $500,000 on a foreclosure house listed at $550,000. Six months later when the bank finally responded, we told them forget it because prices had gone down further and now the house is listed at 430,000.
We think prices will continue to drop. If your house keeps dropping in value and you can get out without ruining your credit, maybe you should think about becoming a renter.
We also have a vacation house that we own and will keep for enough years that the price drop is not so important.
contributor
0 votes
Don Yosef Ma…, Agent, Highland Park, IL
Thu Nov 20, 2008
A reverse mortgage might be the best option for you, Talk to a realtor or mortgage lender who specializes in this feild. There are only three main reverse mortgage lenders out there. This type of loan is growing by leaps and bounds. I need to know how old you are in order to do this type of loan. Anyone 62 years or older can get one without income verification, without any repaying back the money until you sell your home.
0 votes
J, Home Buyer, Chandler, AZ
Thu Nov 20, 2008
Hi Rick - There should be a rule here that goes: Only the 'real estate pros' who have never used the pitch 'all real estate is local' and that 'housing never goes down' can post here. That would abate their endless pollution of these boards. Unfortunately such a rule doesn't exist and they can all come on here and recommend each other's blather. Good luck and go FSBO next time. Cut these vermin out. They know it's only a matter of time that the Internet carries the full version of the MLS. They better get some real skills and fast.
0 votes
Ron LeBlanc, , Peabody, MA
Wed Nov 19, 2008
Hey Rick,

I find that the best answer to your question is to go to http://www.hopenow.com and speak to one of their reps. They take about forty five minutes and you will need your mortgage information. I talked to a rep and they were very helpful. When you get behind on your mortgage it becomes very difficult especially in this market to find a lender who will re write your mortgage. Best of luck. I hope this helps.

Ron
Web Reference:  http://www.hopenow.com
0 votes
Melissa A. S…, , 92040
Tue Nov 18, 2008
Hi Rick,

My feeling is always to be in integrity. Do the right thing. Your home WILL increase in value in time, the market will not always be this bad. Look to the future and see where you could be in 5 years. Do you really want to be paying rent and not getting anything out of it? Or do you want to have a home you own that is now beginning to increase in value? Home ownership is the American dream. Stick with it!
0 votes
Anthony, Home Buyer, Florida
Tue Nov 18, 2008
Deadbeats should be thrown out so qualified buyers have a chance. No wonder this industry is STILL such a sesspool of crooks of all kinds! Now the trick is to avoid foreclosures "at all costs". Half of my block is empty, has been empty for at least a year, and not for sale. Until banks choke on these properties and start actually selling at the MARKET price, there will be no abaiting the crisis. Step one would be kicking the NINJA and liar deadbeats out. Look at the case studies - loan mods do not work - over 30% will re-default within a few months.
0 votes
Tom Bernardo, , Fort Myers, FL
Tue Nov 18, 2008
Rick,

That has a lot to do with what they want to modify to. Get the exact modification they are intending for you in writing. Then decide if the saving on the new loan is something you can manage. If it is something you can manage, ask to reduce the reduce the amount to make it current by one month instead of two.

Regardless of their answer, next ask if the amount the needed to make your loan current can be rolled into the new loan.

Whenever anybody says no, very patiently and calmly explain that you are aware that they cannot make that decision and ask for a supervisor. The ones you talk to on the phone are not decision makers. Thay have scripts and set answers for all questions you ask.

Be clear and concise in explaining your financial hardships. Explain that if they can't come up with the terms you are asking for, you will have to examine the alternatives of giving them back the deed or doing a short sale.

Hurry so you don't have to make a payment at the old rate.

I am sorry to see you in this position. Hang in there, don't hide from it, and make it go away as fast as possible.

Sincerely,

Tom Bernardo Realtor, GRI
Keller Williams World Class Realty
239-425-4900
0 votes
Danielle Sha…, Agent, Cape Coral, FL
Mon Nov 17, 2008
Rick,

A loan modification may be a great avenue for you and certainly better than foreclosure. As Derek mentioned below, you never know when you may need your credit. A loan modification is not permanent however. Right now, loan mods are only good for about 5 years and they don't typically affect the balance of what you owe. If you can't afford the payment right now but want to stay in your home, I would definitely talk to your lender about qualifying. I haven't heard of any lenders requiring you to be current in order to modify. You can always ask if they'll add on your missed payments to the back end of the loan as well as alter your current interest rate to make your payment affordable.

If you have any questions, please don't hesitate to contact me. I'm here to help not hinder and there's no obligation.

Best wishes,
Danielle
Web Reference:  http://www.daniellesharp.com
0 votes
Cathryn Blai…, Agent, Cape Coral, FL
Mon Nov 17, 2008
Rick,
I will recommend you to pay current and modify your loan if you are only 2 months behind. It will be well worth it in the long run and will probably end up saving you thousands of dollars in the end instead of paying thousands of dollars on a rental you will never own.
Cathryn Blair-Bennett
First Capital lending
239-645-3795
0 votes
Derek Joyner, , Winston Salem, NC
Mon Nov 17, 2008
I always say dont burn your bridge. You never know when you will need your credit. Also you will not be making any money in renting. I always say it is better to own than rent. The market will come back and you will be able one day to sell your house and probably pocket money. You will never do that if you rent. Also renting has become popular because of people foreclosing on there home. A smart renter is going to pull your credit history. If there are any hint to that you dont like to pay they may not choose you to rent to. They can do this now more because the renting market is doing good right now.
0 votes
Scott Godzyk, Agent, Manchester, NH
Mon Nov 17, 2008
For a loan modification you usually do not have to pay before but as part of it, you may want a forebearance rather than a loan modification or a combination of the two. call your banks, ask for the home retention department, if you are not get anywhere then ask for a supervisor. There is a governemnt assistance number you can also try, they usually include it with your collection letters. good luck in trying to work things out Rick.
Web Reference:  http://www.ScottSellsNH.com
0 votes
NonRealtor, , 23456
Mon Nov 17, 2008
I'm thinking that renting, in your area, is 1/2 the cost of owning. Good Luck. Try to avoid foreclosure.
0 votes
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