1. Welcome to AppraisersForum.com, the premiere online community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Loan Modification

Discussion in 'General Real Estate and Real Estate Finance' started by haley123, Apr 18, 2009.

Thread Status:
Not open for further replies.
  1. haley123

    haley123 New Member

    0
    Mar 28, 2008
    Professional Status:
    Licensed Appraiser
    State:
    New Jersey
    Has Anyone Or Know Of Anyone Who Has Successfuly Completed A Loan Modification? If So What Was The End Result And Did They Go Through An Attorney Or Do It Themselves.

    Thanks All
     
  2. Restrain

    Restrain Elite Member

    19
    Jan 22, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Florida
    If they go through fanniemae.com, there's a process involving an application, etc. If the loan is not held by Fannie/Freddie, you're at the mercy of the lender.

    For example, my loan is not a Fannie/Freddie loan, I'm not upside down, and my payment doesn't exceed 31% of my Adj Gross Income. I'm not eligible and would have to shell out for the entire process to do a refi. Honestly, just gonna increase my payments and pay it off quicker.
     
  3. timd354

    timd354 Elite Member

    108
    Jan 11, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    Maryland
    Unless you have a high interest rate or an ARM, I don't know why you would want to pay off your loan quicker than required. With the federal government spending trillions of dollars that they do not have, it is not going to be long before they have to just print more and more money to pay the debt, which will result in massive inflation. Why pay a debt today with real dollars, when you can pay that debt years from now with dollars that will be far less valaable?
     
  4. Terrel L. Shields

    Terrel L. Shields Elite Member
    Gold Supporting Member

    315
    May 2, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Arkansas
    Actually, the program is more difficult to apply than at first blush and I have yet to see one of them 'go thru' around here. Few fannie mae properties and typically they were trash sold to them by CW or their ilk which always made bad loans...always. These people cannot pay attention let alone a mortgage.

    But my understanding is that they will cut the interest rate to as low as 2% to reduce the payment plus taxes and insurance to no more than 31% of your verified gross income and they will do as much as a 40 yr. loan. The interest will begin to rise after 5 years (5 years where you are not supposed to be behind on the payment again) back up to the previous interest rate. That rise will be slow and incremental, again using your future income as a guide. If that doesn't work and the test is that NPV test...then off goes yer head. Frankly so many are upside down so far, to me, it doesn't make sense to try and pay off a home that is unlikely to be worth what you paid for at least another 10 years or more.
     
  5. stefan olafson

    stefan olafson Senior Member

    0
    Apr 2, 2003
    Professional Status:
    Certified General Appraiser
    State:
    North Dakota
    Because of my difficulties with licensure in my home state and the taint of a revocation following me like a black cloud, I'm in the middle of a loan modification right now, I think....

    ND revoked my license, right or wrong.... Minnesota didn't... About 60% of the lenders will not allow me to complete appraisals in MN because of the ND revocation. Never mind that licensure is state by state rather than federal. I've appraised for 30 years with no client ever sending in a complaint against me, but whatever. I've tried and tried to get out of the profession, but make just enough to keep pluggin away and fighting the system.

    Last October I requested through Countrywide that they consider a work around on my mortgage. The loss of income from 2003 through today could be as much as $1,000,000, the bills still come, the income since 2003 is greatly reduced. I was given the opportunity to refi our house mortgage, there was seven years remaining @7%. Because of bills piling up I refied, in lieu of foreclosure, to a 11.75% 40 year mortgage. An ARM, a two year fixed rate which came up in Feb of this year.

    I've been paying the mortgage and waiting for the process. In the mean time because I requested the restructure, my payments are not credited to the loan and my credit report shows I'm about six months behind on payments. I've communicated with Countrywide on a number of occassions and am told to be patient.

    I would rather just refi, but now with six late payments in a row no one will!
     
  6. timd354

    timd354 Elite Member

    108
    Jan 11, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    Maryland
    Just curious, but when your ARM readjusted this year, your interest rate must have surely gone down substantially with interest rates so low, even with a high margin because the loan was undoubtedly subprime. What is your rate now?

    In any case, I wish you luck in working out a solution to your situation......it does sound like you got jobbed big time by the ND board...as it simply amazing that they would revoke you and then the MN board would look at the case and essentially say, we don't see what you did wrong and you are welcome to keep appraising in MN.
     
  7. stefan olafson

    stefan olafson Senior Member

    0
    Apr 2, 2003
    Professional Status:
    Certified General Appraiser
    State:
    North Dakota
    timd,

    My ARM readjusted in February at the original interest rate of 11.75%! Countrywide is in my opinion a crooked organization with less than honest people at the top. I think they are so deep in doo doo with such a large number of borrowers that they won't be able to get things straightened out.

    I'm interviewing tomorrow for a position outside the profession. Working as an appraiser for a company doing eminent domain work and right of way work. Getting paid every two weeks and getting those elusive benefits. I'm optomistic things will work out in the end.
     
  8. Restrain

    Restrain Elite Member

    19
    Jan 22, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Florida
    fanniemae.com has a link that shows if its a Fannie loan. If it's countrywide, there's a very high probability that it is a fannie loan. If so, you can deal directly with them and go around Countrywide.

    I hate to say it, but you're probably wasting your breath with them.
     
Thread Status:
Not open for further replies.

Share This Page