Amber,
My wife & I have fallen about a month behind on our mortgage payments and bills. Now we are starting to panic. Our credit is not that great right now. Our mortgage was sold by the original lender to a bigger mortgage company. I saw something on the news about a loan modification and called my mortgage company to see if they would give me a lower interest rate than the 6.75% we currently have. They said right now they're only dealing with people who are several months in default. Then today I got this letter in the mail from a mortgage company that says they can refinance my mortgage for a rate under 4%, with no money down and no closing costs, blah, blah. I don't want to lose our house. Please explain what a loan modification really means. I don't want to get caught up in any scams or gimmicks with these mortgage companies.
Thanks, J.K.
Dear J.K.
First of all please do not panic.
Since I am Realtor and not a mortgage profesional, I will not go into specifics of what you do or do not qualify for mortgage-wise, but I am equip to answer your questions from a general perspective.
A loan modification occurs when the terms of your mortgage permanently change and get reinstated at a payment you as the borrower can better afford. This is option that a lender has the authority to decide on whether or not they will allow it. The mortgage lenders and banks are getting slammed with tons of calls everyday from homeowners with situations similar to yours, so many of them have begun to handle the most severly delinquent loans first. Here is a link about "understanding loan modification" on the website for HUD (Housing Urban Development), the US government's official resource for valuable information.
As far as that letter you received about the refinance offer that sounds "too good to be true," trust me it is too good to be true. Please know that whenever anyone purchases a home, their name gets put into a pool of data that "mailing list" companies use to sell to other companies who sell products and services. This means you will begin to notice all kinds of crazy offers tell you that you can do all sorts of things for FREE or with little investment. I recommend you throw them away. Don't play the guessing game with your most valuable asset you own...your home!
If you need a legitimate, forthright mortgage expert to talk to call me, and I will refer you to one or two excellent resources. These mortgage professionals will give it to you straight, and educate you about all of the options available to you & your wife.
Stay positive,
Amber
Weichert, Realtors (Marlboro office)
455 Route 9 South
Manalapan, NJ 07726
917-723-5645 - cell
732-536-4400, ext 199 - office
