Loan modification approved
By dorannmwin
@dorannmwin (36392)
United States
March 25, 2013 5:12pm CST
This is something that really has been a long time coming for us. We started trying to get a hardship loan modification all the way back in July of last year. In December we were finally approved for a trial loan modification of three months. That was completed at the beginning of this month. Today I got the paperwork on the final modification that we've been approved for.
We are going to be rolling into a new 40 year loan (not exactly what I wanted, but I will take it). Our interest rate is decreasing from 6.25% to 4.00% (thrilled about this) and our monthly payment is dropping about $120 a month. This is something that will make things a lot easier for our family if we again have to go through some of the hardships that we've faced in the last couple of years.
Have any other mylotters been successful in modifying their mortgage during this recession? I know that the terms that we got are exactly what I hoped for, but it is a lot better than having our home foreclosed.
8 responses
@4ofmyown (1119)
• United States
27 Mar 13
That is great! You are so lucky...we are having a HORRIBLE time with our mortgage right now. It has been going on for about 3 years now...we have a lawyer now. We reached out repeatedly to our lender and they eventually told us to stop calling and that the only way they would help us is if we defaulted on the loan, then we would be eligible. Pathetic really...I have heard many people in our area that have gone through the same thing. I consider you guys extremely fortunate to have been able to succeed...I am sure you feel a huge relief!
@dorannmwin (36392)
• United States
28 Mar 13
We unfortunately, did have to default on our mortgage in order to get them to help us. However, it was necessary that we do that anyway because we had to pay my husband's medical bills so that he would be able to get through his cancer. I was quite scared for a while that we would end up without a home and living with my mother again, but someone was looking out for us and it was all something that worked out for us.
I hope that you are able to get something worked out for you as well.
@4ofmyown (1119)
• United States
28 Mar 13
Thank you...It is sad that you have to beg them to help you...the ball is really in the mortgage companies court. We will more than likely have to go to my Mom's if we don't win a modification. I am thankful knowing we have place to go. finding a house for all of us...we are a family of 9...is not easy.
@dorannmwin (36392)
• United States
3 Apr 13
I hope that they are able to come up with something that will be able to help you and your family out. I know right now my mother is also trying to refinance her mortgage and it is not something that is very easy. You see, she has a really high interest rate on her mortgage and to lower the interest rate just a little bit would be something that would help her tremendously.
@bounce58 (17385)
• Canada
4 Apr 13
I got my mortgage consolidated with my other debts a little over two years ago. From 25 years, it was rolled over 30 years. I think my original rate was around 6%+ too, and it was reduced to just below 4%.
I remember getting stressed out every month back then, wondering if I was ever going to make payment. With this change I was able to cut down my mortgage payment by about 30%.
@dorannmwin (36392)
• United States
8 Apr 13
I can only begin to imagine the relief that you must have felt when you were able to do that. We didn't do a consolidation as we really don't have a lot of other debt except for medical debt. However, still having that bill decreased by about 25% is a big change for us.
@dawnald (85146)
• Shingle Springs, California
26 Mar 13
Honestly, I have heard way more horror stories about modifications than I have heard good stories, so good for you!!!
@dorannmwin (36392)
• United States
26 Mar 13
This definitely was something that I did approach with apprehension because of the horror stories that I'd heard. However, I had to accept that at the point that we were at this was the only option that we had in order to keep our family in a home of our own.
@cynthiann (18602)
• Jamaica
26 Mar 13
This is wonderful news and I am so happy for you. This is a programme about which I know nothing but if it has helped you then it has helped many other people to keep their homes. It sounds to be an excellent programme. 40 years is good - who knows? One day in the future you may be able to pay it off more quickly than youn thought. What I did when I had a 7 year mortgage for my home was to pay a little more each month. so if youn pay $120 , then try to pay one thirty or one forty each month to pay it off more quickly. This is what I did and I paid my mortgage in about 6 years. This can work for you. Or, alternqatively save up and when you get a hundred or more then put it on the principal. Best of luck my dear. Blessings
@dorannmwin (36392)
• United States
26 Mar 13
For right now the thing that I'm thinking about doing is just rounding the payment up. It is close to $488 a month, so I will just round it up to $500 a month, it won't make a really big difference at first, but those few dollars each and every month will certainly add up.
@randylovesdar (4932)
• United States
26 Mar 13
I am glad that you got your loan modification because that will help you save money in the long run. I know that you have been having some personal issues and that money has been tight, but I am proud that you have been able to get pass the trial. My parents are applying for a loan modification and they have not heard anything yet, but we are still hoping. I know that 40 years sounds like a long time, but I guess once things get better you could always add more to your monthly payments to decrease the loan. I am glad that you still have your house.
@dorannmwin (36392)
• United States
26 Mar 13
That is exactly what I was thinking. There is nothing that says that next year when we get our tax return that we can't turn around and apply that to the principal on our house. I really think that despite the longer term that if we put our minds to it we would be able to get our house paid off in 15 years or less.
@asyria51 (2861)
• United States
26 Mar 13
We were able to re-finance without any closing costs. It brought our interest rate from 6.25% down to 3.97%. We kept it at the same time frame, but are saving about $65 a month just in interest. We still pay the amount we used to pay most months in an effort to have the house paid off before our child goes to college(14 years or so).
@dorannmwin (36392)
• United States
26 Mar 13
I am in hopes that in some point in the near future that we will be able to start paying what we were paying before. However, for right now, we still have a lot of my husband's medical debts that we need to pay off.
@SomeCowgirl (32191)
• United States
25 Mar 13
I don't own my home and so don't have a mortgage but I've had family who has recently been able to re-finance and get lower payments per month. I think it was about $150.00 less then what they were paying, which for them is great news.
@dorannmwin (36392)
• United States
26 Mar 13
I feel like any amount of money that we don't have to put out of our pockets is a good thing. I know that $150 or $120 is not a lot of money, but for a family like ours, that is our electric bill for a month or something like that.
@margaretsales (6)
• Montreal, Quebec
24 Mar 14
It is nice to hear that. 6.25 % to 4% is a major fall . You are lucky to get such a fall. This is something to celebrate . The variable rate fluctuation can sometimes bring us such windfall lucks but sometimes proves disastrous !
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