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Do I qualify for a loan Modification.

By mrcharlesecurry   Follow   Mon, 21 May 2012, 1:19pm   1,009 views   4 comments
In Miami FL 33175   Watch (0)   Share   Quote   Permalink   Like   Dislike  

We purchased our home in Miami, Fl in September 2010 via FHA and Wells Fargo.. A few months later my wife's company pretty much did accross the board paycuts of 50%. My wife's salary went from $55000 per year to $33,000 and our health insurance via her employer increased $200 per month for the same coverage. Our 30 year loan is with Wells Fargo and the remaining balance is about $285,000 and due to our excellent credit we took out the loan with a 4.5% rate. Do we qualify for a loan modification? And what is a loan modification? Principal reduction? A lower interest rate? Or will they only increase the term to 40 years, which is not much of a modification? It is worth while going through the hassle of submitting the paperwork for a loan modfication?

Thank you for any advice.

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1. bubblesitter Follow Befriend (5) 10 threads 2,329 comments

   1   1:25pm Mon 21 May 2012   Share   Quote   Permalink   Like   Dislike   mrcharlesecurry says Do we qualify for a loan modification? Sure. You just have to learn how to shed crocodile's tears - miss a few payments even though you can afford the payments and the bank will hear you.

2. CaptainShuddup Follow Befriend (1) 300 threads 5,288 comments

   2   2:09pm Mon 21 May 2012   Share   Quote   Permalink   Like   Dislike (1)   mrcharlesecurry says Our 30 year loan is with Wells Fargo and the remaining balance is about $285,000 and due to our excellent credit we took out the loan with a 4.5% rate. Even at 2% you would end up paying more a month in Mortgage payments. FHA fees and insurance has added on about an extra 250 to 300 a month, from the time we bought in 2010. It's a rigged game. Can I ask you, what prompted you to buy a $285,000 house on a $55K salary? Do you work too? That's insane, I'm not sure where you live, but I suspect it's a neighborhood with double taxes than what I'm paying as well.

3. PockyClipsNow Follow Befriend 19 threads 1,536 comments Los Angeles, CA

   3   3:29pm Mon 21 May 2012   Share   Quote   Permalink   Like   Dislike   You should asking your mortgage company this question.

4. E-man Follow Befriend (31) 34 threads 2,612 comments San Jose, CA Premium

   4   5:57pm Mon 21 May 2012   Share   Quote   Permalink   Like   Dislike   Protected   Hi Charles, Sound like you will qualify for a HARP 2.0 refinance, which MAY lower your interest rate from 4.5% to 4%. Also, there is a new loan modification program with PRINCIPAL REDUCTION up to $100k that will hit this early June. You MAY also qualify for this. I guess google and read up on it. Call your lender to see whether they participate in the PRINCIPAL REDUCTION program and start taking action in early June. Patnet reader posted something on this topic a week or two before. Good luck. :)