PDA

View Full Version : Has anyone been successful in getting their home loan modified?


Meck77
06-03-2009, 08:20 PM
I've yet to hear any success stories. There is all this talk about helping "main street" but I don't know anyone on main street who has been helped? Do you?
If not you has a friend of yours had their rate or mortgage modified?

Any lenders out there with some insight on this subject? To me it seems like a bunch of hype that CNN is feeding people.

It's not just loan modifications that aren't happening either.

In my area for example there are 70 permits pending for new home starts. A staggering 65 of them have been stalled because of financing. The bottom line is the banks just aren't lending money.

I called the loan modification people a couple months ago to see if they wanted to cut my rate. I was told since I own more than one home and that I'm not late that there wasn't anything they could do for me. Now wouldn't it make sense to reward people who are paying their bills instead of encouraging people to not pay their bills? Imagine if all the home owners in America who were paying their bills on time suddenly got a nice rate cut as a reward. There would be hundreds of millions of extra money suddenly circulating around the economy. Instead we have our government encouraging people to stop paying their bills in hopes of getting a break. Only problem then is your credit is destroyed and they still deny you!



What's going on in your area? Anyone gotten a break from Obama's plan that they care to share?

cutthemdown
06-03-2009, 08:32 PM
My good friend did. His payment went from 3500 to 2900 I believe he said. I don't though now exactly what program he went through, or if Obama had anything to do with it.

But he does own another home so I don't know meck what he did.

I will ask him how he did it when he has another home he rents out.

Ray Finkle
06-03-2009, 08:34 PM
we just refinanced. Went from 6 and 7/8ths to 5 and 1/4....well worth it.

Meck77
06-03-2009, 08:37 PM
Interesting. From what I've heard the people doing the loan modifications are just as frustrated because the criteria changes from week to week. Maybe they expanded the program to "investors".

I know traditional good credit, income verified refis are still getting done but that's a whole other animal and not the "main street" that Obama speaks of when he talks about the loan modification plans.

bronco610
06-03-2009, 09:24 PM
I was succesful, helped us alot since we both are back in school. Washington Mutual. They handeled all the head aches and were awesome !!!!

Crushaholic
06-03-2009, 11:01 PM
My mortgage company brought up the loan modification deal, but it won't help until I get rid some of my other debts. I cancelled one credit card and am working on paying down another...

broncocalijohn
06-03-2009, 11:05 PM
I am one of those that have the fixed rate 15 year 5.0% and 4.875% on the condo so I am not touching it(not behind either), but as an owner of a real estate advertising company, I have had a lot of Loan Modification companies use my services. I can recommend a few. I prefer to give out info for actual real estate attorney loan modification companies as they have experience in that field. If you are behind on your mortgage, it cant hurt. One note: Use companies that dont charge some outrages upfront fee like $500.

CSU Husker
06-03-2009, 11:31 PM
Are people just calling their current mortgage holder and asking for a modification? Think I will just call mine and say "Obama told me to call, fix my chit."

smalltowngrll
06-04-2009, 07:10 AM
I know of someone that is in the midst of the modification. but, it hasn't gone through yet. There are some very strict guidelines that people have to 'qualify' for. And it can only be used for the first mortgage.

I can kind of understand banks not wanting to lend with the FDIC coming down on them HARD core and people being able to just 'walk away' from their homes with no penalties!

It's frustrating to see people purchase a second home on their spouses name and then walk away from their first home. It shouldn't be allowed and they should have to carry the debt of the difference in the short sale in these circumstances. They'd surely carry the extra income if the home sold for more! Anyway, sorry Meck, I digressed from your topic!

I'll let you know if this modification from my friend goes through!

Mediator12
06-04-2009, 07:20 AM
Meck, that stuff will takes months of underwriting to finish after lenders get past the huge amount of refi's they still can not process. Lenders are making more money on the refi's that are a hell of a lot easier to qualify for than the modification plans. Amazingly, they are taking the higher profit option that takes forever to underwrite thanks to all the new government stipulations. So, guess who actually gets left out? Yeah, Obama's "Main street modification plan" meets unintended consequences ;D

This is why Government action done quickly rarely works. They have Terrible change management procedures. They have to contract out all the important time sensitive implementation programs to outside private firms like KPMG, Bearing point, and for security Booze Allen Hamilton. This is just another poorly thought out, too quickly implemented program, that will take another year to even scratch the surface of working.

PS This is not a knock on Obama or his admin. It's a knock on how the government really works. Great Idea, there is just NO WAY the government is capable of implementing it!

coachmastermind
06-04-2009, 08:10 AM
We just got a letter from our mortgage company this week, saying that since we pay on time (and we do, we pay on time and pay extra each month-we want to pay our mortgage off faster) that they would like to help us refinance and that they'll pay all the closing costs.

The letter said it would cost us nothing, and would cut our monthly payments by about $200/month. It seemed to good to be true.

I called my loan agent at the bank yesterday, and she said it's legit. She said that if you can save a point or more in interest she tells people to refinance. There is a website to go to, so we're going to check it out.

IF it works out we'll still probably continue to pay in what we do now, but get $200 more principle paid off every month.

Meck77
06-04-2009, 08:15 AM
Med I'm a free market guy. I don't claim to understand this process and anyone that does is just guessing. I've talked to these loan mod people, I've talked to several lenders I know who have tried dealing with them, and I've talked to plenty of people going thru the process. It's nothing short of a cluster fugg and in a sense the loan mod people are picking and choosing who to "save".

I'm with you on the inefficiency of government. It's why I was against the auto bailout, against this billions and billions of government spending "stimulus".

Here is an example of how ass backward the stimulus money is being awarded. In Colorado the pine beetles are killing pine trees faster than they can be cut down. There are 7 loggers in my area that are sitting idle ready to cut trees. Because the idiots in Washington said the money had to be spent ASAP the local loggers missed the bidding process. Instead they hired a Florida based logging company to handle millions of dollars of work in Colorado. The Florida company admitted they aren't equipped to handle logging in the Colorado mountains especially during the winter. So what did this company do? They jacked the tax payers for a lot more money and hired all the local companies. Probably a few more million in wasted tax money. Multiply this kinda crap times every stimulus buck out there and it's probably going to cost us 2 to 1 on our money.

IMO we would have been better off letting poorly run companies like GM, greedy banks, and other bad businesses to FAIL. Then the pieces could have been picked up.

Meck77
06-04-2009, 08:18 AM
We just got a letter from our mortgage company this week, saying that since we pay on time (and we do, we pay on time and pay extra each month-we want to pay our mortgage off faster) that they would like to help us refinance and that they'll pay all the closing costs.

The letter said it would cost us nothing, and would cut our monthly payments by about $200/month. It seemed to good to be true.

I called my loan agent at the bank yesterday, and she said it's legit. She said that if you can save a point or more in interest she tells people to refinance. There is a website to go to, so we're going to check it out.

IF it works out we'll still probably continue to pay in what we do now, but get $200 more principle paid off every month.

That's great. That is the way things are supposed to work. Pay your bills and you refi to the best rate the MARKET has to offer! That's called a refinance. What I'm talking about is the government backed modifications that are supposed to help people refi that traditionally couldn't because of debt to income ratios, bad credit, etc.

Tombstone RJ
06-04-2009, 08:28 AM
Med I'm a free market guy. I don't claim to understand this process and anyone that does is just guessing. I've talked to these loan mod people, I've talked to several lenders I know who have tried dealing with them, and I've talked to plenty of people going thru the process. It's nothing short of a cluster fugg and in a sense the loan mod people are picking and choosing who to "save".

I'm with you on the inefficiency of government. It's why I was against the auto bailout, against this billions and billions of government spending "stimulus".

Here is an example of how ass backward the stimulus money is being awarded. In Colorado the pine beetles are killing pine trees faster than they can be cut down. There are 7 loggers in my area that are sitting idle ready to cut trees. Because the idiots in Washington said the money had to be spent ASAP the local loggers missed the bidding process. Instead they hired a Florida based logging company to handle millions of dollars of work in Colorado. The Florida company admitted they aren't equipped to handle logging in the Colorado mountains especially during the winter. So what did this company do? They jacked the tax payers for a lot more money and hired all the local companies. Probably a few more million in wasted tax money. Multiply this kinda crap times every stimulus buck out there and it's probably going to cost us 2 to 1 on our money.

IMO we would have been better off letting poorly run companies like GM, greedy banks, and other bad businesses to FAIL. Then the pieces could have been picked up.

I agree 100%. Also, filing for bankruptcy and restructuring is a fact of life in the free market. GM should have filed for bankruptcy last year and instead, the Federal Fools step in and give this failing giant what like $60 billion just so that GM can file for bankruptcy anyway?

Now the governement owns the majority shares of a failing giant? Why?

Thanks Obama. Thanks for nothing. In fact, thanks for wasting my money.

Mediator12
06-04-2009, 08:35 AM
Med I'm a free market guy. I don't claim to understand this process and anyone that does is just guessing. I've talked to these loan mod people, I've talked to several lenders I know who have tried dealing with them, and I've talked to plenty of people going thru the process. It's nothing short of a cluster fugg and in a sense the loan mod people are picking and choosing who to "save".

I'm with you on the inefficiency of government. It's why I was against the auto bailout, against this billions and billions of government spending "stimulus".

Here is an example of how ass backward the stimulus money is being awarded. In Colorado the pine beetles are killing pine trees faster than they can be cut down. There are 7 loggers in my area that are sitting idle ready to cut trees. Because the idiots in Washington said the money had to be spent ASAP the local loggers missed the bidding process. Instead they hired a Florida based logging company to handle millions of dollars of work in Colorado. The Florida company admitted they aren't equipped to handle logging in the Colorado mountains especially during the winter. So what did this company do? They jacked the tax payers for a lot more money and hired all the local companies. Probably a few more million in wasted tax money. Multiply this kinda crap times every stimulus buck out there and it's probably going to cost us 2 to 1 on our money.

IMO we would have been better off letting poorly run companies like GM, greedy banks, and other bad businesses to FAIL. Then the pieces could have been picked up.


Well, you know I am too. However, there are certain philosophies that believe failure is a bad thing at any level. They believe people should not face consequences for poor decisions and everyone who is successful should help those who are not. Right now, those people are running the government. They are not bad people, just have a different philosophy on how to run things.

That does not make this a bad idea however, just impossible under the current philosphy to implement. I really like the person running things, just not how he envisions change. He would never work for a real change management firm.

Mediator12
06-04-2009, 08:43 AM
I agree 100%. Also, filing for bankruptcy and restructuring is a fact of life in the free market. GM should have filed for bankruptcy last year and instead, the Federal Fools step in and give this failing giant what like $60 billion just so that GM can file for bankruptcy anyway?

Now the governement owns the majority shares of a failing giant? Why?

Thanks Obama. Thanks for nothing. In fact, thanks for wasting my money.

The biggest problem is they failed to address the problem, they just looked for a way to keep the firm's afloat.

What they should have done is let GM and its executives who put them there fail and restructure. The Bailout money should have gone to the workers who suffered from poor leadership. They should have offered money to the workers laid off, the dealerships being closed, and told GM's management tough luck. That is a fair solution.

Being management assumes major risk. Running a major US iconic company into the ground should mean those in management should LOSE everything they invested into the company first. They have the most to gain and the most to lose. They overpaid their asses for a long time and took money they did not earn. I have no problem letting them fail for failing the company. Instead, the people who had nothing to do with the problem suffer the most and the Management still has plenty. That is the definition of a stupid plan.

Tombstone RJ
06-04-2009, 10:35 AM
The biggest problem is they failed to address the problem, they just looked for a way to keep the firm's afloat.

What they should have done is let GM and its executives who put them there fail and restructure. The Bailout money should have gone to the workers who suffered from poor leadership. They should have offered money to the workers laid off, the dealerships being closed, and told GM's management tough luck. That is a fair solution.

Being management assumes major risk. Running a major US iconic company into the ground should mean those in management should LOSE everything they invested into the company first. They have the most to gain and the most to lose. They overpaid their asses for a long time and took money they did not earn. I have no problem letting them fail for failing the company. Instead, the people who had nothing to do with the problem suffer the most and the Management still has plenty. That is the definition of a stupid plan.

It sure gives the saying "Buy American" a whole new meaning. GM is now owned by the tax payers and if the tax payers want their money back, guess what, they have to buy their own damn cars and trucks!

So, we get double screwed.

We now have to pay ourselves in order to get our money back--BRILLIANT!

(federal goverment at it's finest) ROFL!

Smiling Assassin27
06-04-2009, 10:48 AM
Lenders aren't required to participate in the Loan Mod Program. Granted, there are 'incentives' to encourage participation but unless it's securitized by Fannie or Freddie, it's not a given that you can do it.

Plus, it's only good for hte property you occupy, so rental properties and such don't qualify. There are eligibility requirements to even qualify to be reviewed but then it becomes an underwriting issue. In other words, you'll need to prove income, assets, etc.

I've seen some cases where even reducing the person's interest rate to as low as 2% still wouldn't get their payment low enough (31% of gross income), and so the lenders do what's called a 'value test' to determine if the cost of the modification is less costly for the lender than not modifying the loan. If not, then you're screwed. So you see, the lender/investor has a lot of wiggle room not to do this modification.

Now they can also run out the loan to 40 years and/or defer payment on a portion of the amount you own til a later time. They could also agree to forgive a portion of your debt. If they defer, you'd better watch out, as any portion deferred and not forgiven is still owed and will show up in the form of a balloon payment when you pay off your loan, refinance or sell.

Miss I.
06-04-2009, 10:54 AM
I got my house refinanced before I moved over here with an FHA. The only brief snag was the appraisal because home values were not coming in really high or anything and I hadn't had the house very long or built a ton of equity, but we managed to get it through. I had an 80-20 and so consoldiating into the FHA I got really helped lower the cost by about $200 a month plus the interest is fixed at a much cheaper rate then it was at for both loans. It helps to have a really good credit rating.

labronx
06-04-2009, 12:13 PM
What's going on in your area? Anyone gotten a break from Obama's plan that they care to share?

What do you think McCain/Palin could have done that is different?

Taco John
06-04-2009, 12:18 PM
Trying to close on a streamline right now, actually...

Tombstone RJ
06-04-2009, 12:21 PM
What do you think McCain/Palin could have done that is different?

First, they probably would have given congress a chance to read the bill/legislation before forcing them to vote on it.

That was such a bush league move by Obama/Pelosi that it will go down as one of the biggest abuses of power in this country's history.

We're talking trillions of dollars of spending and congress had what, like 24 hours to read the 900 page proposal before voting on it? Talk about guerilla politics at it's finest...

bronco militia
06-04-2009, 12:23 PM
I just refinanced, paid of the 2nd and went from a 7.375 to a 5.00.

i'll be saving close to $600 month

Tombstone RJ
06-04-2009, 12:26 PM
It sure gives the saying "Buy American" a whole new meaning. GM is now owned by the tax payers and if the tax payers want their money back, guess what, they have to buy their own damn cars and trucks!

So, we get double screwed.

We now have to pay ourselves in order to get our money back--BRILLIANT!

(federal goverment at it's finest) ROFL!

Hey, I'm quoting myself!!

I think anyone who buys a GM product should not have to pay any kind of sales tax. Not federal, not state, nothing.

It's a tax free product to the American consumer because the American consumer is paying for it anyway!

TailgateNut
06-04-2009, 12:37 PM
First, they probably would have given congress a chance to read the bill/legislation before forcing them to vote on it.

That was such a bush league move by Obama/Pelosi that it will go down as one of the biggest abuses of power in this country's history.

We're talking trillions of dollars of spending and congress had what, like 24 hours to read the 900 page proposal before voting on it? Talk about guerilla politics at it's finest...


Exaggeration isn't your middle name, is it?

Biggest abuses of power in this country's history?
Trillions (plural).

Smiling Assassin27
06-04-2009, 12:43 PM
Closing on a 30 year fixed at 4.75 with no points and 16k cash out today. Gonna make my payment go down $350 per month as well. Thank goodness property values here are still holding steady. Add on plus jacuzzi in 4-6 weeks. :yayaya:

Tombstone RJ
06-04-2009, 12:44 PM
Exaggeration isn't your middle name, is it?

Biggest abuses of power in this country's history?
Trillions (plural).

Um, ok... how about HUNDREDS OF BILLIONS OF DOLLARS EQUALING NOT LESS THAN ONE TRILLION DOLLARS AFTER INTEREST AND THE DEVALUE OF THE DOLLAR AFTER IT'S ALL PAID BACK.

Hows that?

Can you even get your head around one trillion dollars? I mean really, try to wrap you mind around that number. It's staggering.

And yes, this spending package can hamstring this country for the next 50 years. So, yah, that's an abuse of power on a huge magnitude.

Smiling Assassin27
06-04-2009, 12:49 PM
Um, ok... how about HUNDREDS OF BILLIONS OF DOLLARS EQUALING NOT LESS THAN ONE TRILLION DOLLARS AFTER INTEREST AND THE DEVALUE OF THE DOLLAR AFTER IT'S ALL PAID BACK.

Hows that?

Can you even get your head around one trillion dollars? I mean really, try to wrap you mind around that number. It's staggering.

And yes, this spending package can hamstring this country for the next 50 years. So, yah, that's an abuse of power on a huge magnitude.

Couple that with the fact taht Biden is already on record as saying no insignificant portions of this spending bill will be wasted, and you have a total clusterbleep on your hands. But Biden and Obama don't seem overly concerned about this waste, which tells me that 'stimulus' was not really the main reason behind this massive spending.

We know some of this money is going to be wasted," Biden said during a roundtable discussion in New York with business leaders aimed at promoting the two-year stimulus plan.

"There are going to be mistakes made," said Biden. "Some people are being scammed already."

"Our credibility depends on transparency". --Joe Biden



No, your credibility depends on stimulating the friggin' economy, Joe.

bronco_diesel
06-04-2009, 01:01 PM
Interesting. From what I've heard the people doing the loan modifications are just as frustrated because the criteria changes from week to week. Maybe they expanded the program to "investors".


I have refinanced my primary and saved about $200 a month.
My rental seems to fall into the criteria changing trap. We keep having to jump through hoops. When it is done though, we will be saving a good portion of money.

Orange Blood
06-04-2009, 01:06 PM
This thread is another sleezeball attempt by Steve Fesch to make money off you. That real estate snake is trying to round up the people here who can't get loans and refer them to his mortgage broker buddies. And Fesch's mortgage broker buddies are going to cut him a kickback for his referrals.

I see you working, Meck. You can't fool me. You're all about stiffing the innocent so you can play like a king on your ranch.

rugbythug
06-04-2009, 01:19 PM
This thread is another sleezeball attempt by Steve Fesch to make money off you. That real estate snake is trying to round up the people here who can't get loans and refer them to his mortgage broker buddies. And Fesch's mortgage broker buddies are going to cut him a kickback for his referrals.

I see you working, Meck. You can't fool me. You're all about stiffing the innocent so you can play like a king on your ranch.

Is Making Money Bad all of a sudden? I thought it was still good. Count me as one who has gone over to the dark side I guess.

Orange Blood
06-04-2009, 04:26 PM
Is Making Money Bad all of a sudden? I thought it was still good. Count me as one who has gone over to the dark side I guess.

You're right, there's nothing wrong with making money. That's a good thing.

I am calling out Meck because he's a phony. He should be more forthright about his primary intentions here.

His whole act of being the greatest Broncos fan in the world is very disingenuine. If you talk to him or read his posts about the team, he knows very little about what is going on.

He participates here and shows up at the games to expand his enterprise. It's all for show. He's not in it for leisure or for pride, he's in it to make a buck.

Tombstone RJ
06-04-2009, 04:36 PM
You're right, there's nothing wrong with making money. That's a good thing.

I am calling out Meck because he's a phony. He should be more forthright about his primary intentions here.

His whole act of being the greatest Broncos fan in the world is very disingenuine. If you talk to him or read his posts about the team, he knows very little about what is going on.

He participates here and shows up at the games to expand his enterprise. It's all for show. He's not in it for leisure or for pride, he's in it to make a buck.

Thanks for the head's up! LOL

✡✡ JOSHUA ✡✡
06-04-2009, 04:38 PM
Is Making Money Bad all of a sudden? I thought it was still good. Count me as one who has gone over to the dark side I guess.

Preach on brother. I love making money. It's in my blood.

Fesch is that a Hebrew surname? It sounds like Meck might be one of my brothers.

bombay
06-04-2009, 04:54 PM
I've yet to hear any success stories. There is all this talk about helping "main street" but I don't know anyone on main street who has been helped? Do you?
If not you has a friend of yours had their rate or mortgage modified?

Any lenders out there with some insight on this subject? To me it seems like a bunch of hype that CNN is feeding people.

It's not just loan modifications that aren't happening either.

In my area for example there are 70 permits pending for new home starts. A staggering 65 of them have been stalled because of financing. The bottom line is the banks just aren't lending money.

I called the loan modification people a couple months ago to see if they wanted to cut my rate. I was told since I own more than one home and that I'm not late that there wasn't anything they could do for me. Now wouldn't it make sense to reward people who are paying their bills instead of encouraging people to not pay their bills? Imagine if all the home owners in America who were paying their bills on time suddenly got a nice rate cut as a reward. There would be hundreds of millions of extra money suddenly circulating around the economy. Instead we have our government encouraging people to stop paying their bills in hopes of getting a break. Only problem then is your credit is destroyed and they still deny you!



What's going on in your area? Anyone gotten a break from Obama's plan that they care to share?

I called the Federal Loan Modification people to see what the criteria were to qualify. As I understand it you must have missed at least one payment, and it's advantageous if you've missed two. Since I don't want to destroy my credit, I'll never qualify. If you do qualify, you get to skip 2 payments, then for two years your rate 3%, then it is fixed at 6% for the remainder of the loan. The Federal Loan Mod # is 800-240-2341. From what I understand, most of the people who advertise loan modifications are scammers. Unless you are dealing with your own lender or the Feds, tread carefully.

CSU Husker
06-04-2009, 09:51 PM
I called the Federal Loan Modification people to see what the criteria were to qualify. As I understand it you must have missed at least one payment, and it's advantageous if you've missed two. Since I don't want to destroy my credit, I'll never qualify. If you do qualify, you get to skip 2 payments, then for two years your rate 3%, then it is fixed at 6% for the remainder of the loan. The Federal Loan Mod # is 800-240-2341. From what I understand, most of the people who advertise loan modifications are scammers. Unless you are dealing with your own lender or the Feds, tread carefully.

What a joke, I will never qualify either (unless of course I miss a payment on purpose). And I was responsible enough to buy a house I could afford, just made one semi-bad decision in getting an ARM instead of a fixed rate. Way to reward the irresponsible. This is BS.

enjolras
06-04-2009, 10:15 PM
What a joke, I will never qualify either (unless of course I miss a payment on purpose). And I was responsible enough to buy a house I could afford, just made one semi-bad decision in getting an ARM instead of a fixed rate. Way to reward the irresponsible. This is BS.

Disagree... strongly. The modification guidelines are meant to keep folks in their homes Folks who have overreached.

I still own a home (I couldn't sell 3 years ago) in Plano Texas. My wife and I have never missed a payment and it's a mortgage we can easily afford.

The problem is our neighbors didn't do things that way. We've had multiple homes in the neighborhood go into foreclosure. We've seen the value of our home drop sharply (we are FAR under-water right now), all because the people around us where irresponsible.

If modifications keep them in their houses, instead of adding even more weight to my 'investment', then I'm all for it. My equity is gone and I'm likely to see a $50k loss (about 20%) if I tried to sell it (with no relief likely in even the next 5 years).

OABB
06-04-2009, 10:21 PM
Preach on brother. I love making money. It's in my blood.

Fesch is that a Hebrew surname? It sounds like Meck might be one of my brothers.

Are you Jewish?

Malcontent
06-04-2009, 10:23 PM
ANGER< STAB< BREATHE...

That was my initial thoughts on the thread. I'm better now..

CSU Husker
06-04-2009, 11:06 PM
Disagree... strongly. The modification guidelines are meant to keep folks in their homes Folks who have overreached.

I still own a home (I couldn't sell 3 years ago) in Plano Texas. My wife and I have never missed a payment and it's a mortgage we can easily afford.

The problem is our neighbors didn't do things that way. We've had multiple homes in the neighborhood go into foreclosure. We've seen the value of our home drop sharply (we are FAR under-water right now), all because the people around us where irresponsible.

If modifications keep them in their houses, instead of adding even more weight to my 'investment', then I'm all for it. My equity is gone and I'm likely to see a $50k loss (about 20%) if I tried to sell it (with no relief likely in even the next 5 years).

Thats fine, but my point is, my mortgage will adjust in a few months, and may make it unaffordable, but I cant get any help to keep my payment affordable and thus stay in my house and NOT contribute further to the problem.

smalltowngrll
06-09-2009, 07:12 AM
I called the Federal Loan Modification people to see what the criteria were to qualify. As I understand it you must have missed at least one payment, and it's advantageous if you've missed two. Since I don't want to destroy my credit, I'll never qualify. If you do qualify, you get to skip 2 payments, then for two years your rate 3%, then it is fixed at 6% for the remainder of the loan. The Federal Loan Mod # is 800-240-2341. From what I understand, most of the people who advertise loan modifications are scammers. Unless you are dealing with your own lender or the Feds, tread carefully.

There's another option to the "Making Home Affordable" act that you didn't mention. You ONLY qualify if you are in good standing with your home loan. It allows you to refinance up to 105% of the current value of your house without going through the paperwork of proving your income, etc. The only thing about this one is that you can ONLY refinance your first loan amount (not a 2nd or credit line) and it will only allow you to finance $2500 in closing costs. The rest you have to come up with out of pocket. This is not technically a modification but it does fall under the "Making Home Affordable" plan.

missingnumber7
06-09-2009, 08:04 AM
I'm trying to get my student loans consolidated and that sucks:(