Loan Modification? Foreclosure? Wait for Relief?, In a quandry about where to go from here. Options

[snax]

Well I guess they are still really working on it. They have requested just one additional piece of information in the form of recent pay stubs.

Fair enough since I may have pessimistically hinted that I might possibly end up out of a job.

[Googie]

[Mayor]

A lot of of modification loans are being done by 3rd party companies under false information by the company and customer, these customers are not having issues and they default their loan intentionally and lie to have a modification to have their interest slashed down to 2% sometimes!

The only way there getting that done is making fake paystubs. Every lender will be verifying paystubs to what is stated is the income. That be so stupid for them to stupid "FAKE" ones.

[Mayor]

Well I guess they are still really working on it. They have requested just one additional piece of information in the form of recent pay stubs.

Fair enough since I may have pessimistically hinted that I might possibly end up out of a job.

I wouldn't admit that -- the rep may document that. Hope you get the mod!

[sirrowan]

but they apparently can't see the forest for the trees that WE WILL WALK if they don't play ball by putting us into a fixed 30 year with a competitive prime market rate.

There are many homeowners that share this attitude, they have their lender by the balls and are trying to squeeze them for every penny they can get from them. Again, ability to pay is often not the issue.

Default rates and foreclosures are not solely because of hardship cases, alot of folks are willingly making choices to stick it to their lender and walk when ability to pay is not in question.

We have asked the mortgage company twice now to consider modification, but they have remained unresponsive. We refuse to play their game anymore, but it appears unlikely they will wise up and play ours.

Maybe you are not qualified for a modification. A modification is done more often than not, on a need basis, not a want basis. Maybe your lender is not playing games and you are the only one playing games? If you have a surplus of cash left over, where is the inabilty to pay?

Having a surplus every months like you say, is pretty darn good for this economy. There are people who have their cars repossessed and are biking to their job, are working full-time while undergoing chemotherapy for the third time on cancer that has now mestasticed to their bone marrow from their prostate just to put food on the table and pay their basics, while not having the full amount of money to pay their mortgage and if they don't get one, they will be foreclosed upon.

So I suppose that I am not really asking for advice here, but inviting a discussion of the pros and cons, and the what-ifs of where things will go from here for people in a similar situation

Since the invitation has been extended........... I don't think it will be so easy as folks claim it will to just pick up their credit and come to buy a home in few years. The subprimers, are done with and the lender that will be left and able to make loans for mortgages, they will remember the ones that walked.

Lenders are going through h!ll right now, scrambling to stay alive, with homeowners who truly can't afford to make payments tearing into their cash flow to homeowners who have no problem making payments but demand a modification where the lender is going to lose money. How can a lender recover or stay alive in such a prevalent attitude among homeowners? Even the ones that can afford pay are preparing to stick to the lender.

IMHO, the prime banks that survive this, are going to punish all of us in the future. The requirements for buying in the future, will be rigid. For those w/ foreclosure on their record, I wouldn't be surprised to see if they are denied mortgages in the future, even if they have rebuilt their credit score to the 700's. because they have been foreclosed on and it reprorts.


This might very well effect lending guidelines in the future, maybe those w/ foreclosures on their record will be barred from the prime lenders for years to come, despite a high credit score. And I think the prime lenders will be the only ones left standing, like Bank of America.

What I find completely baffling is the mortgage company's refusal or inability to work with us on this loan.

I find it equally baffling why you can't appreciate a business is trying to stay alive and do everthing possible to collect on accounts where there is no inability to pay. The banks can't count on the guy's in construction who have experienced layoffs or the guys working at Ford or any number of major employers that were recently laid-off. The banks have to work with these guys and eat money, for the benefit of the bank and the distressed homeowner. But why should they do it on a homeowner with no ability to pay? They are business trying to stay alive, they aren't out of line to expect payments on those borrowers that can afford payment, despite not liking the terms of their loan and current home value.



The idea with modifications was to save a distressed homeowner that foreclosure was guaranteed because they suffered some major event - job loss/layoff, major illness that reduced their income and would leave them homeless. Lenders/investors didn't agree to modify these loans and take a loss because they are nice guys and operate a charity, they argreed to take a loss because it was necessary. But now, everyone wants a modification, even if there is no ability to pay and the sentiment is to blame their banks and complain about how horrible they are when they don't get one even though their is no hardship.

Cinderella, I only read about the first few lines of what you said and you are so friggin' out of line...You gotta be kidding me. Get your head out of your azz and see the real picture.

Seriously, are you working for the one and only ethical "lender" out there? You are so full o isht, you need to take a laxative(sp).

Spare me the Cross. If you have nothing constructive to say then STFU.

[Mayor]