I don't understand this situation. Maybe someone here can answer my questions.

Original Purchase Price $164900 - 2003
Balance upon default $155600 - 2008
Principle Balance Due after Modification - $170753

How can my Principle Balance after modification be more than the original purchase price of 5 years ago?

Where has all my payments gone too?

Where is this difference between Balance at default and Balance after Modification?

I don't see how a modification helps at all. Homecomings Financial did this without our approval/signature or anything.

Homecomings letter even states that all late charges were waived. So where does this extra $15,000 now owed come from?

I can't get a straight answer from them and I have not received the actual paperwork as of yet, only a letter stating that they modified my loan.

This modification doesn't even reduce the monthly payment, so how do they think they have helped me?

Our neighborhood current market is averaging between $120,000 to $130,000 asking price.

How is this new modification helping me if they haven't considered current market value?

Can anyone explain this to me?

Thanks

I am not a pro by far but it does seem they have added your lates back on, or they have added fees for the mod. year 1 to 5 you really only pay intrest, so most of the payments went to that. Sorry you got a bad deal, I have told others about this today but I read hud.gov has housing specialist that you can find in your area to help you get the best mod. I would not sign anything until you have hud or a lawyer look over the mod just so you do not get slammed as they seem to be doing to U now.

Good Luck!!!!! Maybe some mortgage people can give you more input,

Hi

OP did you owe back mortgage payments, taxes etc.

More info is needed to help with your question.

Acesfull

This isn't uncommon for lenders to do this. It doesn't help you, it helps them. Lenders won't always discharge all of the arrears and associated late fees/lawyer fees/escrow necessary to bring a borrower current, they will usually wipe out a good chunk though on a mod. If they add it add back to the balance, generally it isn't a big deal because they have cut the interest rate so much, the payment will still be reduced significantly so the borrower will be able to afford the new, lower payment. Key word being lower payment they will be able to afford to make.

Ex. Does it matter if they added 10K back onto the balance, if they dropped a borrower from an 8.5 adjustable to a 4.5% fixed for the life of the loan? I'd take that deal! But if they add part or all of the arrears to the balance, what good is that if the payment increases? That won't solve the borrowers problem - an inability to pay the current mortgage.

Slip in a "loan modification" agreement and try to have a borrower sign off on it and lock them into the new contract. Generally, you can't do more than one loan mod. in a 12 month period of time.

Folks call frequently requesting loan mod. help, they will turned away because if they signed off on one with their lender, even if it was a miserable deal that increased the payments, if it labeled a "loan mod." done within 12 months, and the borrower signed it, generally, there is nothing tha be done with a new another loan mod. until the 12 months are up.

If you are a candidate for a loan mod. - primarily inability to pay mortage - and their is room for negotiations w/ your lender (high interest rate - great if it is adjustable, negative equity) consult w/ a non-profit or an attorney to review/handle your modification.

I think that the bank is trying to avoid foreclosing.

Are they pressuring you to agree?

Have you thought about walking away? I don't know what your current situation is.

Why not try a counter offer? I think it would be smart to get some legal advice on this.

I am no expert but I can give you something to think about based upon experiences my sister and husband just worked thru.

They worked with a firm that specializes in performing a "forensic audit" on your mortgages to look for any violations in the Truth In Lending Act (TILA). Over 70% of mortgages done over the last three years have numerous errors in non-disclosure, accounting and schemes of "unjust enrichment" among other things. They can use these as leverage to turn the tables on your lender to negotiate much better terms on your behalf and in some cases you could receive monetary damages. Some have been even successful in getting mortgages recinded where the borrower gets the title free and clear and that is usually dependent on the amount of errors in the mortgage. You would have to have a large number of errors to get to that sort of settlement. This process is different than a loan modification where they just try to renengotiate your terms based solely on your current financial situation which in some cases has yielded very few positive results.

In any case the firm they were working with (these firms mostly are attorney based )went over their docs and found 15 violations and used that knowledge to work out a settlement with their lender that brought their mortgage payments down from $2500 to $1500 a month. They paid around $3000 for the service and some of the ones I found online were around that. I would do a Google search and look around and check out thoroughly to see if that is an option. I found a couple that will do a preliminary check for free to see if you even have a case prior to paying anything