Teaming Up with Your Lender for a Loan Modification

Okay, someone beat me to writing this T3 list (Top Ten Tips).

We recently spent over two months renegotiating our mortgage with Wells Fargo. My tips were simple: call early, call often, stay cool (which is why I assigned “renegotiating our mortgage” to my husband – he stays calmer longer than I), and don’t give up. Oh, and just to clarify we were current on our loan.

So two weeks ago we received the news that our payments were to be reduced by half for 6 months, leaving a big balloon payment due in September. Success! Of course we had to agree to the terms without actually getting to read them – they figure since they have you over a barrel they’ll really do you while you’re there and you can’t squeak about it.

The directive is that as long as we pay on time (by cashiers check or Western Union only, and due on the date of the negotiation, not the 1st of the month) after six months they will modify our loan. My assumption is that the massive balloon payment of over $11k that is not being paid during those six months will be refinanced into a new loan, terms yet to be negotiated. We’ll have an update in the fall as to how this all goes.

We are pursuing clarification that payments to our escrow account will continue for the purpose of property taxes and our PMI payments will also continue uninterrupted.

It’s quite possible that my lender is being paid $1,000/month – according to some of the terms of the Obama plan – to modify my loan. So they really aren’t “losing” too much money in all of this.

Today’s Realty Times has a much longer and meatier list then my quick tips – so glad I saw this, so now I don’t have to spend my day writing it! (Yes, it really was on my list of things to do today!)

This article reveals ten ways you can expedite and negotiate an affordable loan modification that enables you to catch up on any missed payments, lower your monthly mortgage payment, and keep your house.
Read Teaming Up with Your Lender for a Loan Modification

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