Loan Modification
I posted in the past on the frustration of trying to obtain a loan modification, which I know is an issue for many. I started this process last fall, with a perfect record re: payments, but had recently incurred an income loss. My request was simple, so I perceived, to change our 15 yr. loan into a 30 year loan, thereby cutting our payments nearly in half. I won't belabor the phone calls (hours), faxed documents, etc., all for not, as we were denied twice. I tried one last time, in February, when President Obama introduced his loan modification program. I heard absolutely nothing. In mid-May, a representative from my lender called and congratulated me on our qualifying for a loan modification. I truly thought it was a prank call at first, as it had been 9 months of an exercise in futility. We have now completed our trial period (3 months), have remained on time with our payments, and just received permanent approval for the modification: it will NOT affect our credit, which was a vital element for us. The terms were better than I expected, which was a pleasant surprise. I have had a lot of support in the past from other bloggers and I wanted to express my thanks, andit is true, never give up hope. (Special shout out to TheraP!)
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Congratulations Amelie--you are among the few & the proud who have successfully negotiated one of these things!
Who were your banks? And what was the specific program?
Also, you may want to change your headline to something more personal--"loan modification" looks like one of those spam post headlines. If I hadn't seen your name and the rec, I have to admit I wouldn't have clicked on it but I'm glad I did!
I am so happy for you!
erica
October 18, 2009 4:16 PM | Reply | Permalink
Erica: I am not sure I can change the headline but good advice. The lender is GMAC, and I went from a 15 yr., 6% loan to a 24yr. loan. Our rate will be 2% for 5 years, then it goes up 1% per year until it reaches 5%, the cap. I have not doubt without President Obama proposing this program for current vs. late paying borrowers, we would not have had success. Thanks for the kind words!
BTW, I have been assured every time I have called that this will in o way affect our credit rating, good news.
October 19, 2009 5:03 PM | Reply | Permalink
No way, rather :-)
October 19, 2009 5:04 PM | Reply | Permalink
BTW, the program is called President Obama's loan modification program. Our loan holder is Fannie Mae, through GMAC. The program requires 3 months of trial payments that must be made on time, and after that you are reviewed for a permanent modification, which in our case took about 2 weeks. Hope this makes sense.
October 19, 2009 5:17 PM | Reply | Permalink
Congratulations on being one of the very few assisted by this program. I'm genuinely glad somebody got some relief. Meanwhile, this tiny, ineffeicient, ineffective, and failing program doesn't even begin to address the tidal wave of foreclosures that is continuing unabated in this country. 10,000 foreclosures DAILY! This has been going on for over a year now and there is no slowing. In fact, it is accelerating now since many who've lost their jobs in the past 6 months or so are finally reaching the end of their ability to pay. And what has our administration done about it? Paid lots of attention to Goldman Sachs instead of the 10,000 families losing their homes every day just so we can have a "jobless" recovery.
Again, I'm delighted to hear of your success. Too bad this program is so poorly managed to help a significant number of people who need the help.
October 18, 2009 5:28 PM | Reply | Permalink
Agree completely. I am amazed we got help!
October 19, 2009 5:04 PM | Reply | Permalink
Oh, Amelie, I am so glad. I have been thinking about you for months, worrying.
Well done. Given my post-hurricane experience, I really know what it cost you, day to day, every day. Waiting for Godot. Not knowing if your earnest efforts would make any difference.
I am so glad for you.
October 18, 2009 7:08 PM | Reply | Permalink
Hope things are well with you! And thanks so very much for the kind thoughts!
October 19, 2009 5:05 PM | Reply | Permalink
Ma'am, you give me hope. Maybe I will call my lender.....
October 18, 2009 7:39 PM | Reply | Permalink
I was VERY persistent, they were probably rolling their eyes every time I called......try it, can't hurt.
October 19, 2009 5:06 PM | Reply | Permalink
Amelie, thank you for posting such good news. I can't imagine how worrisome that was and I am so glad you were able to work it out.
October 18, 2009 10:19 PM | Reply | Permalink
Thank you!
October 19, 2009 5:07 PM | Reply | Permalink
Congratulations Amelie. What a ridiculous program, that takes clients with a perfect payment record and strings them along for 9 months before approving the deal. If the timing had been worse, as it may have been in many others cases, you could have declared bankruptcy within that 9 month period.
October 19, 2009 12:21 AM | Reply | Permalink
We were just lucky, truly. And sadly, I have heard of many who had no choice but to declare BK. Thanks for the congrats!
October 19, 2009 5:09 PM | Reply | Permalink
Glad to hear it, Amelie. And good to see you active around here again.
;0)
October 19, 2009 9:05 AM | Reply | Permalink
Thanks Obey!! It is good to have enough time without stressing out to post again :-)
October 19, 2009 5:10 PM | Reply | Permalink