Yeah, and if you believe that you also believe that mortgage rates are down to 3.5%!  Further, you might even believe your lender is going to lower your monthly payment because you asked them to. 

 

The Government rules and regulations are coming out tomorrow on the new mortgage modification standards. It is being touted as a rescue plan, but will they really be rescuing people?  Not sure. I have been invited to review and comment of the information tomorrow.

 

I have been getting calls from people in need enquiring about getting help with their mortgage payments. So far, I have 3 stories:

 

1. A client has 9% interest rate on an adjustable rate and is 6 months behind on the payments. They were instructed by the lender to stop making the payments so they look like they are really behind and have not yet received a foreclosure letter. They asked the lender (Wachovia) to lower their monthly payment but the bank said they do not qualify for the lower payment. The bank said they calculated their debt to gross income and they can afford to make the payments. Wachovia said they even have an extra 700 dollars for their other expenses. Why can’t they lower the payment?

 

2. Another client has a $2,000,000 mortgage with an option arm interest rate (should not have gotten that loan). The bank (nameless) that currently holds the mortgage solicited her to do a modification of her current loan to a lower rate. Under the government regs, the borrower must request the modification from the lender and not be solicited.  The lender sent her a form letter to complete and sign stating that she called them. They did not do an income check or an appraisal of the property. Mmmmm

 

3. Another client had a balloon mortgage that is now due. He called the bank (Bank of New York serving for Wachovia) and asked them if he could keep making the mortgage payments as is. He did not ask for a lower rate or a lower payment. The bank said no because the balloon had come due and he had to pay off the loan. They will begin foreclosure soon.  Why won’t they let him keep making the payments as is?

 

Why? Do you have a story to be investigated?  Email me.

 

 

Dale Siegel