Almost a year and still in the process of loan modification?
I put 20% down when I bought my house in 07/2005 at $ 161k. Last year in December, I have filed for a loan modification. To current date, I have not been paying my mortgage since 12/2005. I have worked with HOPE to get me started with the loan modification. In May, I got a letter for modification. However, I rejected it because there was no “modification” What the loan servicer (America Servicing Company) did was add in all the months of unpaid mortgage, closing cost and interest rate remain the same, 7.725%. My interest rate is high because, I have no credit history. I never had/used a credit card, my car was paid off etc. So, it wasn’t because I have a bad credit history.
So, we tried all over again. I have submitted all the documents required, letter of hardship etc. Months went by, calling the servicer, being transfered from one dept to another, speaking to different agents, I never got any firm answer. I have had 2 letters stating that my house will be on foreclosure.
Last month, my loan servicer sent me the loan modification packet. I got in in the mail 2 days prior to the expiration date. Once again, it was the same “modification” offered as before, add in the months of unpaid mortgage, closing cost and the same interest rate. However, they have reduced the payment down to $ 50 a month! I rejected again. And I was told that my house will be in foreclosure in December if I don’t get anything done. Basically, with their offer, I am back to square one. My loan was down to $ 122k and with their loan modification offered, my loan goes back up to $ 150k (which is more than my original loan amount)
What should I do? Where can I go to get real help? I had a loan modification company that wanted to me to pay $ 6k to “help” me get the modification done. They guarantee that my loan servicer will pardon all the months of unpaid mortgage and lower the interest rate down to as low as 2% and my monthly payment will be as low as $ 400 month.
Please help! I am a single mother of 2 very young children and saddened by the thought of losing our home. At wits end.
If I have the $ 6k, I would not be in this situation. Is that how much a loan modification officer/company normally charge?
I haven’t made payments in almost a year not 4 years (answer to one of the respondent)
Sorry typo, I have not been paying since 12/2008