Quote:
Originally Posted by blondiel
I have a friend who has a mortgage modification. Her modification was only $300 or 400 less per month which means that she still cannot afford the mortgage. The process was messy, had to submit information twice, received foreclosure packet before modification packet was sent, short inappropriate conversations from customer service when she called.
Since she still cannot afford the mortgage, what are her options? Should she not pay her mortgage for a month and use the money to get an attorney to review the modification? Can she request a mediation? What should she do at this point? Her mortgage is with HBSC or HB something.
Thanks.
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I understand the situation - but need more information before I can advise which course you need to take. Realizing HSBC not being the easiest lender to work with.
Deciding whether or not to keep the home. You need to look at the results of two tests. One is an affordability test to show she makes enough income to make even the smallest payment.
a) the affordability test (on a mortgage calculator) - 360mth x 2% x $Loan Amt =
b) the income test - multiply the gross monthly income x 31% =
Is the income higher (b) than the affordability test (a)? If so there is room to negotiate. If it is lower, the choices are to make more income or let the home go.
You said she just completed a modification. Is this a trial plan or the final modification? Has she made the 1st payment of the new modified loan?
If your friend already signed and accepted the Lender modification, and she made a payment. If you are late in the next 12months (probationary period), the Lender can move directly to foreclosure. Depending on the state - either a trustee sale, or a court sale.
Were there missed payments, they did a forbearance plan? They might of lowered the principle payment, but added a 2nd catch up payment for the arrears.
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Last month I took in a case exactly like yours - where the home owner tried to do his own modification. He signed and agreed to the mod. The first modified payment - to make it they used the rest of their savings. They made the second payment after borrowing money from family. They have no income for the third payment.
Because he accepted the modification terms from the bank. Had to show default is imminent due to the modified terms by the Lender. We are working directly with the banks attorney.
Due to the rules of this forum - I cannot publicly post my contact information. I sent you a PM, if you want to further discuss you options.
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