Loan Modification (interest rate, California, foreclosure, refinance)

[hddoc2000]

We were trying to modify our mortagage loan, submitted all of the paperwork and documentation, only to be told that the loan servicer had to get the permission of the investor to modify the loan. The investor refused to allow the loan to be modified because it is part of an investment pool of loans. The investor is also the bank who is servicing the loan. This seems kind of odd that they are not willing to cooperate with helping us to maintain our home. Their suggestion is to "sell your home or come up with the money". We are in California...homes are upside down? Has any one had this experience? Should the borrower be told up front that his loan is part of an investment pool and may not be subject to modification? I know you are notified if your loan servicer changes. What gives?

[johnsonkk]

Yes, if it can be dreamed, it's in some type of mortgage clause. It's quite common to not be able to refi for ** amount of years due to the way the loans are originally sold. 2 or 3 years minimum before refi is allowed is quite common.

Also whether the loan is assumable is another option that some companies allow while quite a few do not allow renters to occupy the house as part of the mortgage loan. All the language on what is and isn't allowed is covered in the monsterous amount of paper that is signed at closing but rarely do future homeowners read all the fine print.

[Modification Specialist]

Let me try to help you,

There are rules that regulate mortgage modifications, that are different from state to state.

There was a law enacted on July 8, 2008, that requires Lenders of residential loans in the State of California to accept loan modifications in most foreclosure situations.

California Civil Code 2923.6 went into effect on July, 2008, and applies to all residential loans made from January 1, 2003, to December 31, 2007, inclusive, that are secured by residential real property and are for owner-occupied residences.

From your statement it appears you are trying to do your own modification. This is the expected run around you get trying to communicate with your lender. Many people I speak to say "My mortgage company says they won't modify my loan". If you can prove a hardship, by law they have to.

Based on the law above (which lenders know you nothing about), if you can prove you have a hardship that will result in a foreclosure. You can actually sue your mortgage company. The end result will be a modification of your mortgage.

What are you options?

Every loan modification is different. I do not know the specifics of your situation. One hardship your could pursue - you are in an adjustable high interest rate. The reduction of your neighborhood value, has erased your equity and made it impossible to refinance into a lower fixed interest rate.

If you have questions PM me

..

[hddoc2000]

Thanks...I will review California Civil Code 2923.6. We were offered a moritorium, but that won't work in our case.

Originally Posted by Modification Specialist

Let me try to help you,

There are rules that regulate mortgage modifications, that are different from state to state.

There was a law enacted on July 8, 2008, that requires Lenders of residential loans in the State of California to accept loan modifications in most foreclosure situations.

California Civil Code 2923.6 went into effect on July, 2008, and applies to all residential loans made from January 1, 2003, to December 31, 2007, inclusive, that are secured by residential real property and are for owner-occupied residences.

From your statement it appears you are trying to do your own modification. This is the expected run around you get trying to communicate with your lender. Many people I speak to say "My mortgage company says they won't modify my loan". If you can prove a hardship, by law they have to.

Based on the law above (which lenders know you nothing about), if you can prove you have a hardship that will result in a foreclosure. You can actually sue your mortgage company. The end result will be a modification of your mortgage.

What are you options?

Every loan modification is different. I do not know the specifics of your situation. One hardship your could pursue - you are in an adjustable high interest rate. The reduction of your neighborhood value, has erased your equity and made it impossible to refinance into a lower fixed interest rate.

If you have questions PM me

..