[FXSTCHIEF]

Hello All,

This is my first post and its with regards to loan modification.

I tried to work things out with my loan company (Downey Savings) PRIOR to being late on my mortgage, and everytime I was told they cant do anything at all for me except lower my interest by 1/2 a point. So as soon as I missed my first payment (Jan 09), they contacted me and told me to write a letter stating my hardship (Recent divorce accompanied with alimony), so I wrote the letter and shortly there after I received a letter stating they DENIED me due to me having PMI on the loan.

Is it true that I cant do anything at all because of the PMI and that the loan company will be willing to allow the property to go into foreclosure? By the way, I live in California where my house is worth approx $300K and I owe $487K. As well, I have custody of all three of my kids and stated that in my hardship letter.

Thank you for any advice!

[cdybrkcan]

If you are upside down in your mortgage with a lender not willing to work with you , there may be option to have a forensic loan audit done by a professional. The outcomes are much better for the homeowner than a standard modification. Should their be proof of "predatory lending" , which happens to be very common, the lender will be left with little option but to work with you. Outcomes can be very favorable. Please feel free to email me if you would like me to explain in more detail how a Loan Restructurization would work in this case.

[Komaraconsulting]

If thats how upside you are then it wouldnt be in the banks best interest to foreclose on the property. With the new guidlines put in place I would try re-applying. It also depends on your financial situation.

[Royal]

I would try again...but this time submit a full loan modification packet. You need to bypass the "wolves". Unfortunately they don't really help you they just get nasty when they realize they are talking to the homeowner.

[ad_lime]

I don't see any reason in the lender wanting to foreclose on the property if your upside down on the property. This would only make them take a larger loss if they did so. If your property had equity, then it would be a different story. Try reapplying for a loan modification, but doing it by yourself is quite difficult, try using a local lawyer to help you with the process, make sure their expertise is in mortgages.

[Icanhelpu2]

Hi FXSTCHIEF,

Based on what you say it sounds like you should qualify for a mod. It is a ll in the details of your situation and how you present it.
The lenders are understaffed and unprepared to deal with the mortgage crisis.
You can't get to a dessication maker on the phone when you call. The clerks that answer the phone can't help you.
If you still need help you can contact me. I'll be able to see if you qualify.
Alex

[loanmod]

I don't think that your lender will prefer to let the property go into foreclosure. You just need a loan modification attorney who can represent your case expertly.

[allyn]

"Based on what you say it sounds like you should qualify for a mod. It is a ll in the details of your situation and how you present it.
The lenders are understaffed and unprepared to deal with the mortgage crisis.
You can't get to a dessication maker on the phone when you call. The clerks that answer the phone can't help you.
If you still need help you can contact me. I'll be able to see if you qualify."

I agree with you Alex. Nice advice.