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A Company is Promising to Lower Our Mortgage Rate to 2 Percent. Is That True? – Emmy

“Dear Steve,

Home mortgate restructure!!!

Just like million people in this country, My husband lost his job last year , we couldn’t affort the mortgate.

we got some mail, i call and those law firm said that they will be able to get us to some program like Restructure home loan..

and the rate only 2%.

Is there really that good program?

Please, help

Emmy”

Don’t miss our free Get Out of Debt – “How To” Guide Series on a number of topics, for loads of practical advice, tips, and help to beat back debt. – Click Here

The Answer

Dear Emmy,

Thank you so much for reaching out for some help and advice on this. That’s a smart thing to do.

The mailer you got is an advertisement to sell you some services for a fee. I have no idea who the company is so my remarks are going to be general.

In my experience these mailers promising similar results are not to be believed. There have been serious consequences to these companies include seizure, closure, and significant fines for participants. Even attorneys have lost their license to practice law. Basically the underlying problem is they don’t deliver what they promise yet they charge advanced fees for the service.

Below you will find a number of resources you can turn to to see what solutions might be available for you. I strongly advise that you check those sources out first before you spend any money. That approach will give you a good understanding of what solutions might actually be available for you.

Mortgage Help

Be sure to first read How Not to Get Scammed by a Mortgage Loan Modification Company.

Debt-to-Income Calculator

First you’ll need to determine your current debt-to-income ratio. The target debt-to-income ratio under the Home Affordable Modification program is 31%. Use this free online DTI calculator.

Mortgage Modification Calculator

The mortgage modification eligibility calculator will ask you several questions and then show you which programs you may be eligible for.

The free mortgage modification calculator can be found here.

Free Mortgage Modification Help and Counseling

If you have questions about the process or eligibility you can call 888-995-4673 and get connected with an mortgage modification adviser for free. This help is provided by government subsidized HUD Housing Counselors and they can be a big help in navigating the modification process.

In order to assist you, the housing expert will need to gather some information from you. Have the following documents handy:

  • Information about your first mortgage, such as your monthly mortgage statement.
  • Information about any second mortgage or home equity line of credit on the house.
  • Information about the monthly gross (before tax) income of all household members contributing to pay the mortgage, including recent pay stubs if you receive them or documentation of income you receive from other sources.
  • Information about your savings and other assets.
  • Account balances and minimum monthly payments due on all of your credit cards.
  • Account balances and monthly payments on all your other debts such as student loans and car loans.
  • Your most recent income tax return.
  • It may also be helpful to have: A letter describing any circumstances that caused your income to be reduced or expenses to be increased (job loss, divorce, illness, etc.), if applicable.

You can also get free help and housing counseling from a local HUD approved counselor. You can find your local free housing counselor, here.

Contact Your Mortgage Company

Not sure if your mortgage company offers modification programs? Not all do. You can contact your mortgage company to ask them about mortgage modification programs you might be eligible for. Click here to find your mortgage company.

NPV Calculator

Want to know the net present value (NPV) of your home for the mortgage modification process? No problem, use the free NPV calculator to find out. The NPV calculator is right here.

The calculator can be used by homeowners who have been denied a HAMP modification because of their NPV result or can also be used by homeowners prior to applying for a HAMP modification to help them better understand the NPV evaluation.

No Advance Fees

The Federal Trade Commission has a Mortgage Assistance Relief Services Rule which prohibits advance fees for mortgage rescue services or mortgage modification help.

But if the situation is now that you earn less than you did before and the mortgage payment is too much for you to afford, that’s an entirely different issue. If you want to quickly restructure your home loan then you should look at refinancing it.

Please post your responses and follow-up messages to me on this in the comments section below.

Big Hug!

A Company is Promising to Lower Our Mortgage Rate to 2 Percent. Is That True?   Emmy
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If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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