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I Have Prostate Cancer and Trying to Get My Mortgage Modified? – Steve

“Dear Steve,

We bought our current home as he market feel out from under us in 2007. In late 2006 we have 300-400K in equity in two homes. By the time we closed we one under water (eventual short sale) and one we made $22K on. Our $540K purchase was initially on a bridge loan as we sold these other homes. But the market got worse we ended up with a large loan (now at $517K, variable rate based on Prime flux for 30 years). Also I have prostate cancer and can’t get life insurance. My wife is worried if something happens to me (other than cancer) she won’t be able to afford the loan herself. SC LAw Group says for $3500 they can get the loan modified down to zilo.com based value of $365K from $610K as apprasied in 2007. But the idea of paying up front sounds like a scam to me. My loan is with Old Second Bank (Burlington, IL).

Is SC Law Group out of Irvine, CA a scam or ligit? Can a ligit group get my home loan substantially renegotiated?

Steve”

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 Steve,

What is your definition of a scam?

I urge you to follow my two guides to evaluate your choice of any company.

You can look at the related articles section of this post to see what has been written about them in the past. The comments on any relevant post may be enlightening as well.

If you would like to explore mortgage options, consider the following advice as a starting point.

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.

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

Big Hug!

I Have Prostate Cancer and Trying to Get My Mortgage Modified?   Steve
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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.
  • Anonymus

    I would suggest that you first contact your mortgage servicer to ask if they are currenlty providing principal debt forgiveness loan modifications, if so, what’s the criterea needed to be met.  Becareful, showing too much financial information sometimes gets homeowners denied for a loan modification.  This is where the expertise of a law firm would come in hand. 

    Now also a smart thing to do while contacting your mortgage servicer is to request the identity of the Investor of your loan.  If it can not be provided to you over the phone, ask how can you obtain that information.  Majority of the time it’s a simple request form through the good old fashioned postal service.  Knowing who’s the investor will allow you to research and investigate the types of modifications your Investor has readily available for homeowners who are experiencing difficulties with their mortgage payments.  Your mortgage servicer will be able to provide this information to you as well.

    In conclusion, contact Old Second Bank and verify what options are available for you in the aspect of reducing your mortgage debt, mortgage payments, and/or the interest rate.  Reason being, at the end of the day, its the Bank’s underwriter who approves or denies your loan modification application.

    Hope this was helpful.

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