I was injured and out of work for over a year,and required surgery. My husband was a truck driver, and leased a truck, that was new, and kept breaking down. He could not hardly make enough money to pay the bills,except the mortgage payment. We had to also let a car go back to the bank. We had fairly decent credit for years before this happened.We still have one car payment that is current and another car payment that our daughter pays. I work now for almost half of what I was making,and my husband had to let his truck go back and has a job that pays 15 an hour now. Bank Of America will not modify our loan,and wants enormous money that we dont have.
How can we get the Bank to modify our loan so we can afford it? Is it true that since the loan is insured with FHA, that is the reason that they do not want to modify the loan? If that is true, then the problem in the USA is going to get worse with time. If you have any information that would help us, we appreciate it very much.
Dana and Robin”
Dana & Robin,
There is no way to force a lender to modify your loan. You must qualify based on the criteria set by your lender and the investor on your loan. If the lender is telling you that you don’t qualify, the only way to change that is to change the financial dynamic of the household. ie.. income, expenses, etc.
It is true that FHA loans are not eligible for certain modification programs that may otherwise be widely available on other loan types. One example is the Home Affordable Modification Program (HAMP)…. FHA loans are not eligible for this program. It’s kind of weird because in this example government backed loans are not eligible for a government backed modification program… wierd, but that’s how it’s been since the beginning of HAMP in 2009.
Yes, I have seen FHA loans succesfully modified, but they typically have a longer review process and the results may only offer a slight reduction in monthly payments. I can’t say for sure but I believe the reason behind this is that most FHA loans have decent terms already. Many times, the FHA loan that you have now may represent the best terms you will ever get on the loan, and there is not very much flexibility to improve upon it.
I have a couple questions that may help me provide further advice or tips:
How much do you owe on your property? How much do you estimate it is worth? What is your current interest rate? Have you fallen behind on payments?
Please use the comment section below and I will do my best to help you out.
Andy is a licensed real estate broker in Massachusetts and is the founder of Northeast Properties in Norton, Massachusetts. His brokerage is designed to help homeowners in today’s difficult real estate market, specializing in short sales. Andy speaks with Massachusetts homeowners every day, helping them to address their questions or issues with short sale or loan modification. He enjoys helping consumers arrive at the correct solution to their problem, and believes that the only way to correctly do that is by presenting them with all of their options in an un-biased manner.
If you have a mortgage, short sale, real estate, or loan modification question you’d like to ask just use the online form. I’m happy to help you totally for free.
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- We Are Trying to Buy a House With a Short Sale But It’s Going Nowhere. – Joy - December 15, 2011