Loan Modification

I have my mortgage with Ocwen and BELIEVE ME they are the worst ever!!! Error after error after error! I am not sure why the goverment has not shut them down! They increased (more than doubled!) my mortgage and then told me that they would wait 60 days before they would tell me why!!! My attorney is now involved, but in the meantime...I cannot take anymore from them! I'm done! They outsource their business to foreign countries and the reps seem to be in a chicken coupe running with their heads cut off!

I've done a loan modification. Went to my bank about reducing the payments on my home equity loan. The first time I tried it, the loan officer said, that my best option would be to do a full refy of combining both the first and second mortgages, and paying off some credit cards. It would only cost me $400 but save me $1,000 a month. So we paid it even though we couldn't really afford it. I had been told that the loan was approved and I wouldn't have another payment for 6 weeks. At the 11th hour, the underwriter asked for a second review. The appraiser said 'oops, i messed up', and the loan was denied. I was denied because the value of my house was $30,000 less than needed. Luckily I hadn't gone out and blown all of the money that I now had 2 days to come up with! I waited a few months, went back to them and asked for just a modification of the 2nd mortgage. The were hesitant, but finally, as the bank was closing that day (literally!), they approved the loan, and reduced my payment. The mod was for the same interest rate, they just took the remaining amount and spread it back out over 30y. I watch the account like a hawk to make sure that the payment is being credited and the balance is being reduced.

My neighbor did a refy with Ocquin (sp?) and was told that her money would go into a good faith account for the first 3 months, then that would be applied to her balance, and the loan would be good for the terms agreed. Almost as soon as she sent the first payment, they said that the paperwork was wrong and she wasn't paying the correct amount. It also turns out, through their error or hers - not sure, the money she has been sending for the last year was still being applied to the 'good faith' account instead of the true loan account. Now they are telling her that she has to come up with THOUSANDS of dollars or they'll forclose.

There are good loan modifications out there. However, once you do sign a loan mod, WATCH YOUR PAPERWORK!! As soon as you see that something isn't right, or that your principle amount isn't changing, contact them.

M.

Ugh! Responding to Megan below. I have Ocwen as my mortgage company and they SUCK. I wish I could leave them but with the economy I owe way more than my home is worth. They have the worst customer svc ever.

My coworker just did this twice, the first time she was denied. The second time she was blindsided. She is about to lose everything. She signed for the modification, fixed rate, came to find out that she would be paying double her payments at 11% (from 700 a month to 1100 a month) not good for a single mother of 3 who gets no child support from any of the kids fathers.

I don’t know of one person who's outcome had been good. Good luck!

Not sure where you landed on this one, we did ours and my hubby helps people on Modification. There are good and bad things out there!

We did it thru citi and it worked great. This can only be down by the bank with whom yo have loan with.

Let me know if you need help there is no associated costs whatsoever.

V.

My best advice is to be very careful as to whom you ask for asisstance. I am a consumer bankruptcy attorney and have had several clients come in and tell me horror stories of agencies that took thousands of dollars from them to help with a loan modification with no results. If you are thinking seriously of requesting a modification, I would contact your bank direclty and do not pay any other firm/agency to assist.

As for results, some have had great results and some weren't able to get any results. I think it depends on your lender, your home and your loan. It is time consuming, but can't hurt either. If you are turned down, you are in the same position as you started, so out nothing but some time and energy. Good luck!