Question: I had rented my house out and thought I could never save it but about 8 months of no payments they said lets do a loan mod. Took another year before I got it. In the meantime they knew I did not live in it and had rented it (told them) and I was working 100 miles away. They insisted that it be owner occupied and told them I would have to quite…no cares here so I did hoping I get could work here. So now I am not making enough to pay the mortgage with the modification. With the terms I will never pay this house off. the mortgage is $200 more than its worth.
If I stop making payments now do they have to go thru
foreclosure all over again. Read my mod agreement and nothing has addressed that question. HELP…thank you
Answer: – Yes they will start the foreclosure process all over again.
It’s a shame that so many folks think loan modifications are the answer to their mortgage problems. There are so many scam companies out there that do nothing besides take money and pretend they are negotiating with your lender. These people are nothing but telemarketers and have no experience in mortgage or banking. The best thing you can do if you are behind in your mortgage is discuss your situation with a lawyer. A lawyer can evalulate your circumstance and present different options.
Agreed… I would even go a step further and tell homeowners they should never pay someone upfront. It should be performance guaranteed. If anyone asks you to pay upfront to modify a loan, I would run the other direction. Some companies will offer a performance guarantee, but they always ask for the money first. We are finding that a lot of these “loan modification” companies have now declared bankruptcy and many homeowners are finding themselves out $3,000 to $5,000. Be careful who you talk to.