Author Topic: loan modification after covid  (Read 802 times)

Offline yoely845

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loan modification after covid
« on: April 11, 2021, 12:03:09 PM »
my forbearance ends by the end of April, the bank sent me an option of loan modification. anyone has any experience about it, can i fill out the application by myself or should i seek someone professional for it?

Offline yelped

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Re: loan modification after covid
« Reply #1 on: April 11, 2021, 09:14:49 PM »

Offline lubaby

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Re: loan modification after covid
« Reply #2 on: April 11, 2021, 09:23:31 PM »

Offline yelped

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Re: loan modification after covid
« Reply #3 on: April 11, 2021, 09:27:27 PM »
Give the guy a break for a few hours.
Mazel Tov! I don't read every thread on DDF. :)

Offline lebowitz

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Re: loan modification after covid
« Reply #4 on: April 11, 2021, 10:29:10 PM »
my forbearance ends by the end of April, the bank sent me an option of loan modification. anyone has any experience about it, can i fill out the application by myself or should i seek someone professional for it?
i did it by myself on Sep. with my Santander mortgage but they didn't lower my rate just extended it for 40 years. I'm wondering if and how they would lower my rate.

Offline AsherO

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Re: loan modification after covid
« Reply #5 on: April 11, 2021, 11:01:15 PM »
i did it by myself on Sep. with my Santander mortgage but they didn't lower my rate just extended it for 40 years. I'm wondering if and how they would lower my rate.

They turned the remainder of a 30 year loan into a 40 year loan?

Offline lebowitz

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Re: loan modification after covid
« Reply #6 on: April 11, 2021, 11:05:10 PM »
They turned the remainder of a 30 year loan into a 40 year loan?
no they add another 10 years to the old 30 year loan, i pay now smaller pmts. but in the long run i'll be paying more interest

Offline ckmk47

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Re: loan modification after covid
« Reply #7 on: April 12, 2021, 12:46:05 AM »
no they add another 10 years to the old 30 year loan, i pay now smaller pmts. but in the long run i'll be paying more interest
When you get back on your feet, you can prepay more principal each month and finish off the loan earlier.

Offline ExGingi

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Re: loan modification after covid
« Reply #8 on: April 12, 2021, 01:26:51 AM »
i did it by myself on Sep. with my Santander mortgage but they didn't lower my rate just extended it for 40 years. I'm wondering if and how they would lower my rate.

Interesting. So it seems like they are doing things similar to what they did in the Making Home Affordable days.

Regular MHA waterfall was lower rate first, then extend, then apply forbearance of up to 30%.

Then there was HAMP tier 2 which was applied to non primary residences which had a different waterfall. I don't recall the details at the moment but can probably look up my records for the process.

We always tried to present a case which would result in the most favorable modification(s). My favorite was when there were multiple properties and multiple loans. It was a puzzle and art of knowing the right order to apply for the modifications in order to get the best possible outcome.

Back then I had an excellent assistant who knew excel well and was able to properly model the modifications almost to the dollar.

ETA: Here's a presentation of the various standard modification waterfalls and procedures. Extending term without interest reduction is non-standard modification. https://www.hmpadmin.com/portal/learningcenter/docs/presentations/mhaservicerwebinar_stdaltwtrfall_presentation.pdf
« Last Edit: April 12, 2021, 02:02:01 AM by ExGingi »
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Offline ExGingi

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Re: loan modification after covid
« Reply #9 on: April 12, 2021, 01:28:25 AM »
When you get back on your feet, you can prepay more principal each month and finish off the loan earlier.

Which might not be a great idea if you can get a better return on your money than whatever the interest rate of the mortgage is.
I've been waiting over 5 years with bated breath for someone to say that!
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Offline ckmk47

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Re: loan modification after covid
« Reply #10 on: April 12, 2021, 09:31:44 AM »
Which might not be a great idea if you can get a better return on your money than whatever the interest rate of the mortgage is.
Agree.  That's the same conversation to be had about any mortgage. 
But many people don't invest the monthly savings.  They spend it.  So they're better off prepaying.

Offline chayal101

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Re: loan modification after covid
« Reply #11 on: April 12, 2021, 11:21:21 AM »
my forbearance ends by the end of April, the bank sent me an option of loan modification. anyone has any experience about it, can i fill out the application by myself or should i seek someone professional for it?

You'd be best off having a professional do it for you as they knew the ins & outs of getting approved with the best rates. I know someone who specializes in this field. Send me a PM if you need his contact.
Chaya L.

Offline lebowitz

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Re: loan modification after covid
« Reply #12 on: April 12, 2021, 06:03:40 PM »
When you get back on your feet, you can prepay more principal each month and finish off the loan earlier.
that's right but i would end up the same as before with my 30 year mortgage, if they would have decrease my rate i would have smaller monthly payments and save a lot of interest.

Offline lebowitz

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Re: loan modification after covid
« Reply #13 on: April 12, 2021, 06:05:35 PM »
anybody with experience in this situation if i can reapply now that they should lower my rate?

Offline yoely845

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Re: loan modification after covid
« Reply #14 on: April 14, 2021, 02:10:21 PM »
intersting, here in my circles (Monroe & willi) I didn't hear from anybody going for loan modification. maybe bec. they want to refinance or they're afraid about the credit. But the unemployment benefit from covid everybody has.

Offline ExGingi

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Re: loan modification after covid
« Reply #15 on: April 14, 2021, 02:54:54 PM »
intersting, here in my circles (Monroe & willi)

Willi should be @Yoely718 how does @yoely845 claim willi to be his circles?  ;)
I've been waiting over 5 years with bated breath for someone to say that!
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Offline yoely845

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Re: loan modification after covid
« Reply #16 on: April 14, 2021, 03:17:20 PM »
Willi should be @Yoely718 how does @yoely845 claim willi to be his circles?  ;)
Only someone outside that circle can ask such a question, you don't know that  most from monre has a father, siblings, mother n' law... in willi. The people from 770 have family in all 50 states chabad houses ;D

Offline ExGingi

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Re: loan modification after covid
« Reply #17 on: April 14, 2021, 03:19:02 PM »
Only someone outside that circle can ask such a question, you don't know that  most from monre has a father, siblings, mother n' law... in willi. The people from 770 have family in all 50 states chabad houses ;D

I was obviously joking. The question is why would someone called Yoely845 need to even clarify what his circles are...
I've been waiting over 5 years with bated breath for someone to say that!
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Offline yoely845

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Re: loan modification after covid
« Reply #18 on: April 14, 2021, 03:26:55 PM »
I was obviously joking. The question is why would someone called Yoely845 need to even clarify what his circles are...
that's right :P  I didn't know that 770 knows about a yoely845