Author Topic: Mortgage Modification (Read 26392 times)

Barryg · « **Reply #20 on:** October 28, 2021, 03:31:02 PM »

Nice! A deal from 11 years ago, bigger and better and stronger and faster...

dealsrus · « **Reply #21 on:** October 28, 2021, 03:53:54 PM »

Quote from: ExGingi on October 28, 2021, 02:37:38 PM

-10000000000000000000

History doesn't repeat itself, but it sure does rhyme. What was the rush? Could have kept on deferring. In the worst-case scenario, you would have been able to have the entire amount deferred tacked on to the end of your loan without any interest accruing.

For anyone with a Fannie or Freddie loan (and most loans are), it's a zero paperwork no-brainer!

I closed in March 2020@ 3.1875 through wells fargo. Can I benifit anything?

ExGingi · « **Reply #22 on:** October 28, 2021, 04:03:35 PM »

Quote from: Euclid on October 28, 2021, 03:10:12 PM

They asked me if I want to put my mortgage into forbearance, and I told them no. Should I have accepted forbearance, in order to get a more favorable mod?

No. Sounds like your loan is a Fannie or Freddie. So you get the Flex Modification. No need to put into forbearance at this point, though one never knows what the future will bring. For all we know we might be looking at 2% (or lower) PMMS rates a year or two from now.

Quote from: ushdadude on October 28, 2021, 03:24:27 PM

deferment was 6 month max. if i would have stayed with BoA for entire mortgage it would have just been tacked on at the end. Because I refi'ed they collected it at closing.

After 6 months deferral, you were able to have it extended 3 months at a time just for asking and saying you're still under hardship, up to a maximum of 18 months (which is where many people are now). Tacking it to the end is good, as that means it doesn't have to be paid until the mortgage matures, and accrues no interest. They didn't "collect it at closing" any different than they collected any other part of the outstanding mortgage. It was simply part of what you owed and needed to be paid off as part of the refi.

monoso · « **Reply #23 on:** October 28, 2021, 04:11:39 PM »

Is there a way of pulling out money while modifying? Or I have to refi

Euclid · « **Reply #24 on:** October 28, 2021, 04:13:06 PM »

PMMS?

Euclid · « **Reply #25 on:** October 28, 2021, 04:14:10 PM »

Quote from: Euclid on October 28, 2021, 04:13:06 PM

PMMS?

Ah the current "interest rate" for residential mortgages

ExGingi · « **Reply #26 on:** October 28, 2021, 04:56:31 PM »

Quote from: Euclid on October 28, 2021, 04:13:06 PM

PMMS?

http://www.freddiemac.com/pmms/

Freddie Mac Primary Mortgage Market Survey.

ExGingi · « **Reply #27 on:** October 28, 2021, 04:57:35 PM »

Quote from: Barryg on October 28, 2021, 03:31:02 PM

Nice! A deal from 11 years ago, bigger and better and stronger and faster...

And allows double-dipping (getting a deal 11 years ago doesn't stop you from getting one again now).

Euclid · « **Reply #28 on:** October 28, 2021, 06:44:37 PM »

Quote from: ExGingi on October 28, 2021, 04:03:35 PM

No. Sounds like your loan is a Fannie or Freddie. So you get the Flex Modification. No need to put into forbearance at this point, though one never knows what the future will bring. For all we know we might be looking at 2% (or lower) PMMS rates a year or two from now.

I just looked up my mortgage on Freddie and Fannie's websites, and it doesn't show up. I guess TD hasn't sold it to them yet? I refi-ed in 2019.

ExGingi · « **Reply #29 on:** October 28, 2021, 06:47:04 PM »

Quote from: monoso on October 28, 2021, 04:11:39 PM

Is there a way of pulling out money while modifying? Or I have to refi

After you modify you can apply for a HELOC (possibly with another bank).

ExGingi · « **Reply #30 on:** October 28, 2021, 07:11:55 PM »

Quote from: Euclid on October 28, 2021, 06:44:37 PM

I just looked up my mortgage on Freddie and Fannie's websites, and it doesn't show up. I guess TD hasn't sold it to them yet? I refi-ed in 2019.

You can try MERS https://www.mers-servicerid.org/sis/common/search

There is a remote possibility that it is neither (over 70% of mortgages are owned by them, add FHA to the mix and it's at 92% - https://www.heritage.org/markets-and-finance/commentary/overreliance-fannie-and-freddie-violates-their-federal-charters)

There are also other lenders that match the Freddie and Fannie terms (back in that MHA days I managed to get for someone a modification that cut his payment by 50%, by reducing the rate, extending term for 40 years, and deferring 30% of the capitalized balance. His mortgage was with Chase and they offered him stepped forgiveness of the deffered amount if he made timely payments. He ended up saving at least $500k between that forgiveness and the rate reduction).

Euclid · « **Reply #31 on:** October 28, 2021, 07:24:15 PM »

Quote from: ExGingi on October 28, 2021, 07:11:55 PM

You can try MERS https://www.mers-servicerid.org/sis/common/search

There is a remote possibility that it is neither (over 70% of mortgages are owned by them, add FHA to the mix and it's at 92% - https://www.heritage.org/markets-and-finance/commentary/overreliance-fannie-and-freddie-violates-their-federal-charters)

There are also other lenders that match the Freddie and Fannie terms (back in that MHA days I managed to get for someone a modification that cut his payment by 50%, by reducing the rate and deferring 30% of the capitalized balance. His mortgage was with Chase and they offered him stepped forgiveness of the deffered amount if he made timely payments. He ended up saving at least $500k between that forgiveness and the rate reduction).

Found it in MERS.

I haven't deferred any payments at all. I wonder if I'll get any worthwhile modification; my current rate is 3.125%.

ushdadude · « **Reply #32 on:** October 28, 2021, 07:44:13 PM »

What are the disadvantages of doing a mortgage modification now?

ExGingi · « **Reply #33 on:** October 28, 2021, 08:03:17 PM »

Quote from: ushdadude on October 28, 2021, 07:44:13 PM

What are the disadvantages of doing a mortgage modification now?

Locking at PMMS rates that are slightly higher than all-time lows.

Euclid · « **Reply #34 on:** October 28, 2021, 09:35:43 PM »

Quote from: ExGingi on October 28, 2021, 08:03:17 PM

Locking at PMMS rates that are slightly higher than all-time lows.

Is there a deadline until when you can get the COVID modification? Is there a limit to how many times you can take advantage of it? Where can I read more about it?

ExGingi · « **Reply #35 on:** October 28, 2021, 11:48:28 PM »

Quote from: Euclid on October 28, 2021, 09:35:43 PM

Is there a deadline until when you can get the COVID modification? Is there a limit to how many times you can take advantage of it? Where can I read more about it?

I am not aware of a deadline.

I would presume it's one shot, though in the MHA/HAMP days there was at a certain point a HAMP-2 IIRC (though I don't think any modifications I helped with might have qualified, as I always designed them to maximize the modification).

Some resources:

https://www.hud.gov/sites/dfiles/SFH/documents/COVID-19_Recovery_Loss_Mitigation_Options_ML_2021-18.pdf

https://sf.freddiemac.com/working-with-us/servicing/servicing-solutions/freddie-mac-flex-modification

https://sf.freddiemac.com/content/_assets/resources/pdf/other/covid_ref_guide.pdf

https://www.knowyouroptions.com/options-to-stay-in-your-home/overview/modify-overview/flex-modification

tov hashem · « **Reply #36 on:** October 29, 2021, 12:09:52 AM »

does it work on investment property's as well?

yelped · « **Reply #37 on:** October 29, 2021, 12:12:07 AM »

No harm to credit or to take out a future loan or mortgage? If you don't have to fall behind on payments, why doesn't everyone just call and request a lower rate instead of refinancing?

yesitsme · « **Reply #38 on:** October 29, 2021, 12:22:56 AM »

What's the process?

ExGingi · « **Reply #39 on:** October 29, 2021, 12:25:06 AM »

Quote from: yelped on October 29, 2021, 12:12:07 AM

No harm to credit or to take out a future loan or mortgage? If you don't have to fall behind on payments, why doesn't everyone just call and request a lower rate instead of refinancing?

That's the beauty of the current situation vs the MHA days. Back then default or imminent default was required (I know two people who got denied because the banks claimed they were not at risk of imminent default. One followed my suggestion, went 90 days past due, reapplied and was approved. The other refused and stuck to his mortgage at around 8%! which he was struggling to pay, and though it only had about 10 years left on it, getting it modified to a new 40 year loan with a monthly payment of less than $1,000 would have put him in a better financial position IMHO). As a result credit took a hit, though it recovered thereafter.

In the current Covid-19 round, lenders are not supposed to make negative reports, so I had my credit score climb to over 800 while not making mortgage payments.