Mortgage Modification

[zagguru]

Anyone successfully modify with Wells?

[ExGingi]

Anyone successfully modify with Wells?

Back in the MHA days they just forgave HELOCs. I have two friends that benefited. I don't have any current info, or info about first liens.

[Barryg]

@exGingy or someone, can we get a summary.

If appears there is a COVID program for Loan modification which should be applicable to most loans (Freddie and Fannie). One needs to be COVID impacted.

Benefits are getting access to lower interest rate, obvious savings. And more time to repay, which lowers the monthly, however you will be carrying a loan for longer resulting in more interest paid.

Additionally if there a forbearance this may be carried interest free to the end of the loan.

One must be behind on their payments. A deferral of payment 90+ days is sufficient. A forbearance is not necessary.

Credit impact. As of now there does not  seem to be negative impact when the loan goes into COVID related deferral or even forbearance. Fair Issac might change his mind, YMMV.

Can you respond inline or

Mortgage currently up to date with 3.5% interest rate
How would I got about getting a loan modification?

Any info on this? Can anyone confirm if one must be behind or if current on payments is ok?
From other posts in this thread it was implied that someone can claim Covid hardship in general and the mortgage can be current.

[tov hashem]

I just did a mod with Wells Fargo. Apparently, Fannie and Freddie are doing auto approvals with zero papaerwork. Got my rate knocked down to 2.875% from 4.75% and term extended to 40 years. Took 20 minutes on the phone. For WF, you need to speak to the Home Preservation department, and claim Covid hardship. Mine was approved on the back of the CARES payment suspension, so I don't know if this applies for people who were making payments until now or resumed making payments already post-deferment.

ETA: They took all the deferred payments, including principal, interest, and escrow, and capitalized the entire amount.

[Barryg]

I just did a mod with Wells Fargo. Apparently, Fannie and Freddie are doing auto approvals with zero papaerwork. Got my rate knocked down to 2.875% from 4.75% and term extended to 40 years. Took 20 minutes on the phone. For WF, you need to speak to the Home Preservation department, and claim Covid hardship. Mine was approved on the back of the CARES payment suspension, so I don't know if this applies for people who were making payments until now or resumed making payments already post-deferment.

ETA: They took all the deferred payments, including principal, interest, and escrow, and capitalized the entire amount.

Did you post this as an answer to my question (and deal12349's question)? It doesn't answer is modification is possible if the mortgage is 100% current

[ExGingi]

Did you post this as an answer to my question (and deal12349's question)? It doesn't answer is modification is possible if the mortgage is 100% current

Will it hurt you to try calling and saying that you are having a COVID-19 related hardship and would like to know if a modification is an option?

If it's a Fannie or Freddie loan it's a no-doc process.

[Barryg]

Will it hurt you to try calling and saying that you are having a COVID-19 related hardship and would like to know if a modification is an option?

If it's a Fannie or Freddie loan it's a no-doc process.

helping others, don’t want to have inaccurate info. I’m bh in a better situation than modification (and I happen to not be fanniemayfreddiemac

[ExGingi]

helping others, don’t want to have inaccurate info. I’m bh in a better situation than modification (and I happen to not be fanniemayfreddiemac

What can be better than a 40-year loan at current PMMS rates with a 25% interest-free deferral?

In any event. Calling and asking cannot hurt and cannot be construed as inaccurate info. We know that it's possible if someone was deferring payments, I don't know if there are any DDF DP on modification of mortgage that is current (unless claiming a COVID-19 hardship).

[Barryg]

What can be better than a 40-year loan at current PMMS rates with a 25% interest-free deferral?

In any event. Calling and asking cannot hurt and cannot be construed as inaccurate info. We know that it's possible if someone was deferring payments, I don't know if there are any DDF DP on modification of mortgage that is current (unless claiming a COVID-19 hardship).

I can't ask about this because my loan isn't fanniemayfreddiemac, if anyone has and DP's on this it would be nice to know.

[ExGingi]

I can't ask about this because my loan isn't fanniemayfreddiemac, if anyone has and DP's on this it would be nice to know.

You can still ask. Won't hurt. For non-Agency loans paperwork would be required. TARB.

[deal12349]

I can't ask about this because my loan isn't fanniemayfreddiemac, if anyone has and DP's on this it would be nice to know.

I called my bank... if mortgage is up to date then an application and paperwork is required... but it can be done
Takes 30 days to get a response

[deal12349]

I called my bank... if mortgage is up to date then an application and paperwork is required... but it can be done
Takes 30 days to get a response

Easier to put the mortgage in forbearance and call them back after missing 1 payment...then its no doc process

[ExGingi]

Easier to put the mortgage in forbearance and call them back after missing 1 payment...then its no doc process

Regardless. It's beyond me why anyone who had even the slightest covid-19 hardship wouldn't defer payments. It's an interest free loan for 18 months.

[elazarmn]

Regardless. It's beyond me why anyone who had even the slightest covid-19 hardship wouldn't defer payments. It's an interest free loan for 18 months.

Your able to defer payments if your mortgage is current?

[ExGingi]

Your able to defer payments if your mortgage is current?

Deferring payments due to a COVID-19 hardship makes the mortgage past-due (except that under COVID-19 rules it's deferred without interest or penalty and isn't reported to credit bureaus).

[zagguru]

Deferring payments due to a COVID-19 hardship makes the mortgage past-due (except that under COVID-19 rules it's deferred without interest or penalty and isn't reported to credit bureaus).

How many payments can you defer? Until how long is the non-credit reporting due to covid active for?

[ExGingi]

How many payments can you defer? Until how long is the non-credit reporting due to covid active for?

Up to 18 months.

[nucheiner]

Any possibility of them changing the rules down the line re credit reporting? Or its law.

Might there suddenly be a 5/24/C-19 regulation.

[ExGingi]

https://www.investopedia.com/how-to-get-mortgage-relief-4800539

https://www.consumerfinance.gov/coronavirus/mortgage-and-housing-assistance/help-for-homeowners/learn-about-forbearance/

[knowitall]

Can you still get PMI removed if you do a mortgage modification? Officially you need to be in good standing.