Loan Modification Success Stories Online.

I have tried to request for anyone of my readers to keep me informed on their Loan Modification Success Stories. However, I have maybe gotten two or three only of which I have posted on my articles. So, I thought of investigating online and seeing what is really out there for you.

Here are my findings online.
Saxon Mortgage Loan Modification: April 2009
God must be on my side. I called Saxon today, after calling practically everyday for the past 3 months, and was told my modification has been approved and that my new interest rate for the next five years would be fixed at 2%, down from 10%. That's a saving of over $900 a month off my house payment. I have no clue that my investor is but I'm thankful. My wife left me and slapped me with child support payments last year. I went from a two income household to a one income household and on top of that I was slapped with child support payments. Although I struggled financially each month, I still managed to keep my house payment current and was never late. I stopped paying my credit cards bills and cut any unnecessary expense just so I could make my house payment on time. It finally all paid off. Although my credit was ruined because I stopped paying the credit cards, with this new interest rate of 2% for my house, I will have 5 years of breathing room to get my finances and credit back in order.

Option One Loan Modification: June 2008
I just found this forum and I want to tell my story:My wife and I purchased our first home in January 2007. Everything was going well at first but I am a small church pastor and towards the end of 2007 the church had some financial problems which reverberated to my household. We became behind a couple of months on the payment and then set up a repayment plan. It didn't work and finally in February I received an intention to foreclose letter in February. I contacted the home retention and began the process for loan mod. The negotiator called me a couple of days after I contacted home retention and we got the ball rolling. The negotiator Jackie Duvall told me that I didn't have to pay anything on my mortgage until everything was done. So, I didn't worry about it. Just paid off some old debts and went on my merry little way. I recently started a managerial job that is really helping out. No worries at all that is until I received the letter about the name change a week ago. Now, this worried me so I contacted Jackie and she told me that it would not affect the loan mod. In fact, by the time I called her; they had received the title and were waiting on the approval. She called me on Friday and informed me that it had been approved and that I would get my package on Monday. This is how it changed:Original note: monthly payment of $1535, 2 year ARM starting at 9.550% increasing to 10.75% in 2009. No escrow in the original note which caused us to get behind on our taxes. By the time the loan mod started going into place, the back taxes were almost $7000!New note: monthly payment of $1700 with 7.5% interest, increasing to a fixed rate of 9.5% in five years. All back taxes, past due mortgage, and escrow account are included in the payment. With the new job and can afford the payments and everything is working out.

I might have not tried hard enough to look for more, but there are a lot of scams online when you try to research this topic. But with my quick research I did not see any from BOA, Chase nor Citi. Forget about Wells, I know that they are hard to deal with on Loan Modifications.

The Option One Modification approval is your cooker cutter type of borrowers that lenders really want to help. They had jobs and were able to fully qualify for their own loan when they initially took out the mortgage. But when the economy started tanking and that affected their income, their paying ability diminished and they had to make choices on which debts are to be left unpaid. Now, this is the part where they really will consider your Modification package is when the borrower found another job and now can afford the fully modified payments which included their impounds on taxes and insurances.

Folks please remember, more than 50-60% of callers are to me just clogging the phone lines to see if the banks can reduce their payments. I would do it myself if I know my payments will come down just because I want it to.

I had a senior client that called me just yesterday and she claims to be calling their lender everyday (she has a lot of time) to see if her loan modification application has been reviewed. Now, she lives in a million dollar area and she has about 600K in equity in the property, yes she has a hardship in her monthly expenses because she lives on her credit cards and a minimal SS check, but what is she expecting. The bank will of course tell her to sell her home and live off of her equity.

But she was approved for a modification, would more people not qualified call and try to lower their payments, of course. I would be first in line.

Remember, banks now have gotten this program down so well that you cannot take advantages of them, maybe two years ago but not now. Your home value decreasing is not a banks problem, your debts being too high is not their problem, your two Mercedes or BMW payments is not their problem, excessive debts is the major reason why you cant make your payments.

So, look into your financing and decide on which obligation to prioritize. I few things that I wanted to tell you, I just got a call from a caller stating that her wages was garnished due to her credit cards not being paid. That’s a first that I have heard off. I also got a call from someone stating her second mortgage is directly paid by her employer and she could not stop it because its in the contract, her employer would not even allow the payments not made.

Banks have enforced their regulations and smarted up. They are prepared for all your non payments, foreclosures, short sales and BK’s believe it or not.

Most important rule when applying for a Loan Modification, qualify for “Hardship” at the same time qualify for the “Payments”.

Please continue your support by sending me questions, inquiries to Kenneth Go of 1st Innovative Finance at 562-508-7048 or write to: Kennethgo@verizon.net.