A question about a mortgage loan modification?

Posted on Oct 25, 2012 in HARP Refinance

Question by mindy: Home equity loan requirements?
Besides having the house what are the requirements?
what is the process they use to approve or deny you for the loan?
Do you have to have perfict credit or just a house and income?

Best answer:

Answer by Bill
You need the same requirements as if you were buying a new house. The property has to be appraised and meet the underwriting guidelines. You need good income , malady more about good credit and the house has to meet value requirements.

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Question by ZC: Does my condo have to have an active HUD status for FHA refinance program eligibility?
So I checked the HUD site and my condo project has an Expired FHA/HUD status. I would like to refinance to take advantage of the lower rates. Is there any way to for me to still leverage the FHA Short Refinance or FHA Streamline Refinance program, visit this site or do I have to go the traditional route?
Note: I am currently in a conventional, symptoms non-FHA loan.

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Question by john: A question about a mortgage loan modification?
March of last year I lost my job through no fault of my own company went out of biz. I have a mortgage where my APR is 9%. In July I called Bank of America where I bank and ask about a refinance she said they cannot do one because one we owe 155k home is worth 120k and I am on unemployment. She did offer the making homes affordable program and switched me over to the loan modification dept. I talked to them and they took all of my income and expenses over the phone then they asked me to fax pay stubs, ask hardship letter, this site unemployment proff. they told me it will take 30-45 days to review the info. Did not hear anything from them and then I called on day 45 they said they are still reviewing it. I thought this was a wash, viagra we have also made our payment on time every month. Then this last week Fed-ex showed up with an envelope with a one page letter from BoA letting us know what a trial payment will be our Original payment was 1600 trial payment is 1090 it also said in a few days you will get more details. Yesterday Nov 2 another package showed up from Fed ex this time a thicker package with a check list of more pay stubs, tax documents ect. This also had three cupons with a trial payment of 1077 one due Dec 1, Jan 1, Feb 1. I still have not paid anything for Nov yet. So i went online to make a Nov payment and it was blocked and said call #1866 as this account has a special curmenstance. I called them up talked to a rep they said you are now in a trial payment asked it they can set up an automatic payment for that I said sure they set it up to be drafted Dec 1st. I asked him about the Nov payment I have not made one yet he told me dont worry about it. I also asked about if this was going to hurt my credit score he told me there is no way shape or form it will hurt me credit score. Only way it will hurt your score if you dont pay your trial payment. I have been reading some people have been taking a hit on there credit even as they where told by there lender it will not. I recently got an offer from a credit card that gave me a 4.99% until balance is paid in full, they gave me a check to write out on my line of credit to my checking account this was 7k. I would hate for my loan company to put a late then my credit card would come back with the universal defuate clase and jack my APR up. Do you think they can disclose this in writting or record a conversation with them.
Any thoughts would be great.

Best answer:

Answer by CAtransplant
Just to be nit picky: please learn to write in paragraphs, and people appreciate when you edit and summarize. There: I got that off my chest.

OK, to answer your question: since you are basically doing a re-fi or loan modification, read the good faith estimate (RESPA) form which came in the “thicker package”.
That would have spelled out all the payment information, break down of principal and interest, and when the first monthly payment is due.

No doubt it says right there that the prepaid interest and all other fees are rolled into your loan and the first payment due is 12/1/09. That would be why there is no payment due in November.

The paperwork can be daunting, but take an hour out of your life to familiarize yourself with it. Your house is probably your biggest investment so make the effort.

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One Comment

  1. They did a forebearance, this is all perfectly normal. You do not have a payment for Nov, make the Dec one as agreed.

    DO NOT mess up on any of these trial payments. This is your second chance, there won’t be another one.