Why won’t they modify my mortgage loan.

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1 - 18 of 18 Comments Last updated Oct 5, 2011
In the Biz

Flower Mound, TX

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#1
Jan 30, 2009
 

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Why won’t they modify my loan. Modification.....MOD

There are 2 different types of loans: portfolio and non-portfolio.

A portfolio loan is a loan that is owned by the mortgage company, it makes 100% profit from these loans. These loans can be MODed by the mortgage company with no problem and at any time. Most of this loans have been MODed from an ARM loan to a Fixed rate mortgage or extend from short term loan to 30 year fixed rate mortgages without having to refinance. The mortgage company can do what ever it wants with this loan. 1% of the loans that a mortgage company services fall into the category. Most portfolio loans were the old sub-prime loan. In a move to free up cash, mortgage companies are financing this loans at no cost and reducing the principle balance of the loan to turn it into a non-portfolio loan.

Non-portfolio loan are a loan that the mortgage company does not own, an investor owns it. The mortgage company itself doesn’t own any part of the loan. The mortgage company makes its money on this loan by charging the investor a fee to service the loan. 99% of all loans a mortgage company services are owned by an investor. It’s the investor who is letting you borrower the money for the home, not the bank. The mortgage company can not change the terms of a loan that it doesn’t own. That is why loans can not be MODed. It’s not the mortgage companies money.

So you got a 99% chance of your loan being a non-portfolio loan, and un-MODable.

“If I go 90 days past due they’ll MOD me”.
Yes, that it correct. There is an agreement between the investor and the mortgage company that if there is a risk of foreclosure the bank is to do what it can from letting the loan go into foreclosure. But, whatever the loss to the investor is up front, will get you in the back end of the loan. If they let you skip payments to get caught up........don’t think that money that you owe is gone, and don’t think that money isn’t drawing interest. The investor made his investment, and he going to get his money.

‘How do I know what kind of mortgage I have’?
Portfolio loans:
If you borrowed more then 80% of what the house is worth, 80%ltv, and don’t have PMI.
If you received a mortgage in the last 3 years and the rate is above 8% Fixed.
Non-portfolio loans
FHA, VA, IO loan(interest only).....3, 5, 7 or 10 year ARMS.....loans over 80%ltv w/ PMI
These are set in stone, but good odds.

Hope this helps with the MOD questions

Since: Jan 09

Flower Mound, TX

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#2
Feb 2, 2009
 
Why won’t they modify my loan. Modification.....MOD

There are 2 different types of loans: portfolio and non-portfolio.

A portfolio loan is a loan that is owned by the mortgage company, it makes 100% profit from these loans. These loans can be MODed by the mortgage company with no problem and at any time. Most of this loans have been MODed from an ARM loan to a Fixed rate mortgage or extend from short term loan to 30 year fixed rate mortgages without having to refinance. The mortgage company can do what ever it wants with this loan. 1% of the loans that a mortgage company services fall into the category. Most portfolio loans were the old sub-prime loan. In a move to free up cash, mortgage companies are financing this loans at no cost and reducing the principle balance of the loan to turn it into a non-portfolio loan.

Non-portfolio loan are a loan that the mortgage company does not own, an investor owns it. The mortgage company itself doesn’t own any part of the loan. The mortgage company makes its money on this loan by charging the investor a fee to service the loan. 99% of all loans a mortgage company services are owned by an investor. It’s the investor who is letting you borrower the money for the home, not the bank. The mortgage company can not change the terms of a loan that it doesn’t own. That is why loans can not be MODed. It’s not the mortgage companies money.

So you got a 99% chance of your loan being a non-portfolio loan, and un-MODable.

“If I go 90 days past due they’ll MOD me”.
Yes, that it correct. There is an agreement between the investor and the mortgage company that if there is a risk of foreclosure the bank is to do what it can from letting the loan go into foreclosure. But, whatever the loss to the investor is up front, will get you in the back end of the loan. If they let you skip payments to get caught up........don’t think that money that you owe is gone, and don’t think that money isn’t drawing interest. The investor made his investment, and he going to get his money.

‘How do I know what kind of mortgage I have’?
Portfolio loans:
If you borrowed more then 80% of what the house is worth, 80%ltv, and don’t have PMI.
If you received a mortgage in the last 3 years and the rate is above 8% Fixed.
Non-portfolio loans
FHA, VA, IO loan(interest only).....3, 5, 7 or 10 year ARMS.....loans over 80%ltv w/ PMI
These are set in stone, but good odds.

Hope this helps with the MOD questions
XOXOXO

Albertson, NY

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#3
Feb 4, 2009
 
In The Biz wrote:
Why won’t they modify my loan. Modification.....MOD
There are 2 different types of loans: portfolio and non-portfolio.
A portfolio loan is a loan that is owned by the mortgage company, it makes 100% profit from these loans. These loans can be MODed by the mortgage company with no problem and at any time. Most of this loans have been MODed from an ARM loan to a Fixed rate mortgage or extend from short term loan to 30 year fixed rate mortgages without having to refinance. The mortgage company can do what ever it wants with this loan. 1% of the loans that a mortgage company services fall into the category. Most portfolio loans were the old sub-prime loan. In a move to free up cash, mortgage companies are financing this loans at no cost and reducing the principle balance of the loan to turn it into a non-portfolio loan.
Non-portfolio loan are a loan that the mortgage company does not own, an investor owns it. The mortgage company itself doesn’t own any part of the loan. The mortgage company makes its money on this loan by charging the investor a fee to service the loan. 99% of all loans a mortgage company services are owned by an investor. It’s the investor who is letting you borrower the money for the home, not the bank. The mortgage company can not change the terms of a loan that it doesn’t own. That is why loans can not be MODed. It’s not the mortgage companies money.
So you got a 99% chance of your loan being a non-portfolio loan, and un-MODable.
“If I go 90 days past due they’ll MOD me”.
Yes, that it correct. There is an agreement between the investor and the mortgage company that if there is a risk of foreclosure the bank is to do what it can from letting the loan go into foreclosure. But, whatever the loss to the investor is up front, will get you in the back end of the loan. If they let you skip payments to get caught up........don’t think that money that you owe is gone, and don’t think that money isn’t drawing interest. The investor made his investment, and he going to get his money.
‘How do I know what kind of mortgage I have’?
Portfolio loans:
If you borrowed more then 80% of what the house is worth, 80%ltv, and don’t have PMI.
If you received a mortgage in the last 3 years and the rate is above 8% Fixed.
Non-portfolio loans
FHA, VA, IO loan(interest only).....3, 5, 7 or 10 year ARMS.....loans over 80%ltv w/ PMI
These are set in stone, but good odds.
Hope this helps with the MOD questions
Great note......most people don't understand that the mortgage company doesn't lend you the money for the house. Once people understand it's not the companies money, then they understand why loans can't be changed unless you rin default.
Economics 101

South Whitley, IN

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#4
Feb 4, 2009
 

Since: Jan 09

Flower Mound, TX

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#5
Feb 8, 2009
 
Economics 101 wrote:
www.financialtruth0.blogspot.c om
What a great link......no money for anyone. Let is fall, then rebuild.
mad mark

Central Point, OR

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#9
Sep 20, 2009
 
http://www.IncomeDocument.com Helped me save my HOME!

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Hopewell

Port Chester, NY

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#10
Nov 9, 2009
 
Too Many People are losing their homes! Petition Congress to regulate the loan modification process and fix the mess they helped create:

http://www.petition2congress.com/2/2564
Frieda

Saint Louis, MO

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#11
Dec 31, 2009
 
My bank won't modify my mortgage because they say that I can't afford my house. Which, doesn't make sense because the point of modifying my house would be so that it could be affordable. It's sad how people will allow you to fall without a helping hand. All that shit Obama was talking about people have looked over.
feel your pain been there

Mediapolis, IA

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#12
Jan 14, 2010
 
Frieda wrote:
My bank won't modify my mortgage because they say that I can't afford my house. Which, doesn't make sense because the point of modifying my house would be so that it could be affordable. It's sad how people will allow you to fall without a helping hand. All that shit Obama was talking about people have looked over.
Frieda its no fun eating out of a dumpster or living on the beach trying to hide from the patrol. The Shower rooms sometimes make a nice place to sleep but you will get mugged and even worse from the others on the street. Its hard to live. but the southeast florida is the best to be to stay warmer on the street. Take care
East Law

Pompano Beach, FL

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#13
Jul 11, 2010
 
Hi Frieda,

Did you get that loan modification? IF Not Please Visit www.naca.com . They are the BEST to help you for FREE!! But you have to be patient, the process can go quick or slow.

I hope you get to save your home!! God Bless!
Refinance Mortgage Loan

New Delhi, India

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#14
Nov 23, 2010
 
hello friend how we are use that
==========
[url=http://www.loanmortgages. info]Refinance Mortgage Loan[/url]
dolz gonzalez

Miami, FL

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#16
Apr 14, 2011
 
my brother gave me a power of attorney and bought a house in the state of georgia while I was married since my husband at the time never put a cent for a down payment which was given to me as a gift from my mother I went ahead and bought the home under his name he has great credit in the high 800's but being that it was bought out of the state they considered it an investment property it's been 5yrs since I relocated back to florida and it's been 2yrs since I got divorced I've tried to maintain the house rented to cover the mortgage which is at a 8percent interest I've even had to rent it a lower mrtg amount to compete with other renters not even enough to cover the mrtg and I just keep falling in a hole now my brother has been unemployed for over 5yrs and workd something in 2010 $14,000 but weve had this loan for over almost 10yrs this october 2011 and I spoke to fannie mae to see what to do for a deed in lieu since we cant modiy our loan since they consider it an investment property what should I do I have 3children and my elderly mothr with alzheimers and cant afford taking paying that house in georgia but my responsibility towards my brother is larger i dont sleep just worried about everything damaging his credit and i'm working sometimes 2wks full to pay bills in 2houses and making sure mrtg pmts are not late in 10yrs of this loan weve been late once in there error of coarse what should I do i feel as if the ground should swallow me and worst of all never made a penny god help me
JStern

Los Angeles, CA

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#18
Aug 31, 2011
 
I purchased my investment property in 2006 for $2.5 million dollars. Recently, I’ve had a tremendously high vacancy rate due to the poor economy and it began taking a toll on all my reserves just to maintain the property. I tried to negotiate with my lender (CHASE) for a modification. I went round and round with the bank, submitting documents and so on and in the end, CHASE denied me for a modification. I couldn’t understand why they wouldn’t modify my loan when it was clear that the economy ham-stringed my ability to service the debt. The only thing that CHASE could tell me was that the investor was the one who declined the modification. I asked who the investor was and they would not tell me. It was then that I began to look closer at my original loan and I saw on the Deed of Trust that MERS was listed as the Beneficiary. With all the information about MERS in the news I decided to talk to an attorney. My attorney had an auditing company called Lighthouse Consulting Group review my documents for both a forensic analysis of my original loan documents as well as a Mortgage Securitization Audit. It turned out that my loan was securitized in a trust called “Structured Asset Mortgage Investments II Trust 2005- 8. It was in this trust; there is a pooling and serving agreement, which governs the rules of the REMIC Trust. In my loans pooling and servicing agreement, it said specifically that any loan modified would require a buy-back from the servicer. Now, it was about this time that I began to default on my loan and was looking at ultimately losing my investment property. I was already 6 months in default at this point. The individual I talked to that is an attorney and real estate broker immediately ordered a forensic audit for predatory lending. Commercial properties do not have TILA and RESPA violations. The attorney also ordered a securitization audit to verify if the lender that filed the NOD was actually in proper standing. Both audits reveled several issues about my loan. First, the forensic audit proved that my lender had wrongfully calculated my payment it was overstated by $350 per month. Secondly, the loan itself was an adjustable loan based off the Libor Index, which was dropping, but the loan always adjusted up. This was a major development in a very positive way for me. Then, I had the securitization audit show that my loan was never securitized properly and the note and deed were not even with the same party. My attorney drafted a complaint, outlining everything I have mentioned. As soon as the lender was served, they contacted my attorney and settled without going to court. The settlement I got was a principal balance reduction of $400,000; my interest rate was reduced to 4.5% fixed for 30 years.

Since: Nov 09

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#19
Sep 2, 2011
 
We need to understand everything which is thus related to what we have to and understanding it in more better ways.
LInda

Lanham, MD

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#22
Sep 13, 2011
 
JStern wrote:
I purchased my investment property in 2006 for $2.5 million dollars. Recently, I’ve had a tremendously high vacancy rate due to the poor economy and it began taking a toll on all my reserves just to maintain the property. I tried to negotiate with my lender (CHASE) for a modification. I went round and round with the bank, submitting documents and so on and in the end, CHASE denied me for a modification. I couldn’t understand why they wouldn’t modify my loan when it was clear that the economy ham-stringed my ability to service the debt. The only thing that CHASE could tell me was that the investor was the one who declined the modification. I asked who the investor was and they would not tell me. It was then that I began to look closer at my original loan and I saw on the Deed of Trust that MERS was listed as the Beneficiary. With all the information about MERS in the news I decided to talk to an attorney. My attorney had an auditing company called Lighthouse Consulting Group review my documents for both a forensic analysis of my original loan documents as well as a Mortgage Securitization Audit. It turned out that my loan was securitized in a trust called “Structured Asset Mortgage Investments II Trust 2005- 8. It was in this trust; there is a pooling and serving agreement, which governs the rules of the REMIC Trust. In my loans pooling and servicing agreement, it said specifically that any loan modified would require a buy-back from the servicer. Now, it was about this time that I began to default on my loan and was looking at ultimately losing my investment property. I was already 6 months in default at this point. The individual I talked to that is an attorney and real estate broker immediately ordered a forensic audit for predatory lending. Commercial properties do not have TILA and RESPA violations. The attorney also ordered a securitization audit to verify if the lender that filed the NOD was actually in proper standing. Both audits reveled several issues about my loan. First, the forensic audit proved that my lender had wrongfully calculated my payment it was overstated by $350 per month. Secondly, the loan itself was an adjustable loan based off the Libor Index, which was dropping, but the loan always adjusted up. This was a major development in a very positive way for me. Then, I had the securitization audit show that my loan was never securitized properly and the note and deed were not even with the same party. My attorney drafted a complaint, outlining everything I have mentioned. As soon as the lender was served, they contacted my attorney and settled without going to court. The settlement I got was a principal balance reduction of $400,000; my interest rate was reduced to 4.5% fixed for 30 years.
Is there a company who will negotiate in this manner for a Chase mortgage for a residential property?
JStern

Los Angeles, CA

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#23
Sep 19, 2011
 
Hello Linda,
A good place to start would be contacting Lighthouse Consulting Group to see if you have any fraud on your mortgage paperwork through a discovery audit.
Linda

Lanham, MD

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#24
Sep 20, 2011
 
JStern wrote:
Hello Linda,
A good place to start would be contacting Lighthouse Consulting Group to see if you have any fraud on your mortgage paperwork through a discovery audit.
Thanks for your response. I tried contacting the Lighthouse Consulting Group but found many listings and chose the wrong one since they were a lobbying group (probably because I tried one in DC since I live in that area). I will search again and try to find the right one. Where is your group located? Thanks again.
Kelvin

Livermore, CA

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#26
Oct 5, 2011
 
Ever since I purchased my house I have been working 2 job to make my mortgage payments. But, last year I lost my day job and I was behind on my payments. I contacted Bank of America and they had me sent over tons of documents.
My Loan Modification is still being denied without an explanation. If Bank of America foreclose on my house I am going to buy 10 bags of 50 Lb Cement mix from Home depot, flush it down the toilets. Take a sledge hammer and do some workouts around the house. I would even consider burning down the house and put the video on U tube.
If I cannot have it neither can B of A.

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