I don't see the point of doing a home modification? seriously think about what it actually is doing. my fuzzy logic calls it a circle jerk...
1. you wait months for an approval after you have submitted all requirements.
2. you wait...
3. are you still waiting
4. you start to get behind on payments
5. your credit is affected
6. at this point your stressed out
7. oh look you're one of the lucky 2% who do get approved.
now lets disect this whole dumb debacle.
you negotiate to reduce a small portion of the principle (maybe)
your apr % is reduced from 5% (depending on your terms) down to 2-3%
ok that looks good... lets move forward...shall we...
so now your mortgage payments are reduced nice!!! sounds good.
maybe you can breath a little easier...(weight off your back)
oh...wait what this...you didnt know that from your original mortgage payment and the difference from the new payment get added on to your principle.
and and the end of your new modified term your apr% is increasing 1% every year and at the end of your term whether it be 2-7 years you back @ square 1 with a huge baloon payment and now you went from a 30yr fixed to a 40 yr fixed...
how is this possible...its not in my contract...
yes it is..once you modify your loan its a new contract thats been negotiated...new terms etc...
but they only show you what you went in there to see. a drop in payment a reduction in APR% you're happy right...wrong not at the end of your term...i can promise you that!!!
so you ask whats the next step....well i know and it worked for me but since i am not a vendor but i am a homeowner and i figured out the rules to the game!!! and its so simple people just need to read and do research... i can tell you whats the deal but its up to you to come ask me i wont waste my time..if you dont do your part...
thats my whole theory of the Home MOdification Debacle!!!
hope you guys find your remedy like I did.
you will never see a bank eliminate your negative equity and drop your homes rate to current fair market value even if you begged them...and said that its breaking your back to a point where your new born will be living on the street!!!
why do people still struggle and trust these crooked bankers. well its actually not the people but the rules to the game. you just have to figure it out...
i say good luck to all!!!!!!!!!!!!!!