Home Loan Modification Success and Help!

>> March 07, 2010

We officially, and successfully completed a loan modification. The bank website, now shows our new payment, along with a workout summary, that states something like "modification finalized", blah blah blah. Along with a P&I drop of $460... which is what we signed our paperwork for back in December (I can't believe its been 3 months to finalize everything on their end!), we also have recently realized that our escrow payment is also dropping $90!!

That is a savings of $550 a month! It is exactly what we needed to stay afloat... we still need to budget things tightly and save and do better, but its now possible again to do that with only one "real' income (an income that had seen a decrease).

Now the P&I decrease is due to a temporary drop in our interest, but it is fixed for a few years and creeps back up... until stopping permanently at 5%, which is less than our original 6.xx% we had before. And of course the escrow payment can fluctuate each year depending upon taxes and insurance costs... but still.. super excited!


The main point of my post (besides sharing the "official, finalized" FABULOUS news was to let locals know that their is going to be a Making Home Affordable Home Owner event this week.

Tucson is 3/9/10

Phoenix is 3/11/10

Ironically, our loan modification was an internal bank one, which they chose to do.... We had been working on the official government version with the bank, but the bank randomly decided to give us a "private" one instead. The terms ended up being "super close" to what we had expected and we also were able to avoid doing a 3 or 4 month trial payment before finalizing, so it worked in our favor. (We had already done a 4 month forbearance, but that is another story...).

Anyway, I have been hearing about the official Homeowner Events on the radio all week, here is a link to the official government site for information and also a link to the home owner event information.

We never went to one of these events, mostly because there was never any here while we were doing the process.. but I had HEARD about them and had wanted the extra help. So if you are thinking about attempting a loan modification or are in the process, it certainly wouldn't hurt to get your butt over there! Keep in mind, this is a FREE seminar, you shouldn't have to pay for anything for a loan modification!

The one resource that I did use was a online board called LoanSafe.org. You can check it out here. I found them just searching online for help with our hardship letter (to start the process). I would say there is a lot of good information on their board, along with a lot of frustration with the process.. but still worth a look if you are going to do this! I haven't been there in awhile, but I was checking it at least weekly throughout last year!

Tuesday, March 9, 2010
1:00 p.m. – 7:30 p.m.
Holiday Inn Hotel & Suites Tucson Airport North
4550 S. Palo Verde Road
Tucson, AZ 85714
Complimentary Parking

Thursday, March 11, 2010
1:00 p.m. – 7:30 p.m.
Glendale Civic Center
5750 W. Glenn Dr.
Glendale, AZ 85301
Complimentary Parking


ThriftyPuppy March 7, 2010 at 8:11 AM  

Congratulations! It's good to hear that some folks are actually successful at this, as I've heard some real horror stories. I'm curious...would you be willing to share which bank you have your loan with? We have ours through Wells Fargo and they are absolutely wonderful.

Precious March 7, 2010 at 11:04 AM  

Congrats KC. I am happy for you that you were able to work it out.

kc March 9, 2010 at 7:28 AM  

Hi ThriftyPuppy,

Its Bank of America. Not really a secret, I am not sure why I kept it out of the post... but I can say given the horror stores I have read and seen on the news, I am extremely happy with our outcome, it's almost a dream come true considering how few people seem to be getting help.

Thanks Precious!

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