Loan Modification has been my cry for some time. I believe it will do more to help us get out of the foreclosure mess than almost anything else under consideration. However, mortgage loans that are not delinquent and/or on the verge of foreclosure and being forgotten. I got this e-mail this week because of a post that I did on loan modification and honestly don't know what to do for this person. If anyone has any ideas, I would appreciate hearing from them with ideas:
I was wondering if you could by any chance provide me some advice or lead me to a good source in respect to getting a FNMA conventional loan modified that is currently not delinq. I am unemployed and need to reduce my monthly amortiz. The current amortiz is based on 2x the current balance. I have attempted to work with the servicer, Citigroup, and they won't budge based on FNMA mtg pool rules that state a modification can only be done if the loan is actually delinquent. Of course this is absurd as I would have to destroy my credit rating to get this done. I have sufficient savings to continue paying mtg payment for about 12 months but it will significantly decrease my financial flex and leave me no emergency funds. If I could get the current balance refinanced under similar terms to the existing terms I could gain significant relief. It seems like I have to be a distressed borrower to get something done that would avoid Citigroup/FNMA having one more default which is not what they need.
I believe this is one of the major problems were are facing currently. There is a lot of discussion on how to help people that are facing foreclosure (rightly so), but nothing for helping those that take their responsibility very seriously and have done everything they can do to keep their mortgage current. I know that Todd Clark recently started a new group called Short Sale and Loan Modification Nightmares with the premise of sending these stories to our Congress critters in hopes of getting some better programs working. I will post this in that group.