Re: Help!!! loan modification docs

Posted by Paul on August 23, 2008 at 05:54:45:

In Reply to: Re: Help!!! loan modification docs posted by Ashley Radke on August 22, 2008 at 18:58:06:

It always makes sense to do loan modifications if its to your advantage. A friend two months ago complete his modifications (after 14 months)lowering interest from 10.5% to 8%. When he failed to make the 8% payments on time. He called to lower again and guess what! They had just lowered it to 6%. <G>

However with new legislation, for those in foreclosure (as he was) people can rewrite the loan at 85% of current market value. That could equate to hundreds of thousands as in CA. A condo owner is Richmond, CA. present loan $280,000. Current market value $150,000. 85% of that about $132,500 new loan amount!

The friend I mentioned earlier, had his loan amount stay the same. Even though his value has dropped by hundreds of thousands!

I would start asking questions now about new legislation to start in Oct, 2008.

Being in foreclosure is NOT a bad option in this market place, if handled properly.

You are NOT alone! That's always a good thing.

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