Monday, November 29, 2010

Life After Mortgage Modification

I don't write about this stuff, since I'm actually working with my lender (I'll update on New Year's Day). But this story at LAT is interesting, and no doubt resonates with a lot of folks. "Her House Was Saved But Now What?"
In the midst of a divorce and unable to afford her Torrance home, Nicole Rasmussen phoned her lender to ask for a mortgage modification.

She phoned every week for more than a year.

She also called her congressman and a senator to seek their help. Then, in desperation, she and her ex-husband — who still jointly owned the home — stopped making the payments on their $475,000 mortgage.

It was the only way, she felt, that the bank would seriously consider her pleas for a modification.

"I didn't know what was going to happen," said Rasmussen, who was frightened that she and her 7-year-old daughter would be forced out of the home. "We were living in limbo."

The risk paid off. Several weeks ago Rasmussen finalized the loan modification on the three-bedroom, 1950s ranch-style house.

Grateful to be at home for the holidays, she now looks forward to trimming the three artificial Christmas trees in the house and baking snickerdoodle cookies with her daughter.

But the mortgage mess and divorce have rocked her finances.

Like millions of other Americans, Rasmussen, 38, is facing an uncertain financial future, even with the loan modification. The only thing that's certain this holiday season is that she will have to change her financial life.

She has already started. To make the mortgage payments more manageable Rasmussen took in a roommate. She also succeeded in getting the property reassessed, resulting in a lower tax bill.

And there were smaller steps — raising the deductible on her auto insurance and canceling her Costco membership.

But there are often reminders that, though she makes a very good salary, her financial picture has changed. For example, not only was she refused when she applied for a new credit card, but a card she already had was frozen.

On her own for the first time in more than a decade, Rasmussen has to navi-

gate her finances while balancing a tenuous mixture of income, debt and assets that could all too easily unravel.

"I have a general idea of what to do, but I don't know for sure what to do," Rasmussen said.

She wants to save for emergencies and retirement and pay down her debt, but she also wants to have enough money to splurge occasionally on theater tickets and attend out-of-town artist workshops to indulge her passion for mixed-media collages.

And she wants to be able to pay a portion of college costs for her daughter, who is so academically minded that she does multiplication problems at home for fun.

Certified financial planner Dirk Huybrechts reviewed Rasmussen's financial details and drew up a plan for her ...
More at the link.


Anonymous said...

Hello, My name is John Bransen, I live in Nj.. A few months ago I had got denied by my bank ( Bank of america) for a loan modification under the government program. At this point it was my 4th denial, I didn't know what to do or where to start. but I just knew that I qualified and I deserved to be able to save my home.

I started speaking to my neighbor and he referred a company that offered a guarantee to him in 3 months or his money back. So i was a little interested I decided to contact them, there called Regency Financial Group based out of coral springs Fl. When I contacted them I spoke with a gentlemen by the name of Francisco Salvat..

He explained that they uses a software that is similar to the ones used in all banking systems that finalize modifications and that the fee is a one time payment of 795.00 and that, it was guaranteed back if you are not modified within the first 3 months. They also handle the entire process from beginning to end and that I wouldn't have to do anything other than provide documents and signatures ( which I though was great) and At this point I thought it was a hell of a great deal and that I couldn't loose. cause I tried 4 times and got denied, so I mostly wanted to see out of curiosity to see if it was me who was incorrect or if it's them.

Surely enough, within 3 months I got modified, not only did I get modified but they were also able to get the bank to forgive some of the negative equity by doing a principal reduction which helped allot and my payment went from 1557 a month to 628.00 a month with taxes and insurance. They did such a great job I figured if someone else out there like me who has tried and doesn't believe in giving up well then this company will definitely help you and guarantee there work unlike most companies now a days.

Hope this thread helps you as it did for me and my family.
you can contact them @ 561-809-4716