Mortgage Loan Modification

[bjr]

Good ol' Wells Fargo. I thought there was a way a"low impact" (not much paper work and no cost) way of adding a payment to end of a Mortgage. The two Mortgage managers of WF that I talked too (I'm really thinkin' should be called WTF here) said you're talking Loan Modification and that just can't be done, "NO". Apparently if you go into default then "yes" then we can help you. I've not missed any payments and haven't been late. Now in the last month I've suffered some finacial setbacks. Had to buy a U-Pullit engine for my truck from the auto recyclers (Wrecking Yard) and get the septic tank pumped and got behind in the utilities bill. I'm just needing a month of no mortgage payments to get back on top, or just even, anyways. Just no alternatives here according to WF. "You pay or we forclose". Has anyone ever got a Mortgage payment added to the end of a contract when things got tight? bjr

 

[EddieWalker]

I've never heard of being able to not pay a months mortgage and then add it to the length of the loan. It might be a good way to make more money for the loan companies if they did it. I could see them adding a fee to it and rolling it into the loan amount.

What I have seen done over and over again is people refinance their home, or get a completely new loan on it to skip a month or two of payments. My ex wife was a title officer and I was shocked at how many very well paid people do this. We have surgeons here that make up to $40,000 a month that are so maxed out on bills that they do this!!!!!

 

[TnAndy]

General comment, not directed at you or the hole you're currently in, but this is the reason folks should have a well funded emergency fund set aside for such things.

Can you take on some extra work (pizza delivery, lawn mowing, etc) for a short term deal to work you way out of the hole and build up a 'no touch' fund ? Just a thought......

 

[CCWKen]

It's been a long time since I was in banking but I don't know any bank/MC that will start the foreclosure process on the first missed payment. Typically, it's 90 days. It will affect your credit rating and increase your next payment due to interest but they won't foreclose. And it's unlikely they will modify the loan either, especially if you're already late or are having other credit problems. Many banks will allow you to make the interest payment of the P&I and the principle will remain the same. This pretty much automatically adds a payment to the end of the loan. If you also have an escrow account for taxes, insurance, etc., you will usually have to make that payment also as most mortgage payments are comprised of Principle, Interest and Escrow. If the loan is less than 10/30 years old, you won't save much since the interest is calculated on the principle balance. This front-loads the interest so most of your payment is going toward interest and not principle. Talk to your bank! See what they will do to help you through the next month (or whatever it is).

As a side note; Most people don't know that you can pre-pay principle to shorten a loan. And I won't go into living check-to-check.

 

[CCWKen]

Andy posted while I was typing but I agree 100% Unless you have some type of maintenance insurance, EVERY home will need emergency repairs at one time or another. Whether it's a new water heater or a busted pipe, every homeowner should have an emergency fund so as not to disrupt family finances. Either that or have rich relatives.

 

[Snobdds]

Most get a home equity line of credit for this type of thing, assuming you have some equity built up. It's still a loan and you will have to pay it back, but if money is tight and fitting in another payment is not feasible...don't do it.

 

[bjr]

It's been a long time since I was in banking but I don't know any bank/MC that will start the foreclosure process on the first missed payment. Typically, it's 90 days. It will affect your credit rating and increase your next payment due to interest but they won't foreclose. And it's unlikely they will modify the loan either, especially if you're already late or are having other credit problems. Many banks will allow you to make the interest payment of the P&I and the principle will remain the same. This pretty much automatically adds a payment to the end of the loan. If you also have an escrow account for taxes, insurance, etc., you will usually have to make that payment also as most mortgage payments are comprised of Principle, Interest and Escrow. If the loan is less than 10/30 years old, you won't save much since the interest is calculated on the principle balance. This front-loads the interest so most of your payment is going toward interest and not principle. Talk to your bank! See what they will do to help you through the next month (or whatever it is).

As a side note; Most people don't know that you can pre-pay principle to shorten a loan. And I won't go into living check-to-check.

I did try to talk to the "BanK", twice as I am concerned about keeping a decent credit score. I didn't give a lot of personal details. I'm 65 yrs old and have Day Job 8-4 and also on our property addition water board (non paying job) and that's a physical job of digging up and repairing broken pipes. Also I own 2 acres two big yards to mow sting trim and that has one rental (income) rent is maxed out here, and needed the septic tank pumped. So extra jobs, I've got all the jobs I can handle now. So, yes, I live from pay check to pay check. Some day I'll be in nursing home if I'm lucky If the kids don't disconnect my feeding tubes to "help things along". bjr

 

[ultrarunner]

California has a state sponsored mortgage relief assistance.

Maybe Washington has something similar?

What you said is correct... the big banks generally won't talk to you unless behind... that said, everyone I know that stop paying lost the property