Posted by John Merchant on August 28, 2009 at 10:03:14:
x
restructuring a mortgage - Posted by Chyna
Posted by Chyna on August 23, 2009 at 07:12:02:
My daughter owns some renal property in Texas with a negative cash flow. She’s had them on the market for quite a while but has gotten no offers at all.
She has never missed a mortgage payment or even been late and has been covering the negative cash flow with savings and credit cards. She can’t refinance because she has little personal income.
When she approached her mortgage bank (WaMu, I think)about the possibility of restructuring the loans to reduce her monthly payments, she was told that they wouldn’t consider this until she has missed one or more payments.
Is it true that the banks won’t restructure unless you’re about to go down the tubes financially? Does anyone have any ideas that might help her?
Thanks.
Re: restructuring a mortgage - Posted by Lee
Posted by Lee on September 05, 2009 at 01:25:33:
Contact NACA at NACA.com. They are a non-profit
organization that is doing mortgage modifications and
they are familar with who to call in most banks.
NACA has even been showing up at bank executives houses
in gated communities and holding rallys on their lawns.
They believe that by publically humiliating the
executives that they can get them to modify more
mortgages. That approach does seem to be working for
them.
Re: restructuring a mortgage - Posted by G.O.
Posted by G.O. on August 26, 2009 at 14:08:12:
It is possible to do a loan modification before any payments are missed. The bigger problem in your case is that the properties in question are not personal residence. I’m not certain that the loan modification can be done on rentals. But it’s worth trying anyway.
If it’s WaMu, their Loss Mitigation department’s phone is 877-533-8960. You can get a head-start by filling out this form:
It’s a PDF file with the special form from WaMu. Also add a hardship letter explaining why the payments are not longer affordable. The fact that the house is listed but generates no interest is helpful.
Good luck,
G.O.
Beware, unworkable w big banks - Posted by John Merchant
Posted by John Merchant on August 24, 2009 at 11:12:13:
I’ve known of several instances recently where this did happen, the buyer/borrower on each then went to the bank and couldn’t even find the right dept in order to try to restructure.
Then they were unable to catch up and got foreclosed on!
See if you can get such advice in writing, although I seriously doubt any officer of the bank would do it.