Promises, Promises

Here’s an email I received last week. This story is typical for 85% of people that attempt a repayment plan of some sort.

I’ve looked over your website for a while. I went against your advice and tried the forbearance plan from my lender. I made my payments like they ask me to for 6 months hoping they’d keep their word and give me a loan modification. But after 6 months, and submitting tons of paper work again and there was always a reason why they could not do the loan mod.

I made my forbearance payments on time for 6 months thinking it would show on my credit report as paying on time so I could get a refi. Well guess what, they kept reporting me late so I have gotten nowhere while I’ve been paying $1565.00 a month (up from the $1,100 I couldn’t afford to begin with). Now they are foreclosing on me unless I give them even more money! I can’t sell because I owe way more than what the house is worth.

I’m at a point that I know I can’t afford this any more. Help!


And here was my response:

Jack, you don’t say who your lender is, but the statistics don’t lie. The reason only 15% of homeowners are successful with forbearance plans is because the payments are unreasonably high. You are in the minority in that you were able to go 6 months under a plan that added almost 50% to your payments. Congratulations – I’m impressed and your story will inspire many others!

Now however you are facing the next hurdle. Getting your lender to keep their word and do a loan modification. Those are very rare, and as you’ve seen, you need to jump through many hoops to get approved.

If you want to keep your house, I urge you to continue to persevere through this (ridiculous) process. You could try to refinance, but because you owe more than what your house is worth and because your lender continued to report late payments on your credit, this won’t be an option for you. By the way, all lenders continue to report late while you’re on a forbearance plan (or “payment plan”). It’s silly, but they figure that you’re still technically “behind” as you’re making up those back payments (as ridicules as that sounds, it’s the way they do things).

However, you seem to have come to a point (like most people in your situation) that you’ve realized you simply can’t afford your house any longer. That’s where we come in and can negotiate with your lender to get them to accept less than what you owe (a “short sale”) so you can start your life over and end this nightmare. If you’d like us to consider helping you (at no charge to you of course), give me a call so I can get more details to be sure your circumstances are a good fit.  Here’s how you can contact me (click here)


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