Need Advice For Foreclosure Prevention/Loan Mod Workshop

[Hopin4daBest]

Quick Recap: I'm still out my house on temp order since 10/2011. Stopped paying mortgage in 1/2012. I'm at EOW w/S8, S1, but GAL + my L are now motioning to get me more time, if not most time because NJ's schizophrenia has really bloomed in the past 90 days.

So, I'm trying to save this house. Called up the bank and they scheduled me for a workshop to see if I qualify for a loan modification.
How has anyone approached this, as far as explaining to them the situation?

Do you tell them you are out of the property on a temp order?

They want me to bring a written statement, and of course pay stubs and tax returns.
I really want to succeed in modifying my loan, so if anyone has done this, please advise! I'm in IL.

[jerico08]

If you have employment and not over your head you should be able to renegotiate. I do know that the last thing a bank wants is another house, so you have to shop around for a plan. FHA loans are a good start to look into, rates hovering around 3% and a bunch of of other bailout loan plans available. Just dont get caught in the too good to be true loan scams.

[Hopin4daBest]

Yea i am employed and i am already in an fha loan locked in a 30 yr 4.9 loan. I am reading online that thrres stories of folks getting modified to a 40 yr loan on as little as 2 percent! Man if only...

[jerico08]

So re-fi loan to FHA at 3 or 3 1/2%. Don't fall for the too good to be true 2% things, they have huge add on fee's and all sorts of other hidden costs. Right now you want something lower cost and structured so you can budget better. Who knows what will go on in 10, 20, 30 or even 40 years. Good Luck.

[demurrer]

I really want to succeed in modifying my loan, so if anyone has done this, please advise! I'm in IL.

What temporary orders are in place? Most block dissipation or the issuance of new debt.

The problem with refinancing the marital home is that it's an asset that's frozen until the court says otherwise and the court doesn't care about your money problems.

You can expect the opposing side attorney to protect stbx by asking that the court reinforce an order that blocks refi until the divorce ends and the assets/debts are allocated. The opposing side attorney doesn't want you running down to Vegas to drop the extra money on gambling, strippers, and drugs (that's how OC will characterize your possible use of the extra money even if you've never been to vegas in your life).

The mortgage lender wants to know if you're involved in litigation and your monthly expenses. For most people Spousal and Child Support makes their debt to income ratio look horrible.