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Anyone Understand Obama's Mortgage Modification ?

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  1. Jun 16, 2010 #1
    Anyone Understand Obama's "Mortgage Modification"?

    A woman I know here just refinanced her house apparently according to Obama's "Mortgage Modification". The lender quoted her a very good fixed interest. Then, on the day of the signing (yesterday) they suddenly told her the interest had to be higher and it had to be an adjustable rate mortgage. They pressured her to sign, claiming there was some deadline, and she caved.

    I can't really find anything online that isn't posted by mortgage lenders. Does anyone know what this "mortgage modification" actually requires? Is it a law with specifications that the woman could demonstrate the lender has violated with their bait and switch?

    When I ran into her yesterday she was very depressed because she had discovered earlier that her monthly payments were going to start at $600.00 more a month than the bank had quoted. With an ARM, they're only going to go up from there. Now she can't plow money into fixing the place up bit by bit as she'd hoped. She felt she couldn't back out because she had a balloon coming up on the old mortgage and had to pay that off.
     
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  3. Jun 16, 2010 #2

    Evo

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    Re: Anyone Understand Obama's "Mortgage Modification"?

    What happened is that the original mortgage fell through, so they offered her a replacement. I see that a LOT. The only thing to do is to tell them you have to think it over and leave. Most people want the house so bad that they take the worse deal anyway.

    A lot of lenders advertising the "obama thing:, are in deed shiesters. I hope she didn't reach them through one of those internet adds. There might have never been another loan available to her. I'm not up on what "mortgage modification" entails though.

    She needs to call whichever regulatory office handles mortgage complaints. Most contracts fall under the unwritten 30 day cancellation most buyers are not aware of. Not sure if there is a similar grace period with home loans. She might lose her deposit and fee for paperwork, but much better than getting her home reposssed.

    Have her call this number
    She might be dealing with a scammer. http://en.wikipedia.org/wiki/Mortgage_modification
     
    Last edited: Jun 16, 2010
  4. Jun 16, 2010 #3
    Re: Anyone Understand Obama's "Mortgage Modification"?

    What does this mean, exactly? How would it "fall through"? The mortgage co is actually getting the loan from somewhere else?


    This looks like the best course of action. I'll have her try this.

    Thanks, Evo!
     
    Last edited by a moderator: Jun 16, 2010
  5. Jun 16, 2010 #4

    Evo

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    Re: Anyone Understand Obama's "Mortgage Modification"?

    Dang, I accidently hit "edit on your post zoob.

    It's very possible, especially in the case of a "high risk" applicant. It is not uncommon for mortgage brokers to go to individuals or groups that will agree to take on a high risk loan, usually for a lot higher rate. You need to find out who exactly is financing the loan. Also, it's common for loans to be sold. You start out with a loan from one bank, then the next thing you know you've been sold to a different bank.
     
  6. Jun 16, 2010 #5
    Re: Anyone Understand Obama's "Mortgage Modification"?

    OK. I'll go down there later and give her this info. Hope they can help her.
     
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