How I Beat the Bank: Loan Mod Teleseminar

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Most experts now predict that this round of modifications, which is predominantly interest rate reductions, will be followed by the much more painful principal reduction modifications within a few years.

I spoke up and convinced my lenders to reduce principal, reduce interest rates, and extend repayment to 40 years on fixed-rate loans on my own home and investment properties. Six loans in all! So, I have a “take no prisoners” attitude toward loan mods. Let my experience help you negotiate effectively for a loan modification in just 60-Minutes!

In 2005 I purchased a long neglected home with big dreams of rehabbing it for my own. It seemed like a sweet real estate deal – and it was – until the U.S. housing market collapsed. Unfortunately, by that time I had already sunk $90,000 into improvements, so I resigned myself to riding out the housing downturn. At least the home turned out lovely and my wife of 34 years was pleased.

If only it were that simple! Not only did the housing crash wreak havoc on my home value, but it also tore a chunk out of my primary monthly income. I limped
along financially until the summer of 2008, when I was hit with a particularly slow period in my work.

Suddenly it seemed financial calamity was upon me! It was clear I couldn’t meet my obligations. I racked my brain for a solution: “Where could I cut back? What is the absolute minimum I could pay? Do I have any stocks or investments to sell?” IndyMac Bank held the 1st Mortgage on my home. So, being the ever conscientious mortgagee, I swallowed my pride and called up IndyMac.

Needless to say, IndyMac was less than sympathetic. More bluntly, my request met with outright rudeness. Now none of this came as a particular shock to me, and it could have simply ended there. But I knew that IndyMac itself had failed. It had recently been taken over by the government (in other words, my tax dollars were keeping it open). Mindful of this, IndyMac’s stance toward me seemed more than a little hypocritical!

I batted away their dismissal and pushed forward to one supervisor after another. I found out they did, in fact, have programs that were designed to help. Happy ending? Nope, I’m afraid not. As it turns out, I didn’t qualify because I had been paying my mortgage on time! Talk about getting kicked while you’re down, huh?

At this point, I was furious! My attitude toward my lender changed. As it turns out, it’s better to ask for forgiveness than permission, so I decided not to write that month’s mortgage check. I told them I would call back in 30 days once I qualified as “late.”

It made me angry that an honest, regularly paying homeowner could not get assistance when the lender itself (and all of its executives) had already received significant assistance with (my) tax dollars.

The following is an excerpt from Mike Rockwood’s Mortgage Modification Program