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Mortgage Help?

Discussion in 'Off Topic But Still Civil' started by chuzz, Mar 26, 2020.

  1. chuzz

    chuzz Well-Known Member

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    Hey Guys, I'm sure by now most of you have heard how the mortgage companies are willing to work with you if you need help with your mortgage. I have medical bills piling up out the wazoo on my wife and thought I'd see about getting my payments extended. My house if financed by Rocket Mortgage and they ARE NOT doing and extension at your current rates. This is how they want to play it. They call this a forebearance. Here's how it works, they'll let you not pay your mortgage for up to 90 days, but at the end of that period, you'll have to make up the back payments (no interest or late fees charged) in one LUMP SUM or ask to refinance your home! Are you kidding me? This will lock you into another 30 year mortgage with them IF they approve you a second time. If not, then you're crap out of luck and will have to find another company to finance you. It all seems kind of underhanded to me. I know one thing, if I'm able to sell my house and get out of this God forsaken state, I sure won't be asking Rocket mortgage for another home loan. What a scheme!
     
  2. Doug D

    Doug D Virginia Gentleman

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    You might inquire if they have a loss mitigation process. I went through this about 32 years ago with my mortgage company (Rushmore Loan Management Services) when I got behind due to my employer getting behind on payroll (another story). Basically I had to resubmit a months worth of pay stubs, list all our bills, credit cards and loans and they would evaluate the situation and offer one of several options. The options included short sale, loan modification, forclosure, forbearance and a whole list of other options. Unfortunately, it was not my option - it's their option. In the end we ended up with a loan modification (read higher payments) and we didn't have to make up the back payments. Well, sort of - the back payments are average out in the adjusted loan (had to sign a new agreement) and the loan was for the remaining years on the contract (20). Hopefully, we can refinance in another year or so at a lower interest rate.

    Otherwise, I'd recommend trying to refinance on your own with another mortgage company or as a last resort file bankruptcy. Bankruptcy is really a last resort - you don't want to do this unless you really have no other choice. It will stay on your record for 10 years and result in higher interest for any loan or credit card you apply for.
     
  3. valiant67

    valiant67 ...

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    They are extending your payments - thinking that it's a one time thing and in 90 days you'll be back on your feet. It's something they technically don't have to offer as far as I know. The days where they reduced payments (or even reduced principle) were part of the last financial crisis and are long gone. Will that happen again? It's too soon to tell.

    I don't know how many years you've paid on your mortgage, but your only real hope to reduce payments right now is to get another 30 year loan with a lower interest rate. Or sell and move to a less expensive house.

    Or wait and see what, if any, changes become available with COVID relief provisions.
     
    #3 valiant67, Mar 26, 2020
    Last edited: Mar 26, 2020
  4. Bob Lincoln

    Bob Lincoln "CHECK FAULT CODES"
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    Worse, some mortgages are written so that if you fall that far behind, they can demand payment in full, or foreclosure will result.
     
  5. Doug D

    Doug D Virginia Gentleman

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    Ack! I meant 3 years ago, not 32!
     
  6. chuzz

    chuzz Well-Known Member

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    I'm just going to continue with the current payments. I locked this mortgage in 5 years ago at 3.99% and doubt that I could refinance it any cheaper with my credit currently in the toilet. At least my car loan company (Ally) has agreed to defer my next 4 payments even though I only asked for 3. That's cool. I don't have to pay any accrued interest or late fees either. I'll just resume my current payment and the length of the contract is now 4 months longer that I wanted it to be. Oh well, ya gotta do what you gotta do. I DO NOT recommend Rocket Mortgage to anyone. If I had it to do over again, I'd try RP Funding. I called them and they said if I wanted to refinance $150,000 or more they'd give it shot. I told them I don't even need $90,000. They said if I sold it and wanted to upgrade, to give them a call and they'd be happy to do a deal. Thanks, but no thanks. I'm hoping to get off grid when we move once more.
     
  7. aldo90731

    Staff Member Level III Supporter

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    FYI - I noticed mortgage rates have eased a little in recent days. If you are employed, it may not be a bad idea to consider refinancing. You don’t have to do 30 years again; you can do 25, 20, 15, 10 years; fixed or ARM.
     

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