my neighbor is in the process of a modification. She brought the paperwork to me and from Wells Fargo, there is no mention of the principal amount they want to base their figures off from. No interest rate. No mention of reduction in principal, no length of the note, and only a payment without principal.
I told her to not sign and ask them to spell the terms out with specifics. Frankly speaking, she should ride this out as long as possible.
I got my loan modified...all I wanted to do was go back to a 30 from a 15 that had 8 years left on it. Was in RV sales for 15 years and had refied to a 15yr after 11 straight years of very steady income. When the big RV downturn came, we thought it was a short-term lull, but it has ended up being a complete bust. I no longer had the income to refie back to a 30, so it was bankruptcy or loan modification. My payment has dropped from 1400/mo to 800/mo and was stretched back to 17 total years. First 5 years at 2%, 6th year at 3%, 7th year at 4% and the remaining years at 4.75%. My old rate was 5 5/8. I have changed fields but am making a fraction of my prev income and am willing to do a second shift to make up the diff. I lost 40% of the value of my home in Ga and 45% of the value of my home in Fl which is a rental, being rented at a 180$ loss each month. I have paid back every loan I have ever had, but this time nothing I did seemed to work, so modifying became my last option. Sucks, but for me I would rather have a chance than go bankrupt.