It took two years to get a loan modification. When I did get a modification the bank:
1)Lowered interest rate to 3.5 percent from 9.5 percent for 5 years.
2)added the arrear payments of principal and interest to the existing principal causing the principal to increase by 40 thousand plus dollars. The principal went from 118,000.00 to 159,000.00. So with the loan modification my payments stayed the same.
3)In five years when the interest rate goes back to 9.5% my payments will increase drastically.
my original mortgage was a forty year 9.5 interest ARM With an balloon payment of 80,000.00 after 40 years.I really though I was signing a 30 year mortgage. At the closing I was told that I would have no problem after 2 years in getting it refinanced.
