Mortgage Modification May Not Save Home From Foreclosure

Almost 9 months later, our mortgage was accepted into our banks modification program. During this time period, we were asked to pay a reduce mortgage payment. We were told that this amount would either stay the same or change slightly after the modification was complete. A few months of paying this reduce mortgage, they told use to stop paying it all together.

We took this opportunity to get caught up on bills, and pay off small debts. It made no sense to save this money when we had debts that needed to be paid. At the time, it made a whole lot of sense.....or so we thought.

It worked out well for a few months, then the fear of not being approved set in. Our neighbor and close friend ,was going through the mortgage modification process too.She told me how she was not only denied but billed retroactively and expected to pay the balance in full. Luckily for her, she was able to borrow the money from a family member. She may have lost her home and her credit report would have suffered if it wasn’t for this family member. She expressed gratitude but, warned me that it could happed to me too.

After I left her home, I could not shake the feeling of, “ What if?” We didn’t have anyone we could borrow money from. What would happen if our mortgage modification didn’t go through. Would we have to move? Would we go into foreclosure? How could we get another home with poor credit?

Spring passed and more paper work was requested. Proof of income, work history, and a few other formalities were sent out. More paper work would come back, and a few more signatures were signed. Spring passed and then summer hit. Our summer took a turn for the worst when my husband’s work contract was not resigned. This meant that there would be periods where he would not be working. We needed this mortgage modification to go through badly.

The first sign that our home was headed into foreclosure was a post card from a local “ Sell Your House Quickly” company. My next door neighbors used the same company when they went into foreclosure. There was a nice little note on the back, stating that our home was listed with the county as under foreclosure.

I still remember the fear that set in when I saw the first notice. After that, letters from lawyers and other county officials started coming in the mail. Certified mail that we were being sued by our mortgage company ( the same company handling our mortgage modification ) began to surface as well. Even the sheriff showed up to hand deliver a notice. It was embarrassing and down right scary!

Just 6 weeks before our home was to be sold under foreclosure, the mortgage modification when through. I was thankful but also curious as too how many people go through all of these intense feelings. The thought of losing my home was awful. It was one of the most stressful times as homeowner that I can remember. You literally don’t know who to trust.

The mortgage company handling the modification, is telling you to be patient and that more paper work is needed to be approved by underwriting. All the while, you’re receiving notices that this same company is suing you in court for failure to keep up with your monthly mortgage payments.

I actually started looking for an apartment and purging clutter for easy packing and moving. In just six weeks we may have been forced out of our home for believing that this modification was as good as gold. Thankfully it went through, and just in the nick of time. Our family will be celebrating another Christmas in our home this year.

If you decide to go through a mortgage modification program I suggest that you are fully prepared to pay the unpaid balance in full. Do your research and ask lots of question before signing on the dotted line. Best Wishes!