You Can Modify Your Own Mortgage!

You Can Modify Your Own Mortgage!

You can modify your own mortgage!  

For those of you that haven't had success trying to modify your own mortgage in Florida, I can tell you that it is possible!  I know this for a fact.  

As a title company rep, the majority of my business coming from South Florida. I have come across so many of my colleagues in the real estate and mortgage business, as well as their clients, feeling the pain of the market conditions.  

We are all faced with some form of it, whether it be lack of income, increased expenses, loss of job, situations, decreased revenue...  

It is difficult to watch your neighbor fear losing his or her home.  One neighbor in particular, a single mother and I were talking.  She has been paying her mortgage on time for the past three years since she moved into her townhouse, but now at the end of her "nest egg."  Her income has decreased, her expenses increased, she had been asking her lender for assistance for 1 1/2 years, but the bank continued ignoring her requests.

She knew her townhouse was upside down, worth half of what her purchase price was.  She couldn't refinance, of course, since the house wouldn't appraise!  

Everyone else was getting their loan modifications, but she kept hearing from the bank,  "Sorry Ms. Smith, I hate to say this, but unless you are late on your mortgage payment, past 30-60 days, there really is nothing we can do for you."  She was so angry.  

She continued to call, being the responsible person she was, still using her credit cards to pay bills, draining her savings, why weren't they helping her?  

Finally, it became a business decision.  She decided that she could rent someplace else, short sale her townhouse, then maybe stop the bleeding!  One mid September day, we sat in her kitchen as she called the bank.  She told her lender, "I will not be sending in my mortgage payment as of October 1st.  I have called the bank for 1 1/2 years, asking for help. I have drained my savings, used my credit cards, and now my back is against the wall.  This is my home, the property is completely upside down, I have no choice but to do a short sale!

Guess what happened?  Before she was even late, they actually put her through to someone in the Making Home Affordable Dept., she went through her financials over the phone, was eligible, and sent her modification papers.  She was not happy with the first mod they sent her, she called back, went over her financials again, and found that the bank was truly willing to help her.  

The lender knocked off 4% off her interest for the first 5 years, and she can now afford to live in her home, with some additional room to breathe!

So the moral of this story is "Do not give up!" You can modify your own mortgage, talk to your bank, know what to say, and be able to substantiate your request.

Comment balloon 7 commentsMona Montanino • November 23 2009 10:25AM


Too many homeowners just bury there head in the sand and hope like heaven it goes away! Sometimes all that was needed was a call to there lender.

Posted by Chip Jefferson (Gibbs Realty and Auction Company) over 10 years ago

Mona, Thanks for showing homeowners that persistance can pay off in this challenging market.

Posted by Steve, Joel & Steve A. Chain (Chain Real Estate Investments & Mortgage, Steve & Joel Chain) over 10 years ago

Thank you Laura and Steve for your comments. Sometimes, there is no choice. A person has finally had enough, gets pushed too far in a corner, there is nothing to lose!  

Posted by Mona Montanino over 10 years ago

Great post.  You are 100% correct.  Everyone having a hard time should attempt a loan mod.

Posted by Clayton Bonjean, Broker | Owner | MBA (Mainsail Realty Company) over 10 years ago

thanks, Clayton!  Even if they have tried, they should keep after the banks!  They are beginning to work with the current homeowners, which a year ago, only the squeaky wheels were getting all the oil!~ :)

Posted by Mona Montanino over 10 years ago

Great story Mona.  Keep on posting.  Love the picture also.

Posted by Gabe Sanders, Stuart Florida Real Estate (Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales) over 10 years ago

Thanks, Gabe.  I just saw this!  :)  I need to learn to make the pics smaller!

Posted by Mona Montanino over 10 years ago