“I am a resident of Indiana. My mortgage is 15 months late. When I talked to First Franklin a month ago they said that the sheriff’s sale was set for April 15th.”

“I filed with them in March of last year. It was supposed to take 45 days. I didn’t hear back until July and was to make three payments of $850 to the mortgage company directly. After reviewing my information, they agreed to proceed with the mod providing that I pay $635 and then my mortgage payment would have a reduced rate of I think 2 points. Trouble is they tacked on so many legal fees etc that the payment was more than when I started.”

“When I tried to contact FF to modify the loan again, they said they only do this once every 12 months.
With Obama’s new loan modification plan, is there any hope for me or should I just walk away before the sale?”

My Answer:

When it comes to subprime mortgage servicing companies, they are not very cooperative when it comes to loan modifications. That you’ve already experienced.

The Obama loan modification aspects of the plan getting implemented on March 4th, 2009 is completely voluntary on the part of the servicers and lenders. This was NOT they way to get wholesale loan modifications for those most likely to suffer from foreclosure.

If Obama was serious about getting widespread loan mods in the part of the industry that needed them most, he would have mandated specific loan mod requirements instead of depending on a $1,000 incentive.

To read my post on this click this link…Obama Housing Plan - More of the Same for Subprime Borrowers

To address you “walking away”, I’d wait it out. Many foreclosure moratoriums have been implemented lately and the whole landscape could change. However, get a lawyer to review your mortgage terms and advise you before throwing in the towel.

Good Luck!

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