We re-financed our loan in 2004 and took out equity to include major home improvements (central heating and air was majority) and wanted a thirty year fixed loan. Our credit scores were high and our debt to income ratio was excellent. At signing the broker gave us a 3 year fixed loan adjusting the third year and a substantial pre-pay penalty clause. We were flabbergasted, but had already installed the a/c system and had no other way to finance it.
We argued in the Title Office and the broker poo-pooed us, said don't worry you can re-finance before this ever adjusts no problem. We had no choice. That loan was sold immediately then re-sold again to Litton. We paid 2600.00 for two years and 9 months and called the broker and said let's re-finance before this adjusts!
He called back and said there is a $22,ooo.oo pre-pay penalty unless you wait until Oct.2007. Call us back then. My wife was injured on the job and her disability settlement was lost to a bankrupt insurance carrier and our loan adjusted. Long story short we are now in some ridiculous REPAYMENT PLAN AGREEMENT of 3061.00 the loan adjusted again to 9.25% we do not qualify for re-finance, our credit is in the toilet as 80% of our income goes to mortgage, we contacted the FHA and they assisted us in requesting a loan modification, referred us to consumer credit counselling, we liquidated all our cd's, savings and assets, and I'm reading your reports today that they will probably still foreclose, in spite of this REPAYMENT AGREEMENT and I am sick to death of scam loan modification specialists and debt settlement companies trying to scam us.
WE want to pay what we owe and Litton acknowledged receipt of our loan modification request, asked for income verification and a hardship letter, and I cannot get a substantial response to are we o.k. or safe from foreclosure if my life depended on it. I contacted the Hope FHA referral again today to advise her but I am scared to death it is not enough. Does anyone have any solutions???? I'd like this resolved not spinning wildly faster on the LItton merry-go-round of every single person you talk to says something different. I am desperate.