Couple Saves $400 per Month with Loan Modification

By Mortgage Outreach Staff

Dan is a home contractor and Janice is an office worker. They are the parents of James, a two-year-old boy.

Issues: Negative equity, financial hardship
Property: 3 bedroom home
Purchase price: $217,000
Loan amount: $197,000
Loan to Value: 112%
Credit score: 580
Debt to Income Ratio: 42
Solution: Loan Modification
Old payment: $1,970
New payment: $1,583

Situation: Dan and Janice were settled in a 15-year fixed-rate mortgage. They ran into trouble last fall, when the economy sank and Dan’s home contracting business dried up. Though Janice was still working, her job didn’t pay nearly enough to make the mortgage payments. With the drop in home values in their area they knew they couldn’t refinance their home so they explored other options.

Dan and Janice went to MortgageOutreach.org and found they were eligible for a loan modification. They found a qualified loan modification firm and initiated the process. They had to provide income verification and sign a statement of financial hardship. Their payments were reduced by almost $400 a month.

“We’re doing better,” Dan says. “If we hadn’t called, we wouldn’t have gotten help.”