Comments on: Loan Modifications, Foreclosures Affecting Retirement Savings (IRAs and 401k) http://moneyning.com/housing/loan-modifications-foreclosures-affecting-retirement-savings-iras-and-401k/ A personal finance blog where we share insights on carefully saving money, investing, frugal living, coupons, promo codes because the little things matter in achieving financial freedom! Wed, 23 May 2012 16:42:04 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: w http://moneyning.com/housing/loan-modifications-foreclosures-affecting-retirement-savings-iras-and-401k/comment-page-1/#comment-40106 w Thu, 03 Mar 2011 17:15:49 +0000 http://moneyning.com/?p=2301#comment-40106 Sounds like the same old balderdash to me. The key ingredient to all of this talk is as follows. Is anyone out there allowing upside down mortages to actually LOWER their mortage amount owed, thereby dipping into the TARP money used by Bush and Obama to bailout these super rich Wall Street gamblers and mafiosos, or are these lending servicers simply pushing these loans off the end of the table, continuing to get every ounce of usury out of the original "PRODUCT", knowing full well that R.E. prices in our lifetime will never escallate enough to gain back the equity we borrowed against. The only hope for individuals in the upside down situation is Hyperinflation, which may well happen. We will then be able to pay our mortages with a deflated Dollar because we will be making more of them. I know of only ONE person who actually had his Mortage lowered. His payment stayed the same but his years to pay were reduced. Sounds like the same old balderdash to me. The key ingredient to all of this talk is as follows. Is anyone out there allowing upside down mortages to actually LOWER their mortage amount owed, thereby dipping into the TARP money used by Bush and Obama to bailout these super rich Wall Street gamblers and mafiosos, or are these lending servicers simply pushing these loans off the end of the table, continuing to get every ounce of usury out of the original “PRODUCT”, knowing full well that R.E. prices in our lifetime will never escallate enough to gain back the equity we borrowed against. The only hope for individuals in the upside down situation is Hyperinflation, which may well happen. We will then be able to pay our mortages with a deflated Dollar because we will be making more of them. I know of only ONE person who actually had his Mortage lowered. His payment stayed the same but his years to pay were reduced.

]]> By: areyousureaboutthat http://moneyning.com/housing/loan-modifications-foreclosures-affecting-retirement-savings-iras-and-401k/comment-page-1/#comment-37211 areyousureaboutthat Thu, 06 Jan 2011 18:00:46 +0000 http://moneyning.com/?p=2301#comment-37211 I was wary but modified with IMPAC anyway. I had a fixed rate one day away from default when I modified into a 5 year plan 2% first 2 years 3% 3 years and reverts back to fixed rate after 5 years. I can choose to sell or refinance in 5 years hopefully. It increased the balance yes and the loan was a little underwater anyway so I couldn't refinance nor sell anyway. The only other option was Chap 13, which tacks all back payments including interest on your mortgage repayment plan anyway and really burdens you with heavy payments when you have the least ability to pay them. If you want to pay out your house and save, pre-pay principle payments over the first years and this will reduce the principle, allowing you to reduce the total interest paid, effectively lowers the total interest paid. In reality, forget about interest and equity principle, you are actually paying 3-4 times the sales price of your home because the cost of borrowing (interest) is the larger part of what you pay in your note. Most people don't pay off a house and live "happily ever after" in the family cottage. They trade up or down and refinance or whatever. Interest only loans were only popular when the bubble kept expanding because equity was only market increase, not actual principle paid. No one has much principle in their house with low down loans. They were paying interest to have a place to live or tax deduction. When the government removes your IRS mortgage interest deduction you might just as well rent and hand the upkeep costs over to a landlord. Anyway I made my first mortgage note to GMAC this month after IMPAC arranged modification. I am satisfied with the deal made. I have another house that Wells Fargo won't even talk to me about modifying without thousands up front to modify and increased notes. I wish IMPAC would handle the modification but they can't. The value is underwater. Sometimes you need to just walk away. My credit score is so low that it probably registers a - now:) Others times people like IMPAC can help you out. I am pleased with my modification and I am a super wary type because I am in the real estate business. They did exactly what they said they would do and when. It worked and I am back on track. You wonder how I got down if I know real estate mortgages, etc and even saw the bubble that burst into a global meltdown before it burst? I saw it coming because I am a real estate appraiser and Realtor. I watched the sub-prime begin to foreclose in 2005-2006 when doing comparable sales for appraisals. Now, sales are so flat that I can hardly find comps to do appraisals. Loans are underwater in most areas so people can't refinance either so lending is down. I do liquidation appraisals where REO-bank owned houses are sold for pennies on the dollar to investors. Sad, that lenders won't modify and help people but rather give away the house to an investor and write off the loan. Just too much trouble to modify and work with people, etc. We all got our pinkies burned, didn't we? Living like there was no tomorrow. Remember the S & L failure and the Great Depression? All about mortgage loans. As defunct Greenspan recently said, we are destined to repeat it all again when the next "big thing" comes along in about 20-30 years. Long enough for a generation to forget where we've been. I was wary but modified with IMPAC anyway. I had a fixed rate one day away from default when I modified into a 5 year plan 2% first 2 years 3% 3 years and reverts back to fixed rate after 5 years. I can choose to sell or refinance in 5 years hopefully. It increased the balance yes and the loan was a little underwater anyway so I couldn’t refinance nor sell anyway. The only other option was Chap 13, which tacks all back payments including interest on your mortgage repayment plan anyway and really burdens you with heavy payments when you have the least ability to pay them.
If you want to pay out your house and save, pre-pay principle payments over the first years and this will reduce the principle, allowing you to reduce the total interest paid, effectively lowers the total interest paid. In reality, forget about interest and equity principle, you are actually paying 3-4 times the sales price of your home because the cost of borrowing (interest) is the larger part of what you pay in your note. Most people don’t pay off a house and live “happily ever after” in the family cottage. They trade up or down and refinance or whatever.
Interest only loans were only popular when the bubble kept expanding because equity was only market increase, not actual principle paid. No one has much principle in their house with low down loans. They were paying interest to have a place to live or tax deduction. When the government removes your IRS mortgage interest deduction you might just as well rent and hand the upkeep costs over to a landlord.
Anyway I made my first mortgage note to GMAC this month after IMPAC arranged modification. I am satisfied with the deal made. I have another house that Wells Fargo won’t even talk to me about modifying without thousands up front to modify and increased notes. I wish IMPAC would handle the modification but they can’t. The value is underwater. Sometimes you need to just walk away. My credit score is so low that it probably registers a – now:)
Others times people like IMPAC can help you out. I am pleased with my modification and I am a super wary type because I am in the real estate business. They did exactly what they said they would do and when. It worked and I am back on track.
You wonder how I got down if I know real estate mortgages, etc and even saw the bubble that burst into a global meltdown before it burst? I saw it coming because I am a real estate appraiser and Realtor. I watched the sub-prime begin to foreclose in 2005-2006 when doing comparable sales for appraisals. Now, sales are so flat that I can hardly find comps to do appraisals. Loans are underwater in most areas so people can’t refinance either so lending is down. I do liquidation appraisals where REO-bank owned houses are sold for pennies on the dollar to investors. Sad, that lenders won’t modify and help people but rather give away the house to an investor and write off the loan. Just too much trouble to modify and work with people, etc.
We all got our pinkies burned, didn’t we? Living like there was no tomorrow. Remember the S & L failure and the Great Depression? All about mortgage loans. As defunct Greenspan recently said, we are destined to repeat it all again when the next “big thing” comes along in about 20-30 years. Long enough for a generation to forget where we’ve been.

]]> By: mattseds http://moneyning.com/housing/loan-modifications-foreclosures-affecting-retirement-savings-iras-and-401k/comment-page-1/#comment-37176 mattseds Thu, 06 Jan 2011 07:18:08 +0000 http://moneyning.com/?p=2301#comment-37176 Listen, people. IMPAC is skimming a confused market. They are publicly traded (were IMPM, became IMH), and you're telling me that a company with market cap of 27 million and EPS of .27 is the actual loan backer, and not BofA or GMAC?. That's flat garbage. Here's what they ARE doing, to clear up any confusion. They're handling a process for you. It's a rate adjustment, at the expense of a principal adjustment (upward) and a drawn-out amortization (outwards). This means that yes, your "payment" goes down, even for a fixed term (5 years), but you owe more on your house, and for longer overall. They target folks with interest only loans (80/20 was a common gem in the heyday), and pitch it as "the interest-only feature will remain". Like that's a good thing. Remember that the only reason you chose interest-only was to artificially lower your payments in the first place. And artificially lowering your payments is exactly IMPAC's sweet spot. If your goal is to simply get away with "living" in your house for a while longer, then by all means, go for it. But if your goal is to OWN your home in the LEAST amount of time possible, and for the LEAST amount of money, then you're taking a step in the wrong direction. What they are doing is not illegal, by any means, but it falls into a gray area. Especially when it is pitched as some sort of wonderful service to the public. If you want a simple way to think about what they're doing, it's this: if you have a 30 year loan (80/20, interest only), and you're 4 years into it, you've likely not paid much principal anyhow. If you decided one day to make it instead a 35 year loan, and have the first 5 years be much cheaper payments, again at the expense of paying more in the long term, well then IMPAC is giving you that option. And, they're taking your $2k. Because why not. I'll charge you $50 to keep your seat warm for you. :) Listen, people. IMPAC is skimming a confused market. They are publicly traded (were IMPM, became IMH), and you’re telling me that a company with market cap of 27 million and EPS of .27 is the actual loan backer, and not BofA or GMAC?. That’s flat garbage.

Here’s what they ARE doing, to clear up any confusion. They’re handling a process for you. It’s a rate adjustment, at the expense of a principal adjustment (upward) and a drawn-out amortization (outwards). This means that yes, your “payment” goes down, even for a fixed term (5 years), but you owe more on your house, and for longer overall.

They target folks with interest only loans (80/20 was a common gem in the heyday), and pitch it as “the interest-only feature will remain”. Like that’s a good thing. Remember that the only reason you chose interest-only was to artificially lower your payments in the first place. And artificially lowering your payments is exactly IMPAC’s sweet spot.

If your goal is to simply get away with “living” in your house for a while longer, then by all means, go for it. But if your goal is to OWN your home in the LEAST amount of time possible, and for the LEAST amount of money, then you’re taking a step in the wrong direction.

What they are doing is not illegal, by any means, but it falls into a gray area. Especially when it is pitched as some sort of wonderful service to the public. If you want a simple way to think about what they’re doing, it’s this: if you have a 30 year loan (80/20, interest only), and you’re 4 years into it, you’ve likely not paid much principal anyhow. If you decided one day to make it instead a 35 year loan, and have the first 5 years be much cheaper payments, again at the expense of paying more in the long term, well then IMPAC is giving you that option.

And, they’re taking your $2k. Because why not. I’ll charge you $50 to keep your seat warm for you. :)

]]> By: areyousureaboutthat http://moneyning.com/housing/loan-modifications-foreclosures-affecting-retirement-savings-iras-and-401k/comment-page-1/#comment-32234 areyousureaboutthat Wed, 27 Oct 2010 00:35:45 +0000 http://moneyning.com/?p=2301#comment-32234 How long did the process take? Did you have B of A or other? How long did the process take? Did you have B of A or other?

]]> By: pete http://moneyning.com/housing/loan-modifications-foreclosures-affecting-retirement-savings-iras-and-401k/comment-page-1/#comment-32233 pete Tue, 26 Oct 2010 23:52:38 +0000 http://moneyning.com/?p=2301#comment-32233 interest rate went from 4.99% to 3.875% for years 5 - 10. Paid $2,200 or so as I recall. But, this is saving me $800/month. interest rate went from 4.99% to 3.875% for years 5 – 10. Paid $2,200 or so as I recall. But, this is saving me $800/month.

]]> By: areyousureaboutthat http://moneyning.com/housing/loan-modifications-foreclosures-affecting-retirement-savings-iras-and-401k/comment-page-1/#comment-32229 areyousureaboutthat Tue, 26 Oct 2010 21:45:00 +0000 http://moneyning.com/?p=2301#comment-32229 How much did you save on your note? Did you have to pay origination fees to process? How much did you save on your note? Did you have to pay origination fees to process?

]]> By: pete http://moneyning.com/housing/loan-modifications-foreclosures-affecting-retirement-savings-iras-and-401k/comment-page-1/#comment-32224 pete Tue, 26 Oct 2010 19:05:42 +0000 http://moneyning.com/?p=2301#comment-32224 I completed. It is for real. However, now I think I know why loan servicers and note holders are being so generous. In the news lately, many notes and mortgages were not properly transferred. By getting us to sign up for a loan modification, we are essentially attesting to the legitimacy of the original mortgage. Something to think about depending on your situation. In other words, owing to "clerical errors" including, probably, outright fraud, you may be in a position that would not allow your note holder to foreclose. If you proceed with the modification, however, I would think that you would lose that advantage. I proceeded with the modification and am completely satisified. good luck to all I completed. It is for real. However, now I think I know why loan servicers and note holders are being so generous. In the news lately, many notes and mortgages were not properly transferred. By getting us to sign up for a loan modification, we are essentially attesting to the legitimacy of the original mortgage. Something to think about depending on your situation. In other words, owing to “clerical errors” including, probably, outright fraud, you may be in a position that would not allow your note holder to foreclose. If you proceed with the modification, however, I would think that you would lose that advantage. I proceeded with the modification and am completely satisified. good luck to all

]]> By: areyousureaboutthat http://moneyning.com/housing/loan-modifications-foreclosures-affecting-retirement-savings-iras-and-401k/comment-page-1/#comment-32192 areyousureaboutthat Tue, 26 Oct 2010 01:43:13 +0000 http://moneyning.com/?p=2301#comment-32192 Did anyone but Abbie go through the process and complete? Did anyone but Abbie go through the process and complete?

]]> By: talktotennessee http://moneyning.com/housing/loan-modifications-foreclosures-affecting-retirement-savings-iras-and-401k/comment-page-1/#comment-29602 talktotennessee Wed, 18 Aug 2010 20:07:38 +0000 http://moneyning.com/?p=2301#comment-29602 I checked with GMAC on this and they never heard of Impac. They said there should not be an upfront fee for loan modification. Impact had my personal information. What is the deal here? Who is telling the truth? I checked with GMAC on this and they never heard of Impac. They said there should not be an upfront fee for loan modification. Impact had my personal information. What is the deal here?
Who is telling the truth?

]]> By: mike http://moneyning.com/housing/loan-modifications-foreclosures-affecting-retirement-savings-iras-and-401k/comment-page-1/#comment-26964 mike Sun, 06 Jun 2010 22:56:29 +0000 http://moneyning.com/?p=2301#comment-26964 contact, Impac, Gilbert Salazar, 800-597-4101 ext.6597 fax. 949-252-6597 Gilbert.Salazar@impaccompanies.com best of luck , be honest and be patient and make sure you can back up your paperwork. contact, Impac, Gilbert Salazar, 800-597-4101 ext.6597
fax. 949-252-6597
Gilbert.Salazar@impaccompanies.com
best of luck , be honest and be patient and make sure you can back up your paperwork.

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