Letter to our Congresswoman
February 22 2010
Re: Mortgage programs
Dear Congresswoman McCollum,
I will try to keep this to the point, factual but without details for now.
Payments on our 15 year mortgage with a balance of 190k @ 5.5% and 8 year to maturity were getting a bit much with a child at KU and with our 25 year old business in survival mode.
We have never been late with a mortgage payment and could have continued to make our $3300m payment.
In June or July of 09 we called our mortgage co. to see if they could temporarily or permanently rewrite the mortgage from 15 to 30 years. In short they said, no.
However they could get us into the “bailout” program and within a month or so they reduced our payment to $2000m. which would stay at $2000 pending final approvals.
To date we have not heard if we have been approved, (7 months later).
About two weeks ago we our mortgage company asked for information that we gave them last summer, (08 w2’s). This was not the first time we have resent them info or have talked to them but and I thought it odd to be asking for this type of info this late in the game. I called them and was told the following and the reason for this letter. This really makes us feel like the sucker of the year and is not what we signed up for!
Despite the fact it has taken them 7 months to get this far they said,
“IF” we are approved the difference between our original payment and the modified payment will be added to our loan balance. To be clear if they approve us today our loan balance will go from 190k to 200k.
“IF” we are not approved we will be required to payback the 10k difference and continue to make the original payments of $3300m. and if we can’t the loan will be called and they will put it into default.
We can not payback the 10k now. Our house is worth 465k (09 taxes). The longer our mortgage Co. drags this out the more money they make. This is a win-win for them.
Our question is, can you advise?
Brian & Sally Brady