If you're trying to renegotiate your mortgage, some info here may help you...GOOD LUCK!
One of the many paths my husband and I are scurrying down at present relates to mortgage renegotiation.
I can't go one step further in talking about our mortgage without pasting from etymonline:
1390, from O.Fr. morgage (13c.), mort gaige, lit. "dead pledge" (replaced in modern Fr. by hypothèque), from mort "dead" + gage "pledge;" so called because the deal dies either when the debt is paid or when payment fails. O.Fr. mort is from V.L. *mortus "dead," from L. mortuus, pp. of mori "to die" (see mortal). The verb is first attested 1467.
Could there be a better name for this system than "dead pledge?"
Like I said, I'm scurrying down many paths, but I'll have to forgo that one and talk about the stimulus package, which, after being shooed away by our Wells Fargo mortgage broker on our first try, we now seem to have a hope of qualifying for. In case you do too, and you are utterly confused, here's what I can share:
The first hump to get over with the stim package is finding the right website. Apparently, everybody and their sister wants you to know they are offering "Hope for Homeowners." Save yourself some google pain and a visit to Mr. ScamMan and head right to:
http://makinghomeaffordable.gov/
Here you will find a nice big button to click on that says "Find out if you are eligible." Click it and take the test, grateful that it could lead to thousands of dollars of relief, more than you can say for the "Are You a Music Master?" quiz on Facebook. This is the first screen for eligibility for refinancing, or for loan modification, which offers more relief.
Because my husband (primary earner) was laid off one year ago, and therefore can show one and not two years of self-employment on our taxes, we were ineligible for refinancing before the stim package. Our other roadblock, believe it or not, was that our payments were current. The stim package money, unlike everyday bank refi, apparently is not contingent on your failing to make payments.
The governmental program is confusing, because it's called variously "the stimulus package," "Hope for Homeowners," "Making Home Affordable," or "HARP" (that's the refinancing portion), depending on whom you're talking to.
In our case, we went back to our mortgage broker and said the magic words: "We took the eligibility quiz at the Making Home Affordable website and it says we are eligible for both refinancing and loan modification. We would like to be considered for loan modification under the Making Home Affordable program."
That led to two more phone calls—one to a more central office of the bank that holds our mortgage, and a second to an 800 number of the same bank that is taking all requests to apply for this program.
The agent interviewed us at length about our mortgage particulars and expenses, then we were told an application will be sent out. Here's what the schedule looks like as of May 2009:
-5-7 days to get application
-30-45 business days to hear anything
They are getting a lot of calls. I called back a few days later to see if the application had gone out. It had, but the helpful person I reached gave me the following good advice:
-call back twice a week to see how your application is progressing
-anything you fax is being captured electronically, and there can be problems with transmission, so call after any fax to be sure all pages were received and that they were legible
Mileage may vary with your bank, but if you're in this process too, good luck