Mortgage Forum

Joel Fraser

Okay, so I had posted on here before about advice for getting a loan modification with ASC. Well we got a call in early June from our negotiator saying that we were approved on the condition that we pay our escrow balance in September. He went on to say that we would go back to a 7.4% fixed rate on our first loan. (He was unaware that we had a second mortgage with them even though it was in all the paperwork we submitted). He said that we would be on a 3 month trial period with our new payment and then we would need to come up with $9,435 for the back escrows. He also said he would try and get us help with our second mortgage because it was a fixed rate at 9.8% but he needed to talk with his supervisor. That was the last we heard from him.We got paperwork sent to us entitled "Special Forbearance" that did not state any of what he said in the paperwork. It did state that we had a trial period with no grace period to make our 2 installments of the new payment but then the last payment has a balloon of $12,000.I called to set up our first drafted payment today for it to be taken out on Monday and I asked what the $12,000 went to in August. She said that was set up by our investor. If we are approved for the mod, then we don't have to pay that but if we are denied then we have to pay the balloon payment, which apparently has nothing to do with the escrows our negotiator talked to us about (the $9,435).I am freaking out right now, because I do not feel that I fully understand what we just signed and now I come to find out that we may not even be approved for this modification and then have to make a balloon payment?Any help would be really appreciated :-)