ARM’d & Dangerous

My ARM is adjusting and mortgage will be going up by 380$.  I am current on mortgage but can’t afford an increase.  I called my servicing company and they pretty much said no help because am not late.  So should I risk it and be late???

Martha

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Hi Martha,

No, you don’t want to be late.  You need to determine which segment of the American Securitization Forum’s Loan Modification Guidelines apply.  If you are in segment one, then you should first look to refinance and if you are in segment two, then you should qualify for the streamlined loan modification.  The difference between the two is largely a function of the LTV.

Have all of your ducks in a row when you call loss mitigation.  Unfortunately, depending on who answers the phone, you may get a different answer.  You need to know the right answer before calling.  You can always request to talk with a supervisor and when negotiations fail, remember that you are talking with the loan servicer and not necessarily the holder of the loan.  

Thanks for the questions and hope this helps.

Paul