Of course, after sifting through the BS, they don’t want to foreclose, they’ll work with you, we come to the gem example in the middle:
Rodriguez and her husband, Ricardo, bought a house in Chicago’s Jefferson Park neighborhood in 1998. Their mortgage was $1,200 a month. After he lost his job as a machinist, the couple refinanced the home in 2004 with an adjustable rate mortgage. The new payment was $1,500 a month.
He found a new job, but a year later, he was out of work again.
Rodriguez, a secretary, called Chicago’s department of housing, which referred her to a nonprofit. It worked with her mortgage company, Homecomings Financial, part of GMAC Financial Services.
“I did emphasize that if there was nothing they could do before we would lose our home, we wanted to sell it before losing,” she said. “They said they were going to try to work everything out.”
Her husband found a job soon after and the couple made three payments that included penalties and fees for the installments they’d missed. He quickly found a better job and the couple was able to refinance with a 30-year mortgage at 6.62 percent interest last October. The monthly payments are $1,600.
Let’s repeat:
Original loan: $1200.
Refi’d loan: $1500.
Modified loan: $1600