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MIAMILAW1127
MIAMILAW1127, Lawyer
Category: Real Estate Law
Satisfied Customers: 731
Experience:  Founding Partner at Moises Law, P.A.
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I HAD A LOAN MODIFICATION ON MY JUMBO LOAN ON MY MORTGAGE

Customer Question

I HAD A LOAN MODIFICATION ON MY JUMBO LOAN ON MY MORTGAGE WITH BANK OF AMERICA DONE IN FEBRUARY OF 2010 AND THE INTEREST RATE WAS 3.25. ABOUT A YEAR AGO, BANK OF AMERICA STARTED HAVING SLS, LLC. SERVICE THE LOAN. THEY RAISED MY INTEREST RATE TO 6.75 IN MAY AS THEY STATED THAT WAS THE AGREEMENT OF THE MODIFICATION. A COUPLE OF QUESTIONS - I THOUGHT I HEARD THAT OBAMA TOLD LENDERS THEY COULDN'T CHANGE THE INTEREST RATES ON MODIFICATION - IS THAT TRUE? ALSO, ISN'T THERE A LAW REGARDING A CAP ON AN INTEREST RATE? MY PAYMENT HAS GONE UP 1,500.00 A MONTH AND SLS ISN'T BUDGING. I NEED SOME ADVISE
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  MIAMILAW1127 replied 1 year ago.

Hello. Thank you for contacting me. My name is***** am a consultant here and I am looking forward to assisting you with your question. If at any point any of my answers aren’t clear please don’t hesitate to ask for clarification. Please be patient as I will be typing my responses to you from scratch. Also, I can only answer/address the questions you ask specifically based on the information your provide. Please try to provide as much information as possible so I can best assist you.

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Expert:  MIAMILAW1127 replied 1 year ago.

The first question I have is, is your loan an adjustable rate mortgage (ARM)?

Customer: replied 1 year ago.
The modification was fixed for 5 years
Expert:  MIAMILAW1127 replied 1 year ago.

I think what you have is a 5/1 ARM where the interest rate is fixed for the first five years and then the rate adjusts once each year beginning in year 6.

Customer: replied 1 year ago.
I understand that, but I had asked you about the Law Obama passed telling the mortgage company's to leave modification loan aloneand the fact that they are charging me 6.75% now and regular mortgage rate is around 3%
Expert:  MIAMILAW1127 replied 1 year ago.

Did you do your modification through the Making Homes Affordable Act?

Customer: replied 1 year ago.
I don't remember, it was through Bank of America
Expert:  MIAMILAW1127 replied 1 year ago.

It sounds like you may have done a modification to a 5/1 ARM loan that does not have the interest rates capped by the Making Homes Affordable Act.

So to answer your questions, it doesn't seem like Obama's new laws would apply here and as to the cap on interest rates, the increase is within the amount allowable for an ARM.

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