Consolidation, Extension & Modification

[scnetworks]

What is the name of your state?Georgia

Last January, we asked our mortgage company if we could pay down a portion of our 5/1 ARM principal, re-amortize and get a lower payment. They said sure - fill out and sign this paperwork and send back.

We recieved notarized documents of a "Consolidation, Extension and Modification Agreement" by all parties.

When interest rates went up, I called the mortgage lender and asked what a 30 year fixed rate would be for our loan. They said "Sir, why do you want to do that, you already have a 30 year conventional mortgage".

Confused, I called them and it seems they entered our loan incorrectly into their system originally. The underwriter took this info and filled out the above agreement with this information. The agreement as I read it (and I'm not a lawyer) basically says - out with the old, in with the new.

The document says it's a Freddie Mac/Mae Form 3172 7/86.

I asked the mortgage company for a letter stating any new terms - this set off an internal audit on thier part and have not heard anything for 6 months although I keep calling and they say it's with thier legal department.

If any RE lawers out there - could I have hit the jackpot and have my 5/1 ARM at 4 3/8 changed to a 30 Year fixed at 4 3/8 by thier mistake? Would this document hold if the lender tried to do anything?

Thank you in advance.

[HomeGuru]

Originally Posted by scnetworks

What is the name of your state?Georgia

Last January, we asked our mortgage company if we could pay down a portion of our 5/1 ARM principal, re-amortize and get a lower payment. They said sure - fill out and sign this paperwork and send back.

We recieved notarized documents of a "Consolidation, Extension and Modification Agreement" by all parties.

When interest rates went up, I called the mortgage lender and asked what a 30 year fixed rate would be for our loan. They said "Sir, why do you want to do that, you already have a 30 year conventional mortgage".

Confused, I called them and it seems they entered our loan incorrectly into their system originally. The underwriter took this info and filled out the above agreement with this information. The agreement as I read it (and I'm not a lawyer) basically says - out with the old, in with the new.

The document says it's a Freddie Mac/Mae Form 3172 7/86.

I asked the mortgage company for a letter stating any new terms - this set off an internal audit on thier part and have not heard anything for 6 months although I keep calling and they say it's with thier legal department.

If any RE lawers out there - could I have hit the jackpot and have my 5/1 ARM at 4 3/8 changed to a 30 Year fixed at 4 3/8 by thier mistake? Would this document hold if the lender tried to do anything?

Thank you in advance.

**A: I am a RE attorney and I don't know the answer because your entire loan file must be reviewed first. And that can't be done on this website.

[ice5146]

You called to have your existing 5/1 ARM @ 4.375% Refinanced in order to decrease your monthly payments correct? Did you do this because you have had this existing loan for over 60 months now and it has become Variable as opposed to 4.375% Fixed?

When the Lender told you "why do you want to do that, you are already on a 30 yr Conventional," they more than likely meant that you are already amortized over 30 years with your existing loan and it is Conventional. The rate for a 30 year Fixed w/ today's market is much higher than the ARM rate you have.

What papers did you sign and send back? What rate and loan product did they sell you? A 30 year Fixed or another ARM? What rate did you sign for on the Good Faith Estimate and TIL?

[scnetworks]

Hello Ice5146,

We are (were?) only 2 years into our 5/1 ARM when I called to check on rates, this because interest rates were going up and I wanted to lock in
a 30 year fixed if it made sense.

The documents we signed and received back are the Freddie Mac/Mae Form 3172 - Consolidation, Modification and Extension Agreement.

This mortgage servicer is not the same as the originator it changed hands shortly after we closed.