ASC Mod Offer

[Joel Fraser]

Long story but to sum it up I received a letter from ASC stating my loan modification has been approved. Initially I took an arm in 2005 and it re-adjusted in 2008. I asked ASC for a loan modification and went thru the process to get the finance sheets, etc. in order. I waited and waited and finally received the letter after calling 6 times a day :-). The letter is asking that I sign it within 5 working days. They are also telling me that the rate will be fixed for 30-years. What I am leary about is why there is only 5 pages to what they sent me from DHL. It feels weird. I received a call from the NEGOTIATOR (I know, it sounds like a movie, lol). Therefore, I have the following questions for this forum. "This letter will confirm the formal approval of a loan modification/restructure of your mortgage loan. To facilitate this transaction, it was mutually agreed that a contribution of $2500.00 would be required, which will be applied toward the accrued delinquency. Please sign the enclosed loan modification agreement and return it, along with any payment (s) and/or modification due as reflected in the terms of this letter. If a Truth in Lending Statement is enclosed with your mod agreement, please sign and return all items and contribution as disclosure of your interest rate being raised through this modification. Accoding to the letter, it states "the term of your modification/restructure are outlined below: 1. Due Date of first payment: 12/01/2008 2. New Principal and interest payment amount: $1,533.00 3. *Required escrow payment based on previous analysis: $211.13 4. Estimated new net payment: $1,744.13 5. Modified maturity date: 12/01/2038 6. ** Interest Rate: 6.00% *(Your Escrow shortage may not be fully included in the modification terms, payment may be subject to an additional increase in the future. The Escrow Department will reanalyze your loan after the terms of the modification are met and you will receive notice regarding any additional increase.) ** (Step rate changes, if applicable, will be reflected in the terms of the loan modification agreement. The interest rate and payment the borrower will pay may change in accordance with the note.) OKAYYYYYYYYYYYYYYYYYYY.... Now that you've seen the note from the lender (ASC) above, here are my questions. 1) Is this a 30-year fixed for life, meaning for 360 months? The reason I ask is because nowhere in the letter does it state it is. 2) where is this contribution coming from? 3) Will I have to submit a new contribution? Will this be a one time deal? 4) Is the interest rate locked once I sign the letter? 5) What does the truth and lending letter looks like? There are paperworks attached but it does not say truth and lending at the top of the letter; it simply says the following "LOAN MODIFICATION AGREEMENT, between the borrower and America's Servicing Company, ("Wells Fargo Bank, N.A. doing business as America's Servicing Company). Is this a Truth and lending letter? 6) Should I sign this letter? I need your help.....After speaking with the ASC customer reps, I don't even know if I can trust them. Regards, Ron