Loan Modification Question?

I just found out my mother is 4 mos behind in her mortgage as a result of an early medical retirement due to parkinsons disease. Her pension and Social Security did NOT kick in until 4 months after she retired. We have searched for programs that could help her, but all the current programs seem to work for FHA loans, not her conventional non-fha loan. So here's the dilemma: She owes 28k (including past due) on a house that is supposed to be paid off 2011. Her loan rate is 12.5% (I didn't know it was this high). Ocwen has stated they will lower her rate to 7.5% and attach the 8k past due to the end of the loan. BUT HER LOAN WILL HAVE TO BE EXTENDED ANOTHER 10 YEARS. This is the only option they will allow as they will not work with us. What other options are there? She is very close to paying off the house, and I cringe at the thought that she may have a mortgage in her 70s. I feel like they are trying to screw her bc she is in a desperate situation. Thanks in advance for your help. Her home is now worth 132k She is 59 and not eligible for the Reverse Mortgage

4 weeks ago - 2 answers