[shangamir]

Hi all... I am new to this site... AWESOME JOB ***, MOE AND EVERYONE ELSE___ GOOD THINGS WILL HAPPEN TO YOU GUYS!!!

So here is my short version of a long story (it will still be long but I will save you guys the endless calls, waits, and misinformation and problems we had with AURORA… I am sure all other threats are similar to mine if it comes to that....
We are in San Diego, CA.

We have been trying to modify our loan with aurora and finally received a call from the underwriter telling us that the only mod we qualify for is the OBAMA plan. Our reason is that my wives pay went down 30% and we had a second child … and it has become quite hard to survive on a monthly basis... a daily struggle if one can say... we both have good secure jobs (knock on wood).

We have 2 loans;
1st one with Aurora 417K @6.5% (10 year interest only option over 30 years fixed rate)
2nd with Citi 172K @8.75% (fixed over 30 yrs)

Ã*Income before taxes is currently at $8432
--------------------------------------------
1st loan is $2230 (interest only)
2nd loan is $1370 (interest + principle)
Tax $500
HOA $511
Insurance $40
-----------------------------
TOTAL HOME EXPENSE: $4640

Our financial income over expense shows no surplus …We are current on our payment and told AURORA that we do not want to do anything to hurt our credit score. We are responsible folks that are going through rough times…
Well, the condo and the loan are both in my wives name only. That is good I guess (my score is the higher one)... We both have +730 and +770 credit and are current with all of our payments (we pay our taxes using credit cards.. so the debt is piling up but will do anything not to fall behind!) Savings is all gone as well …

She (Jamie), the underwriter, told us that they are able to qualify us based on our financials but they will only consider the 1st loan + taxes + HOA + home insurance and would not consider the second loan in their calculations... this would mean that to calculate to the 31% margin she is using $417K and not $588K. ???WHAT????

She said that she will adjust our payment from $2230 interest only to $2105 (this included our TAX and Insurance that would go into and impound account with them). This would save us $700 month ... I still don’t know how they came up with the number and what type of loan that would be (I am confused since they do not use they second mortgage as part of our overall debt)... she would not disclose the details. Anyone have similar experience with this!!!!?!?!?!?!

Also, this would create a balloon payment for the 4 months of trial period which, according to her, we would not need to worry about. This will apparently be added to the loan amount (we are nervous about this balloon payment since other ppl have had nightmares with that… what if they deny us???).
The Citi loan would not be affected by this (we are trying to mod that one also, but Citi has not answering machines and they do not call ppl back I guess… but we have an app in with them)

We have to make the discounted payment for 4 months but it will show as delinquent with the credit agencies and hurt my wives credit. Funny enough, we would only have a 3 month trial period if you were behind our payments (so much for being responsible and making all of our payments on time).
We called Experian and they told us that we should call the Federal Trade Commission. We called them and they took note of this practice and are currently gathering data for a possible class action lawsuit against various companies (I ENCOURAGE EVERYONE TO CALL THEM IF YOU HAVE COMPLAINTS, THERE IS SOMETHING BREWING UP… CROSSING MY FINGERS).

There seems to be a huge disconnect with the OBAMA plan and what the banks are doing… well, if the administration allows them to do it and everything is just voluntary … do I need to say more? Mr. Obama ‘YES, WE CAN� should go for ppl that you taking the tax dollars from and giving it to the banks and not vice versa (I am angry and disappointed about what is happening…)


We were also told that it is up to the loan agency to report the negative entry with each of the agencies. We would have the option to fight it right after each non payment and if Aurora would agree (or not respond to within 30 days of our action), they would remove the entries and my wives score would be almost as good as it was before the mod… I guess this is easier said then done, but at least a glimmer of hope. Jamie told us that the late payment would be reported by Aurora... well, go figure. She could not answer me when I asked her… “what are you guys going to do with the 800 million TARP money Aurora just got last week�… “I can not comment on that� she responded… HAHAA! (Should I cry or laugh)
Well, we told Jamie to send us the documents and maybe we can get some details from that … she will be sending in the initial contract for us to agree with the modified terms and send the final package after our second trial payment had been done (I assume this one includes the details). I will have this looked over by a lawyer (thank god for legal insurance)
After that, they would review our INCOME ONLY (not expenses) and if nothing has changes, well, they would then modify the loan and we could expect the payment to be similar to the trial version … but no GURANTEES…well, it would be nice to know the terms ahead of time so that I know what I am getting myself into. I do not want to go into foreclosure and it looks like this system is designed to set ppl up for that. I blame the administration for that… the banks are doing what Tim Geitner and his wall street and banking friends have told him to do!

My worry is that if we agree and do the modified payments, and there with be officially delinquent even though we would not need to be, they will have the upper hand, deny us and start foreclosure … after they have destroyed my wives credit and my children’s’ future.. IF I COULD ONLY GO AND SOMEHOW ASK SOME QUSTIONS TO Mr. OBAMA AND HIS SECRETARY! They would be in for a though time… (Anyone want to nominate me for this?.. I accept already … maybe more to come on this)


Please advice.. I am sure many of you who have applications in progress will face the same question and I hope my scenario will help you guys…
Contact your state legislature, THE FEDEEAL TRADE COMISSION, ALL CREDIT COMPANIES and so on…. do not stop! They have to change this practice.

Any suggestions.. Comments… hints … are greatly appreciated… I will keep you all posted!