Trying to help my parents...not sure where to start

[leavinlv]

My parents live in CA. A few years ago they both lost their jobs. They have since both got part time jobs and are now both getting social security. They are just barely making the mortgage now, and have been trying to get lower payments for two years now. B of A keeps sending Fed Ex packages with the same paperwork, and inviting them to these big open meetings where they are supposed to be helped. Nothing ever comes of any of it. They have been reluctant to miss a payment, but were told that was the only way B of A would help. So now they've missed a payment, and were offered a trial modification for 3 months, but the payment is more than they are making now. And then today, they got another offer for a trial modification for even more. I told them not to sign anything. If they are barely making their current mortgage, why offer them something even higher? All they want is to lower their payments. They were told they make to much for HAMP, and not enough for a re-fi. What can they do? Can you suggest someone they can talk to or somewhere they can get some assistance with this?

[FightingFC]

leavinlv, 6/30/12

I'm sorry to hear about your parents' situation.

We have talked with our servicer (IndyMac/OWB) on numerous occassions regarding lowering our mortgage payments. We have heard the same things you've mentioned from all the representatives we've talked to. Our income is too high for a HAMP, and it's too low for a re-fi. We asked them what we should do for them to consider modifying the loan? They told us to either increase the income or lower our daily expenses. We couldn't get more income (hence a request for help!), so we cut out all the expenses to just the bare minimum for just surviving. What do they tell us after we re-applied and adjusted all the numbers? You don't qualify because you don't have enough income to make the lower mortgage payment even if we do give you a modification. You see...you'll be chasing your tail forever with the games they're playing.

I'm sorry I couldn't give you any advice on what to do, but just my experience dealing with the servicer. We've been at it for the past 4 1/2 years. Just reapplying for a modification. I've stopped paying the mortgage for 11 months now. We just received a NOI (notice of intent) a week ago exactly from today.

I'm at a crossroad now and one that I don't know which way to turn. We've depleted all the savings and whatever we have. I am truly lost.

I hope your parents have a better outcome.

[Cat Damiano]

Hi leavinlv,


Welcome to the forum and thank you for joining...........


There are two places they can go for free help, one would be HUD here;


U.S. Department of Housing and Urban Development (HUD)

The other would be through the CA specific Hardest Hit Fund program here;

Keep Your Home California