Loan modification denied

[Charleyhutch33]

I applied for a loan modification in March 2009 to Chase Bank and just heard today that we have been denied as our assets are too high. I asked for a more detailed explanation and was told that my husbands 401K plan has more than 3 times our mortgage payment in it and that disqualified us. His 401K has approximately $20,000. In every other aspect we qualify for the modification and the Chase represented recommended we re-apply and omit the retirement fund amount. I am hesitant to do this in case it is fraudulent but we do not want to have to cash out our retirement in order to keep current with our mortgage payments. Any advice? Many thanks.

[cheri]

we are in the middle of a loan mod with an attorney, we live pay check to paycheck, and are in an interst only loan till feb2010, all our other bills are late, but we never are late on mortgage, we bought for 455.000 and is now valued at 190.000. we have been waiting for an answer since march, and now the attorney emailed me saying being we always make our payment on time, B of A sees no hardship , But everything else is late I feel since home sales are picking up, the banks dont want to help anymore

[Paul Molinaro Esq.]

And that is one of the big issues... when property values are down in the dumps, lenders have an incentive to work with borrowers as a way to minimize losses... but now that some people feel the bottom has been hit the lenders are looking at taking the properties and selling them as an attractive alternative.

Keep in mind the lenders got billions with a "B" of money and there are a group pf people out there buying foreclosed properties... homeowners have been losing jobs at record numbers and losing their savings through the crash of the markets... and this has made the lenders less desperate and the homeowners more desperate.

- Paul

[cheri]

Originally Posted by Paul Molinaro Esq.

And that is one of the big issues... when property values are down in the dumps, lenders have an incentive to work with borrowers as a way to minimize losses... but now that some people feel the bottom has been hit the lenders are looking at taking the properties and selling them as an attractive alternative.

Keep in mind the lenders got billions with a "B" of money and there are a group pf people out there buying foreclosed properties... homeowners have been losing jobs at record numbers and losing their savings through the crash of the markets... and this has made the lenders less desperate and the homeowners more desperate.

- Paul

the attorney wrote us back and said "being we pay on time and are not behind" I know attorneys cant tell people to be behind on mortgage loans .. but we are thinking of paying some of these late bills and car payments we are behind on instead of the mortgage,, but we are nervous about doing that. But i do need my car in order to work,, this is all scary, because we dont want to loose our home,, we just want some relief with a decent interest rate fixed for the life of the loan,, in febuary it will adjust.

[caldwellb02]

I am with you. I just got denied last week for a bogus reason, and am probably going to default and save some money for my next place, which will be a rental and I'll probably need a huge security deposit because my credit will be shot. I worked with Chase for 7 months on this. They are idiots. I will never buy another home again unless I can pay all cash.

[Paul Molinaro Esq.]

AND FOR PAUL'S POLITICAL COMMENTARY:

Banks continue to get huge amounts of money to save their hides and protect their salaries and bonuses plus more laws to protect them from those pesky homeowners. Don't doubt for a minute that banks aren't paying serious cash to lobbyists and politicians to make certain the laws are on their side.

Borrowers are getting more pay cuts, job losses, higher utility bills, less governmental services, DMV and other governmental office closures, fewer police and fire workers, crappier schools, and soon governmental health care, etc.

No answers at the end of this post... just griping.

- Paul

[caldwellb02]

Paul - I've been griping too but it doesn't do any good. I HATE that the bank may win on this. I'm going to a credit counselor next week to see what I can do. I'd really like to keep this house through the holidays and I think if I could find a way to pay the next two months mortgage and default in October then I could have the house through Christmas. Crazy thinking, huh? But I LOVE CHRISTMAS, and the holidays in this, my first ever home (I'm 60) that I've owned have been wonderful. I will truely miss that.

I thought about using your law firm, but $3000 up front with no guarantees and then $350 more an hr if needed is also crazy making.

[Paul Molinaro Esq.]

NO LEGAL ADVICE HERE - JUST GENERAL INFORMATION - ANY SIMILARITIES TO ANYONE'S ACTUAL SITUATION IS JUST ONE HECK OF A COINCIDENCE.

And my firm understands the dire financial situation of people who call us... we receive no government money to help people. We are a for-profit private law firm. We have kept our fees reasonable while still providing the best service we can and, of course, making a profit so we (as in "my entire staff") can pay our mortgages (some of which are upside down - just like our clients).

As for why people pay a lawyer, whether my firm or any other, might I set set forth that the fees are for services performed not for results. While that may sound strange in other fields, this is how law and medicine (another field I know well) operate (a little surgery pun there). Lawyers and doctors are paid for opinions and work regardless of the outcome. Both are professionals and under intense scrutiny by licensing agencies and the government as well as the constant threat of malpractice should they perform their services negligently.

Also, legal services with regard to a "loan modification" should include much more... such as counseling on available options and which are realistic goals... such as bankruptcy, strategic foreclosure, short sale, litigation, etc. When the loan mod does not work out, as may be the case, what then? Your attorney should be able to help you with a short sale, deed in lieu, maybe negotiating cash for keys but at the very least explaining your legal rights through the process. Plan B can be when the lawyer in your corner is really valuable.

And for those that simply can't afford legal help, this forum and others have "priceless" information to guide you to non-profits, governmental agencies, and ways to do-it-yerself.

- Paul

- Paul

[caldwellb02]

I hear you Paul. I appreciate this forum. You are not charging us your time to post here. But I do have a question. I downloaded the e-book and ther is a section about conducting a forensic loan audit. It has a phone number to call: Attorney safe Solutions, 951-531-0148, but that number is no longer in service. It is my intent to ask for this "qualified written request," but who do I call to do the audit?

[Paul Molinaro Esq.]

NO LEGAL ADVICE HERE - JUST GENERAL INFORMATION - ANY SIMILARITIES TO ANYONE'S ACTUAL SITUATION IS JUST ONE HECK OF A COINCIDENCE.

While names of companies may be similar, and in some cases the same names might be used by different entities, the Attorney Safe Solutions I know well is the one one that is a dba name used by Fransen & Molinaro, LLP for its loan services to other law firms. These services may include forensic audits or consultation for other lawyers. These service are not available to non-lawyers. As for forensic audits and their value, I will leave that to another post. I have seen the name Attorney Safe Solutions or similar sounding names used elsewhere. Also, there have been other law firms which have used the same marketing people we have used and that may be adding to the criss-crossed names or telephone numbers.

I'm sure that the above either cleared things up or made them more complicated. In summary, my law firm can do a forensic audit for our clients as part of other services we provide. We also provide this service to other lawyers. We do not do just a forensic loan audit of documents for consumers.

- Paul

[so-cal-gal]

I'm wondering if you have ever heard of a situation like mine. Litton now holds the note and also incorrectly evaluates me as having too much income to qualify for a loan. Hmmmm. JUST the first mortgage, w/o taxes&ins is more than 80% of my GROSS income.

But that is not where this journey started.

I applied for a mod while the note was held by Countrywide back in Dec. 08. They agreed to a mod & sent 2 packages in February. I got the second one notarized and returned with the required docs before the date the package was to be returned. They needed it back by 3/25. They documented that they were already processing the package on 3/22. On 4/09/09 the status was changed to 'COMPLETED'.

When I called, I was even told the mod was complete or that it was being implemented. I was assured many times that I had NOTHING to worry about, that I had my mod.

Well, then I got a form letter informing me that my note was being transferred to Litton. Now the BACK of that form letter says that the transfer will not affect the mortgage instruments.

Naturally, I was concerned and contacted BofA. I was told not to worry, the mod processing would be completed and the docs would be sent to Litton and that Litton would honor the mod. As I continued to see billings for the original amount, I called additional times, each time being assured. I continued to get BofA assurances EVEN after the May 1 date that Litton took possession of the note. Later on BofA personnel were finally looking at the 'status' that my mod was showing of 'complete' and realized that was for the document verification stage. It looks like their own personnel possibly did not properly handle the mod or intentionally just left it undone. They never communicated with me again after the 'transfer' notice. I only got info if I called them. I was told by at least one employee that they could still fix the problem but when he talked to his manager he was told to not get involved. I was STILL told by BofA that Litton SHOULD honor the mod. Two of their employees told me that if Litton would contact them they would inform them that the package had been verified and should be honored. I was even told by BofA that if the same happened in the 'opposite direction', BofA would honor a mod 'd mortgage that was like mine in processing status at the time of transfer. (BofA had no reason to withhold the mod per the package that was offered. It is the actual document that should be recorded that was the document I had to have notarized.)

Litton refuses to acknowledge the BofA mod package. They sent an erroneous NOD. It was erroneous on at least 2 points. They cited the date of the NOTE - well, thru a clairevoyant clerical error the date cited is the DATE OF THE MODIFICATION PACKAGE! The other point is that they gave 45 days to cure the default. CA requires 90 days unless they have filed a plan for modifications.

As I have already stated, Litton won't start a new mod because they erroneously believe I do not qualify.

I have retained an attorney. Letters went out to BOTH lenders this week.