How do I ensure that the bank is offering me the best terms.

[ksiva01]

Dear Attorney,
Thank you for your service.

Here is my questions.
I have 5 ARM interest only loan ( 482K + 113K) due for adjustment next year. My understanding is, Bank ( Wells Fargo ) is willing to negotiate for 3% my first loan. At this point the house is under 300K, which is less than 50% of the purchase price.

At this point I don't know all the details,
Here is my questions.
1. How do I ensure that the bank is offering me the best terms.
2. What is my do's and don'ts ?
3. What is your best advice ?

Thanks
KS

[Paul Molinaro Esq.]

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

If the loan is affordable on a monthly basis and the borrower is comfortable with the balance owed (even though greater that property value), it' might be a good deal for the borrower... the problem with this question is that every homeowner has a different idea of what a successful loan mod is.... I know this first hand as there are people who have gotten great deals (low rates and all past due amounts rolled to the end) who are totally dissatisfied. Go figure. But that is because everyone is different. Technically speaking a reduction of the monthly mortgage payment by one cent is beneficial.

Focus should be placed on how the borrower feels he or she will be able to pay over the LONG TERM and if he or she is comfortable with the balance. If the goal is to screw as much as one can out of the lender, there will be no satisfaction as there will always be someone who gets a better deal.

- Paul
- Paul

[ksiva01]

Paul,
Thanks and appreciate your response. I do understand, the situation different for different folks.

My concern is
1. I don't want to loose the property.
I am curious to know, how the bank will decide my affordability, what is the basis and factor they apply and consider ?
2. I know, what is my affordability, how do I represent the same effectively so that I will not break the deal or negotiation so that I will avoid foreclosure ?

Thanks
KS

[so-cal-gal]

Originally Posted by Paul Molinaro Esq.

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

If the loan is affordable on a monthly basis and the borrower is comfortable with the balance owed (even though greater that property value), it' might be a good deal for the borrower... the problem with this question is that every homeowner has a different idea of what a successful loan mod is.... I know this first hand as there are people who have gotten great deals (low rates and all past due amounts rolled to the end) who are totally dissatisfied. Go figure. But that is because everyone is different. Technically speaking a reduction of the monthly mortgage payment by one cent is beneficial.

Focus should be placed on how the borrower feels he or she will be able to pay over the LONG TERM and if he or she is comfortable with the balance. If the goal is to screw as much as one can out of the lender, there will be no satisfaction as there will always be someone who gets a better deal.

- Paul
- Paul

In my case, I wanted CW/BofA to HONOR a CONTRACT they made with me. They (CW) offered the contract themselves, I agreed to it, I complied with it. They failed to implement it. Now they have caused me damages.

Apparently the only way to get CW/BofA to HONOR actual CONTRACT modification packages that THEY structured under the California AG's settlement with them is to serve them with a law suit.

They made the offer. They received the package back and agree that everything was in order and timely. THEY JUST FAIL TO IMPLEMENT the modification. The contract in the package is one you have to have NOTARIZED before you send it in. It and the letter accompanying it, states what to send (verification of income) to have this mod "TAKE EFFECT".

There are NO clauses that allow them an 'out' provided you are timely in submission of the package AND provide the requested means of verifying income.

Employees offer to get involved with 'fixing the problem' only to be told by low-level managers that they should NOT 'get involved'. Does that sound like HONESTY?

NO CONTACT from BofA/CW in letter or by phone is EVER initiated. I only know from my contacts with them by phone, and now my attorney's also.

Looks like there are just a few laws broken. In my case, they also transferred the note with that transfer effective the VERY day my mod was to have the first payment due. New servicer (Litton) refused to take the new payments. Transfers are NOT to affect the mortgage instruments per the notification I had received. They assured me the mod was 'mine' and the transfer would not affect it. Now, with the mod not being implemented/honored by BofA/Litton, it looks like the timing of the transfer was not just a mistake (as one BofA employee commented - it should NOT have been transfered while in that status of processing) but smells of INTENT.

I'm also hearing of more people with the same CONTRACT that CW initiated but is now failing to implement!

Hey, 'Uncle Jerry' (CA Attorney General), your settlement with CW? You wanna know how they are REALLY doing things? Search on my member name here. [Don't worry, I'll be contacting the AG's office directly.]

[ksiva01]

I know, what is my affordability, how do I represent the same effectively so that I will not break the deal but negotiate successfully ?
How do I know, what Bank is offering is reasonable offer and there is no catch ?
How long, when and how negotiation will occur ?
thanks
KS

[so-cal-gal]

Originally Posted by ksiva01

I know, what is my affordability, how do I represent the same effectively so that I will not break the deal but negotiate successfully ?
How do I know, what Bank is offering is reasonable offer and there is no catch ?
How long, when and how negotiation will occur ?
thanks
KS

Looks like the NACA organization would be a good choice to help you. Have you even determined who actually holds your note? Is it Freddie Mac, Fannie Mae, or (shudder) a private investor? Even though you may be paying the mortgage to the bank down the street, they may only be the SERVICER.

If your note is owned by a private investor, they have to give approval for a mod. If they don't want to, you are out of luck getting one. The only time that modifications have been REQUIRED was the Countrywide Settlement of the suit brought by 11 state attorneys general. For specific types of CW loans, they had to offer a mod package contract.

The timeline for a mod is very unpredictable. Each lender varies and there are multiple programs that your lender may have.

Biggest question I would find out is that 'who owns the note' one.

I know the negotiating groups look only at your information and trying to qualify you. I don't know why they don't immediately start talking to the bank to find out if the note-owner is willing to have a modification, but I don't think they approach the bank or lender until they have 'worked up' a package for you. For investor-owned notes where the investor does not want to allow the mod, this is time wasted when you should have been trying to do something other than pursue a modification.