Insider's comment - cnnmoney.com talk back

[OH-WAMU]

From the CNNMoney.com Talk Back regarding Mortgage Servicier Service:

I am employed by one of these servicers and i just want to give some advice, everyone is working as hard as they can to help you, please do not call in just because you want to have a lower interest rate because youre home is not worth what you paid, that doesnt scream hardship to anyone, that screams handout/greed, you signed that contract through thick or thin, and please do not call back repeatedly until you think you found something you wanted to hear and a large # of homeowners do that, that is hurting the people who really need it…so instead of being upset with us try looking at yourselves, take accountability, you signed the contract…this doesnt apply to the people whe really need the help only the people who are irresponsible and wanted to keep up with the next person, by the way thank you

Posted By sally Q, Walla Walla, FL: September 9, 2009 2:35 pm

I am looking for more insider comments.

[briknope]

Probably very true. You even read it on here, as you follow through some of the people's posts here more and more details come out of their situation. Sometimes, they do have equity in their home, savings, or really no hardship at all. Sure they consider it a hardship, but its really not a hardship. Some people here are applying for loan modifications with the anticipation of a hardship. I will say ALOT of people are worried to death about their credit rating. If you basically just want to keep your home becasue you like your home and have a genuine hardship then everyone else who thinks this Obama plan will "gift" people cheap housing are clogging up the system. Everyone wants their piece of this so called bailout. Me personally I NEVER asked for anything for free, I asked to go into a interest only loan or extent the period to 40 years or both. Thats not benefiting be from a financial standpoint. I would take a lower interest rate for 2 years instead of the 5 years some have been offered. They could put liens on the property to make it up when the property is sold or refinanced. I think those are fair solutions. I am completly accepting of the principal balance of the loan. Only asking for lower payments somehow or someway. Again, I said Sometimes, and some people. Not everyone one here at all.

[Jillian118]

I started reading all of those posts as well, it was really overwhelming seeing what happens to people when the economy tanks.

I can understand to some extent what this woman is saying, but IMO it should be pretty easy to see who has an actual hardship and who does not. I cant fake my tax returns, divorce papers, pay stubs etc... and the bank knows what my mortgage is and what my accounts are since they pulled my credit.

I also have never in my life asked for help. If I could have even sold my house I would have done so, but I can't. Im stuck. These are my only options, modify, short sale or foreclosure. I am working two jobs one full time and one part time just to pay chase, but please dont feed me the line of "you signed a contract" I know that. Businesses renegotiate contracts all the time & its just business. Well that is what this is now, business. Chase renegs on stuff all the time...business as usual for them. A homeowner does it & now they are scum and fodder for people to thumb their noses at....people in glass houses and all.

[OH-WAMU]

ANOTHER INSIDER....

As much as I agree with the lack of things being done to pull us out of this slump I feel that there is a completely different side that is being ignored that matters quite a bit. I work at a bank and the number of people filing for refinances coupled with the new regulations that are being put in place are making it very difficult to get anything done. We are so tightly staffed that we were just barely getting by getting all of the paperwork done on the loans we had to begin with. The change in influx of applications and all of the extra measures having to be taken are causing a standstill in most banks as far as loans go. Obama is not a banker and knows little to nothing about what it takes to keep a company in this business successful. The new procedures that no one is familiar with are causing most of the problems, not the banks lack of care for its customers. The banks employees have familys and houses and mortgages too.

Posted By Katie, Dallas, Texas: August 13, 2009 3:24 pm

[tweedle]

Bullcrap. Insider, I guess you are not like us and needing to take a look at yourself.
Why don't you look at your industry?

[snapple candy]

Well, I can understand the "insiders" position and that they are stretched but I have to say, I started this process over 1 year ago before they were deluged with applications for modifications. I am still in the process over 1 year into it.

Not once have I had a representative be "honest" with me about what exactly was happening or where I was in the process. I have been misled and lied to on numerous occasions as with many here on this site have experienced.

Having the reps just say were are so backed up trying to implement new procedures, this is going to take X amount of time. I think alot of people could accept that. People are not just complaining about how much time it takes to process...it goes well beyond just that issue of the stand still that may have been caused by implementation of new procedures and influx of applications.

[Believe]

Here is another insider comment, or at least the person represents himself/herself as an insider. This comment was copied from a post at loanworkout.org in August 2009.

I work for HSBC Mod. Very simple to get a modification if one is truly in a hardship.
It may seem like hoops when it comes to having to refax something more than once but it’s not that hard. Just LISTEN to what the reps are telling you. If eligible we will NOT deny you. Stop saying that HSBC won’t work with you. That’s a lie. If you’re not qualified, you’re not qualified point blank! It’s just maybe the time to think of exit strategies if you can’t pay the contractual terms. Don’t blame it on the Mortgage Company if the ARM increases; blame it on the Market and the Index. They control what your rate will be.
Here are the steps:
1. Make a payment. Stop lying to the reps saying you can’t pay if you know you can. If you don’t then it will delay the process and you’ll end up getting denied because you’re not contributing to the cause. Many people get denied because their playing hardball with the company but it doesn’t work that way. We will not work on the mod and give you an answer to what the price could be reduced to if you’re not maintaining your account TO THE BEST OF YOUR ABILITY. We know you’re in a hardship. Just do exactly what the reps say and you will succeed. If you skip a step then you will fail and spend your time on these blogs because you refuse to pay your mortgage and just are trying to wait to see what the answer will be. Just try your best and make arrangements over the phone so we will have it in the system that we will be expecting funds sooner or later.
2. Once you pay we’ll update your financial situation in our. If you have a surplus then it shows that financially you can maintain payments so you might not get approved. So if you are making enough money, don’t get mad, good chance you will not get approved.
3. Just fax in the documentation as soon as possible. Make sure your HSBC account # is on the top OF EVERY SINGLE PAGE! People try to wait 3 weeks before they fax it and blame it on us later on after the application expires. Fax in full most recent 30 day bank statement with names for everyone on loan, 1 paystub for both mortgagers (within last 30 days), and unemployment or social security award letters if you receive it. Once faxed it will take 3 to 4 days for us to see it on our cpu’s then another week to process and provide a decision (assuming you’ve made at least a full payment within the last 30 days.) Trust me. If you do it ASAP you can get a solid answer in a total of 2-3 weeks.
3. Once we’re done with the paperwork we will probably ask for a qualifying payment (if the account is behind and we need you to catch up a little) to show good faith on the account which is pretty much what the payments will be on our 6 month modification. Don’t argue with us. If you have it, then just pay it so we can get you on some type of program. If you’re not able to afford the modified amount and have an even further legitimate hardship (death of spouse, serious disability) we may be able to lower it further but you still have to make the payments for what we set it at first. We will not send anything in writing unless you’re on the mod and actually approved/denied for it. Just make your qualifying payment. We’re not asking for anything extra money to get on mod at all, just what is probably already due (if account is behind).
4. STOP PLAYING THE WAITING GAME! Just pay what you can and then we will try to work with you. That’s pretty much it. No papers to sign.
5. Once you’ve made at least two consistent payments in a row (within 60 days) we may be able to restructure your account and bring the account current (if it was behind) and if you haven’t had a restructure in the past 365 days.
That’s it. I process over 21 loans a day and gone through it long enough people they know what the deal is. If you can show future ability to pay and you are in a true hardship you can pretty much guarantee that you can get you payments lowered.
P.S. No we don’t change loans to fixed conventional rate, no we don’t refinance, no it is not permanent, (only if you can pay for the first 6 pmts, then possibly get 18 month extension , then possibly permanent, but you can’t skip any payments). Everything revolves around payments. You may be laid off or have a reduction of income but as long as you can afford to make a payment or two throughout this entire process there is no reason you should get denied. Just follow the rules.
Listen to what the other guy who works there said above me. Don’t waste your time with those 3rd party scam mod agencies. They do not convince us of sh*t. Just call in yourself and update your financials by yourself and save yourself the money. We do all the work for you. All we need are your financial figures verbally, then the physical income documents faxed with loan #’s on each page and that’s it. They don’t negotiate the terms, we do. They CANNOT promise you an imaginary rate under 4% because we don’t even go that low and our decisions come from the financial #’s and possibly the hardship letter if you feel the need to write one (we don’t really need one), so don’t waste your time with the scams you see on the commercials. TRUST ME.

[ama125]

I have posted comments on that blog myself under the same name I use here... ama125. I think the makinghomeaffordable.gov website needs to include a list of acceptable hardships to deter people from clogging up the system if they truly don't have a legitimate hardship. I bet a lot of people go on there, take that eligibility quiz, and say, "oh great... I want a lower payment, too! Sign me up!". And while I don't defend most of the bank's practices, I can't argue that since the MHA was announced, they have been inundated with requests for help and were ill-equipped to handle the workload, and the Treasury has continued to add new guidelines and programs that the banks have not been able to keep up with. I know I have spent hours reading up on these things... I doubt the banks have invested the same amount of time! I'd say that's obvious given how much more the homeowners know about these programs than they do!

[OH-WAMU]

OUCH. This one was a little callous.

I am mortgage loan officer with a major bank where I also have my mortgage. I attempted a refinance using the Making Home Affordable Plan. Unfortunately my condo, original purchased in 2005 for $141K, just appraised for $38K. The 105% MHA limit, soon to be 125%, does little to help homeowners who exceed that guideline. I have exceptional credit and have never missed a mortgage payment, however I could not refinance using the plan due to one of its many limitations. Even as an employee of the bank where my mortgage belongs I was denied a MHA modification.
I took what I though was a low risk real estate investment and it’s not turning out how I would have liked. While rates are low and home values are going to continue to fall, I have accepted that I signed-up for my loan based on what I knew was a good deal at the time, both home value and interest rate.

While I understand mortgages better than others, and I do my best to put homeowners into loans I would only feel comfortable putting my own parents in, the borrower ultimately has to take a majority of the responsibility for the loan they obtained and for the value they purchased or refinanced their home for. The government, the banks and all the investors of mortgage-backed securities are great at listening to the complaints of disgruntled real estate prospectors, investors, and homeowners and unfortunately there is very little they can do or are willing to do, short of spending a bunch more tax-payer money perhaps. The MHA plan will have very little impact, if any in turning around the housing crisis.

So for those of you own a home, I know how you must feel. And if you cashed out when values were high, took a chance on the pay-option ARM or other exotic mortgage, or simply lost some equity due to the sinking economy, and you’re neighbor or friend has a better rate than you and your mortgage company isn’t helping, deal with it and stop complaining.

Next time you lose at the blackjack table, trying asking the dealer for some of your money back because you didn’t fully understand the game and see what happens.

Posted By Nathan, Fort Lauderdale FL: August 6, 2009 6:28 pm

[snapple candy]

Ouch, I gotta agree Oh WAMU.
It has a bit of a sting to it. THis business about the blackjack table, well he does have a valid point but I do not think any of us banked on the extreme loss of jobs that has put us all in this position. I dare to say if we all still had our jobs and were making a living, we wouldnt be where we are today being unable to afford our homes any longer. As for accepting exotic loans, well there are many predator lenders that took advantage of people and they too need to take responsibility in their part in this.

It appears that loan officer is one of those who is clogging up the system applying for MHA when he didnt qualify. Youd think he would know better.

[SBBLUEWATER1]

OH-WAMU -

In my opinion one of the problems is that we have seen very few, if any, people getting loan mods under the MHA program. Granted there will always be those people who try to take advantage of any program that comes out and apply for the mod even if they do not qualify. That is and will continue to be a problem. However, with that said, the MHA servicer guidelines are pretty clear. The waterfall steps to follow are also pretty clear. If we saw that people were actually starting to get loan mods under the MHA program I think the stress level and emotions that come out in these forums would go way down. However, we are not seeing very many, if any positive success stories. After sending in tax returns, pay stubs, hardship letters 5, 6 or 7 times I really have to wonder what is happening. I have been at this process for over a year now and still have not gotten anywhere. I have completed all my trial mod payments and was told my final loan docs were due out in the next couple of days. When I call back I am now told it may be another 45 to 60 days before they even decide if I "qualify" for a permanent loan mod. This is after I was already told the mod was completed in the system 3 weeks ago!!!! I have even talked with my negotiator who said she had all the up to date documents from me and needed nothing else. Then a week later I get a call saying she needs something else. I send it in and then get a FEDEX saying they have no paperwork at all from me so I am at risk of having the loan mod process cancelled!!! If Chase is really going to give people permanent loan mods under the MHA program then they should start talking about this and start explaining what the problems are that are keeping them from giving them out To just constantly hear that Chase is backed up does not make any sense. I have done everything that I am suppssed to do to faciliate the MHA loan mod process for my particular loan while Chase has effectively done nothing! I never got any signed paperwork back from Chase, I've never gotten an approval or denial letter! You just keep asking for more trial payments but refuse to explain where I am at in the process or even confirm if I will get the mod or not. If you can't even look in your system and see the numbers how are any of us suppossed to have any faith in the process? How can you say one day that I am approved and then the next day not even be able to tell me anything? It is these types of issues that create nothing but stress for all of us. Granted you may be overwhelmed but this is not a new process. Banks loan money! Banks have made real estate loans and loan mods for years! There may be new procedures because of how the MHA program is structured but how come we don't see any success stories??????

[snapple candy]

SBBLUEWATER,
Im with yah on this one.
Believe,
Interesting post from insider at HSBC although I dont think it applies to HAMP. I have been concerned about not making a 4th & even 5th trial payment (which would be due on the 1st)....that it would be lack of "good faith" effort on my part in this whole process. WAMU/Chase has not operated in good faith to date, why would I continue to make payments only to be foreclosed on in a few months? Trusting a verbal by any rep I think is expecting way too much of the consumer based on how jacked we all have been and how much mis-information is given by them.

[cliffdweller]

Believe,
Thank you for this post!

Personnally, this is EXACTLY what I have been looking for. Give us the straight skinny so we know what is going on and how to react.

I am glad that insiders are communicating honestly...this will help our situation.

[Believe]

Snapple, you're 100% right. The HSBC worker's post doesn't apply to HAMP, because HSBC has elected NOT to participate in HAMP or any other program. Their program has 3 steps, if I understand the worker's post. 1) Send money; 2) Don't argue with us; 3) Do what we tell you to do. And as for the black jack correlation, it was the banks and Wall Street who were playing black jack, NOT US! They were playing with OUR MONEY - that's how WE got involved. I'm sick of those pompous people trying to blame this mess on the homeowners.

[SwillerAlesbane]

Yup, you are damn right I signed the loan documents. However, YOU (the banks) got the house as equity...that's the agreement.

Hey banks and all the banks employees, STFU, stop taking US crony capitalist government money, and take your mother f'ing house back. THAT'S the agreement...get yer asses in gear and start foreclosing so the price of homes can drop to a REALISTIC level and I can be a 1st time buyer in 3 years.

Do I sound scared I may lose "my" home. You know, "my" home that I paid interest only on, one that I would never own, the one where I was a glorified renter. Sure, it's ALL good for the banks to scream out ETHICS and MORALS when THEY won't get every blood dime, but remember, the BANKSTERS lent all this money out....which created the housing bubble....oh yea...WHO IS AT FAULT?

Sure....don't call, you are just wasting time for people who DESERVE it. Like the people who bought pre-2000.....sheet tons of equity, bought for a sane, sustainable price.....yea, THOSE guys need help to lock in a 30 year fixed at under 5%. How dare you take up companies time when you are in an interest only, negative equity property....YOU signed it.

Wake up banksters...bankruptcy is still on the books even though you tried to gut it. You are in for a fight from this citizen, I'll be staying in my house for as long as possible and not paying a DIME. When you go to foreclose on me, I'm filing in the courts to tie you up some more. I sincerely hope you enjoy picking up the HOA fees, the taxes, and not getting a red cent in the meantime.

[cliffdweller]

I guess that is what makes the world go round...different ways of seeing things.

Here is what I get from the post (I am not a part of HAMP, which is why I may appreciate it more than others).

1) We will help you through a tough time.
2) Do your part and we will do ours.
3) We are willing to go 18 months at a reduced payment( in our case $1k/month) to see if your situation improves, maybe longer.
My husband and I are doing everything we can to return to a position where we can easily afford the original payment...so no big deal....nice to know extended help is an option.
4) Signing agreements is important, I agree, but not nearly as important to me as honoring the ones that you enter into. Things change, part of life, and right now we all need to go with the flow. I fully expect to receive some form of agreement from Chase.
5) Banks are NOT social service agencies. A multi-pronged approach is needed to help homeowners through this crisis... beginning with more jobs and wages that are consistent with the cost of living.

[SwillerAlesbane]

So cliff....if you enter into a contract, and the person who was on the other side used fraud to manipulate conditions that artificially propped up prices, you would still consider yourself under an ethical and moral responsibility to continue that contract?

Wow....no wonder banksters make out like gangsters. I feel sorry for America when the only people allowed to have fair representation and the opportunity for debt forgiveness are banks, business, and anything tied directly to crony capitalism.

Different strokes for different folks indeed. Good luck working with your bank, I'm sure they have your best interests at heart and not their own

[snapple candy]

"Their program has 3 steps, if I understand the worker's post. 1) Send money; 2) Don't argue with us; 3) Do what we tell you to do."

I think you understood this the way I did. All I can say is that someone got $75K of my money I put down on my house and I am still underwater 100K and I didnt look at as a poker game back then. Is it wrong to gamble that you will continue to have a job or can get a new one and can maintain your house payment in the future?

Its easy for those whom sit in a secure job to look down their noses at those trying to hold their families together on a mininum wage job cuz that is all they can get, if at all and are losing our houses. Just cuz they can suck up the loss of equity and still keep making their payments, we dont deserve any help. Yep, we should all stop whining about the hand we got dealt and take responsibility for the contracts we signed.

There has got to be some middle ground here with these lenders. Exit strategy......hmm, you better believe I got one when my loan mod falls apart.

[Believe]

Originally Posted by snapple candy

Is it wrong to gamble that you will continue to have a job or can get a new one and can maintain your house payment in the future?

NO, absolutely not! Pretty soon they'll be telling us, "You should have been able to anticipate that your husband was a loser before you married him. If you had married someone else, your income would be higher and you would be able to afford this house. But, because of your poor choice to marry a loser, you're responsible for your own predicament."

As long as the media and politicians are paid by the banks, this nonsense will continue.

[cliffdweller]

Swiller,
I am about staying in my home at an affordable rate, and helping to change our society for the better in a transitional time...NOT about assigning blame and getting all into that because I don't find it helpful to the cause. Many factors contributed to inflationary home prices...too complicated for me. I am not stupid or naive.

Snapple - I believe there will be help for those who are in sincere hardship, like yourself. I have read nothing to the contrary. I am not "on the fence" about staying in my home...I know that is what I want, so I am working that angle, and there is some gamble that if I continue to make the trials, it will work out...but honestly, that is what I believe to be true. The post above provided some assurance that foreclosure is NOT the game they are playing. I find that helpful information.

[Jillian118]

Originally Posted by OH-WAMU

OUCH. This one was a little callous.

I am mortgage loan officer with a major bank where I also have my mortgage. I attempted a refinance using the Making Home Affordable Plan. Unfortunately my condo, original purchased in 2005 for $141K, just appraised for $38K. The 105% MHA limit, soon to be 125%, does little to help homeowners who exceed that guideline. I have exceptional credit and have never missed a mortgage payment, however I could not refinance using the plan due to one of its many limitations. Even as an employee of the bank where my mortgage belongs I was denied a MHA modification.
I took what I though was a low risk real estate investment and it’s not turning out how I would have liked. While rates are low and home values are going to continue to fall, I have accepted that I signed-up for my loan based on what I knew was a good deal at the time, both home value and interest rate.

While I understand mortgages better than others, and I do my best to put homeowners into loans I would only feel comfortable putting my own parents in, the borrower ultimately has to take a majority of the responsibility for the loan they obtained and for the value they purchased or refinanced their home for. The government, the banks and all the investors of mortgage-backed securities are great at listening to the complaints of disgruntled real estate prospectors, investors, and homeowners and unfortunately there is very little they can do or are willing to do, short of spending a bunch more tax-payer money perhaps. The MHA plan will have very little impact, if any in turning around the housing crisis.

So for those of you own a home, I know how you must feel. And if you cashed out when values were high, took a chance on the pay-option ARM or other exotic mortgage, or simply lost some equity due to the sinking economy, and you’re neighbor or friend has a better rate than you and your mortgage company isn’t helping, deal with it and stop complaining.

Next time you lose at the blackjack table, trying asking the dealer for some of your money back because you didn’t fully understand the game and see what happens.

Posted By Nathan, Fort Lauderdale FL: August 6, 2009 6:28 pm

And what exactly was the "hardship" here???? Same job, same money same mortgage but a drop in equity? Hmmmm.......

[sealag]

Jillian...Touché! fficeffice" />>>

[Chased around and around]

I am employed by one of these servicers and i just want to give some advice, everyone is working as hard as they can to help you, please do not call in just because you want to have a lower interest rate because youre home is not worth what you paid, that doesnt scream hardship to anyone, that screams handout/greed, you signed that contract through thick or thin, and please do not call back repeatedly until you think you found something you wanted to hear and a large # of homeowners do that, that is hurting the people who really need it…so instead of being upset with us try looking at yourselves, take accountability, you signed the contract…this doesnt apply to the people whe really need the help only the people who are irresponsible and wanted to keep up with the next person, by the way thank you

Posted By sally Q, Walla Walla, FL: September 9, 2009 2:35 pm

Hmm ok, so I paid 535K for my condo that the tax assessor said its now worth 316K. My monthly to keep the doors open on this place excluding utilities was $3991.00 per month for the last three years. This last Aug the ARM was adjusting up $740.00 more dollars on the first. New total $4731.00. We bring home $7021.00 per month. I tried to get a refi, not once, or twice but from 6 different banks, no dice. That is a permenant hardship, its called broke. Should I have gotten into this mess in the first place, nope, well you know the hindsight rule.

As Swiller said, they can either work with me to keep me in their property or take it back, no sweat off my butt...

[mintdeer]

I did not "gamble" when I bought my home. It was place for my family to live that we could call ours. I did not look at it as a money making machine. I thought, hey cool now we can have our dogs, live in a nice kid friendly neighborhood, paint the house whatever we want, live by our rules not some land lords! I did not expect the value to drop by thousands of dollars, I did not expect our income to drop by $2000 per month. I was lead to believe like many others that my loan was great and all I had to do was refinance it in a couple of years. I do not want a hand out ( which is what the banks received ,remember BAIL OUT $$$) I just want my loan retooled so I can continue to live in my home. The banks got their deal, I want mine!

[Jillian118]

It must be nice when the company you work for gets a government bail out which in turn probably allows you to keep your job.

The rest of us arent so lucky...I may just go make up my own "DENIED" big red rubber stamp and apply at any of these major banking institutions.