I found this forum a few months ago, I've learned a lot from reading the Chase and NACA bulletin boards, but have not posted much. I hope you can offer some words of wisdom and advice.
I have been unable to work since 2004. I am dealing with a dibilitating and relatively rare complication from surgery, as well as a long-term chronic illness. While trying to regain my health, I have fought one battle after another for proper treatment, medical insurance coverage, and disability insurance wrongful denials, appeals, and lawsuit.
Side-bar: Social Security Administration approved my claim for disability benefits fairly quickly, while my disability insurance carrier cancelled my benefits. How can they cancel my benefits? Social Security supposedly has stricter requirements than the disability insurance company, but the companies that provide group disability insurance are protected under federal ERISA laws. These laws allow insurers to wrongly deny and cancel benefits with no consequences. It happens to thousands of people every year.
I refinanced my condo in 2007 and took out equity to cover medical bills and living expenses. No income verification required, based solely on my excellent credit rating. Interest only, fixed interest rate of 7.75% for 7 years then it would adjust. The monthly payment (interest and taxes) is $2500 a month. I hoped it would buy me some time to recuperate and return to work, however things didn’t work out that way and I am still unable to work. I realize now that the refi was probably not the best idea, but I was very sick and in really bad shape at the time and it kept me in my home, my sanctuary.
My sole source of income is from SSDI $1506. Over $1000 a month goes to health insurance and medical expenses even with Medicare. Then I have credit cards, student loan debt, HOA fees, property insurance, auto insurance and expenses, utilities, food and so on… totaling roughly $1800 per month. Add in the mortgage and I have a deficit of about $3800 each month. It didn’t take long to go through the equity I took out in the refi. Now I am going through what I have left from a 50 cents- on- the-dollar Net Present Value, attorney-gets- 40% -plus-admin-costs disability insurance settlement. I harbor no resentment toward my attorney; ERISA laws make it nearly impossible to fight and win on your own.
I started investigating loan modification and other options last fall. I attended a NACA event in Sept 2009, but their help hasn’t gotten me very far. I stopped paying my mortgage in April 2010 after I read this board and elsewhere that my lender Chase (Freddie Mac investor) was unlikely to help me if my mortgage was current. Also, at the rate I was going, my savings would only last about 15 more months.
I now find myself in a very difficult place. I’ve mapped out many scenarios trying to figure out how to make what I have last as long as possible and maybe keep my home. But there are many unknowns: Is loan modification even possible? Will I be able to return to work? I may an eternal optimist, in denial, or just plain dense, but I still hold out hope that I will be able to work again.
I’ve submitted paperwork to Chase and follow up weekly, but keep getting told that my application is under review or that they need updated info. I got a letter from Chase a few days ago about a Homeowner Assistance Event July 16-20 in ffice:smarttags" />
lace> near where I live. The letter says they still need a hardship affidavit from me. I am thinking of attending the event to turn in the hardship affidavit and any other info that might be needed. Maybe I’ll get a better idea of what options are available to me.
I am “working” as hard as I can to try to regain my health and vitality. However after 6 years of battling for proper treatment, medical insurance coverage, and disability insurance wrongful denials, appeals and lawsuit, I am pretty spent. I would appreciate any info you have for me.
P.S.—Questions: If my house were to foreclose, would the fact that I refied and took money out affect whether the lender has recourse to come after me? I know CA is a non-recourse state, but does that change with the refi?
I provided both NACA and Chase copies of my Wells Fargo bank statements and ING savings account. Is there any way that Chase can get that money?