What to do re ARM

[whatsinaname]

I am completing the ten steps for NACA online. Step 5 requires a hardship explanation. I can't think of what else to put other than this. Is this okay?

"My income has decreased from $70K down to $49K due to the company not allowing more overtime and, since my mortgage rate adjusted last year, I have had a hard time keeping up with the payments."

[whatsinaname]

Actually, what about this instead -

""My income has decreased from $70K down to $49K due to the company not allowing more overtime and, since my mortgage rate adjusted last year, I have had a hard time keeping up with the payments. The rise in utility costs and food prices only compound the issue."

[whatsinaname]

I just looked at the sample hardship letter and revised my wording again. Is this okay?

"I have done everything in my power to make ends meet but unfortunately I have fallen short and would like you to consider modifying my loan. My main goal is to keep my home and I would really appreciate the opportunity to do that.

The main reason that caused us to be late is a reduction in income caused by my employer not paying any more overtime. Overtime started declining last summer and, with the rate readjusting earlier last year, I began to fall behind.

I hope you will work with me to keep my home."

[whatsinaname]

Can someone please comment on the above possible hardship letter draft?

[tracercbd1]

How about;

"I have been forced by my employer to take a reduction in pay due to the current economic crisis, and as a result, I can no longer afford to make my current payments."

Simply and to the point. Same thing happened to me in August, and we are a WAMU mod success story. I would keep it very simply initially, and if asked further for specifics, provide detailed information at that time. In the beginning you just want to get the ball rolling, and a reduction in income qualifies as a hardship. Good luck.

[whatsinaname]

Oops - that didn't print for some reason. I'll try again.

One of NACA's questions is: "Does your property need significant repairs? If yes, describe the needed work and approximate cost.

Is it wise to put anything?

[whatsinaname]

Originally Posted by tracercbd1

How about;

"I have been forced by my employer to take a reduction in pay due to the current economic crisis, and as a result, I can no longer afford to make my current payments."

Simply and to the point. Same thing happened to me in August, and we are a WAMU mod success story. I would keep it very simply initially, and if asked further for specifics, provide detailed information at that time. In the beginning you just want to get the ball rolling, and a reduction in income qualifies as a hardship. Good luck.

Thanks. I was wondering if it needs to be as long as the sample hardship letter in the tools section of the home page of this site.

[whatsinaname]

Just wanted to give an update. At the end of last week, I sent all my docs to NACA and I have had two conversations with them. I have another tomorrow and hope to have all file submitted to Chase by the end of next week.

By the way, the NACA rep also made me call Chase about my next payment. I did not know that if you make a partial payment they can apply it to something other than the mortgage payment. All the more reason to call them and tell them what you are doing.

NACA did give me a guesstimate of what they think my payment will be reduced to. Does anyone know how accurate these estimates are?

[whatsinaname]

Well, my file was sent to Chase yesterday and NACA (different analyst than the original one I got) said to give them 45-60 days before I hear from them. So far, so good.

However, a colleague at work who has a mortgage with Chase and is also three months behind, contacted them directly, not through NACA. Chase told her to make three payments (one each month for the next three months) and after that they "may" consider a rate reduction.

Now, to me, if she is three months behind, she can't make the payments so why ever would she make three payments over the next three months and, also, if she could afford the payments, she wouldn't ask for a rate reduction.

After hearing this, they will surely give me the same option even though I went through NACA. Now I am worried!

What are these banks DOING??

[Moe Bedard]

NACA only does modification proposals that are low rate and fixed for 30 yrs.............they don't do temporary modifications.

[whatsinaname]

Originally Posted by *** Damiano

NACA only does modification proposals that are low rate and fixed for 30 yrs.............they don't do temporary modifications.

Not sure I understand. I am sure she asked for a permanent rate reduction.

[Moe Bedard]

If she isn't going through NACA...........she will get whatever the investor is willing to do.

[whatsinaname]

Ohh, I see. I will let her know. Thanks, ***.

By the way, I did advise her to use NACA but she owns a second home so that rules it out.

[Moe Bedard]

Then she would not be able to use them and would need to go through the the servicer for any type of modification.

[whatsinaname]

No news yet on the loan mod submitted to Chase by NACA last week - too soon; however, this week I have been getting calls from 888-210-7243 - no voice mail messages, of course. Does anyone know if this is a Chase number?

[diana0806]

hey, whatsinaname, sorry did not see your question about putting me foreclosure after 15 behind. no they have not. i make sure fighting this that it is put on hold. i have been in contact thru my whole ordeal with chase twice weekly. i hope next week the hell i have been will be resolved next week. have a great weekend. we will prevail!!!!

[whatsinaname]

Today I got a foreclosure letter from a Michigan foreclosure attorney which I assume represents Chase! NACA submitted my loan mod to Chase on the 5th and Chase knew it was coming because I told them. NACA did tell me that the loan mod application doesn't delay foreclosure so I just hope the mod is approved.

It's SO hard to believe the bank sent me this letter knowing a loan mod app was on its way. It's almost as though they rushed it through!

Let me tell you, seeing that letter today pulled the rug out from under my feet. Now I am scared!

[whatsinaname]

I forgot to mention that now I don't know if I should make the payment I promised Chase for the 15th. NACA advised last week to continue making payments - but I hadn't received this foreclosure letter then!

What should I do?

[Moe Bedard]

If the foreclosure notice has a sale date on it..............

If you have an auction date click here for Sale/Auction Dates and NACA will work to suspend it to provide an opportunity to assist you.


https://www.naca.com/refinance/refinanceTenStep.jsp

[whatsinaname]

No sale date on it, ***. It says at the top that it is an attempt to collect a debt. It is from the usual Michigan foreclosure attorneys, Trott and Trott. It gives the breakdown of what is owed and says that Chase sent this to them to start foreclosure proceedings. No date, though. I put a call in to NACA but no response yet.

I am so worried now!

[whatsinaname]

Should I stop making the payments now that I have received a foreclosure letter? When NACA submitted the loan mod, they said to continue the payments, but that was before I received the foreclosure letter?

[whatsinaname]

Help! I came home today from doing errands and a foreclosure ad was taped to my door. Sale - March 18!!!!

What should I do??????

[Moe Bedard]

If you click on this link...............
https://www.naca.com/refinance/refinanceTenStep.jsp

you are working with NACA..................the line under the paragragh under the Home Save heading says...............

If you have an auction date click here for Sale/Auction Dates and NACA will work to suspend it to provide an opportunity to assist you.

[whatsinaname]

Okay, I did that. Should I still make my mortgage payments?

[whatsinaname]

Anyone know if I should continue to make my mortgage payments? I am supposed to make one today!