Missed April & May payment, late payments reported, NACA started

[sqa4life]

Hello,
NACA has just submitted my loan modification request to CW yesterday and asking for a large payment reduction. I afraid that CW will not approve and they might move forward with the foreclosure. At the same time, i was talking to a short sale expert and thinking of list the house for sale now while NACA is working with CW. So, if CW denied our loan modification request, we still can short sale the house.

I heard they require the house must be listed at least 60 or 90 days before they approve short sale, right?

Is this a good plan?

[Moe Bedard]

Short Sales or Deed-in-Lieu – This is in fact a faster foreclosure. It is not a solution but a bit less painful way to lose the home. NACA is determined to work with you to keep your home and does not support this unless you request this solution.



You would have to work on one or the other through NACA..........if you want to try the modification first...........than you would need to do that...........NACA will not work on both at the same time and neither will CW.

[sqa4life]

Thank you ***.

My short sale agent asked to start listing the house now...
I'll tell him to hold on to the listing.

Thanks again.

[wingman69]

itscatnip...you are welcome. May I suggest you go and read Dave Ramsey's "Total Money Makeover"? It will give you a new perspective.

[unemployedinaz]

Originally Posted by sqa4life

Hello,
We've missed two payments (April & May). CW called a couple times. We submitted application for loan modification and was denied right away. Credit reported just show up as 2 late payments and score dropped over 100 points (who cares).

Anyway, we had two interviews with NACA so far. Our next/last one will be next Tuesday, because NACA needs our home owner insurance policy and HOA document. Just faxed them over today.

My question:
Will CW (B of A) continue with the foreclosure process regardless of if NACA submitted the request for loan mod?
Usually how long does the foreclosure take?

I am thinking of hiring an agent with short sale experience and hope to short sale so I can buy another house after two years. I live in WA and only have one loan and I have no assets anyway :-).

Thanks for your advise/suggestion.

I am 5 months behind and working with NACA. When I heard from neighbors someone was taking pics of our house - I immediately called NACA to see what was going on. I was told that COLLECTIONS DO NOT STOP WHEN YOU ARE GOING THRU NACA. They will continue with regular foreclosure process. However, if you get an auction notice on your door, there is a spot on the NACA website where you give them the date and fax them the form and they will stop the process right away. Hope this helps.

[unemployedinaz]

RE: Credit -- oh, don't EVEN get me started. I have had perfect credit for years and years, never a day late. Then, my husband lost his job for 4 months and we started this CW/mod fiasco. Everything we worked for - everytime I stressed about being ONE SINGLE day late on a payment was wiped out with a single missed mortgage payment. Back to square 0.

I wonder how our economy will ever pick up again when it seems like almost everyone's credit is being ruined by the loss of jobs and homes. How can we buy a new car or a new home? It will be years before we recover. I wonder if Obama will put forth a bill to force mortgage companies to wipe out negative reporting when their customer is going thru a modification?

I forgot to mention I am a credit officer for a Fortune 50 company. Hard to keep my head up these days I have to keep reminding myself that "Life's too sweet to be bitter." My life is full of blessings despite it all.

[dthom]

unemployedinaz;
I agree,something will have to be done at some point. So many of us will be coming out of this with absolutely ruined credit, (late mtg pymts, late cc pymts, and on and on) It will take forever to get back to where we were. I agree how do things get better when such a large majority will not be able to purchase major goods like cars ( a real concern here where I live) or homes. Here in MI when you look at ads for homes to rent, many of the landlords and real estates renting homes are asking for credit reports and good credit. Unemployment here just hit nearly 13%, you wonder how many people they think are going to continue to have good credit, and high credit scores, let alone no past due payments.
We just travel on thru life and make the most of what we have, and be thankful we still have a home to live in, so many don't have that anymore. Hang in there!

[wingman69]

Hey all,

Please...get of the credit/FICO altar! You do not need to make who you are a number. Always remember that while dealing with CW/B of A you are dealing with a soulless entity.

I received a trial offer from CW. They reduced my payment by $775.00 for 3 months-no mention of interest rate or terms, just a so-called trial period with no promise of a perm mod. I know someone who was put on a similar program and shortly after they made the 3rd payment their lender denied them and proceeded with foreclosure. This program is the Obama plan with CW'S conditions added on. Anyone receive this via FEDEX?

Opinions welcome.

[CW California]

Originally Posted by wingman69

Hey all,

Please...get of the credit/FICO altar! You do not need to make who you are a number. Always remember that while dealing with CW/B of A you are dealing with a soulless entity.

I received a trial offer from CW. They reduced my payment by $775.00 for 3 months-no mention of interest rate or terms, just a so-called trial period with no promise of a perm mod. I know someone who was put on a similar program and shortly after they made the 3rd payment their lender denied them and proceeded with foreclosure. This program is the Obama plan with CW'S conditions added on. Anyone receive this via FEDEX?

Opinions welcome.

Sounds like the same thing they offered me. It's not a modification. It's a forebearance and you will owe the balance in three months. I declined mine and told them I wasn't comfortable with a temporary plan. I think I will just have to wait on NACA.

[wingman69]

CW Ca, thank you. I too am not comfortable with this offer and will be declining it.

Surely I am not the only one who has been sent this program??? I need more information please. I do not trust the lenders as I've heard too many people around me say they have been led to believe one thing but then their end result turned 180 degrees on them.

Understand, I do not have an ARM loan. I have a fixed rate 30 year conventional set at 6.875%. I am 3 months, going on 4 behind and was told by CW back in June of last year that it would only be now that they would look at us seriously. Well, if this is a serious look at my situation then its been lost on me. I can't even afford the trial payment amount, which by-the-way works out to be 31% of my gross monthly income.

The reality and truth of the matter is clear; I couldn't afford this house from the beginning. I allowed myself to be sucked into the false belief that it would all work itself out down the road. I listened to the agent and the broker telling me I could afford it and that it made more sense than renting. I was so naive and unassuming.They used income amounts based on gross annual income to ascertain my ability to pay. This is NOT the way to do it, as I only recently figured out.

In the meantime, I lost $1500.00/month income due to loss of hours at work. So, here I am today-finally learning to detach from all this anguish caused by not being able to meet my financial obligation to my mortgage.I have been beating myself up over this, losing sleep by the hour, and overall not a joy to be around.

For those who read and identify with what I'm conveying here, to you I say let go and let God. It all belongs to Him anyway. He alone decides how it all plays out. All this is so temporary and fleeting. I'm not saying give up, no. I say do the foot work and leave the results up to God. Remember always, we are dealing with a soulless entity who cares only about profit margins, not about people.This entity has a collective ego that see's us as nothing more than a means to an end.

As for the Obama plan- it has no teeth. I commend it for at least making an effort but ultimately it will fail us all. And, our children and theirs to come will be paying our mortgages for decades. We are so short sighted it seems.

No, I will not accept the temporary/trial offer I've just been made. Thank you all for the information you have shared here, its usefulness has been of great value to me.

I asked earlier in this post for any information about this trial offer/Obama plan. I specifically want to know of anyone who has actually gone through this plan to its conclusion. I ask only because of my own curiosity.

Thank you in adavance,

David

[stressedout1]

wingman.
i got this offer today (from the negotiator after emailing barbara d. office). i am seeking advice on this forum but most likely we will try it out as we have 3 young children and the 3 months forbearance payment is affordable now. come 3 months later if they decide not to mod i think we will just walk.

[wingman69]

Stressedout1,

I will write more later. I will only tell you that there are many things one needs to research BEFORE you send payment. Why send 3 months of payments only to - as you put it - just walk? This offer puts the cart before the horse. If you have PMI on your loan it is NOT included in the trial payment amount and will be added to any future modified amount.

I will not be accepting this offer. The PMI was the deal breaker for us, which amounts to 320.00/month for us.

Think long and hard before you send them a considerable amount of money.Research the plan at the government website. This plan is called the "Making Home Affordable" plan.

wingman

[stressedout1]

wingman,

thank you for your constructive feedback. the trial period is only going to aggravate us more. however, the trial payment is nearly the same if we are to go rent that is why i guess we will wait it out and see what happens. we don't have pmi but this payment doesn't say anything about what the payment breakdown is or where it's going. it's just a trial payment plan until they figure out what they want to do.
we are very similar as i have a fixed rate conventional loan.

[wingman69]

Stressedout1,

I see you are willing to gamble with regard to the final outcome. I wish you and your family all the very best.

I am a numbers/percentage sort of guy. It all begins with our net take home pay-this is our shovel. Our debt is the pile of dirt we need to clean up. My trial period payment amounts to 47% of our net pay.No one can get ahead and save money for retirement with half their income going out to rent.This is double the amount it should be!

The government, and the lenders for that matter, use gross income to establish what they believe one can afford. Your payment is 31% of the income amount you gave them, based on gross income.This is not a real world number and it will simply not work for the majority of those who take them up on it. 4 out or 6 modified loans in this country are back in default within 6 months - 66%.Why do they end up there again? Its all by the numbers/percentages.

We actually thought about doing the trial period payments, as they reduced our payment by $775.00/month.But, upon closer review I discovered the PMI issue and began inquiring about it. I got the run around for 3 days before the answer came.And, as stated earlier-its NOT included but will be added upon final modification. Why would the powers that be not be able to answer this very important question immediately??? I was told to call Fannie Mae(the true lender in my case) and even there I was met with sheer ineptitude and inefficiency. I have yet to hear anything from them after leaving all required information at the direction of the initial contact representitive I spoke with, who told me he need to esccelate my question to a level 2 associate as he could not answer my question.

All this being said- it is my opinion(of which I am an expert on ) that this program is not what it appears to be on the surface. There is a hidden agenda here and I believe it has something to do with the all pervasive corporate attribute - GREED.The very thing that got us here in the first place.

Time will tell if what I believe is going on is fact or merely my perception running amuck.

Run the numbers folks, they never lie. Just wish I'd found this truth before signing on the dotted line. But, this is a blessing for us afterall. We have been afforded the very best of educations in this arena.

Sincerely,

David