Hired a company for Loan Modification

[ksorized]

Hi! Good day to everyone. I'm a new member on this forum. Just wanna ask for advice on my loan modification. I'm john from CA, I started my loan modification last year with CW. I bought my house for 550k last 2004. Then I refinance last 2006 under ARM rate. My agent that helped me to refi told me that I can pay min. payment for up to 2 yrs then if the rate goes high the bank could give me loan mod. At that time I just believed on him so I went on with the refinance. Now with the interest goes high and our payment keeps getting higher, I applied for a loan mod before I will reach the maximum cap and can lead to negative amortization. Me and my wife are both working but we can't afford to pay the principal + interest. I applied the loan mod last year by myself but was rejected by CW. Now I hired a company. We were 3 mos. behind on our payment and we just recently recieved a letter from BOA that we got denied for now. I called AFS and they said that we are not qualified for the 34% so now they will resubmitt my papers and applied for the 31%. I got confused with this one. What is 34% and 31%. Do you think I really have hope to get a loan modification? If I pay wht I owed to BOA can they help me? please someone if you could give me some advice I will really appreciate it.

[sarge]

Hi John,

Welcome to the forum. The only thing many of us here got from CW/BofA was a run around and a crappy mod offer. The thing that they most want is to know when you will pay them. Myself and others here chose to go to NACA for help. They are HUD approved and will work to help you for free. If this is your only property, you might want to look into getting their assistance. Here is a link.

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

Go through the ten step process then set up a phone counseling time. Good luck in whatever you choose.

[ksorized]

Hi sarge! thanks for the reply. I started my modification last year by myself, when I get denied from CW I called HUD and talked to a counsilor. I got discouraged by what she told me, she said that just to walk out of the house. I was shocked when she told me that one. I got denied by CW and plus I called HUD and still they can't offer help from me. That's when I decided to hire an attorney. I just don't wanna give up on my house that easily. I wanna fight, if I can't get modification thru my attorney then I think I will try NACA. I recieved e-mail from AFS and he said that I need to resubmitt all my utility bills. Do u know what's this 34% and 31% that he was talking about?

[Moe Bedard]

Usually that is in regards to your debt to income ratios. Most likely your housing ratios in relation to your income. For example, say you make $1,000 a month, well if your housing ratio is at 34%, this would mean your payment would have to be $340 for you to qualify.

[ksorized]

Thanks for your reply moe. Is there any chance I could get a better loan mod aside from that? I owed a lot on my house. I bought my house for 550k but I owed 450k because since my last refi I just paying the minimum payment.

[Moe Bedard]

No problem. es, you do not have to accept any loan modification and can counter them.

If you cannot afford it or it will only help for just a little while, deny it and tell them you need better in order to live.

[ksorized]

Thanks moe! If for instance I will not accept the loan mod that they will offer to me, how long I can reapply again? can I apply it right away thru other institution like NACA?

[Moe Bedard]

If this is the only property that you own............you can absolutely use NACA for the help if you want..............many members in this section of the forum with CW have turned down many bogus modifications and went with NACA instead..........here is the link for the info.............and the services for their Home Save modification are free.............
https://www.naca.com/refinance/refinanceTenStep.jsp

[ksorized]

Hi guys! I really don't know how I will start my letter. I was just too sad because I recieved a mail from my attorney( Michael M. Yellin) sorry to mention his name but I was just too pissed. He said that he will not reply any calls from customer about his affiliate AFS company and that AFS already submitted our paper work. I called AFS and nobody answer the cal. I called Michael and he don't answer so I called BoA and I was shocked because he said that I got declined because I'm lucking paperwork and that they've been calling AFS 17 times but nobody answered so now I got declined and that I have to restart all over again. I told them I will submitt my paperwork but have to hire NACA now and they said it's ok. But the thing is my attorney's letter said that the paperwork has been submitted and will wait for BA for the important package. I paid them $2400 just to process my loan modification but they just get my money and leaved me hanging. For now I think I have to call NACA on how to get started. I hope somebody can help me how to get started on NACA. Do I really have to attend the workshop? Hope everyone will give me info..

[morainac]

No, just go online to set up a telephone appt. Anybody that wants money up front is a scam. Go through NACA, they are approved by Hud. Also call the hope hotline to find out how to report that law office.

[herrapaj]

I hired an attorney 5 months ago and I just got my loan modified and signed last month. Our previous loan was a neg. arm. CW dropped the interest rate fixed for 28 years (that's where we are now since we alread paid two years and add the delinquent which we owe them $15,000 back to our principal) for 5.76%. Tax, insurance, and mortgage altogether is $1,782.00. I wish it was lower but better than the neg. arm. Can't argue with them because they'll say take it or leave it. We didn't want to be ******** so we signed the one sheet and got notarized at our local bank.

I started a loan mod. business just to help my family and friends or anyone. Last week I was helping my aunt and uncle (my uncle unemployment) do a pre qualification loan mod. before submitting to the lender and the processor that I'm affilated said that my aunt and uncle is -$700.00. I guess bank wants to make sure you're able to pay the mortgage. If you unable to afford, there is no point to make a loan mod. or do the Obama plan. If you make too much money, bank don't do a loan mod. either. They just want to make sure you're have enough or exact money to pay the loan. I'm not an attorney but calculate all of your expenses and subtract from you and your spouse's gross income. If it show a negative sign, then you don't qualify for a loan mod.

Also one of my other aunt she did her own loan mod with the lender and they gave her a trial loan which will be expired on Oct. 1, 2009. She didn't qualify because she is $400.00 short. She had to add her son who works part time and that's how they got a trial loan. Still Shaky!!! I do have the passion to help people. You can call me at 651.783.2524

[herrapaj]

I didn't like the NACA because those non profit is useless. I went there and they didn't even ask me to bring my info. I brought my own information because the attorney was working with me, the NACA copied my information that I brought. I think they get paid by salary, so they could careless. I'm not trying to say it's better to pay a loan mod. or a law firm but you just have to do your own due diligence. Not everyone is a scam, only few of those who are desperate for money.

[rozuki]

Originally Posted by herrapaj

I didn't like the NACA because those non profit is useless. I went there and they didn't even ask me to bring my info. I brought my own information because the attorney was working with me, the NACA copied my information that I brought. I think they get paid by salary, so they could careless. I'm not trying to say it's better to pay a loan mod. or a law firm but you just have to do your own due diligence. Not everyone is a scam, only few of those who are desperate for money.

Did you attend a workshop or a "Save the Dream" event? Workshops are not for actually submitting your information....it's basically to explain what NACA is all about and provides workbooks for figuring out if you can afford to buy a home or if you have a mtg and need help due to economic circumstances they will provide "restructure" assistance as they have contracts with many of the major banks/mtg servicers. They made it quite clear at the workshop I attended that all information is to be submitted online......or by making an appointment to visit the nearest NACA office and to bring your paperwork with you.


Of course you must be diligent when trying to obtain a loan modification, especially with the way our economy is in a shambles and the sheer number of people trying to obtain loan modifications and/or refinancing due to economy and other hardships. Paperwork can get lost, misplaced, etc.


I am curious as to why you state non-profits are "useless"? Seems kind of strange to me that mention you went to a NACA workshop but you don't mention if you actually submitted your paperwork to them and what the result of that was. You then paid a lawyer to get your modification...why, because NACA couldn't get one for you?


Note: I am one of NACA's recent success stories and I had no problems with them whatsoever....

[herrapaj]

Rozuki,

Let's make it a fair judgment. Not all non profit, law firm, or loan mod. will be successful for everyone or fit their needs. Maybe the NACA works for you but not for others. Perhaps, loan mod. company or law firm works for me but not for others too. It depends on the situation. Not all cases or situations will be successful. Like I said just make your due diligence as long you're not dealing with the lender on your own. Done that, been there and it's a pain.