Help me help my parents

[zookeeper]

My heart is breaking for my folks. They remortgaged their nearly paid off home to #1- pay some taxes to the IRS after an audit and #2- to take some money out to open up a part time business.

Now, a couple years later my dad is self-employed and scraping up work where he can. Mom has a full time job. But they are basically living on her income now because his is irregular, and they are now talking about having to start getting rid of things and packing up and doing a short-sale or letting it foreclose because for the first time in 25 years of homeownership they could not make their payment. There's only so much you can juggle before the balls start to fall. My dad has put so much blood, sweat and tears into that house- I think he would rather die than sell or lose it.

Their loan is with CW. She talked to someone a few months back, right after Christmas, but was told she did not qualify for modification because her payments were current and there is no way they would write a mortgage with just her income. Makes sense- not.

There is soooo much info here. Where do I start them. What are the first things they need to do? I went thru the 5 initial criteria of the HAMP and they meet those. Mom works, makes about $28K a year. Dad's income is irregular because he is self-employed (home improvement contractor). He used to work regularly for a contractor, but because of medical problems had no reportable income last year and is now on his own. Remarkably, their credit is "ok". Scores were in the low 700s when they checked last month. They do have 1 car loan, payment is not exorbitant, and a few credit cards. Their payments with CW have been current, and include insurance and taxes, up until this month.

Please help me help them- we've considered moving back North to move in with them and help out, but I don't think the house is big enough (we have 6 kids). I think she was given some bumm information and want to help her thru this process so they can keep their home.

[sahm2two]

Hi! Welcome! There is so much information here. I just wanted to quick post the information of the HAMP website: Making Home Affordable - Home

If their mortgage payment is more than 31% of income they should be able to qualify. You may also want to contact the OOP (Office of President) to get the ball rolling quickly. I just got my fedex docs and have started my trial payments and things only started to happen when we emailed the OOP.

[nativelasvegan]

Hello zookeeper and welcome!
This is a long process but the people here are very nice and knowledgeable. We are all here for one reason: to save our homes.
This is a time consuming, aggravating process but with all of us here fighting together, we hope to make it less time consuming and easier to get a loan modification.
Your first step is to gather all documents that you would need to refinance, i.e. last two months bank statements, W-2s, last few pay stubs, IRS signed 4506 form (can be found on IRS website), and a letter of hardship (form can be found on this website).
Contact Barbara Desoer, office of the president of BOA and inform her that you are making a formal application for a home loan modification.
Here is a link in this form with lots of good information. We will help you along the way.

Countrywide Home Loans - Tell Us Your Countrywide Story - Loan Modification Forum - LoanSafe.org

[franklyspeaking]

Zoo, at the same time I'd get started with NACA. If they have a save the dream event near their hometown they need to take all those documents and go, they can get help on the spot , if not start the process online but then they 'd have to go to a couple hour workshop, schedule a NACA phone consultation and fax their documents. If you dont get anywhere on the executive level or want to try working it from more than one angle I'd try/use NACA . Its not a quick process but it can help them . Try the other avenue first and if your not getting anywhere go to www.naca.com. Again it is not a quick process but it works esp for folks like them.

[franklyspeaking]

Also they can call/fax a letter authorizing you to speak for them or in thier behalf or do a 3 way phone call. Sometimes you just need a different person or another voice to get things moving.

[minknmelissa]

I actually was told no by countrywide Bank of america too right after christmas I have been dealing with naca, OOP and trying to do it myself but the best luck i had is with a woman named Stacey from Nova debt it is a not for profit org There is no fee I promise, she gets paid by donations from outside sources. I got her number from hope now she will go over figures with your mom and dad they will need utilities figured out monthly food bill, car payment, insurance, taxes, she will call on three way with your parents on the phone. Her number is 18664724557 ext 80495
Good Luck