Denied Again - advice please

[mybailout]

I was denied a mod for the 4th time on Friday. This time by the presiden't office. They said that I could afford the payment. That is only because their formula won't include all my other debts. They told me that I didn't need to pay my credit cards (which are also with BA!) Even so my loan payment is now more than 50% of my income. I was hoping for a lower payment amount. I am $250K underwater and willing to walk but would like to stay if at all possible.

Should I go to NACA and try to fight? My real question is will I have the potential for sucess with NACA? If not I'll just give up this fight and either walk away or short sell the house.

Opinions?

[Riley18]

Is your mortgage 50% of your gross or net income? The mortgage should be 31% of your gross income, and even 50% of net would seem high. Did you have a loss of income?

If you haven't gone with NACA yet, it wouldn't hurt to apply with them. At least it will give you more information.

[caldwellb02]

mybailout - I don't understand from your post why you would be denied. If you have it in you, keep fighting.

Go to NACA and Hope Now and anyone else you can think of while we all fight this fight. I've been denied twice, and working with NACA and with Hope and with the servicer as well. Fax letters to your congressmen and senators, (see the letter that was recently posted by Boogs on "new friends chat," and the petition thread for ideas of what to say - but definitely personalize it.

You are right that they don't include credit card debt at all. I'm in the process of renegotiating all my credit cards - or should I say making a plan to do that.

However, I don't want you to do what doesn't feel right for you. Short sale is an option - just be aware that there have been people who have moved out of their homes and expected a short sale, but then the lender or servicer (who knows who) doesn't allow the sale and that home then stays in the homeowners name even though they are out. Doesnt' happen to most, but when it does, that is a real nightmare.

[darkdays]

Originally Posted by caldwellb02

mybailout - I don't understand from your post why you would be denied. If you have it in you, keep fighting.

Go to NACA and Hope Now and anyone else you can think of while we all fight this fight. I've been denied twice, and working with NACA and with Hope and with the servicer as well. Fax letters to your congressmen and senators, (see the letter that was recently posted by Boogs on "new friends chat," and the petition thread for ideas of what to say - but definitely personalize it.

You are right that they don't include credit card debt at all. I'm in the process of renegotiating all my credit cards - or should I say making a plan to do that.

However, I don't want you to do what doesn't feel right for you. Short sale is an option - just be aware that there have been people who have moved out of their homes and expected a short sale, but then the lender or servicer (who knows who) doesn't allow the sale and that home then stays in the homeowners name even though they are out. Doesnt' happen to most, but when it does, that is a real nightmare.

Credit card debt is suppose to be included isn't it? The new HAMP streamlined forms have a section for cc debt don't they? The other problem is there is no where to put other time of debt that is not credit card debt. For example, my medical bills will not be considered even though I still have $3,000 in med bills because there is no official payment plan that I can point to. I also have a contractual obligation that I have been paying off that does not appear on my credit report but I have the documentation on and have been paying off each month which I can prove by canceled checks. They won't consider this either even though the payment is $1000 a month. When I started to default on those payments the entity I was liable to agreed to no late fees and no penalties if I made regularly monthly payments each month until the entire amount is paid off. That is a savings to me of almost $200 a month which means my payments are going directly to the amount I owe which is not increasing by fees.
Other suggestions that I have been given but have been fortunate enough not to have to rely upon is in some states apparently you can get assistance to pay your utilities so that you can use your money towards trial payments. This was told to me by Hope Now.
Keep fighting your battle on every front, not just with the lender.

[heidi79]

You're doing something wrong with your financial information, unfortunately, there's are alot of bills they just don't care to see. You have to play the game if you're going to get the modification.

i suggest you get a professional to help you go over all of your information or go to Naca so they can help you structure a proposal. If you really want to keep the house you should persevere and try a different approach.

[SillyWorld]

MED Bills and Credit card bills are non recourse they are ignored on MOD figuration, if you do not pay them they cannot take the home, they can take you to court add leins etc.. but cannot sell the house, only the Mortgage Comp can

[darkdays]

Originally Posted by SillyWorld

MED Bills and Credit card bills are non recourse they are ignored on MOD figuration, if you do not pay them they cannot take the home, they can take you to court add leins etc.. but cannot sell the house, only the Mortgage Comp can

It comes down to different strategies. My back up plan includes filing a lawsuit and if I am swimming in debt, my credibility is shot. Lenders are arguing they are denying modifications because the re-default rate is too great. It should make no sense to not try to reduce your interest rates on credit cards because you are liable for that debt. The lenders on our mortgages are the same companies that are are credit card companies and you are right, they can't take your home but they will, and are aggressively starting to, file suit and they will get a judgment and then they place a lien on your home. Or, easier for them to get their money quicker, some states do allow for wage garnishment. Imagine how unpleasant that will be if you are in the middle of your trial and a lien gets filed on your home. Talk about starting the mod process all over again.
Check out the HAMP income/ expense sheet. It DOES permit for credit card debt, installment loans and "OTHER."
The lenders can screw around all they want and say whatever they want can be ignored for the mod figuration but I'm in for the long haul on this fight and they can tell people whatever they want assuming at least 50% of us will be gone before any of their lies and so called "miscalculations" or data entry errors come to light but they can only do that if people are so encumbered that they can't even put together a retainer to hire an attorney.
Whatever strategy works, I wish everyone the best. It's hit or miss with the lenders as no one knows what works but fighting the mortgage company, credit cards, etc. would be too many battles on one front for me when I am focusing all my energy on working 50 hours a week and spending another 30+ hours a week preparing to do battle with the lender.
Good luck to you all.

[mybailout]

I contacted BONY who is the investor on my loan since I wasn't getting anywhere with BOA. I received a prompt response which said that they are not in fact the owner of my mortgage but are the trustee's for the owner and that they defer to BOA to do anything. I kept the e-mail because if they aren't the owner, BOA isn't the owner, MERS isn't the owner there aren't many parties left that have a legal standing to foreclose on the house since only the noteholder (owner) can foreclose.

Should be interesting.