Loan Mod is a HOAX!! what do I do now????

[calico8280]

My husband and I bought our house in Sept of 2003 for 108,000. He had some credit trouble a few years prior so we could only qualify for an ARM. The original loan was with Homecomings Financial w/ a rate of 7.75 for the first two years. We were advised by our broker (her name was Yvonnca something) that it would be fine, just to refi after the two years. So when that time came, we called Ameriquest. They approved us for an 80% refi w/ a 7.25% int rate. We were told that was a fixed rate and a 30 year loan....until we went to the signing. We then found out that it too was an ARM that would adjust to 9.25% in two years w/ a max int rate of 10% ever. Oh and by the way, our loan w/ Homecomings had a 7,000.00 pre-payment penalty!! Nevertheles, young and stupid and wanting that extra 20-something thousand dollars we agreed.

When I asked about the pre-payment penalty with THIS loan, I was told that as long as we refinanced with Ameriquest they would wave it, otherwise it would be 10% of the loan. Of course that was unless they sold the loan to someone else. Let me quote the lady here, she said "Ameriquest only sells about 12% of its loans, so you can be almost positive that they wont sell yours." I should have focused more on the "almost" part. They sold our loan after 4 months....to Countrywide.

Countrywide would not wave the penalty, nor would they approve us for another refi. The payments went up, and up, and up. Long story short, after my husband got laid off and I lost my job in 2006 we tried to arrange a payment plan but couldn't keep up with it. We filed Ch. 13 on Aug. 30, 2006. Our scheduled sell date was Aug. 31, 2006.

Our case was dismissed in Oct 2007, mainly by choice since my husband and I both had new jobs and we couldn't afford the $615.00 PER WEEK payment to the trustee. I knew this meant we would have to get back on track with our creditors and that was fine, I was able willing and ready to get evrything caught up. Since then we have had to surrender both of our vehichles and are facing foreclosure....AGAIN!! Why, you ask? Because the trustee apparently wasnt paying our bills. According to the finance companies they had not gotten any payments for nearly a year. We now owe Countrywide over $18,000.00. Our $108,000.00 house is now $146,000.00 and our payments are $1,642.00 per month. Im sure all of you can do the math, but thats a little more than 11% and its going up again in March. Our original payment was 963.00!!

I swear I am losing it, I dont know what to do. I feel so stupid!! I know this was a long story, but any advice would be GREATLY appriciated. Thanks.

[Maurice Bedard]

Thanks for joining and sharing your story. A tough one at that.

We were advised by our broker (her name was Yvonnca something) that it would be fine, just to refi after the two years.

They all said that.

So when that time came, we called Ameriquest. They approved us for an 80% refi w/ a 7.25% int rate. We were told that was a fixed rate and a 30 year loan....until we went to the signing. We then found out that it too was an ARM that would adjust to 9.25% in two years w/ a max int rate of 10% ever. Oh and by the way, our loan w/ Homecomings had a 7,000.00 pre-payment penalty!! Nevertheles, young and stupid and wanting that extra 20-something thousand dollars we agreed.

They dis the bait and switch. Told you everything you wanted to hear on the phone and when it came down to the wire they switched it on you and backed you into a corner and played on you needing the cash. A very common predatory tactic. Unfortunately you signed and I am sure you know that.

When I asked about the pre-payment penalty with THIS loan, I was told that as long as we refinanced with Ameriquest they would wave it, otherwise it would be 10% of the loan. Of course that was unless they sold the loan to someone else. Let me quote the lady here, she said "Ameriquest only sells about 12% of its loans, so you can be almost positive that they wont sell yours." I should have focused more on the "almost" part. They sold our loan after 4 months....to Countrywide.

Another very common tactic and objection handler. Unfortunately it would be your word against hers, if you were ever to file a law suit based on this.

Why, you ask? Because the trustee apparently wasn't paying our bills. According to the finance companies they had not gotten any payments for nearly a year. We now owe Countrywide over $18,000.00. Our $108,000.00 house is now $146,000.00 and our payments are $1,642.00 per month. I'm sure all of you can do the math, but thats a little more than 11% and its going up again in March. Our original payment was 963.00!!

So, where did this money go that the trustee was supposed to have and pay with? Have you found this out? This would be square one for me.

Have you tried calling 888-995-HOPE or www.995hope.org or visit www.naca.com, they have a special deal with Countrywide to work with borrowers with loans of 10% plus to modify them.

Have you tried calling the Countrywide Home Retention Department?

[calico8280]

Yes, I have spoken with countrywide and they gave me a list of things to do, starting with a "hardship letter." Call me stupid but I have no idea what to say in it. She told me to request a rate reduction and freeze and a loan modification and fax it to the HOPE dept. Havent done that yet b/c like I said, not sure what to say since my story is pretty long. As far as the trustee goes, I have called my bankruptcy atty and am waiting on a call back....which I'm sure I will be charged for.

I went to the naca website and it asks for alot of loan info, I know how horrible this sounds but I dont know the answers. I have had three seperate mortgage companies in four years and honestly, I dont think I have ANY loan docs from countrywide. I basically just got a letter in the mail one day that said "Hey, we are your new lender, pay us."

I hate sounding this way, really. I'm not a stupid person, nor am I very gullible (typically) but I fell for every bit of their crap hook, line and sinker and now I feel like a helpless little girl who has lost her mommy or something you know? I am dealing with ALL of this b/c my husband's job is 2 hrs from home and he gets no cell service. Of course I cant very well stay on the phone all day at my job either (nurse) so its like a rock and a hard place!!

I swear, I just wish these companies would get some integrity and just say "Hey, we messed up and screwed all of these nice hard working middle clas folks and now we are gonna fix it" why do we have to be the ones jumping through our butts and going crazy to try and fix THEIR mistake to save OUR homes???!!! UUGGHH!!

Sorry, just had to vent for a sec. If there is a sample "hardship letter" somewhere I would love to see it so I can get an idea of what to say. Thanks alot for all the help you provide to people like me, Lord knows we need it.

[Tom H]

Try Moe's other site. These are the examples I used; here is the link - best of luck to you!

Tom

http://loanworkout.org/loan-modifica...rdship-letter/

[Maurice Bedard]

Here are some examples for you.

(Example Harship Letter)

To Whom It May Concern:

I am writing this letter to explain my unfortunate set of circumstances that have caused us to become delinquent on our mortgage. We have done everything in our power to make ends meet but unfortunately we have fallen short and would like you to consider working with us to modify our loan. Our number one goal is to keep our home and we would really appreciate the opportunity to do that.

The main reason that caused us to be late is (insert reason here and don’t be too lengthy and long winded) Soon after being late and our income not being nearly enough, we had fallen further and further behind. Now, it’s to the point where we cannot afford to pay what is owed to (lender). It is our full intention to pay what we owe. But at this time we have exhausted all of our income and resources so we are turning to you for help.

Our situation has got better because (reason here) and we feel that a loan modification would benefit us both. We would appreciate if you can work with us to lower or delinquent amount owed and or payment so we can keep our home and also afford to make amends with your firm.

We truly hope that you will consider working with us and we are anxious to get this settled so we all can move on.

Sincerely and Respectfully,

Mr. & Mrs. ___________________
Signature_____________________
Loan # ______________________
Address______________________
Phone________________________



September 7, 2007
To: Countrywide Mortgage account #
Re: Mortgage modification program

Due to the recent adjustment to the mortgage I currently have with your company, I am finding it very difficult to afford the new payment. I have a 3 year fixed rate which is now adjustable and is schedule to adjust again in Feb. 2008. Considering my current income, there will be no way I can afford the increased payments come February. Hopefully there is way to renegotiate the terms of my current mortgage to avoid default or foreclosure on my home.

Is it possible to have my current adjustable rate mortgage converted to a fixed rate? If this is not possible can the next rate change be postponed to a future date to allow me to hopefully refinance. Any other solutions you could provide would be greatly appreciated.

I have had no problem making my payments for over three years now and do not want that to change. My mortgage was originally written by another company and bought by Countrywide. The original mortgage terms are terrible but it was the only loan I was qualified for at the time. I was assured that refinancing would be no problem but that turned out not to be true due to the downturn of the housing industry.

The main problem is that my property is now worth about 5-10% less than what I paid for it which is preventing me from being able to refinance. I was researching on the internet and came across the Fannie Mae Announcement #06-18 (Oct. 4th 2006) regarding the servicing of Conventional Mortgage Modifications.

I believe this addresses the situation I currently find myself in along with many other homeowners.
Attached are recent pay stubs showing my current income. thanks you for your time and consideration.

[Maurice Bedard]

I hate sounding this way, really. I'm not a stupid person, nor am I very gullible (typically) but I fell for every bit of their crap hook, line and sinker and now I feel like a helpless little girl who has lost her mommy or something you know? I am dealing with ALL of this b/c my husband's job is 2 hrs from home and he gets no cell service. Of course I cant very well stay on the phone all day at my job either (nurse) so its like a rock and a hard place!!

Hey calico! You are not stupid and you do not deserve what you are going through. Thousands and thousands of people are suffering from this same thing.

It's tough but you can do this. You're a nurse, a tough lady that isn't scared to easily. Now, lets use those skills on working on your mortgage and remain calm and cool. But also aggressive.

I swear, I just wish these companies would get some integrity

Not many of them do and they just are not putting the money and effort in this because they are broke.

and just say "Hey, we messed up and screwed all of these nice hard working middle clas folks and now we are gonna fix it" why do we have to be the ones jumping through our butts and going crazy to try and fix THEIR mistake to save OUR homes???!!! UUGGHH!!

I'm afraid that aint gonna happen, but we can make them fix these loans and we are planning just that

Sorry, just had to vent for a sec.

Please come and vent n my forum anytime, that's another reason for this place. It's a from of therapy for people because this isn't something you talk about with everyone. So vent and let it out!

[calico8280]

Hello again everyone!! Well I have been in the process of a loan mod since early Jan. (I think) and I have been advised to send Countrywide my hardship letter....AGAIN.

Of course "they never got" the first one I sent. I was just wondering if anyone knows if I am using the wrong fax number? They told me to send it to "Attn:Hope Dept 1-800-658-0395."

I have also seen in here that you recomend sending it to other people at Countrywide too? I know I sound so stupid but if any of you can advise me on who and where to fax this stuff and if I should mail it as well etc., I would be forever in your debt.

My auction date is the 27th of this month. The last person I spoke to told me that I would have to wait until Feb. 22nd to call and request an expedited mod because it has to be 72 hours or something before they will "rush" it. This is making me so nervous.

Thanks for any help you can/will give.

[Mary Salzer]

Please, please call, call, call and get the foreclosure date postponed 30 days, they can do it now...forget the last minute stuff because it may be to late. On anything that you fax, fax 3 times with the loan number, borrower name, property address and last four of SS# predominately on the faxed pages all pages or it will get lost. 3 times for luck of getting it to the right place...and start calling now, non-stop. Do not like the first answer get the right one....now.....the Country Wide Attorney can also set the foreclosure aside, call and tell them you are in modification and have them while you are on the phone call Country Wide and verify and you should get it set off for at least 45 to 60 days that way.,

[calico8280]

Who do I call? Do I just say "I need to postpone my foreclosure date"? Countrywide Attorney? Who is that? I'm so sorry to bombard you with questions, I just dont know what else to do. I'm so tired of fighting with them you know?

[Mary Salzer]

No call the Country Wide number that you have been using and ask to speak with Loss Mitigation and request a postponement of the Foreclosure as you are in Modification and it is not completed, they should at least give 30 days, NOW.

Then ask who the attorneys are that are handling the Foreclosure and get their phone number and fax numbers....call them and get the foreclosure postponed if you can not achieve it directly with Country Wide.

Any time you get a postponement then you need to follow with a faxed letter three times with the information that I referred to above on it to confirm the information that you were given on the phone.

Please you may be tired, but you have to be MAD and proactive and focused. So call the Country Fried Folks and get the Foreclosure postponed as you are in the Modification process have been since the beginning of time, or at least that is what it feels like, and if the first phone call does not work do it again, but get the attorney number and go that direction as well.

Also the letter re postponement should also be faxed to their attorneys if you get a postponement that way you have it going to the right people in the chain of events. Often the left hand does not know what the right hand is doing there. That is why regardless of whether you call the attorney or not you need to get those numbers.

[calico8280]

I dont know what else to do!! As you know I have been fighting with Countrywide since Dec. I have sent my hardship letter and proof of income and so on and spoke with someone the other day and they told me we were approved for a loan mod. They told me to call on the 22nd (my sale date is the 27th) and ask for them to rush it because it has to be within 72 hrs of forclosure before they will rush it. I called on the 22nd....no one, called the next day....no one. Finally today I called the Atty who is handling it ( Wilson and Associates, PLLC) and they had me fax a "Request for Postponement" to them Attn: Billy Glass and to mark it URGENT, so I did. They said that THEY cant postpone it, they have to get approval from CW to do so. So I faxed it about 30 mins ago....now what? Sit and wait for them to call me? I've been calling countrywide....do I need to send the same letter to them as well?? OMG, I cant believe it has gone this far!!!! PLEASE< PLEASE< PLEASE someone tell me what to do....I'M DESPERATE!!!!!!!!!!!!!!!!!!!!!! Oh, not to mention that I am going in for surgery at 6 am tomorrow so I really have to do something NOW or I wont have anywhere to come home to!!!!!!!!!!!!!!!!

[Mary Salzer]

Please, please the last post we sent said do not wait, since you are approved for modification you need the lender/servicer Country Wide to postpone the foreclosure....

Use these numbers NOW to call them to get that done and make sure that the attorney's offices are notified while you are on the phone.....then fax confirmation of that fact to the attorneys and to Country Wide. If you wait....then you will lose the house, you needed to call earlier, you can not rely on them to do their job as they promise, they are to busy and have to many cases, that is why you have to be proactive and focused on the situation, you and only you can control this.

ALINE RAMIREZ IS A SUPERVISOR OF ABOUT A QUARTER OF CW'S NEGOTIATORS.

DIRECT LINE
661-951-5100
ext: 5143

Adrienne Ely-executive Specialist Office Of The President

800-601-2522 Ext 8026

[Maurice Bedard]

I would get your own attorney immediately! Try www.NACA.ent or call Marshall E. Rosenbach at 310-860-4764 and tell whoever answers the phone that Moe from Loan Safe said it is an emergency.

You need someone who can get results for you fast!!! Don't mess around. You may need to pay to have this done, but you do not have many other choices at the time.

[Maurice Bedard]

And just FYI, you will have time to get out of your home if the worse case scenario happens. From 1-4 weeks. I know this doesn't make you feel any better, but i didn't want you to worry that you wouldn't have a home after surgery.

[calico8280]

Thanks you guys, I appriciate all of your advice. Just for the record, since the last post I called CW like every day and I would either get transferred 100000000 times or eventually hung up on. I actually got ahold of someone in the Atty's office today and they had to transfer me to their Arkansas office. Thats when I was told to send the request for postponement.

I hung up with the girl from CW about 5 minutes ago. Her name was "Cindy" (I got her employee number too, I think you said to do that right?) and she read me the note on my account that said "Foreclosure postponed for 4 weeks, new sale date to be 03/26/2008"

[Maurice Bedard]

That would be as a result of Project Lifeline, where they are postponing foreclosure for 30 days to put the modification in place. I think you said previously that you were working on that.........please don't let your guard down and keep on top of the modification do not wait to get the approval and docs.......be very persistent and proactive.
Good Luck, that is good news....
Keep us posted on the modification results...

[Mary Salzer]

Never give up because you can not get through or get hung up on, call back in and call, call, call.

Now for your sake and the sake of your sanity, please fax a letter to Country Wide and to the attorneys (some times the word does not get to the attorneys properly from Country Wide) that you understand that the Foreclosure is held off/postponed until March 26th of 2008. Make sure that you loan number, borrower name, property address and last 4 of primary borrower SS# are on the letter. Make sure that you get a fax confirmation that these faxes went through from the machine that you use and fax it 3 times to each office.

[calico8280]

Just thought I would give you all an update....CW has agreed to postpone my sale date until 03/26/2008. Though, after talking to them it sounded more like they did that because my negotiator was behind. Yes, you heard correctly....I FINALLY have an assigned negotiator!!!! His name is Sedric Sanjian-anyone else have any dealings with him?

Anyway, he has had my loan since feb 5th and has not contacted me (big surprise right) and like I said before every time I would call they would transfer me....then hold for ten mins....then transfer again....then hold again....then another person would get on the phone and I would have to go through the whole thing all over again just so they could say "Hold on let me transfer you to the correct department" and then I would get disconnected. Why are they like this? I swear it almost seems like they do it on purpose!!

To make matters even worse, those faxes that they said they didnt get from me were also missing my bank statements. Now I'm a little wary about sending them my bank statements in the mail but if they have to have them, fine. My problem with this is....why is this the first I have heard of them needing them and I have been going through this crap since December? All I was told before is they needed my hardship letter nad the last two past stubs for me and my husband....now you want my bank statements?? Maybe I'm just being a little to skeptical but one can only be burned by the same flame so many times before they avoid it you know?

One more thing....would it be terribly wrong to ask for a rate reduction and/or conversion to a fixed rate? Do you think I should just leave well enough alone for now as long as I keep my home?

Thanks guys!! You all really are wonderful people and we all appreciate you so much!!

[calico8280]

Ok Poppy, thanks. I PROMISE I will!!

[Andrew]

Well good luck and keep us updated on your modification. Remember call daily!!!

[Mary Salzer]

Go ahead and fax, but on every page put the Borrower Name, Loan #, Property Address and last four of SS# for primary borrower, fax 3 times, the documents are all scanned, they are not lost.....they are just in someone else's file. This is so common as the scan staff has problems with the alphabet and numbers so the faxed documents get to the wrong file.

Three times, that will pretty much guarantee that it will get to your file. Mailing is even worse, the mail room people are apparently illiterate. So if you do mail, mail three copies, with the pages marked like I have recommended above.

[Mary Salzer]

Your final goal is modification, if you can get a rate reduction and freeze, get it....the bank statements are to support the income and expenses of the household, that is why they ask for them. They can tell from the Bank statements what the income is in and what goes out....if there are any unusual expenses or income make sure that you cover letter the statements and explain that these are one time issues. If possible document that statement as well, where ever possible back anything you tell them with the paper to prove it.

[MlcMBjnn]

Just a little editorial comment here ... I seem to recall that on the two occasions I refied my house in 2004 and 2005 everything was done over the phone (except for closing), all requested paperwork was faxed and they never lost anything!

[Mary Salzer]

Today's paperless world is so different in just that short time everything is paperless and scanned, the scanning folks, wellll........draw your own conclusions.....

[Maurice Bedard]

The deal is before loan officers had incentive to not "lose" your paperwork and that incentive was thousands of dollars in commissions that they make off of you. Now, we have $10-14 an hour employees that have no "true" incentive to "not lose" your paperwork and they are handling 20 times the amount of clients and a million times more stressful.

We have a broken system. Plain and simple.

Yes, the only way to combat this is to do what we all preach day in and day out. CALL, CALL, FAX, FAX, EMAIL, CERTIFIED LETTER ETC.

But to be real here. Our whole country's housing and mortgage system is broke. Yes, broke and in disrepair and these idiots are not close to fixing it. So for now, we will do as we do. Fight, call, email, fax, blog, email, write letters, sue, use the law and rant. hahaha

Remember it is really us against them. David vs. Goliath.

[calico8280]

Hey all, been a while but here I am AGAIN. I'll keep this short. My "loan modification" finally went throu back in april. They sent us the papers and after we read them we realized that all they had done was give us a forebearance on our loan NOT a modification (or re-structure as they implied)
AND our payment actually went UP 200 dollars!!

Nevertheless, we signed and sent them back since it was two days before ANOTHER sale date. We were like "better sign today or lose the house tomorrow" but that was probably stupid of us. Anyway, we sent them the $1600 up front on the 26th of April and then had to pay our regular (new) monthly payment on May 1st which is now a WHOPPING $1700. Needless to say that totally wiped us out and we have been struggling ever since.

I know now that we CAN NOT make that kind of a payment but what do I do? Ask for another loan mod? Try to refi w/another company?(BIG LAUGH) Let them foreclose? Hire an atty? Is it even possible to refi at this point? Espescially since we now have a chapter 13 bankruptcy on our credit thanks to Countrywide!!

Any thoughts would be appriciated.

[Maurice Bedard]

Hi calico8280,

You can try for a modification again, but do keep in mind that what is offered is done so by the investor on your loan and what they are willing to do for a modification or forbearance..............and also if escrows are required it will in most cases raise the payment......

What is the interest rate at right now?
How many more payments do you have on the forbearance?

In order to be considered for a modification when you put together the household income versus the household expenses you would need to show a surplus of $100-$250 left at the end of the month.............