Thank GOD I found you guys! I've been reading your forum for about a week now trying to figure out a way to save my home. I, like so many others managed to get myself into a loan that is eating me alive! Unfortunately, I should have known better than most because I work in the mortgage industry, but,... in my defense, I only process "A paper" loans and ended up with a "Hard Money" deal for myself.
In 2001, my husband was involved in a car accident (hit by an unisured moron playing with his cell phone) which resulted in us losing our vehicle, business and our good credit rating. In 2005, in an effort to stay afloat, we sold our home just
before the housing boom took place. We put our equity from that sale on a down payment of a home that we purchased from a family member. Because of our poor credit, we basically did a private "lease purchase". We paid our family members the mortgage payment every month for approximately 2 and a half years.
Just before Christmas 2006, we started getting notices in the mail from the lender. Then, we received notices that the insurance had been cancelled. We checked on line and found that the taxes hadn't been paid either.
Because we didn't have the guts to confront the family member as to why the loan was in default, we decided to obtain our own financing.
Since the title was never in our name, (who wouldn't trust their parents?!), most lenders would not treat it as a refinance. Others that would consider it a refi, would also consider the currently late mortgage (held in the family member's name) as negative against us. We really couldn't consider it a purchase either as we were needing to obtain some cash back in order to make the house payments. (I had recently been laid off and took yet another paycut to start working again. -for 4 months I was without work we had zero left in our pockets!)
No... we were not some of those bloodsuckers who made the kind of income to afford to buy new homes, cars and toys during the "Boom"!.... In fact, my paycheck kept spiraling downward as my employer aquired another company and took away the employee benefits & earnings. Heck! I even qualified for the free lunch program @ my kids' school since 2003, but never took advantage of it. (principal!)
Now enter, the "Hard Money" loan. At first, we were told that our rate was 7.875. (Not bad considering!) then it jumped to 8.99 then 9.29. (ok.. not great, but still reasonable considering the situation).... but, by the time they finally had the paperwork all approved, the appraisal reviewed (& value reduced significantly) and less than a month away from the foreclosure, they presented our loan papers with a rate of 11.24%. We should have walked then, but of course, by this time, we were stuck! The house was in foreclosure! Our credit still had not increased enough to obtain financing on a new home and the current market rents were going for more than most mortgages. (More than we could pay). We also didn't want to walk away from our equity! As it was, we ended up paying more at the closing table than we should have as our family members had been using the line of credit they had against the house and had even exceeded the loan limit.) Back taxes, & late fees ate up another significant portion. We now had an interest only 5/1 ARM with payment of $2500/mo. (not including taxes & insurance)... 2 year pre-pay penalty.
My question is, what happens to a loan modification when you have a negative rather than a surplus of your budget? The current mortgage payment is my entire monthly take home pay. My husband has started back to working in another field, but is self employed. Is there ANY way that they would even consider doing a modification? Would they only
consider it if we could prove there were predatory lending, TILA & or RESPA violations with our current loan? (The original lender, "AT HOME CAPITAL" was ordered to cease and dessist in October 2007).
On Thursday, 7/3/08, my husband sent a hardship letter (in the body of the e-mail) to the all of the addresses you have listed for
Countrywide.
Any information / help you could give me would be appreciated!!!! Our home is scheduled for auction on 7/30/08. (
Arizona)
Thank you for being here & for ALL that you do!!!!
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