Aurora Help

[Community Help]

We bought our house almost two years ago from a builder. And as you can imagine we are more than $275K upside down. The builder did all the paper work, including financing and used their own appraisal. I am sure they inflated the value! They stated that the model homes would sale for at least $100K more than what we paid and with the additional equity after the model homes sold, we could refinance into lower rates. We were the last phase prior to model homes being sold and the build out. Less than 6 months the model homes and build out sold for at least $100K less. About 3 months later they started a new development 2 blocks away from ours. Those prices started off $150K less than our phase. They used their in house financing. After speaking with neighbors...all of us are struggling to pay for the mortgages and all loans were transferred to Aurora Loan Servicing. Some of the seconds have different lenders. Out ALL have been denied. None of us want to loose our home but at this point walking away might be the best option if they are not giving us any. Some were offered a FB plan but in order to afford a FB plan you have to have a positive net disposable and most of us do not, others a short sale. What happened to helping people stay in their homes. If we all walked away then Aurora would own 12 houses next door to each other. That is equivalent to owning 10% units in a condo association. Foreclosed properties are not moving in our area. Could you imagine owning 12 next door to each other and possibly more. It is a large development and I have only talked to about 12 neighbors. As a community what do we do? Are they on board with the Home Owner Preservation Plan (Bush FHA)? Do they do any short refi? Or are they just in the business of threatening to take homes away? Besides walking away, they are not giving us much options to save our homes. I thought a loan modification would make a difference, but not if they are not approving anyone. In fact, has anyone received a loan mod from Aurora??

[Dan Bailey]

Community, Welcome to the forum
Hang in there! We're all pretty much in the same boat, and it takes some time to work it out.
Good Luck!

[jaidakm]

Sorry to hear about your misfortunate. I was able to get a loan mod on my rental property. The requirement to get approved is that you must have a positive cash flow with a surplus of 20%. Meaning your expenses can not exceed your net income. For example if your net income is $3000 your expenses can not exceed $2400. Which is 80% of your income.
If you want to get in contact with someone from the executive team, write a letter explaining your situation and address it to CEO Ralph Lenzi. The address 10350 Park Meadows Drive, Littleton, CO 80124. You should get a response within a week or two.

[Community Help]

Thanks for the info. I will work the numbers to see what I can come up with and hopefully help the neighborhood out as well. What rate did the offer on a rental??

[Community Help]

So bascially you are saying that your expenses (housing and back end debt) can not exceed 80% of your net income. So then Aurora is willing to modify your rate to 20% FE (PITI) of your net income? That does not make any sense. What room does that leave for emergencies and in order to do so for the average person who was qualified at BE 55%, they would have to give the 10yr Tres rat to qualify. Very few would qualify under this. I can understand if they are using Net income to qualify and Want you to have a New Disposable after the modified rate of 20%. That would mean your FE (PITI), housing and BE expenses at the new modified rate could not be more than 80% of your net income, giving you 20% net disposable. And if they can not lower your rate to obtain this figure then you are not qualified. Which most people will not qualify.

[jaidakm]

I didn't quite understand it myself. But this how it was explained. Another thing is that "Aurora loan" doesn't make the decision to approve or deny. Your paperwork is reviewed my "investors". These are the people who make the decision. I haven't gotten my loan mod package yet so I'm not sure what the new rate will be. I will keep you posted.

[jaidakm]

I'm sorry maybe I didn't explain it well. Its not that Aurora is willing to modify your rate to 20% of your net income leaving you 20% net disposable to live from.

The requirement is that your current financial situation must have a postive cash flow with 20% surplus to consider your loan mod. So like I explained before if your net income is $1000, your current expenses (housing and debts) can not exceed $800.

What your new loan rate would be is decided by Aurora. That "rate" is not determined by using your Net income.

[Community Help]

So if you currently have a positive cash flow of 20% then why do you need a mod? A mod is for borrowers who are struggling to make their payments. The ones who can afford it, do not need a loan mod. It seems that only a very few servicers (lenders, investors) are on board with saving houses or at least keeping people in them. The rest just want to take them, just like Aurora. Good luck selling off your REO's.

[jaidakm]

The loan on this investment property is a 3-yr arm. This October it adjusted. My payment went from $2200 to $2700. My tenants rent is $2200. So basically they are paying my mortgage. I'm not making any cash flow. I bought this property 3 years ago as a lease option deal with current owner. I'm doing the same now with current tenants. Now that loan has adjusted I have to pay $500 from my pocket. I can't raise the rent on tenants. I don't think that would be fair. I can not substain this increase. I would like to change the terms of mortgage to something more conventional.

[Community Help]

So basically since it is an investment property, they are willing to do a wash in the payment for rental income. It would not difficult for them to take your mortgage back to the previous rate and lock it. This way the mortgage is covered by the renters.

[jaidakm]

Pretty much that is what I'm asking for. Whether they lock rate as initial loan or change terms where payment is approximate the same. Which ever one is fine with me. I just can afford the increase on the adjustment. I'm not sure what they going to offer.

[Banzai]

wHAT ever happened with your mod , Jaidakm?

[jaidakm]

Aurora loan approve to modify my loan on investment property as well as my primary residence. I didn't ask about the primary but since I had the loan with them they did both. I got a fix rate of 5% on both loans. I don't have have in front of me the the criteria to approve you but i can post that later today.

[RetroBoats]

Certainly would like to see/hear what that offered.....