Mortgage companies and H4H success!

[Newman]

Update for me. I was getting concerned for the last couple of weeks, due to the fact that Samantha, my processor, had not returned my calls, and was not available. So I finally got ahold of Phil, the guy I am working with on all of this, and he said he would call Sam and get back to me. Turns out it was a good thing I did that. Sam called SPS and got me an extension for 6 weeks with them. A few hours later, Phil called back to say that our bank, (the one originating the refi end) had pulled out of the H4H loan program, as had several others. So, Phil hit the ground running, and said he would find a new home for the loan by last Friday. Friday, I did not hear anything back, as well as Monday. then yesterday, I got a call that we had found a new loan through a company. Did a search on them they came up first out on the yahoo and google searches, then looked for any complaints on them through BBB and anything else, nothing. SO, I am again cautiously optimistic about this whole thing. One piece of good news, we have not done our appraisal yet, and the internal numbers for SPS can and most likely go down, which means that the loan can and most likely drop in principal. Keep your fingers crossed, as this is a serious roller coaster. We should get a conditional approval some time today. Best to you all, your in our prayers every day, please post your updates, good bad or ugly. This is by no means a success story (yet )

[garyys]

Thanks for the update Newman. I think that's the same people I am using (they use Lend, in place of Loan).

I received a call today from the mitigation company that the lender (the short refi lender) uses to deal with my current mortgage service company Aurora. They told me that they are preparing to submit my package to Aurora for negations, and needed my most current financial statements. What???? I told him that Aurora told me it was currently underway? He said they have not sumbmitted anything? I am now confused, and think Aurora is leading me on or trying to push through a modification to avoid the H4H short-refi?

Interesting how this process works. I am going to send over my current financial statements, and hope for the best.

Gary

[franklinco]

Originally Posted by garyys

I called Aurora Tuesday the 10th. When I told the rep that I was calling to check the status of my Short-refi, he asked if I was working on a H4H Refi. I told him yes. He then told me I was under review for a VA loan modification. He then asked if I was a Vet. I told him no. He then told me I should look into a loan modification because not many H4H refi’s are being approved. I told him I had researched loan mods and they weren’t for me. He told me my loan had been submitted for underwriter review on January 21^st. He said I should call and check up in 45-60 days from that date. I asked if I was under review for the H4H or something different. He put me on hold for about 15 minutes. He came back on and told me that it was under review for H4H. He said he sent an email to the person assigned to review it to make sure. He said if it was assigned to the wrong person it would be reassigned and would not affect the time line.

It seems like they are playing games to waste time. I think I am going to start my plan B (expecting them to deny my H4H short refi) and send in the QWR. I may also send something to Freddie Mac telling them what Aurora is doing in stalling a refi. I may also cc HUD, FHA, and my congressman?

Gary

Thanks Gary for the update on the H4H stagnation. For many the H4H program is essential to actually get on the way and to be used. As I mentioned earlier my interest in the H4H program is secondary to the removal of the anti-modification provision from title 11.
H4H if actually implemented would be better than an arrangement a judge would determine, but the voluntary nature of H4H acceptance is pretty much an assurance that the lender will respond with a no. Aurora has all the say in acceptance to my understanding. The short-refi lender would have little trouble agreeing to collateral above the loan amount in my view.

[franklinco]

Originally Posted by Newman

Update for me. I was getting concerned for the last couple of weeks, due to the fact that Samantha, my processor, had not returned my calls, and was not available. So I finally got ahold of Phil, the guy I am working with on all of this, and he said he would call Sam and get back to me. Turns out it was a good thing I did that. Sam called SPS and got me an extension for 6 weeks with them. A few hours later, Phil called back to say that our bank, (the one originating the refi end) had pulled out of the H4H loan program, as had several others. So, Phil hit the ground running, and said he would find a new home for the loan by last Friday. Friday, I did not hear anything back, as well as Monday. then yesterday, I got a call that we had found a new loan through a company. Did a search on them they came up first out on the yahoo and google searches, then looked for any complaints on them through BBB and anything else, nothing. SO, I am again cautiously optimistic about this whole thing. One piece of good news, we have not done our appraisal yet, and the internal numbers for SPS can and most likely go down, which means that the loan can and most likely drop in principal. Keep your fingers crossed, as this is a serious roller coaster. We should get a conditional approval some time today. Best to you all, your in our prayers every day, please post your updates, good bad or ugly. This is by no means a success story (yet )

Thanks Newman, you just amended my view that the H4H lenders would accept a loan on property worth more than the loan and at terms the homeowner could repay. It may not be beneficial to the new lender if the loan refinancing ends in a dead end.

Good bad or ugly, the information is valuable so others can seek the proper choices. I for one appreciate the updates.

[franklinco]

Just passing on what another article has stated about the H4H program. The link was removed from the article which was posted on a site dedicated to BK and easy to understand reviews both law and opinion.
FYI:
Furthermore, only a third of the modifications reduce the monthly payment while almost half (45%) see their monthly payments increase! If the homeowner was struggling before the modification, he is less likely to make the payments now.
It was thought that the voluntary loan modification programs would provide relief for homeowners. For example, the Hope For Homeowners Act passed last spring was expected to help more than 400,000 homeowners through FHA refinancing if the servicer would accept less than 100% payment guaranteed by the government.
Since October and the program’s inception, 312 people have applied for the program. Additionally, the Hope Now effort has not achieved any real results and studies demonstrate that 7 out of 10 homeowners who are seriously delinquent on their mortgages are not in any loss mitigation stages.
From my own experience, neither I nor my colleagues achieve significant and meaningful loan modifications from servicers that will really keep people in their homes. Voluntary efforts promoted by the lending industry have proven to be ineffectual. Yet, more and more money is demanded of Congress in bailouts.
End Excerpt:

My comment:
Since there are statistically 310 other people who applied for the program, your feedback is essential so more people could determine if the futility is worth it.

[Newman]

Frank, I can see the scepticism in the paragraph you posted..but I gotta ask, after a $200,000+ reduction in my principle owed on the loan, how in the world can my payments go up? The writer you quoted must not understand the balance owed on the NEW loan is based on 90% of the appraised value of the home...so in this case, lower is better. No matter how I slice it, I am taking roughly $230-240,000, fixing it at 30 years at 5% interest or lower, and impounding the taxes and HOI. Am I missing something, because I just went from a payment of 2650 a month, to about 1500 a month...and remember, also, that all fees and points are part of the 90%, it is actually 85% to the bank, 5% to costs...so NO money out of our pockets..

[franklinco]

Originally Posted by Newman

Frank, I can see the scepticism in the paragraph you posted..but I gotta ask, after a $200,000+ reduction in my principle owed on the loan, how in the world can my payments go up? The writer you quoted must not understand the balance owed on the NEW loan is based on 90% of the appraised value of the home...so in this case, lower is better. No matter how I slice it, I am taking roughly $230-240,000, fixing it at 30 years at 5% interest or lower, and impounding the taxes and HOI. Am I missing something, because I just went from a payment of 2650 a month, to about 1500 a month...and remember, also, that all fees and points are part of the 90%, it is actually 85% to the bank, 5% to costs...so NO money out of our pockets..

Currently I myself am looking around the net for information regarding the H4H deal. A few sites refer to the LTV being changed from 90% up to 96.5%. I thought that since this was a national law from public law 110_289 that it was only changeable through the Congress enacting changes. Also the claim that shows the increased LTV states that the loans could be up to 40 years.

I agree with your point that with the new appraised value being lower, the finance being set to a fixed and hopefully better rate, the loan can then be successfully paid.

Many of us are skeptical of the program being something that will help many of us escape bad termed loans and prevent probable foreclosures.

I for one applaud your efforts to get the loan restructured and again point out that I myself would like this program to be achievable.

Thanks for the comments. I'm rooting for you to get final approval as are many other who read this forum are also.

[Moe Bedard]

frankinco,


Considering the H4H is an FHA program............all of the information regarding it is right on FHA's website............along with all of the information that was put out to the participating lenders.

HOPE for Homeowners

[garyys]

Newman,

That is what I have been telling people for a while now (my house going from 318,000 to less than 110,000).

I think Franklinco's quote refers to general modifications from the lender where they change the interest rate, and fix it for thirty years and bring the payment goes up. Then it moves into the H4H program. I think there are more than 312 people trying to apply for the program. The list of lenders on the FHA site will take your info and set on it until they figure out how to do the loans. There seem to be very few investors buying these loans. I found one of the lenders that is a direct money lender actively looking for H4H applicants. Their is a lot of misinformation out there, I just think you have to wade through it and find the truth.

Gary

[franklinco]

Originally Posted by *** Damiano

frankinco,


Considering the H4H is an FHA program............all of the information regarding it is right on FHA's website............along with all of the information that was put out to the participating lenders.

HOPE for Homeowners

Thanks *** for the link. I see the program still requires the 3% UFMIP and the 1.5% yearly MIP. The ratio creditors can recover has increased up to 96.5 percent of current appraised value. You now can refinance up to 40 years .

I'll check the site for continued changes with the program.

[diana0806]

hey gary, which lender on fha website is a direct lender? all the one's i called cannot get money for h4h. keep us posted . hopefully you will be a success soon.

[garyys]

diana0806

Considering I am not a success yet, I hesitate recommending any lender. I found them by looking for FHA lenders on the net. When I last looked they were not on the list, but they were listed a a general FHA lender. I had the same problem as you, lenders that wanted to participate, but no money to back it up. Until I found this direct $ FHA lender from New York.

Good Luck,

Gary

[Newman]

Okay, so here we go tonight. Got a LOT of stuff from the new lender, looks like I have to resubmit everything for these new guys, which begs the question, why are you sending over the old packet? why not just go off of that, and let me update stuff as it is asked for? Hmmmm...here is the laundry list of things they are asking for...


-last 2 years full tax returns with W2 forms and 1 month of recent pay stubs
-recent mortgage statements for refinances
-paystub from march 2008
-for your scenario-paper trail of last 24 months of payments
-mortgage note (you can request from current lender)
-appraisal if you have one (even if it is old)
-homeowners insurance policy for refinances
-4506, hope authorized and authorization attached signed
-letter of explanation for any derogatory items on credit (lates on the mortgage) with documentation to back it up
-any assets that are in liquid form (retirement accounts, checking, savings, cd, stocks, and bonds)
-copy of drivers license and ss card


A lot of this stuff is already done, but they are also wanting a LOT more documentation than the last guys, some of which I am not sure that I have, time will tel how much I can come up with. Also, I did the numbers for the ins. stuff, here are those numbers..

UFMIP is 3.0% of the loan amount=8100.00=paid up front as part of the loan


ANNUAL PREMIUM IS loan amount divided by 1.5%=$1620.00 divided by 12=$135.00 PER MONTH?

So I have work to do the next few days on this, try to get as much of this stuff (read BS) together, and get it submitted, so here we go again, but this time I feel good, all of the paperwork from this lender has Fannie May letterheads on it, so that means hopefully that maybe the loan can be converted later on also...for now, I am not concerned about the payback issues, I calculated that out also, here are those numbers..

Appraised value of the home is $270,000
Minus the 10%= $27,000
Actual amount of loan is $243,000
Difference is $27,000, I owe them $13,500 after 5 years.

Since we are over 200,000 in the hole here on the property, I don't see us making a large rebound within 5 years, so any equity would be a small amount, I feel that for the loan we are getting, i.e. principle reduction of over $200,000, fixed rate conventional loan, 30 years, maybe even 40, with a 4-5% interest rate, at this point I can not see a downside to it, keep in mind also that ALL closing costs are paid through the loan, not me. Questions?

[Moe Bedard]

Newman,


I just want to say Good Luck!!

I hope you are the first H4H success on the forum!

With Gary following the same success right after you!

[Newman]

My Broker told me Friday this is a "Done deal" heard that before, thus my incredulity. That said, he also said that out of all of the brokers he knows he is the ONLY one to get one of these done...I know brokers, I never knew one to say something like that unless he believed it, they aren't prone to embeleshing for no reason. Plus, i have given this guy no money at all, so far, he is working on the amount to come to him from the bank, not from me. Interesting.

[garyys]

Thanks for the update Newman, and good luck.

I think that it is key for people not to pay up front for these services. From what I have read, I don't believe its legal for these "modification" companies to charge upfront fees in CA. I can understand paying an attorney for a review of docs for violations. I have a friend that was burned by one of these scam, somewhere between $500-1000. I tried to tell him not to do it, but he said it was "the way to go". He went strait to foreclosure auction! I have not even paid for a credit check at this point. I will have to pay for an appraisal if it makes it that far, but the lender makes their money from the loan.

Gary

[Newman]

There ya go brother, the key is finding someone who makes his money OFF THE LOAN. I searched around a lot for a loan modification guy, and basically found nothing, SPS tried to modify us, and that was a circus. If this does not work, I will file Chapter 7 in an instant, I already told SPS to do what they need to do to work with me, because they will never see the inside of this house.....I think they believed me, as they are laying down for this loan...

[franklinco]

Originally Posted by Newman

My Broker told me Friday this is a "Done deal" heard that before, thus my incredulity. That said, he also said that out of all of the brokers he knows he is the ONLY one to get one of these done...I know brokers, I never knew one to say something like that unless he believed it, they aren't prone to embellishing for no reason. Plus, i have given this guy no money at all, so far, he is working on the amount to come to him from the bank, not from me. Interesting.

Great news Newman! Thanks for the update.

[Newman]

UPDATE!!!!

Got the GFE this AM!!! HAve a few things to do tomarrow, have some explanations to do, and get typed up, but at this point, things are now really moving along fine, and for the first time, i am getting a picture of what this loan is looking like. $25,000+ in closing costs, ALL paid by the lender, for one thing, mortgage ins. is an 8300 hit, all taxes paid up to date and impounded, as well as HMI...and, to top it all off, SPS called yesterday to let us know that they were sending us out a new payoff, as the original one for 243,000 was no longer good, the internal appraisal had come in LOWER, so the payoff has gone down also....!!!! After all is said and done, I might try to buy the rate down 1 point to 5%, for 30 years fixed. When I asked him about the 40 year rate, he said the feds will not insure 40 year loans at this point, but if that changes, we will do it...so, that all there is at the moment, I have more, but Amtrak called, and I gotta roll to Bakersfield today...have a great day, I know I will....maybe I'll sing on the train intercom for the passengers....after 10 miles of that, they bail at the next stop and I have the train to myself.....

[franklinco]

Originally Posted by Newman

UPDATE!!!!

Got the GFE this AM!!! HAve a few things to do tomarrow, have some explanations to do, and get typed up, but at this point, things are now really moving along fine, and for the first time, i am getting a picture of what this loan is looking like. $25,000+ in closing costs, ALL paid by the lender, for one thing, mortgage ins. is an 8300 hit, all taxes paid up to date and impounded, as well as HMI...and, to top it all off, SPS called yesterday to let us know that they were sending us out a new payoff, as the original one for 243,000 was no longer good, the internal appraisal had come in LOWER, so the payoff has gone down also....!!!! After all is said and done, I might try to buy the rate down 1 point to 5%, for 30 years fixed. When I asked him about the 40 year rate, he said the feds will not insure 40 year loans at this point, but if that changes, we will do it...so, that all there is at the moment, I have more, but Amtrak called, and I gotta roll to Bakersfield today...have a great day, I know I will....maybe I'll sing on the train intercom for the passengers....after 10 miles of that, they bail at the next stop and I have the train to myself.....

It sounds promising. Thanks for the update.

There are other changes going on too with today's news for plans. I hope all goes well with the H4H short refi. If not, there should now be other options to help you.

[Newman]

Originally Posted by franklinco

It sounds promising. Thanks for the update.

There are other changes going on too with today's news for plans. I hope all goes well with the H4H short refi. If not, there should now be other options to help you.

Time will tell....I talked to my broker today, and he did not seem to think that the news today would help much...so, we'll have to see what the guidelines are in two weeks to tell how well it will go..I tend to think that until someone in DC man's up and flat out forces these sh!tty banks to redo the loans, nothing of substance will get done....even Obambi today talked about "persuading the banks" to do this....sigh...I won't hold my breath.....

[franklinco]

Originally Posted by Newman

Time will tell....I talked to my broker today, and he did not seem to think that the news today would help much...so, we'll have to see what the guidelines are in two weeks to tell how well it will go..I tend to think that until someone in DC man's up and flat out forces these sh!tty banks to redo the loans, nothing of substance will get done....even Obambi today talked about "persuading the banks" to do this....sigh...I won't hold my breath.....

The provisions would work better if the word voluntary and incentives were removed from the provisions and replaced with mandatory instead.
Hopefully your broker is wrong because some of the changes relate to the H4H program with a few modifications to it as one of the items to help homeowners out. Hopefully they get rid of the UFMIP of 3% and lower the MIP percentage as mentioned earlier.
I believe the legislation will pass or we as a nation will have much else to deal with. The housing industry employs many and a vacated home does little to pay for local services like an occupied home would contribute through the homeowner paying county taxes instead of a vacant, deteriorating and nobody paying county taxes.
Good luck with the short refi. We need evidence it is being used as well as you need it for your home.

[Newman]

Originally Posted by franklinco

The provisions would work better if the word voluntary and incentives were removed from the provisions and replaced with mandatory instead.
Hopefully your broker is wrong because some of the changes relate to the H4H program with a few modifications to it as one of the items to help homeowners out. Hopefully they get rid of the UFMIP of 3% and lower the MIP percentage as mentioned earlier.
I believe the legislation will pass or we as a nation will have much else to deal with. The housing industry employs many and a vacated home does little to pay for local services like an occupied home would contribute through the homeowner paying county taxes instead of a vacant, deteriorating and nobody paying county taxes.
Good luck with the short refi. We need evidence it is being used as well as you need it for your home.

I missed the part about the changes to the H4H program...what have you heard they are doing? And as I understood it, this was not a program that needed to go to the floor, rather a part of the recent package signed by Obama on Tues. As I understand it, this already is law...can you do some clarifying for me? Thanks....

[franklinco]

Originally Posted by Newman

I missed the part about the changes to the H4H program...what have you heard they are doing? And as I understood it, this was not a program that needed to go to the floor, rather a part of the recent package signed by Obama on Tues. As I understand it, this already is law...can you do some clarifying for me? Thanks....

I read the Obama plan and it seems to be a plan where people who want to take advantage of the lower interest rates but cannot refinance because of the LTV being over 80% can do so through the GSEs.
Apparently this plan is a voluntary plan so the effectiveness will depend upon the lender or servicer to take the $1k incentive over all the money that they make for foreclosures. (servicers anyway)
I guess the idea to the plan is to lower people with good credit to get loans with lower monthly payments so the money could then be spent on other items to stimulate the economy.
I concur, I see nothing on the H4H program being improved except in HR 384 for the spending of the left 300 billion plus money through the tarp.
Thanks for the correction to my statement. I'm looking over all of the stalled legislation with certain goals and muddying it with the "plan" which does not require laws since it is through the GSEs mostly and for those to enable them to refinance into lower interest rates.
I guess we'll see once March 4th comes around.

[Newman]

UPDATE!! As I type this, my loan docs are printing out!!! Nice, things are starting to roll out here....