Mortgage companies and H4H success!

[Newman]

And, another update for us....as of today, we are on hold pending the banks new guidelines from the Obama housing guidlines...i.e., when they know,we will know....guesstimating a 30-45 day setback in the timeline for the loan...sheesh...which will mean all new paystubs, yadda yadda yadda.....

[franklinco]

Originally Posted by Newman

And, another update for us....as of today, we are on hold pending the banks new guidelines from the Obama housing guidlines...i.e., when they know,we will know....guesstimating a 30-45 day setback in the timeline for the loan...sheesh...which will mean all new paystubs, yadda yadda yadda.....

I believe you are, but just in case, keep an accurate record of all delays and transactions. today Congress are working on HR 1106 which section 202 covers the changes to H4H like banning millionaires from participation, adding exit fees and other changes.
Thanks for the update.

[Newman]

What changes were made through the Obama plan??

[franklinco]

Originally Posted by Newman

What changes were made through the Obama plan??

I don't know what, if any changes are in the H4H program related to the new 80% to 105% cheaper refi loans that are FHA. I am so out of touch with the H4H program except for changes which are on the FHA site that the link earlier referred to. I only see them when they are included in bills related to chapter 13 or the second half of the TARP spending. My hopes are on you and Gary to actually get some results.
For me to be in BK, I did not want to try it if I see no results from others. I guess it would be similar to cheering someone on to jump out of the airplane and if they land on their feet follow along. So far nobody I have heard of it landed safely into a short refi within the FHA program.
Right now I am anticipating the index my loan is indexed to go down a percent each 6 month adjustment. A chancy hope I know but not much different than the present alternatives. My loan should go down a percent if the 6 month LIBOR stays under 3%. Right now it is at 1.8% and has three more weeks to stay under 3% to reduce rates by that amount. Theoretically my loan could go down to the teaser rate or close if the rate stays below 1,8%, a hope in h3ll just like the other save the home programs.

Housing and Economic Recovery Act of 2008 FAQ

[Piscesgirl]

Originally Posted by Newman

And, another update for us....as of today, we are on hold pending the banks new guidelines from the Obama housing guidlines...i.e., when they know,we will know....guesstimating a 30-45 day setback in the timeline for the loan...sheesh...which will mean all new paystubs, yadda yadda yadda.....

Hi Newman! How is everything going? any updates?

[Newman]

Well, we are still in unerwriting, though the holds are now taken off, as the new guidelines are out, and do not affect our loan. So that is a good thing. So now I am just waiting to get out of underwriting and get the appraisal going, so we can finish this whole thing....one day at a timing it over here, keep your fingers crossed!!!!

[Piscesgirl]

Oh, good! I am glad things are still moving along! Please let us know how everything is going...you are giving me hope

[Newman]

UPDATE!!!! 3/23/09.....WE ARE THROUGH UNDERWRITING!! Can you believe that?? We actually got the credit approved on Weds. but I have been so busy I have not been able to get on here and write. Appraiser got here on Thursday at 10, and we are waiting for the appraisal to come in. As I have said in the past, this is not your normal everyday appraisal, like we have been used to in the past, this one is based on the LOWEST number the comps will support, and they have to be bulletproof, as well as flame proof. Which brings me to my next worry, is there such a thing as too low? I think so, but the comps are what they are, so I told the appraiser that whatever price or value she decided, the comps on it need to be irrefutable, which she assured me, they would be. Still, I worry that SPS might refuse it because the value is not what they like. I will cross that bridge when I get to it, for the moment, I just relish getting over the major hurdle in this process, and a smooth glide to the finish line, God willing an' the river don' rise....

[Piscesgirl]

Wow! That's really great! I think I may be getting a small glimmer of hope back... Don't worry about the appraisal, if the bank doesn't like it, they can order another one and pay for it! Lower is better for sure! They can always verify the comps through tax records as well...

I'm sure you have said before but have you been paying your current payment during all of this?

[Alexis]

Newman - a couple questions: are you getting a copy of the appraisal? We are scheduled for our appraisal today & I'd like a copy so we can request thru our County that property taxes be adjusted. Also H4H told us they offer 30 yr fixed @8.5%!!! When I complained they said it could change once all the paper work is done. Did they quote you an interest rate? Just curious. We also don't care for the 'shared equity' but I guess that's the way it goes. Thanks & good luck, Alexis

[Piscesgirl]

Hi Alexis! I was wondering how much your principal is being reduced and if you are doing this by yourself through your current lender?

I thought I had read there wasn't a timeline as to when you can re-fi so even if you had to take the higher rate to get the principal reduction, you could always re-fi for the better rate in a few months? I'm sure you wouldn't have built much equity by then, right?

Thanks for your help! I appreciate any info...I keep changing my mind between thinking there is hope and packing ; )

[franklinco]

Thanks Newman for the update with the process. So the FHA approved appraiser went under what the first appraisal was?
As you can tell, a lot of people are interested in your success or glimmer to success.

[Alexis]

Piscesgirl - Not sure how much they will reduce the principal until the appraisal is complete - just got that done today. I don't believe you can re-fi once you're in w/H4H. Gov't is pretty strict. Will keep ya updated. Alexis

[Alexis]

Piscesgirl - forgot to answer your other question: yes we are doing this ourselves. Have been working w/ASC for 3 mos. ASC turned us over to H4H, who after asking a few questions told us we were eligible for the program. I've been told over & over not to give up so we are reaching out to any program we can. I understand completely about the going back & forth w/hope & packing - we're all in the same boat! Alexis

[Piscesgirl]

I am so excited for you! I haven't been able to find anyone that was able to actually close on a H4H loan...take a look at the chart...I'm thinking the best time to re fi would be year 1 or 2. this is assuming you would actually MAKE money... if your home only appreciates 2000. in the next year, that's all they get...unless I am missing something...and as much research as I have done, I don't think so. Now I just need to figure out a way to make it happen for me!

In this example, you and the FHA share this $20,000 when you sell your home or refinance your loan. Here’s how that $20,000 would be split:

If you sell or refinance:

During Year 1	FHA receives 100%, or	$20,000	You receive 0%, or	$0
During Year 2	FHA receives 90%, or	$18,000	You receive 10%, or	$2,000
During Year 3	FHA receives 80%, or	$16,000	You receive 20%, or	$4,000
During Year 4	FHA receives 70%, or	$14,000	You receive 30%, or	$6,000
During Year 5	FHA receives 60%, or	$12,000	You receive 40%, or	$8,000
After Year 5	FHA receives 50%, or	$10,000	You receive 50%, or	$10,000

[Newman]

Originally Posted by Piscesgirl

Wow! That's really great! I think I may be getting a small glimmer of hope back... Don't worry about the appraisal, if the bank doesn't like it, they can order another one and pay for it! Lower is better for sure! They can always verify the comps through tax records as well...

I'm sure you have said before but have you been paying your current payment during all of this?

Piscesgirl, no we have not been paying the payment, but that is ok, we were told not to, while doing this....

[Newman]

Originally Posted by Alexis

Newman - a couple questions: are you getting a copy of the appraisal? We are scheduled for our appraisal today & I'd like a copy so we can request thru our County that property taxes be adjusted. Also H4H told us they offer 30 yr fixed @8.5%!!! When I complained they said it could change once all the paper work is done. Did they quote you an interest rate? Just curious. We also don't care for the 'shared equity' but I guess that's the way it goes. Thanks & good luck, Alexis

Alexis, yes, we got a copy of the appraisal the day it was submitted to the bank, so that was good. I too will go over the county and appeal my taxes after this is over and done. As for the rate, we are at 5% for a 30 year fixed, but we are buying the rate down, also. And I don't care for the shared value either, but the loan is amazing if it goes through. I see us refinancing maybe in a couple of years just to get Uncle Sam off our backs, or just never ever selling this house.

[Alexis]

Hi Newman - what do you mean you are 'buying the rate down'? Also how long did the process take w/H4H? Every time we call, they tell us they need more paper work! Seems the people working there don't know what is required. You probably know more than me, but I believe we can never get Uncle Sam off our backs w/this loan. Best of luck w/your loan. thanks, Alexis

[garyys]

Thanks for keeping us updated Newman.

As for me, I was told by Aurora that my investor, Freddie Mac, is not participating in the H4H program. I sent off my QWR to both lenders (Aurora, EMC), and to the list of CC's further back in this post. I have received letters acknowledging my QWR's. The mitigation company that was handling my H4H negotiations has continued to call soliciting their pay service for modification, I keep telling them no, telling them I could do a modification myself. Today I received a call from Aurora home retention. They apparently took some of the forms from the mitigation company and started a modification. They need current finical statements, but they thought I could get a fixed rate for 40 years at 4.5%. They said I could wait a few weeks since they don't have all the underwriting details for the Obama plan, and I may get a better deal with that. I continued to tell them that a principal reduction seems to be my best choice at this time. They said Freddie Mac is not doing principal reductions, I should stop entertaining that idea. I told them I felt it was the best option for all parties, and explained the reasons. I got their information, and told them to call me when they had the details of the Obama plan. I told them I was not going to rush anything, and wanted to make the best decision.

Funny how people have told me I could not get a modification with out being late? I always told them I could get the modification, I know there is no formal offer, but it looks like I could get it if I want it. The principal reduction is what I want. And I don’t see much point in staying here at the price (Bought at 320,000 now worth about 80,000-90,000)? I could buy something much nicer for a lot less.

Gary

[Newman]

Well, eventually Gary, it's gonna go back up...not like it is at that level forever. Seems to me that getting a better rate, making it affordable at the moment, might be an option, as opposed to walking away and just losing everything. I would try for a mod, get a rate you can live with, even of you buy it down, (if you can on a mod) and try to wait out the downturn...I'm just sayin' ...LOL....


This is the point where I post the smart aleck pic, but you know who won't let me do you know what.....snicker........

[Moe Bedard]

[garyys]

Thanks Newman.

I received the info from my Aurora QWR today. And I calculated it, with the reduced interest rate I would save about $140 a month. Yes, $140. My credit is still great, getting a house at current prices and rates would be a better option for me if I can do it? By the time my house recovers, the house I bought now would have gained around $230,000 in equity.

I will see how things progress.

Gary

[garyys]

Received my notice of default yesterday! I was told it was coming. It was generated in order to allow a modification. Funny, I have never had a late payment.

Happy Easter,

Gary

[franklinco]

Originally Posted by garyys

Received my notice of default yesterday! I was told it was coming. It was generated in order to allow a modification. Funny, I have never had a late payment.

Happy Easter,

Gary

Anything to get drinking money I guess. The laws for home loans must have been made by a community of lushes. No sense at all to them. Anyway, I hope you get the requested loan modification.

[Rodger D]

I personally think this H4H is nothing but a smoke job. I filed my application back in Feb, that seemed to be the ones on the forefront to getting these types of loans closed..
Was told today that all applications are now in a file on hold.. waiting for additional legislation. Gotta love the politicians. Spineless. Give billions to the banks to keep them a float.. but don't force them participate in this program. Spineless

FHA is just is splineless.. anyone can be put on the list of vendors participating in the program. Nice way to spray perfume over all the crap....Makes them look like the program works.. they have SOO many lenders.... I am so sick of this mess its been 2-1/2 years.. of waiting.. for nothing...