Mortgage companies and H4H success!

[franklinco]

Letting AIG go bust would have helped out more than the H4H program has so far. No default insurance payments would have meant the lenders would modify rather than stall until foreclosures take place while they get default insurance revenue.
I am for people getting accepted for this program and hope Gary and Newman get their loans modified according to the H4H program intentions.

[snapple candy]

Gary,
As far as fannie mae guideline show that principal reductions are prohibited. Have you looked at freddie mac guidelines in detail? Obama plan does allow for principal reductions but fannie does not. Go figure? Thought is was all owned by the government. The most you can get is a principal forbearance. Reductions are unheard of and simply will not occur realistically under these conditions. Lenders just wont budge on this one.

[garyys]

Snapple candy,

I have just been told by Aurora (the servicer) that Freddie Mac will not reduce principal. Where would I find these "Guidelines" for Freddie Mac? I would like to look at these. I am just trying to use the simplest, best options first, before I make a decision that is going to benefit just me.

I think loan modifications were almost unheard of 6 months to a year ago, now they seem common? If the investors are loosing money from foreclosures, they are going to have to look at something more drastic, such as principal reductions.

I used to think the Federal Reserve was part of the government, boy was I wrong about that!

Gary

[Moe Bedard]

http://www.freddiemac.com/service/fa...dification.pdf

[garyys]

Thanks ***!

[Newman]

Everyone, today is a VERY important day today....keep us in your prayers....when it is over, and I tell you what happened, what is about to happen, you will all be astounded. ABSOLUTLEY ASTOUNDED. Until then, keep your fingers crossed for us.We are so, so close. I would tell you, but am afraid to ruin the kharma...I will tell you the final part of this story after we close and record...heres hoping we do..after today, we will know...

Rodger, quit griping and find another lender. Never take no for an answer, never give up, never let them see you sweat. Now, get back at it, and post something we can use.

Also, call them every day, keep yourself in front of their faces, don't let them forget your name, not for one second of one minute of the day. Best to you.

[Newman]

H4H DOES allow for principal reductions, but in the form of a short refi. Not all programs do, nor banks. Lets get something straight, there is a huge difference between a principle reduction, and a short refi. Knowing that difference will save you a lot of time and grief and misery.

Also, remember this, and i mean it. The Obama plan is for the most part still guidelines for the banks. The incentive to them to play ball is stimulus money. But not all banks need the money, thus, not all banks care anything about any of what Obama has to say. There is no proverbial carrot for them to get them to play ball. Those of you with loans to these banks, may encounter a wall of epic proportions when trying to get anything done. Just ask my sister and brother in law.

So, do modifications work? The way I see it, one man's modification is another mans "your outta your mind".....

And, is it possible for Obama to say take a principle reduction or else? Yes. And is it possible for a bank to tell him to pound sand? Also, yes. Until he makes it law, no one is listening, and I mean no one.

[garyys]

Good luck Newman!

What is the difference between a reduction and a short refi? I thought they were almost the same? Maybe different as far as forcing you out of non recourse terms, that could be a big deal? I know there is a drastic difference between those and modifications.

The incentive from the Obama plan from what I have read is $3000-$4000 over three years. From my research most investors/banks have insurance on their loans, even if the customer is not paying PMI. So reduce principal and take a loss, or forclose and make a claim? What would you do?

Gary

[Newman]

Gary, a principle reduction is (in my own experience) usually associated with a modification, it is a voluntary thing from the bank. They may or may not do it. With a short refi, you are refinancing the loan for less than the original amount. Same as a short sale, only you keep the house. I think the reason they are playing ball with the H4H program is that the loans are toxic loans. If the loan does not work out, the only step left for the lender is foreclosure, the only relief for the HO is bankruptcy. I have been told this is a much better deal for the banks, saves them a lot of money not having to go through the Foreclosure process. So they sign off. Better to take the money and run.

[Rodger D]

I have contacted the Florida Senator Bill Nelson offices.
I have explained the crap list of supposed Lenders from FHA on their website and they have promised to contact HUD and with their supposed (very good contacts ) are going to send me a legit lender to contact on Monday. They have also offered to open a case to contact HSBC on my behalf. I guess it can't hurt at this point. Either way I am running out of time.

I Also met this week with Modification and Bankruptcy attorneys this week. I guess will probably pay the $400.00 for a forensic evaluation of the closing documents to see if I have something to bargain with. I'm not going without a fight.

[Newman]

Rodger, don't fight, file. Yes, you heard me. I would rather be in a house with bad credit than in a motel six room with great credit. I totally hear you, but have told SPS they will never, ever see the inside of this house, ever. I will file Ch. 13 first. That stopped them, cold. I think they stopped breathing, seriously. Someone who knows the rules?? How did this happen. As far as lend America goes, keep up with them. To my knowledge, they are the ONLY lender so far to actually close a loan with H4H. Your best chances are with them at the moment. If all else fails, use the nuclear option. Hold off on the 400 also, I know how long LA is taking, trust me. But they are swamped, and we are measuring our progress by the inch with them over here, trust me. But it does seem to get done, somehow, someway.......best to you sir, never give up, never let them see you sweat, never let them see you fax them a pic of your a$$ from the copy machine like I did....LOL....

[Rodger D]

Newman understand the 13 option.. but this doesn't work for me as I can't continue to pay. I took a 4K reduction in salary making the regular mortgage payment not possible...

Chapter 7 won't do anything to stop the process.

[Newman]

13 works, part of the Obama plan is that the Judges can now modify loans from the bench in BK court..your best bet may be to pull the pin on these guys....else, keep going with LA, it does take time, but in the end, I'm thinking it will work out....the short refi does work...just gotta hang in there...

[garyys]

Newman, I am looking forward to your big news???? What you explained was my understanding of the loan differences. The principal reduction is like a modification because it is done in house, the same lender keeps your loan, just reduces principal. The short refi is a new lender offering to to payoff the old loan (at the reduced amount) and take the risk of the new loan.

I still think many lenders are not doing reductions because they have insurance on the loan that covers the loss if they have to forclose.

Gary

[Newman]

Gary, I think they do also. I also think that one loan is more beneficial to the lender than the other. Thus, they play ball a little more. They have no interest in principal reduction as they then have to realize the loss..not good. Realize=put it on the books...next BIG downturn is going to be commercial....already starting to go...

[garyys]

So Aurora called me today. The agent told me the Obama plan would make my payment go up $127? I asked about short sales, they said that could be an option. They did tell me everything short of telling me directly to stop paying my second. I asked about the mortgage insurance, they referred to it as back end mortgage insurance. They did not tell me if it was on my loan.

I told them it seemed like ch 13 bankrupcy might be a better option for me, letting the judge reduce the principal! Thanks Newman.

Any updates Newman, I am hoping for the best.

Gary

[garyys]

Any updates Newman????

[franklinco]

Originally Posted by garyys

Any updates Newman????

Inquiring minds want to know.
I need to get out of my deficiency so any news is appreciated.

[Newman]

Originally Posted by franklinco

Inquiring minds want to know.
I need to get out of my deficiency so any news is appreciated.

Shhhhhhhhh....don't want to break the kharma.....will update as soon as I can.....

[Rodger D]

Spoke with HUD today, was told there are rumblings of a H4H redo. I also have the Senators office involved as well. It took a while to convince them about the list of lies on FHA's website.

[Newman]

Of all the transactions I have ever done, this is the most frustrating, the hardest, most completely mindless, dumbest process I have ever encountered. I do not say this lightly. This is a company that you can literally measure their progress on this loan by the inch every day. For those of you who have thought about doing this, I will tell you right now, it takes a LONG time, more patience than you ever thought you had, and more tenacity and will and drive than you will ever know is inside you. To do this, you just can....not....ever....stop. When they ask for something, give it to them. If they ask a question, answer it, over and over and over. And remember, no is never, ever, an option. This is the best advice I can give anyone on here, never, ever give up, never stop, always push them, let them get mad, who cares? Tell them over and over to get it done, call them every single day for an update, never let them forget your name, stay on them, push push push. We are in final underwriting, I am hoping to get the commitment sometime this week, and I can tell you all, it has been hell doing it...do I have the loan? Not yet. But I am hopeful that this week we get past this..keep us in your thoughts and prayers, and take the advice above and live it with these people, otherwise, your just a file on a desk with 200 other files on it surrounded by 200 hundred other desks with 200 files on them. Best to you all.....

[franklinco]

Thanks for the update Newman and my hopes for a positive final result are with you. Also a new change to the H4H program in section 202 of PL 111-22 applies to the program. I have no idea but do realize there is a lot of changes to the program and very few loans issued yet through H4H.
Talk about of worthless and ineffective and awash laws, Congress is full of ineffective and worthless legislation regarding correcting our economy and helping homeowners stay in their homes.

[Newman]

What is this newest, bestest new update now?? How does it apply?? And what new updates may or may not be coming up soon??

[franklinco]

Basically the pdf for the legislation for PL 111-22 refers to section 202 with a statement - "Sec. 202. Changes to HOPE for Homeowners Program."
You scroll down all the way and section 201 is the last thing in the text for S.896 which was passed into public law.
What makes it even lesser is that S.896 was originally titled
"Mortgages, allow bankruptcy judges to modify terms" which is nowhere to be found in the bill which eventually became retitled
"A bill to prevent mortgage foreclosures and enhance mortgage credit availability."
At least I am now highly exposed to what bureaucracy is. We can safely challenge politicians to align in a circle and wait for any of them to accomplish anything successful. If we placed money on nothing ever being accomplished, the odds would be in the trillions to one and none of us would have housing problems if we wagered against DC doing anything except ruining the economy, allowing more people to lose their homes, removing jobs for Americans to do related to production, letting our auto industry go belly up and banks slushing on future earnings, if any from our future Americans with debt financing.
When PL 111-22 gets published, there may be something in the legislation related to H4H or maybe the title for section 202 can be removed so as not to confuse people who try to make sense of the public laws created.

[Newman]

Still working on it..getting hung up on whether this is a no doc or stated income loan...so far, looks like staed income..which could blow us out of the program...time will tell...are they talking about letting staed income loans into the system any time soon???