OBAMA HOUSING PLAN - Anyone helped?

[overallthisbs]

I am wondering if there are any success stories out there on the obama housing plan? The govt is touting this thing but I see nobody whom has benefited or have not spoken to anyone whom has benefited. My nonprofit credit counseling agency claims that they have clients whom have but curious if anyone has actually been succesful in getting a loan mod and having it be the specified 31% of income per the obama plan??

please share your success stories and/or denials by your bank.

[LHarveyMadman]

I think it's too early to tell. Even before this plan was announced, modifications were taking a long time. This has only been in effect for a couple weeks.

[~Jess~]

We've applied. I called the very first day that it went into effect (3-4-09), and don't expect to hear a response until the end of the month. I'm with GMAC.

[overallthisbs]

yes good point, maybe we can make this a "sticky" to see other people results specifically with this plan as time progresses?

another question, do you need to specifically apply for this plan? from what I have seen, you basically call your lender and ask about the plan and if they want to participate then they will.

[Jule215]

our mortgage is with Indymac, and they said they won't have Obama's program implemented, and ready to go in their, system until the end of next week, or the first week in April...So I'm just biding my time right now.

[~Jess~]

Originally Posted by overallthisbs

yes good point, maybe we can make this a "sticky" to see other people results specifically with this plan as time progresses?

another question, do you need to specifically apply for this plan? from what I have seen, you basically call your lender and ask about the plan and if they want to participate then they will.

With GMAC, we've had to apply. We called and inquired about it. They verbally confirmed that we've had a loss of income and owe more on our home than it's worth, and then they mailed out a "package" that we had to fill out and return within 10 days. They then have 10 business days to review it and call us with our options.

[saeta78]

Hi Jess,

I am working with GMAC too...and was told the same thing 10 days....it turned into more than 4 weeks because of the backlog. Make sure you keep on them. I called every week to check on the status. I was delayed a couple of weeks because some of my financial information that I submitted was entered incorrectly into their system and was never told about this. So make sure you and they have the same set of numbers. It will save you so much time.

[~Jess~]

Originally Posted by saeta78

Hi Jess,

I am working with GMAC too...and was told the same thing 10 days....it turned into more than 4 weeks because of the backlog. Make sure you keep on them. I called every week to check on the status. I was delayed a couple of weeks because some of my financial information that I submitted was entered incorrectly into their system and was never told about this. So make sure you and they have the same set of numbers. It will save you so much time.

Thanks for the tip! Where are you in the process now?

[osfan]

any updates with GMAC mortgage?

[Hopefull2009]

Aurora has the software in place and taking apps. I got through all 15 pages this morning, thought everything was good - even was setting up the 3 payments and at the last page it spit out a msg - investor not participating at this time. We knew starting the app it wasn't a Fannie or Freddie but my loan was tagged as "may qualify for home affordable modification." He basically said to keep calling back as lenders are signing agreements to participate every day. I'm not holding much hope out though in the short term.

[kat10]

Anyone out there w/ Wells Fargo that has been offered anything under the new plan? Filled out paperwork? in process? anything?

[nathanb]

I talked to wells fargo today and they told me they are working to have this implemented by next week. I was also told by a credit counselor that this second week in April was some sort of a deadline or target to have things going for all banks. Fingers crosses! fficeffice" />>>

[sammyt74dp]

It appears that the Banks do not have a clue about participating in the Making home affordable plan. Not suprising, because they would rather have your home back and liquidate it at a foreclosure sale and be done with you rather than monkey around with a modification. I would not plan on this "New" 31% of income criteria to be implimented, look at Hope for Home owners -(Failure). I think the whole thing is just the new administration trying to look like "They are Helping Homeowners" in the publics eye, but when it comes to it, it just a lot of smoke and mirrors. If your in trouble just ask the bank if they want to do a mod or get the house keys in the mail? So you can get to the point immediatly to try and get your payment reduced and back payments foregiven. Which is the whole point of a mod, If you actually want to keep the home vs going to rent one for half the price of even your modified payment

[kat10]

I agree. Smoke and Mirrors.
As my WF rep mentioned to me: The banks are going to loose money under the new program. They won't use it unless absolutely necessary. If the bank can offer any type of workout, they do not have to use the new HA program. They can extend the terms, reduce the interest, last and least..principle reduction...before implementing the new program.
One thing that is important to remember is the new program is only a band-aid for a few years. The terms only bring the interest down for 2-5 years then it slowly returns to the percentage rate of the market on the day the mod was signed.
I don't believe any of this will help alot of homeowners because what people really need is PRINCIPLE REDUCTIONs. The average joe was never supposed to buy 1/2million dollar homes. Until reductions happen cutting the interest rate on a $500K mortgage 2-3 points isn't making the home any more affordable for the guy that only makes 50,000 year.
I think when this is all said and done, the American dream of homeownership will be gone.
I feel sad for todays 20something's....living on their own, not with their parents, not with roommates, will only be a dream for them......
oh yes, i remember my first recession in the late 70's:
20something, paid $100rent, no debt, no credit cards, made $1200/month as a waitress, lived life like there was no tomorrow!!!
Tomorrow always comes.

[sammyt74dp]

Very true. I myself do not wish for principle reduction, just a little leway to get through a nasty economy thats effecting out income currently, hopefully it won't last to long. But I just left Las Vegas, NV and the sign of the times is RATIONAL DEFAULT, it doesn't make any sense for somebody thats 75k -500k under water to keep paying on a depreciating debt trap. They will never ever return to the previous value. As heard a few times in this forum the American Dream has become the American Nightmare unfortunatly

[overallthisbs]

I agree, that is why I started this thread. I wanted to see if ANYONE has actually been helped under the obama plan. The plan is essentially put together to give the perceptiont that something is being done to help people. The banks are doing the same thing. For those of us whom are underwater (me at 200k underwater, bought 420k, now worth 220 and dwindling) we are like leppers. The only rational action for us at this point is to foreclose and walk away. At least we are living cheap for now and playing the waiting game. We plan to move closer to a city center and rent where jobs are more likely to be found. My plan is to be debt free completely (besides school loans) in 2 years.

[CW California]

I was told I qualified by CW then they didn't have it in place to start the modification. All this after telling me to send everything in or it would be cancelled in 10 days.

Tomorrow I call again, if no luck I'm calling the executive office, then if no luck I'm calling the investor. They need to assign a negotiator or I'm done.

I'm not hopefull any of it will work but I will try it anyway. If all that fails I will make my NACA appointment. I've already uploaded all my data to them.

[californiadreamer]

Wells keeps delaying for me talking to their exec office. Approved a 1-year interest rate reduction ($500 out of $4K) but telling me I am not qualified for the full mod because investors don't allow modification? Anyone got any better luck from Wells?

[sammyt74dp]

Theres an article on cnnmoney.com real estate section today about "Obama Plan final underway" Talks alot about Wells Fargo. I don't buy any of it.......Just the Same Ol'. It Says Wells Fargo has activily been modifying loans through the program since the beginning of the month..Yeah right

[Alexis]

CADreamer - we too are in CA & working w/Wells, have been since Dec '08. Have gone thru h.ll as we get different stories every time we call, repeatedly they request same info faxed over & over. Transferred us to H4H faxed over all info - said we were eligible only to be told 4/08 our file was closed. Just rec'd a letter from Wells stating they want us to 'experience the pride of homeownership' & requested we send all financial info w/a decision in 30 days. And so.....we play the game hoping for a loan mod. We, too are WAY upside down on our home but need to do a loan mod as our income has suffered dramatically w/economy. Yes we want to keep our home but we also want to keep our credit - do not want the difference in short sale of house following us around the rest of our lives, not worth it!! Will post any more news, hopefully to help others learn from our situation......Good luck to all, Alexis

[Alexis]

CADreamer -- another question: any luck finding out who your investor is? We've asked Wells for this & they have not been helpful at all, isn't that a homeowner's right???????? Called the exec # for info & she told us she would review our file then get back to us yesterday -- guess what no call! She also wanted to know where we got the exec #, told her someone from another office -- Alexis

[californiadreamer]

Alexis, Your story is exactly like mine - I have started this process in August of last year and have been denied before. Restarted this process recently. You can see the details of our difficult situation in my first post here. My plan right now is to lower the payments and get rid of the house via short sale hopefully. Prices are not coming back any time soon. Who is the lender in your mortgage- must be same as mine - "Securitized" bc it seems that people that have Fannie Freddy would qualify for a mod.

[californiadreamer]

Through asking many times I figured out that it was WFMBS which means it has been fully packaged into mortgage backed security. WF has no power or interest in modifying. I am screwed and Obama won't help. What a bunch of horse %#$^!

[sammyt74dp]

Alexis,

Remember to check into the Mortgage Debt foregivness act regarding your short sale difference. If primary residence you should be able to have the 1099 foregiven. Check with your accountant of course. As far the reducing your loan balance in a modification, this hardly ever happens. It probably best to do a short sale. You can probably repair the ding on your credit faster than you think. It beats throwing money out the window on a upside down house that will more than likely never recover the value it's lost in the last 4 years

[Alexis]

CADreamer - not sure who investor is on our loan, Wells won't fess that one up! Thanks SammyT for advice. Hoping to be able to hang in there. I know it sounds crazy but we've spoken to 2 realtors who say they believe there will be a big turnaround w/home valuess, at least in CA. With sales increasing & multiple offers on homes they are predicting the values will begin to rise slowly then way up! Sounds too good to be true - unfortunately won't take place soon enough for most of us. Alexis