Aurora Loan - OMG Is this really success??

[Hopefull2009]

I have an 80/20 mortgage serviced by Aurora (Lehman Bros investor on both). In 9/07 ran into income problems with loss of business. They've always been pleasant to deal with in terms of payment plans, etc. My second (20%) portion, is at 13.75% (first at 8.75). The last payment plan on the 2nd called for 3 payments and then modification submittal. My first is also behind and I'm on a payment plan.

I submitted the documents requested for the mod on the second. When I called to inquire about progress I was told I was assigned to an underwriter on 1/29. When I inquired if it were possible to have the first included in this modification, they looked and said the first loan is being looked at also. While this would be a great thing, I'm wondering if this is "normal." My understanding was I was applying for the modification on the 2nd. Since my first mortgage payment is obviously included on the financial statment, would this be the reason they'd automatically take a look at it? Is it really possible to have the entire loan modified when I assumed I was applying for modification of the second?

I've read the complaints on the internet about Aurora, but honestly, my experience has been quite the opposite. They have never refused to work with me during this difficult year. My employment situation is finally back to "normal" and although my credit is now in the dumps I'm trying to stay optimistic. My ultimate, #1 goal is to retain my home.

[Moe Bedard]

Hi Hopefull2009,


Welcome to the forum and thank you for joining..............

You had mentioned that you were already on a payment plan with the first...........that may be why they are looking into modifying both.


Keep us posted on your progress........

[Hopefull2009]

Thanks, ***. That's what I was thinking possibly. I'll definitely keep everyone updated so hopefully anyone else contemplating a modification will have an experience to compare to.

I'm thinking they may also now be waiting until the guidelines come out March 4th under the new stimulus plan? I'm hoping that having this come out and coinciding with my modification is a good think :-)

Thanks again for the reply.

[Hopefull2009]

Ugh... and I'm still waiting. No news yet. I'll be coming up on 60 days in a few more days.

Who was it that said patience is a virtue ?? I'm betting they were not in need of a mortage loan modification

[jaibird]

Hopefull,,
I am also in the middle of a modification process with Aurora. I went through the forbearance payments and submitted my packet for modification on March 2. I have been calling and checking almost every week. They told me 4 to 6 weeks. Maybe I should expect to be waiting longer! I know they are looking at my file because they called me with a question.

I have had the same experience...all the Aurora representatives have been extremely helpful and nice. It is annoying that I can't talk to just one person but I really can't complain.

Is it true that you don't need to make your payment while you are waiting to hear about the modification? That is what I have been told and am not planning on making a payment in April.

Hang on there, hopefully you will get the answer you need soon! Please updated here about what happens so I can know what to expect!

[Hopefull2009]

Hi Jaibird,

My modification was originally set up for the 2nd mortgage in which I made the three required payments. I, too, was told no payment during the mod process and I haven't made one and they haven't been calling. I am paying on the first one as I'm on a payment plan with that. They just happened to also combine the first into the modification according to the notes on the screen. I'm thinking because it's the same investor and since the increased payment was listed on my financial form this is why.

I also wish I had one person as point of contact. Although everyone I ever speak with at Aurora is extremely pleasant, there are some that you just have a feeling know more about what they are talking about than others.

I did call today as I'm just a couple of days away from my 60 days. I've had no questions from them since 1/29. When I spoke with them today, the woman suggested I might want to send in updated paystubs since it's been 60 days, but there was no "official" request for it. She said sometimes the underwriter finally picks up the file and then decides they want more current info. This doesn't exactly make sense logically since they ask for the package and then tell you to wait 60 days. Of course, the paystubs are going to be 60 days old then?

Anyway, she did say I could call back on Monday and if there are no notes in the system, they could put a note into the underwriter requesting an update.

I'm just soooo ready for this process to be resolved. Here I thought the whole home purchase and waiting for closing was stressful. This process is certainly right up there in stress level.

Well.... that's all for my update today. I'll let you know as soon as I hear something. So far it seems to be a painless process overall. I just pray for an amicable and mutually beneficial outcome.

[Hopefull2009]

Update as of today....

Today marked 61 days that my modification has been pending. I was able to have them put a request in today to the underwriter for an update on my mod since it's been a full 60 days. They said to please allow up to 7 business days for a response.

Waiting patiently .....

[Hopefull2009]

Well, all the waiting and finally today I called for an update and was told it was denied.



The reason they said was I could afford the payment as is. I agree that I can afford the payment now that I'm back to work IF I wasn't paying an extra $700/month on the first mortgage as part of a repayment plan. They said they base the numbers on the actual original payment, not the increased payment plan amount when doing a modification.

I did notice they updated their website today regarding the Home Affordability (Obama) modification plan. My first loan has a notation "this loan MAY be eligible under ....." and the second loan states "it does not look like this loan is eligible.."

So, my only choice today was get on a repayment plan on the 2nd to avoid that going to foreclosure (it's now 7 months behind).

I don't know what to do or what options are left at this point. She said the notes from underwriter said that the DTI ratio shows I can make the payment - I can if the first loan was the "original" normal payment. Right now, my repayment plan amount on the first loan is the total of what I would be paying for the first and second mortgages at the orig/regular payment.

So.... I'm left with the first at 7.75% (adjusting in 10/09) and the 2nd at 13.75%.

LOL - at least while I was waiting, as impatient as I was, I still had some hope, now it's back to reality and wondering what to do.

[Moe Bedard]

A repayment plan is only for a certain number of months...........do you have many more to go?

[Hopefull2009]

Originally Posted by *** Damiano

A repayment plan is only for a certain number of months...........do you have many more to go?

On the first mortgage, the payment plan goes out a year (next December). They set the second one up with 3 payments and then the balloon payment. Now I'm worried because the first is set to adjust in October '09.

Is there such a modification that can put all the past due on the end and just sort of "start fresh." I can make the original payments no problem - the repayment plan is kicking my butt. I was without work for almost a year - I exhausted savings, etc. to get as far as I did without totally going under.

[Moe Bedard]

unfortunately there isn't while you are in a plan already..........

[jaibird]

Was this their response to the 2nd mortgage being modified or was this them looking at the 1st and 2nd?

If you don't mind me asking how much did you show you had left over or negative on your income/expense statement?

I am sorry that you didn't get any deal, or closure. Hang in there.

[Hopefull2009]

When I called, the notes were on the 2nd mortgage. While I was discussing the payment agreement on the 2nd at that point the notes suddenly showed up on the first mortgage. I asked about the notation on my online account that said "this loan may be eligibile for the Home Affordable ....." She kept telling me that they were still reviewing the Obama plan guidelines, but I kept telling her the website was now updated since this morning stating they've reviewed the guidelines and implemented their system and to log into your account for a message whether your loan was potentially eligible. She apparently didn't know this information ( I was speaking with home retention).

My problem comes in, they look at the modification using the original loan numbers, not the repayment plan. I had a $212 surplus after first mortgage (repayment amount). That payment is now original amt + $706 to "cure" the default - they don't take the added amount into consideration for a modification, only on a repayment plan do they calculate actual expenses.

I'm working two FT jobs just to make the income up that I was making before when I originally got the loan. I'm starting to burn out so it's probably a race to see who goes under first - me physically or the mortage unfortunately.

I don't know what to think at this point.

[Hopefull2009]

So, I'm still thinking about this and still bummed and tonight in looking over the package I submitted one thing stood out -- my paystubs that were submitted at the time of the modification app included some retroactive pay, holiday pay and a good amount of OT (this is for 2 jobs so the holiday and OT was x2).

Can you resubmit a loan modification application with current updated information after being denied already?

I'm just so worried about the payment agreement on the second they set up yesterday after getting the denial - the 3 monthly payments I'll struggle and make but then the balloon payment due for the 4th. There is no way I will come up with that amount at once.

[Walking Away]

Hopeful; in reading your posts here; I was curious if Lehman is still your investor or if your loan was sold to a different investor? Before and after Lehman went bankrupt they sold billions of assets and most of their mortgage packages to different investors. My mortgage with Lehman was sold back in August of 2008 to Fannie Mae; I didn't know this until recently. Even if you're sure Lehman has it; it only takes a minute to double check both loans. It's worth checking because Fannie and Freddie holders are given more of a chance with the new program. Here's a link to Fannie Mae's page to see if they own either or both of your loans

Fannie Mae Loan Lookup tool

Here's link for Freddie Mac to see if they own either or both of your loans

https://ww3.freddiemac.com/corporate/

If Fannie or Freddie bought your Lehman loan; you might qualify for the new March 4th program; or maybe for the streamlined program since your more than 3 months behind. As for financials; I've sent in new financials 4 times over 13 months after 2 loan mod denials and now a 3rd try. Also, supposedly ina week or 2; Obama and his people will address problems arising with 80/20 loans. Good luck

[Hopefull2009]

My understanding is Lehman still owns my loans. I did look on the Fannie and Freddie websites a couple of weeks ago and it tells me they don't own them. Aurora has updated their website with the new March 4th program details -- it tells you to log into your acct for a msg whether your loans may qualify - my first says yes, the second says it does not appear so.

I'm going to start gathering my "stuff" again and see if I can submit it, but I'm wondering - can you submit this at any time with a request or do you have to "ask permission" and then they direct you to submit? The first time it was on the 2nd mortgage - they gave me a 3 payment plan and then modification sumittal (the interest is 13.75 on that one).

[Walking Away]

Hopeful; I don't know how it works when you have more than 1 loan. I borrowed 100% down with 1 loan and didn't do the 80/20 deal. I was rejected twice for loan mod and after second denial got very pissed off. I told the rep that the profit and loss statement was done wrong and the rep said it didn't matter. But the rep sounded very inexperienced so I hung up and called right back and a different rep told me I could reapply. She sounded a lot more experienced and said a new loan mod application would be started and she told me to resend hardship and financials. It took 60 days to be told I'm approved for Streamline program through Fannie Mae and now I'm hoping I'll get final approval after 3 month trial. Even though you don't have Fannie or Freddie; you might still qualify for the new program and hopefully Obama stops dragging his feet and gets moving on the 80/20 deals. My best suggestion would be to call and explain you made mistakes with P & L and ask to reapply. And if you get a rep who sounds unsure; it's best to politely hang up and call back later. All their reps are "nice", but some are a lot more experienced. 1 other thing; is there any way you can get a loan from another bank to cover the smaller 20% loan? Best of luck to you

[revcarrie]

Hi group,
I haven't been on here for a very long time since the cousin who was TRYING to work with Aurora got through to Freddie Mac and went no where but deeper into the hole. She has not paid a payment since November now and Aurora told her they would not accept a payment from Jan. to now. NOW, Aurora wants her to pay them $600 for THEIR expenses, modify to 5.125% fixed for 40 years with the missed "interest only payments" and penalties added on to the end of the loan. This is the first that I heard the client had to pay the expenses for the group who wrote this predatory loan in the first place! She has an attorney but not a real estate attorney. He is advising her to take the deal to keep her house. The first foreclosure notice came and she responded to the court house as instructed for a 6 month extention. She has gotten two notices saying that she had not responded when it was this very court house staff that notorized the response, stamped it and recorded it and sent her the copy. She has this copy of it and has had to show that copy to the very department that did the legal notorization and filing TWICE now. Has everyone gone nuts out here? Is there so much stress out here in the world that no one can even keep track of their jobs?

On the other end this loan mod situation, since I do taxes as well as everything else I do, remember for every dollar we are not paying in interest any more due to a loan mod, we are indeed going to be paying more taxes in april of 2010 for our 2009 "savings". The "interesting thing in our house is that I start drawing my Social Security in March of 2010. When the difference in taxes we will pay for the increase in our income and the lack of deduction for lowering of the interest through a loan mod are added together, I will actually see $1,200 a year increase in our total household income! We are ending up paying Uncle Sam instead of Citimortgage! The end result is nearly the same. It will cost me $600 of that $1200 to keep my State Medical card! HUMMM!

Fancy that!
Revcarrie

[Hopefull2009]

Originally Posted by Walking Away

Hopeful - All their reps are "nice", but some are a lot more experienced. 1 other thing; is there any way you can get a loan from another bank to cover the smaller 20% loan? Best of luck to you

I agree 100% here - everyone is nice, but they all have different levels of experience and "comfort" in discussing loan terms. I've had some that were totally confident and sure of their statments and others I had a sinking feeling had no idea what they were talking about - the one yesterday I had this feeling with.

I'm unfortunately out of luck with applying for a loan on the 20% portion as my credit has tanked with the mortgage lates and before that when I lost employment I had to let everything go (credit cards) just to keep up what I could with the mortgage. It's been a LONG road over the past 15 months and I'm finally seeing some sort of light but now I kind of feel like I'm stuck between a rock and a hard place. I need to keep up the OT to make the payment agreement payments, but physically I'm burning out big time - I'm working 2 FT 40 hour jobs plus OT. I've been doing this for about 8-1/2 months now and I'm physically exhausted obviously. I think I need to cut out the OT for a few pay periods but that's going to affect my payment plan so a catch 20 situation.

[Hopefull2009]

And it gets even worse. I found out today that my payment plan on the second was denied. I wouldn't have known if I didn't call about the Home Affordable mod on the first. On the second, the underwriter who denied the modification put notes in to not accept payment plan because it is affordable and I need to cure the arrearage immediately - over $5000. I was told they don't usually foreclose on second mortgages but charge off and sell.

On a good note, they did say on the first they were hoping to have the software in place for that today, but now it'll probably be Friday. It did have a notation that "investor may accept home affordability plan modification."

I don't know. I think I'm totally sunk now. I have no way of coming up with $5k in the next couple of weeks on top of the $3k payment plan amt on the first.

LOL - so much for making home affordable. Apparently if you work your butt off to get back on track it's all for nothing in the end.

[Walking Away]

Hopeful; you're trying everything you can and if the smaller loan doesn't lead to foreclosure and you can get the home affordability plan; then maybe the $5,000 can get added onto home affordability principle. Have you tried a HUD rep or NACA? Hang in there and don't burn out overworking

[Walking Away]

Revcarrie; sounds like some progress and 5 1/4% is very good rate. Did they send loan mod offer in mail yet or just a verbal so far?

[Hopefull2009]

Originally Posted by Walking Away

Hopeful; you're trying everything you can and if the smaller loan doesn't lead to foreclosure and you can get the home affordability plan; then maybe the $5,000 can get added onto home affordability principle. Have you tried a HUD rep or NACA? Hang in there and don't burn out overworking

Well, I've thought about this and I'm NOT giving up just yet. I had a great customer service rep yesterday who told me the "affordable payment button" was on my screen. He took income info just to get an idea and it would potentially actually save about $400/month on the first. He said the investor (which he still wouldn't say and claimed he didn't know) "may accept the home affordability plan." The part about that that scares me is - I'm already on a repayment plan for the first. My understanding with the Obama plan is they set you up on 3 trial payments at the new payment and then send the modification agreement. On the second, this is sort of how I got in this mess. They set me up on 3 payments and then the modification submittal. Told me no payments during this time. Then, denied the modification and now instead of 4 months that I was behind prior, it's 7 months and it's all or nothing at that point.

Anyway, he said they were supposed to have the software in place this past Monday to start processing the new Obama modifications, then it was changed to yesterday, and now he said they hope for Friday or Monday, so said to call back in on Friday.

If I can get that in place before the 15th regular payment plan on the first, I can divert some of the money that would have went there to the second and add some at the end of the month, or alternatively beg and plead to make the 5k payment in 2 payments - half this month, half next month.

The part that really just irks me though is - why would they deny the modification when they would have had control of the terms or probably could have made more, but if I qualify (which it looks like I do) under the Making Home Affordable modification they'd be making less I imagine? Is my thinking right there? Is it the incentives that makes this a more "pretty" plan for them?

[CW California]

The plan gives the investor money to do the deal. I believe $1000 if the customer is behind, $1500 if they are current. The also have a worksheet they do to see if the investor comes out better with a foreclosure or modification.

[Hopefull2009]

Well, I called back again today - Aurora's software is in place to start processing home affordable modifications. My notation states "may be eligibile." I knew I didn't have a Fanny or Freddie loan. Anyway, we go through all 15+ pages of paperwork - we're to the end and he's setting up the 3 month trial payment and bam ... spits out msg that not eligible because investor is not participating at present. He said I could just keep calling back to see if/when they do.

How do you figure out who the investor actually is? He just said it's a "private investor" but they don't have access to that information? My original lender was Lehman Bros. How can you actually find out who the investor is at this point?

So..... I'm back to square one, but had a flicker of hope there for about 45 minutes while going through the application process for it.

Not sure what to do now. My payment plan on 1st was left intact since the affordability modification was shot down. I have the second with no payment plan and refusal of payments, they want the 5k arrearage now.