$20 Loan Modification

[mvallido]

Good Day everyone,

I am from San Diego, CA and I just got an offer for a loan modification that I turned down. I bought the property in April 2006 and my lender is Well's Fargo. My monthly interest only payment is $2700.00. Two Fridays ago, I got an offer from the loss mitigation department for an interest only payment for $2680 a month that I did not accept. Not only that it is only a $20 modification, they will also add a 2nd mortgage for the payments that I missed. Monday, I received a letter that they will go ahead with the foreclosure process. What should I do next? Is seeking the help of an attorney a good option? I am behind my mortgage for 6 months now. I am on active duty and I have an opportunity to live in Italy for 3 years for my next tour of duty. Should I do nothing and have them foreclose the house or Should I just put the house on short sale. Do I have to wait 90 days before I put the house on short sale? If there are better options through the help of an attorney, I will not mind keeping the house. Based on the California timeline, how much time do I have? Do I have to look for another place to live now?

Thanks,
Sailor

[Evan Bedard]

Hi mvallido welcome and thank you for joining the forum.

Is seeking the help of an attorney a good option? I am behind my mortgage for 6 months now. I am on active duty and I have an opportunity to live in Italy for 3 years for my next tour of duty. Should I do nothing and have them foreclose the house or Should I just put the house on short sale. Do I have to wait 90 days before I put the house on short sale? If there are better options through the help of an attorney, I will not mind keeping the house. Based on the California timeline, how much time do I have? Do I have to look for another place to live now?

Hiring an attorney may be a good route for you to choose, and they will be able to discuss with you all your options. For a short sale your house will need to be listed for at least 90 days before the lender will consider it. Also since you are now 6 months behind who knows how long it will be before foreclosure takes place, it is always best to have a plan B just in case sale does go through. If you are going to hire an attorney I suggest that you do consult with reputable one in your state immediately..

[Moe Bedard]

Based on the California timeline, how much time do I have? Do I have to look for another place to live now?

It depends on when they filed the notice of default and it looks like that was the letter you got. Usually you will have from 3-4 months from then. But I have seen people go for over a year.

I wrote about active military help on my blog and you may want to circulate this amongst your fellow brothers

Military Homeowners Assistance Program | LoanWorkout.org

If you are a military personnel (and that includes members of the Coast Guard) or a civilian employee of the federal government working for the Armed Forces, you may be qualified. What is important here is that you must be living in that particular home and that you own it.

These are just the common requirements for HAP so don’t assume automatically that you will surely qualify if you belong to the above groups. What you must do is fill up an application and submit the various documents that they would require you. You won’t really know if you qualify unless you apply, right?

How Do You Apply?

The application form is known as DD Form 1607 or the Application for Homeowners Assistance Program. You may get a copy of this form at the HAP Field Office that has been designated for your particular location.

Don’t know the particular location of the HAP Field Office for you? Don’t worry. Just go to this site http://hap.usace.army.mil/HowToApply.html and you will be able to see a map that when you click will show you where to go. You will also be able to download the form and the instructions. It’s just as simple as that.

What’s In It for You?

Are you trying to sell your home and there are no offers or if there are, they are offering you a ridiculously low price? With HAP, the government can be your buyer. But, there is a big “but” here. The offering price will not be more than three-fourths of your home’s market value. Or, the offering price may be equal to what you currently owe the lender in your mortgage.

However, if you are lucky and you are able to find a buyer, although at a much lower price than the home’s market value, HAP may also help you. The government may give you the difference between the selling price and 95 percent of the property’s estimated market value.

And if the foreclosure process has been started, don’t worry, too, because you may still opt for the private sale benefits. As a foreclosure benefit, the government may also reimburse the money you have been forced to spend as a result of the proceedings.

[mvallido]

Moe and Evan,
Thank You very much for the advise and warm welcome. I will consult a lawyer tomorrow and I will also asked them about the Military Home Owners Assistance Program.

[mateo03]

e-mail me @ I should be able to assist you

[Moe Bedard]

Your are welcome and did you speak with a lawyer? Please let us know what they say and your progress when you get a chance.

[mvallido]

Originally Posted by Moe Bedard

Your are welcome and did you speak with a lawyer? Please let us know what they say and your progress when you get a chance.

I talked to a lawyer yesterday and we reviewed my debt to income ratio. Basically, I told her that I hold a SECRET CLEARANCE and going for Chapter 7 or 13 is not an option for me because the Navy will force me to retire if I lose my clearance. Looking at the financial analysis, If I take out the almost 5K I am paying for the house(interest only + property tax) and rent a better house for 2.2K here in our area, I will have 2.8K extra a month. If I move to Navy Housing, I'll have an extra 3.8K a month.

My wife and I are seriously considering going into foreclosure and take orders overseas where we can save 50K a year and just come back after six years.

There's another lawyer that I will be seing next week just to get a second opinion.

[mvallido]

I meant "short sale" and go overseas instead of foreclosure.

[mvallido]

Based on the result of my other property's loan modification where the principal was reduced and all missed payments are forgiven making it affordable, I have submitted another loan modification request through community housing works here in San Diego. IF I get a principal reduction on this one through wells fargo, then I should be able to keep both properties. If not, I will be moving back to my other house. At least, I get to keep one.

[mvallido]

I got denied on my second loan modification request and received a sale date of 11/5. According to Wells Fargo, I can do two things: Short Sale or Deed in Lieu of foreclosure. So, last week I did submit the paperwork for short sale and the following day, an offered was made. Yesterday, I received a letter from Wells Fargo saying that they will work me with to make my loan payment affordable so I called right away and updated my financial status over the phone. After about 30 minutes of interview, they said that I am approved for some kind of modification program and I should receive the package within 5 business days to review. They also changed my sale date to Dec 4th. WISH ME LUCK.

[Evan Bedard]

Hi mvallido,

I believe they preapproved you for the HAMP program were they are more than likely going to put you through the three month trial period. Keep us posted when you receive the paperwork..