Aurora and Rental Property Modification

[Liza09]

We have two rental properties with Aurora Loan Services. Our investor is RALI on both. We are currently 4 months behind and the properties are upside-down in value vs. loan amount. After 3 months of missed payments, Aurora filed a NOD on both properties. Via a phone conversation, I answered some financial questions and they set us up on a 4 month "Special Forbearance Agreement" for both properties. They mailed us a written ageeement to sign and return. We have made 2 payments so far. They said after the 3rd payment, to submit their loan mod package to request a permanent loan modification.

After we signed and returned the agreement, we decided to file Chapter 7 bankruptcy. I spoke to Aurora to see how this would impact our agreement. They said to continue making the payments as agreed but we could not request a permanent loan mod until we received our discharge (expected early November).

Today I received a letter from Aurora requesting we send in our request for a permanent mod within 14 days. Although we don't have our discharge yet, I am going to comply. I suspect they will later notify me they can't do anything with the mod request until we are discharged.

I've been following the forum on Aurora and many have been frustrated with how they are handling things. So far, I have been impressed. Of course, I'm just in the beginning stage. I'll keep you all informed...

[Hopefull2009]

I've been through 6 of those Aurora loan forebearance/payment agreements. They tell you to make the 3 payments, send in the documents. During the time they are "considering" the modification you can't make a payment because in theory the balloon payment of the forebearance agreement is due (if you have that total amt great, but if not you're sunk). Then, they take 90 days to "review" your request while you are now adding 90 days to your already behind payments. At the end of 90 days they turn you down for modification and you're back at square 1. You're now 90 days on top of the original delinquency. So, you call them up, they'll offer you another repayment/forebearance agreement and the cycle starts over. They are nice enough, you're right, but unfortunately, those people you're talking to on the phone in home retention aren't the ones making the decisions behind the scenes.

I've finally, after going through repayment plan after repayment plan, entered into the official HAMP trial period.

I imagine your bankruptcy will play a role here and they'll be other circumstances from that to deal with them with.

Good luck though!