Super Super Jumbo Loan Mod - Here we go!

[Arizona2Vegas]

I just came across this website, and what an INCREDIBLE resource! It is so great to read all of the stories about how others have worked with their banks to get what they need and deserve!

As my first post, I wanted to share my current situation and how I am trying to get BofA to work out something for me and my family.

Unfortunately, due to the size of my loan ($2.48 mil), I certainly will not qualify for any MHA program, and I don't expect any pity either. I am just hoping that BofA will look at my situation and realize that receiving at least some of my enormous monthly payment is better than them trying to foreclose on us.

I am fortunate to have a very stable, very well-paying job, but with the economy, like many others, I have had to take a significant (35%) paycut compared to 2006 levels.

In 2005, my wife and I embarked on building the custom home of our dreams in the Las Vegas area. We purchased a custom lot and qualified (Alt-A, yes, I think it was predatory) to build a 7400 sq ft home. MUCH bigger than we ever thought we needed, but everyone told us that you need to build it as big as you can afford. Heck, back then, you couldn't build a home quickly enough! Custom homes were built and sold literally within days of the certificate of occupancy being issued for more than twice the cost to build! We're talking about homes that cost $2 million to build were selling for $4.5 million! Talk about a bubble!

Oh, how times have changed!

My income began to slide as the construction of our home was complete in February 2008, and then, the real estate bubble burst. After a few months living in the home, it was becoming apparent that we were not going to be able to continue making the payments. 7.125%, 5/1 Interest Only ARM due to reset in 12/2010.

We put the home on the market in the early summer of 2008, and it has been on for 17 months. Despite lowering the price by $1.5 million, we have yet to receive a single offer that will cover the loan amount.

I picked up a second and third job to keep us afloat, but that has just gone away.

I followed the advice on this website and e-mailed my hardship letter to Barbara Desoer's office and received a call back 36 hours later requesting the usual stuff (2 months' pay stubs, bank statement, monthly budget worksheet). I e-mailed this on 9/29 and faxed it (as backup) on 9/30 and am waiting to hear back.

After working dangerous numbers of hours over the past two years and missing my two young girls grow up, my wife and I had a long talk and have decided that we're done. I have built up perfect credit over the past 20 years, but it is simply no longer worth it. We are posturing with the bank that they can either workout something for us or they can have the home. We made our last payment on 9/1 and do not plan to make any more unless they significantly lower our rate. We can rent for 2-3 years until it gets knocked off of our credit. Currently, 48% of our monthly gross income is going towards PITI.

Again, in these days where so many others are struggling, I am not expecting any pity for my irresponsible building of such a large and expensive home. I am just hoping to hear if there are others who have been able to work out something with their lenders on these super jumbo loans. And, I welcome any advice!

I will post any updates here.

Thanks for reading, and thanks for such a great website!

[Kimbly]

Welcome to LoanSafe! I'm glad you've found us and look forward to following your journey.

No, you probably won't get a lot of sympathy but you will still get empathy and support. We all made uneducated and foolish decisions in accepting these 'creative' loans. While most of us here have homes significantly smaller and less expensive than yours, it doesn't change the fact we are all in this together.

I hope you get the mod you need or that you find peace with walking if it comes to it.

Hang in there! I think (um, hope?) that just making the decision is the hardest part.

[ama125]

Welcome to the forum and thanks for sharing your story. I can relate as I, too, live in a large home (not as big as yours, but still more space than I could ever possibly need). Anyway, it is not anyone's place to judge a person based on the size of their home, the amount of their mortgage, or the type of loan they have. Bottom line is that we are all struggling in this economy and what was once affordable is no longer. Sounds like you've done all that you can to try to keep up but I know that sometimes, the toll it takes is just not worth it. Sometimes, you have to put your family first, even if it means financial trouble. Believe me, I know this first hand.

When we built our home in 2006, my husband had taken on a new job that required him to be away most weeknights. It was taking such a toll on him and me that when I learned I was expecting our second child, he made the decision to switch careers. That was Sept 2007, only months prior to the official declaration of "recession". We had no idea that this new career change would not pan out nor did we anticipate the difficulty in finding another job. We exhausted almost all the 401K to stay current. We finally had to throw in the towel and stop paying in March 2009. I only wish I knew then what I know now and started this process before depleting our retirement savings. Live and learn!

Good luck to you! I hope you are successful in working something out. I know with a large mortgage like you said, you won't qualify under MHA, but I would say the bank probably won't want to try and foreclose on a home like yours either. They are having a hard enough time finding buyers for the smaller homes, I can only imagine the market for luxury homes is not looking so bright! Best wishes and be persistent!

[lennox]

I think everything is relative. I knew when we refinanced to our "option 1 ARM" mortgage in 2006 we were signing a very dangerous mortgage. We just were so certain at the time that the market would stay "hot," and we'd sell with equity in 2008 and down size. Looking back, we must have believed 'if we'd wish it enough...it would be." I think we were in denial that the market would ever drop...or at least drop as badly as it did. Now we're facing that dreaded recast in 2011.

None of my friends, family, or anyone knows how over mortgaged we are, or that we have got ourselves into such a serious situtation. I know they'd have little pity on us.

[Arizona2Vegas]

Thanks for your kind words and support!

Just wanted to update that I received a call this afternoon from the Home Retention and Loss Mitigation Department to tell me that, since we are "current", our case has been sent to Imminent Default Processing and that we should receive a call within 48 hours. I don't know if this is good or bad.

Apparently, since my October payment was only due six days ago, I am not (yet) considered "late". Will keep you all posted.

[ama125]

Originally Posted by Arizona2Vegas

Thanks for your kind words and support!

Just wanted to update that I received a call this afternoon from the Home Retention and Loss Mitigation Department to tell me that, since we are "current", our case has been sent to Imminent Default Processing and that we should receive a call within 48 hours. I don't know if this is good or bad.

Apparently, since my October payment was only due six days ago, I am not (yet) considered "late". Will keep you all posted.

I think you must be 31 days past due to officially be considered "late".

[ama125]

Originally Posted by lennox

I think everything is relative. I knew when we refinanced to our "option 1 ARM" mortgage in 2006 we were signing a very dangerous mortgage. We just were so certain at the time that the market would stay "hot," and we'd sell with equity in 2008 and down size. Looking back, we must have believed 'if we'd wish it enough...it would be." I think we were in denial that the market would ever drop...or at least drop as badly as it did. Now we're facing that dreaded recast in 2011.

None of my friends, family, or anyone knows how over mortgaged we are, or that we have got ourselves into such a serious situtation. I know they'd have little pity on us.

I hear ya! We took out two loans at purchase, 80/15/5 (80% on primary loan, 15% on secondary, and 5% cash down). I can tell you that no one in my family knew we had done this or that we had done this for our two previous homes. Not one of them would even care that we had except for now that we can't afford the payments. But honestly, how are they feeling now (especially my one sister) when she probably put down 20% cash? Hmmm...where's that money now? GONE because there's no equity! So, I'm kind of glad to have not put down that much money. If they don't or can't sympathize or empathize with you, then don't turn to them for emotional support. I made that mistake. I never asked for any financial assistance from any family member, just a shoulder to cry on and you would not believe how harsh, critical and judgmental certain family members have been of me and particularly my husband. So, I found loansafe and consider the folks here to be the support that I need and the people that I trust. It's sad really that at a time in my life when I need it the most, the family that I thought would always have my back really let me down. I still speak with them (my husband does not), but my trust with them has seriously been broken. I certainly hope this does not happen to you (if you feel it may, then avoid the subject and save yourself the grief). Sorry for ranting...I'm dreading Thanksgiving as we will all be together in one room (minus my husband who is refusing to go). We are all getting together because Thanksgiving just so happens to be my mother's 60th birthday so I can't just ditch! OK, got that off my chest!