We were with WAMU, bought in 04' paid too much, you all know the story.
5 year interest only. 5.5%. I started calling a year before it was going to reset, asking for help. None to give, wait till it's time, they were too busy with foreclosures, etc. Well, recession hits. We're buried in debt. Wife and I both had paycuts, all our payments to cc's skyrocketed, etc. We stopped paying most in March and turned off the phone, concentrating on the house. Hoping we get a good mod, and can file CH 13 to pay off debt and save some pride.
Chase, never can talk to ONE point of contact, and you get told different things time and time again. Basically, we were told we needed to "be in trouble" to get help. Told to even miss two payments, "not three, that's pushing it" according to one person. So, we do. We get a forebearance. (didn't kwow it was till AFTERWARDS) First were told it was a payment program to make sure we could keep up on payments, then we'd be put into a similar loan under the loan mod.
Little info.... 1st mortgage, 535k (that's with late fees now)
2nd mortgage 80k. When we bought, did a 80/10/10.
It's worth between 500k and 540k now, (maybe.)
My wife and I combined make about $120k a year. Yes, we over bought, I know. We were newly married and were stupidly caught up in the bubble. (much help from our realtor and bank too.) We live in So. Cal.
Our payment on the orignal loan, with taxes, etc, was $3400. Second $400.
After months of back and forth with Chase, from faxing over everything they want, over and over again, (including things multiple times because they couldn't find it, or didn't note it, making us go through paperwork over and over again) we get the loan mod papers FDX'd. With anticipation and excitement we open it.
Fixed at 5.75% with a balloon payment of 284k after 25 years. Our payments with taxes, are now $3600. Still have the second. My wife and I cried and I got about 3 hours of sleep last night. I get it, they got us a fixed loan, but what part of us not being able to afford even our current payment didn't they understand? WHAT A JOKE. At least our first payment isn't due till Feb 1st, that's a big help. (yawn)
OH... and we need to decide and have back to them by 11/30. Nice huh?
We're behind about 17k, (we were barely making our original payments before everything in the economy went haywire, so when they told us to miss a couple, it was helpful.....) so I'm assuming if we don't accept this, they start foreclosure process? My first thought was we sign and then see what our BK attorney says. (We're going to file BK no matter what now, but were hoping for a CH 13 and being able to keep the house) Now, I don't know.
I just don't get it. We're so stressed out and pissed off, and in utter dismay to say the least.
Anyone have any thoughts or advice? Can I take this up any ladders? We're in a spot where after putting down 80k years ago, and investing more into the house for 5 years, we don't want to lose it, but I'm not sure we have a choice. Maybe we just need to claim CH 7 and be done with it. I want so badly to keep our home, (we're not terribly upside down like a lot of people) and I thought I did everything I could to do just that. I even had people from Chase saying, "wow, you filled out everything very well, we dont' have many people this organized or calling us to follow up." I was ON THEIR BUTTS and I got a big finger for it.