Need assistance...

[StevenR]

Hello, going through an issue where we may lose our home to foreclosure, we have tried twice for a loan modification and been turned away twice. We are currently with Ocwen as the lender. We have a person offering to do a loan modification for us but asking to pay 1000 dollars. They are a friend of the family so I do believe they have the best intentions.

We are delinquent 3 months on the house payment. We did receive a letter of intent to foreclose within 30 days, that is coming up soon. We are located in the state of California. That all being said I am hoping to get advice, experiences, facts as far as laws go...anything with the best intentions of us keeping our home. Can anyone help?

I would like to know if anyone can tell me how long a foreclosure actually takes?

If we proceed with another loan modification attempt, can Ocwen still foreclose on us?

Any other advice or useful information is welcome...thank you in advance!

[Chadd]

Welcome Steven. Someone will chime in soon with an answer.

[lisasxr]

No outside party can GUARANTEE a loan modification. Are you prepared to "throw away" $1000 on the possibility of a loan mod? Is the party willing to refund if they are not successful.

Have you applied for HAMP modifications or in-house? Under HAMP, the servicer is not to pursue foreclosure while under review for the modification (most servicers are running parallel programs and not following the directives, but then again there is no LAW stopping them from doing so)

Most CA foreclosures are taking about 8 months. Are you a candidate for BK?

[Maurice Bedard]

Do you know why yo were denied a modification the previous times? If you don't know the rules, the banks will deny your mod request. They deny almost everyone and just make up phony reasons. Only those who fight back and know the rules seem to be getting approved. It is actually the banks job to try to deny your mod,so their investor makes more money.

[Martinez02]

It is actually the banks job to try to deny your mod,so their investor makes more money.

Actually, I'm pretty sure the "investor" isn't maximizing their profits using the servicer either... When servicer doesn't even bother to tell the investor basic information like how much the collateral for the loan pool is worth- how can the investor make informed decisions about the notes they own?

The servicer does get to collect a lot of fees at the investor's expense, and they get to shower various vendors with money at the investor's expense... I'm sure there are some cases where the investor comes out ahead. But in at least 1/3 of the deals gone wrong, the investor would have been ahead to modify...

[Maurice Bedard]

It is the fiduciary duty of the servicer to make decisions in the interest of the investor. I doubt that is always the servicers primary motivation, but is a factor, and they are incentived to extract as much as possible from borrowers, since they get a % of the cut.

If the investors aren't paying attention to their portfolios, and losing money, there will eventually be even more lawsuits by investors. Some are already in process.

All I can hope for is that a few people who were almost ready to give up on their homes learn that they can prevail, which can cost the servicer.

[Adame]

well Steven anyone should come too solve this problem.

Thanks

Adame

[HouseHope.info]

Hi Steven.

I understand your situation all too well. I live in Las Vegas and your experience is more the norm than the exception. The problem with loan modification is that you basically have no leverage. Here's what I mean:

In a basic "Loan Modification", you're basically "asking" the bank to "help" you. Banks aren't in the business of helping, they're in the business of making money. And helping you would actually COST them money.

Foreclosure, on the other hand is a great way for the bank to make money. So is selling your loan to another lender. Lenders also use insurance companies to get money when you default on your loan. Ever heard of AIG? Remeber how they were "too big to fail"? Well AIG is an insurance company that insured these lenders. So basically, your hard-earned tax dollars when through AIG back to the banks so that the bank can feel SAFE AND SECURE to kick you out of your home. Does this make sense? It does for the banks! In fact it was a perfectly evil plan that nobody really understood. Whoever thought that plan up is responsible for thousands of people losing their homes and wreaking continued havoc on the housing industry.

So banks make more money when they foreclose on you. And loan modification only helps make them more money because they know you'll continue to pay while you're hoping they help you...but they never will. In the end they will sell your loan before you start missing payments (or already have), or foreclose on you.

The Boston Globe reports: "Lenders don't want to modify loans, they find no profit in helping the distressed!"

But there is a solution for you and others. The information is FREE and the foreclosure process CAN be stopped with NO UP FRONT COST. From there you know your options and can make an informed decision. We are real people helping real people AND being successful. You have nothing to lose but your house if you don't act.

Click the link below (househope.info) to learn how. You can stop the lender's foreclosure with not a penny out of your pocket.

Kind Regards,

Simon
househope.info
Save Your Home!

[dianne]

Hi Steven,

DO NOT pay anyone to help with a loan modification! Not before, not after...You can do this, with help from people that care about you, for 0%! It is hard and it is a big job! I don't know anything about Ca. laws, or your bank, but you need to keep going at them, with everything, but your money. Make it hard on them. File complaints with your AG's office...State Senators and Reps, FDIC...Call the executives of your bank and keep after ALL of these people.

Is your home underwater? If so, get your taxes lowered. DO NOT rely on your banks on-line evaluation. Snoop around and find out what properties are worth, in your own neighborhood. If properties are sold significantly less, than you paid, or your bank says they are worth, use that $1000 to have your home appraised by a reputable appraiser. An appraiser shouldn't charge nearly $1000. If your taxes go down, that means you will have money diverted from escrow, to principal, without an increase in your income. More money, to principal makes your modification more favorable to the banks. They want the money to go to them, not escrow.

Do you know why your modification was turned down? ASK! I have been offered 2 modifications, and they had used too much income, so the payment was too high, and I knew they would pick up on that, at the end of the 3 month trial period. I was denied twice, too little income,too much equity, but I have had my home appraised and my taxes lowered. GMAC initially appraised my property for $362,000. I had a real appraisal done and it came back at $65,000. Although GMAC wouldn't accept my appraisal, they had 2 more done, the last coming in at $200,000..This with the $150 diversion from escrow to principal, has at least given me a fair chance at a modification.

Does anyone live with you, that could make a family contribution?...Even a teenage child. They can do this. They must provide pay-stubs, and a copy of the check, front and back. These need to be sent to your bank.

The most important thing you can do now, is HANG ON to your money. Give it to no scam artists, no matter, if they are a friend, of a friend, of a friend or even your own best friend....We will all help you here for free! First stop...Find out the details of your denials...Then form a plan! We will help, with whatever we have learned! Good luck!

[Kim Daniels]

I agree that its probably not a good idea to pay some one to do this for you. You can do this yourself. Ocwen has on its website all the documents you will need. What's most important is to find out is why you have been denied. We got our loan modified (thanks to the advice, support, help of people on this site, as well as help from our HUD Counselor). We wrote faxed, emailed and called the Ocwen Omburdsman numerous times and after much persistence and many weeks we were able to get answers and get the loan modified. Call the Ombudsman, file a complaint and try and find out why your mod is being denied then it will be clearer where to go from there. Very Good Luck.

[kjenkins7]

Wht is this Ocwen Omburdsman contact ? Where can i find this info ?

[Cat Damiano]

kjenkins7,

Here is the information you asked for.

1-800-390-4656: Ombudsman Office
ombudsmanweb@ocwen.com