Modification, foreclosure, and mers

[jhjordan]

Hi All,

I am back here after the continuing 3 1/2 years saga with BofA in my attempt to get a home loan modification. I am in California, and over the past 3 1/2 years, I have submitted 5 home loan modification applications to BofA, When not losing or churning my application for up to 13 months at a time, when and if BofA responded to my requests, they stated that "the investor would not allow a modification."

After finding out from HUD website that there is a list of investors who will agree to a modification, I asked BofA on 5 different occasions to reveal who is my investor. I got 5 different answers from 5 different reps, stating variously that my investor is Wells Fargo, Union Bank, and so on and so on. Since these were investors who accepted modifications, it made no sense that they were not allowing a modification when I was qualified.

I have been qualified financially according to the guidelines for all of the modifications I have requested. Then, in April 2012, my ARM payment reset to an exorbitant amount I cannot and will not pay, especially given that my home is severely underwater. BofA filed a notice of default and transferred loan to Recontrust for foreclosure. I filed Chapter 7 to stall foreclosure and to clear debts leftover from financial hardship due to the financial crisis. This has greatly improved my financial situation, making it so I more than easily qualify for a modification.

After discharge of my Ch. 7, I began working with HUD counselors and we submitted a new application for modification which is still under review. During this process, I discovered that I could send BofA a RESPA letter requesting the name of my investor, which I did.

I received BofA's response to my RESPA request for the name of my investor that states my investor is MERS. There are no other investors listed.

Does this mean that my loan, previously with Countrywide, has been securitized under the MERS robo-signing fiction and that they reason BofA keeps saying the investors will not allow a modification is because BofA does not actually know who or what entity actually is the investor?

What should I do about this continuing dilemma? Has the National Mortgage Settlement made it so that BofA has to improve or correct this process? Should I hire a lawyer to find out who is my investor and/or pursue the issue of the MERS fiction?

Thank you for your assistance.

[Cat Damiano]

Have you tried looking in the following places to see?;

https://www.mers-servicerid.org/sis/index.jsp

For Fannie Mae: 1-800-7FANNIE (8am to 8pm EST)
www.FannieMae.com/loanlookup

For Freddie Mac:
1-800-FREDDIE (8am to 8pm EST)
www.FreddieMac.com/mymortgage

[jhjordan]

Hi Cat,

Thank you. Yes, I have previously checked with Fannie Mae and Freddie Mac and my loan is not listed with either of them. I just searched the MERS index you have listed here, which I previously did not know about, and the investor comes up as Bank of America.
Does this mean that my servicer is also my investor or does it mean this is still part of the MERS fiction?

Thank you!

Have you tried looking in the following places to see?;

https://www.mers-servicerid.org/sis/index.jsp

For Fannie Mae: 1-800-7FANNIE (8am to 8pm EST)
www.FannieMae.com/loanlookup

For Freddie Mac:
1-800-FREDDIE (8am to 8pm EST)
www.FreddieMac.com/mymortgage

[ocwenjennifer]

I say dont give up but you have to find a lawyer that you trust. There was a law past in california I dont know if its in effect yet but they cant foreclose on you if your in the middle of trying to get qualified for a modification. Any good lawyer should know this but be really careful who you pick and it should be someone who has helped someone else. Let us know what happens.

[Cat Damiano]

Hi Cat,

Thank you. Yes, I have previously checked with Fannie Mae and Freddie Mac and my loan is not listed with either of them. I just searched the MERS index you have listed here, which I previously did not know about, and the investor comes up as Bank of America.
Does this mean that my servicer is also my investor or does it mean this is still part of the MERS fiction?

Thank you!

Once you were at the first screen with the servicer information, did you click on the part that states;

If you are a borrower on this loan, you can click here to enter additional information and display the Investor name.

Where another window pops up and after resubmitting the required information, that search should state both the servicer and investor on the loan. In this case, you saw that BofA came up in both places, as the servicer and as the trustee?

If it does show that BofA is both the servicer and investor, you may want to ask if your loan is eligible for the DOJ Settlement.

The number from the DOJ settlement may be more forthcoming with the information;

If you do not know whether or not your loan is owned by Bank of America or another participating investor, please call us at 1.877.488.7814 (Mon-Fri 8am-12am ET, Sat 8am-8pm ET, Sun 3pm-12am ET).

[jhjordan]

Hi Cat,

Yes, I clicked on both parts and each time the MERS index told me that Bank of America is both the servicer and the investor.
I will call to see if my loan is eligible for the DOJ settlement.
I will let you know what they say.

Thank you!

Once you were at the first screen with the servicer information, did you click on the part that states;

If you are a borrower on this loan, you can click here to enter additional information and display the Investor name.

Where another window pops up and after resubmitting the required information, that search should state both the servicer and investor on the loan. In this case, you saw that BofA came up in both places, as the servicer and as the trustee?

If it does show that BofA is both the servicer and investor, you may want to ask if your loan is eligible for the DOJ Settlement.

The number from the DOJ settlement may be more forthcoming with the information;

If you do not know whether or not your loan is owned by Bank of America or another participating investor, please call us at 1.877.488.7814 (Mon-Fri 8am-12am ET, Sat 8am-8pm ET, Sun 3pm-12am ET).

[Cat Damiano]

Hi Cat,

Yes, I clicked on both parts and each time the MERS index told me that Bank of America is both the servicer and the investor.
I will call to see if my loan is eligible for the DOJ settlement.
I will let you know what they say.

Thank you!

There are eligibility requirements for this program, but if you are able to submit the application for it, that would be great. Please do keep us posted on how it goes. I do hope that you are able to get this type of workout.

Among other criteria:

• you must be at least 60 days delinquent as of January 31, 2012 as well as at the time your loan is evaluated for the modification.
• you must owe more on your mortgage than the value of your home.
• your loan must be owned by Bank of America or held by a mortgage investor that has delegated authority to Bank of America.
• you must have a contractual monthly payment for principal, interest, property taxes, hazard insurance and any applicable homeowner association fees totaling more than 25 percent of your gross household income.

If your loan is not owned by Bank of America or another participating investor, it will not be eligible for the program. Freddie Mac, Fannie Mae, the Federal Housing Administration (FHA) and the Veterans Administration (VA) are not participating in the programs provided under the settlement. Customers whose loans are owned or insured by one of those entities are not eligible for relief through these programs.

[jhjordan]

Hi Cat,

Yes, I meet all of these criteria! Where do I submit the application? Does it go to BofA or the DOJ?

Thank you!!!

[Cat Damiano]

Hi Cat,

Yes, I meet all of these criteria! Where do I submit the application? Does it go to BofA or the DOJ?

Thank you!!!

It goes through BofA so you will need to contact them to begin the process for the DOJ program;

1.877.488.7814
(Mon-Fri 8am-12am ET, Sat 8am-8pm ET, Sun 3pm-12am ET).

Or you can escalate this to the executive team if you are eligible here;

Direct: 1-704-386-5687

[jhjordan]

Hi Cat,

I am still waiting to hear back about my loan mod application with BofA that I am processing through HUD. If they don't approve the mod, I will follow up on the DOJ program.
In the meantime, I suddenly received a notice from my country recorder of a transfer of deed from MERs to GMAC LLC. I have no idea why this has occurred or what this means? How does this affect me? What should I do, if anything?

Thank you for your assistance.

[Cat Damiano]

Hi Cat,

I am still waiting to hear back about my loan mod application with BofA that I am processing through HUD. If they don't approve the mod, I will follow up on the DOJ program.
In the meantime, I suddenly received a notice from my country recorder of a transfer of deed from MERs to GMAC LLC. I have no idea why this has occurred or what this means? How does this affect me? What should I do, if anything?

Thank you for your assistance.

It may just mean that the investor on your loan has changed, nothing to worry about. Unless you receive a letter that the servicing of your loan has changed, then everything else will remain the same. Loans sometimes do change investors over the life of the loan.

[jhjordan]

Hi Cat,

I finally heard back from BofA today when I received a FedEx from BofA marked "Extremely Urgent," stating that

"We have received your request for a home loan modification. Unfortunately, your home loan is not eligible for mortgage assistance for the following reason(s):

Your loan is not eligible for a modification because we service your loan on behalf of an investor or group of investors that has not given us the contractual authority to modify your loan. The name of your investor is WELLS FARGO (DBALT 2007-2)."

I have a number of questions about this:

1. Didn't BofA know this before we began the modification? If they already knew about the investor, then why did they go through the modification application?

2. Wells Fargo is included in National Housing Settlement, and so they are also supposed to work on modifications with homeowners. Does this mean that I need to seek a home loan modification directly with Wells Fargo?

3. In terms of income, I am well-qualified for a home loan modification. What steps should I take next?

Thank you!

[Cat Damiano]

Hi Cat,

I finally heard back from BofA today when I received a FedEx from BofA marked "Extremely Urgent," stating that

"We have received your request for a home loan modification. Unfortunately, your home loan is not eligible for mortgage assistance for the following reason(s):

Your loan is not eligible for a modification because we service your loan on behalf of an investor or group of investors that has not given us the contractual authority to modify your loan. The name of your investor is WELLS FARGO (DBALT 2007-2)."

I have a number of questions about this:

1. Didn't BofA know this before we began the modification? If they already knew about the investor, then why did they go through the modification application?

2. Wells Fargo is included in National Housing Settlement, and so they are also supposed to work on modifications with homeowners. Does this mean that I need to seek a home loan modification directly with Wells Fargo?

3. In terms of income, I am well-qualified for a home loan modification. What steps should I take next?

Thank you!

If you look up the pooling and servicing agreement to your loan;

SERVICING AGREEMENT - Servicing Agreement - Free Search.

It shows that it is a Deutsche Bank Alt-A SECURITIES MORTGAGE LOAN TRUST SERIES 2007-2 which could be the reason why this particular pool of loans is not eligible for the DOJ Settlement.

[jhjordan]

Thank you, Cat. Does this mean there is nothing I can do and will lose the house? Are there perhaps any other options I can pursue? I thought the reason they made the DOJ settlement was because of these securitizations? Doesn't that mean my loan is one of those securitized fictions the DOJ settlement was meant to address? My loan was originally one of the Countrywide loans that BofA bought. Should I escalate this to the California Attorney General's office? Thank you.

[Cat Damiano]

Thank you, Cat. Does this mean there is nothing I can do and will lose the house? Are there perhaps any other options I can pursue? I thought the reason they made the DOJ settlement was because of these securitizations? Doesn't that mean my loan is one of those securitized fictions the DOJ settlement was meant to address? My loan was originally one of the Countrywide loans that BofA bought. Should I escalate this to the California Attorney General's office? Thank you.

I know that you are working with HUD, but they do not have programs on their own. As a last resort you can try NACA and see if their HomeSave program can get the payment to an affordable level.

Here is the information for that program, if you want to try to save the house, you would need to submit a new package to NACA. They also work to postpone a sale date while pursuing the modification.


https://www.nacalynx.com/nacaWeb/ref...aspx?language=

[jhjordan]

Hi Cat,

Do you know whether or not Bank of America is offering homeowners any other home retention options to keep the house if BofA states, as they did in my case, that my loan is not eligible for a modification because the investor has not given BofA the contractual authority to modify the loan?

Is this even a true statement that the investor will not allow a modification? Can I work directly with the investor? Should I hire an an attorney to follow through on this or to pressure BofA to offer a solution?

Thank you for the NACA website, which I will follow up on, but right now I am waiting to hear back from my HUD counselor for 3 days now who has not yet gotten back to me, which is unusual, after I emailed and left messages regarding the BofA letter stating I am not eligible for modification to find out if BofA will offer any other options.

The letter states I have only 30 days to appeal and since the NOD was filed Sept 29, 2012, the trustee sale date is supposed to be January 24, 2013, which would be next week.

Meanwhile, BofA has given me a trial modification on my 2nd of $487.46, for which I just made the second trial payment today. The papers for the HELOC Trial Mod state that BofA will not foreclose during the trial mod on the 2nd; however, the letter stating I am ineligible for a loan mod states they can go ahead and do a trustee sale even if I appeal.

I do not know why they gave me a trial on the 2nd before giving me one on the 1st? This occurred while I was in the application process for a mod on the 1st. It did not make sense to me, but both the HUD counselor and the BofA rep she was working with said that if I do not pay the trial mod on the 2nd loan, I would be denied for a mod on the 1st. Now here I am paying on the 2nd without being allowed a mod for the 1st.

I am mostly wondering if BofA ever provides any other solutions if they state that the loan is not eligible because the investor has not given them the contractual authority to modify?

Thank you so much for your helpful information. This seems to be the only place to find out what's really going on.

[Cat Damiano]

Hi Cat,

Do you know whether or not Bank of America is offering homeowners any other home retention options to keep the house if BofA states, as they did in my case, that my loan is not eligible for a modification because the investor has not given BofA the contractual authority to modify the loan?

Is this even a true statement that the investor will not allow a modification? Can I work directly with the investor? Should I hire an an attorney to follow through on this or to pressure BofA to offer a solution?

Thank you for the NACA website, which I will follow up on, but right now I am waiting to hear back from my HUD counselor for 3 days now who has not yet gotten back to me, which is unusual, after I emailed and left messages regarding the BofA letter stating I am not eligible for modification to find out if BofA will offer any other options.

The letter states I have only 30 days to appeal and since the NOD was filed Sept 29, 2012, the trustee sale date is supposed to be January 24, 2013, which would be next week.

Meanwhile, BofA has given me a trial modification on my 2nd of $487.46, for which I just made the second trial payment today. The papers for the HELOC Trial Mod state that BofA will not foreclose during the trial mod on the 2nd; however, the letter stating I am ineligible for a loan mod states they can go ahead and do a trustee sale even if I appeal.

I do not know why they gave me a trial on the 2nd before giving me one on the 1st? This occurred while I was in the application process for a mod on the 1st. It did not make sense to me, but both the HUD counselor and the BofA rep she was working with said that if I do not pay the trial mod on the 2nd loan, I would be denied for a mod on the 1st. Now here I am paying on the 2nd without being allowed a mod for the 1st.

I am mostly wondering if BofA ever provides any other solutions if they state that the loan is not eligible because the investor has not given them the contractual authority to modify?

Thank you so much for your helpful information. This seems to be the only place to find out what's really going on.

You had posted that you received that information in a letter of denial. Had you ever contacted the executive team to escalate your question as to whether or not you could apply for any type of inhouse program?

I had posted the number above, but here it is again;

BofA Executive Team;

Direct: 1-704-386-5687

[jhjordan]

Thank you for re-posting this! I will call them first thing Tuesday morning after the holiday.

[Cat Damiano]

Thank you for re-posting this! I will call them first thing Tuesday morning after the holiday.

Please keep us posted on what they say.