Hopeful Modification….WOW…Am I a Dummy?

[AZ Dummy]

Hopefully I won’t lose you telling my story. Please let me know your opinions because I don’t know anyone that can help.
Decision 1 in 05
Purchased home in Prime Time 05 for 292 with 15K down could have put 25K but they suggested keeping the rest, built and moved in 06. We bought more than enough house with the intent of staying in it forever to start family. My first home.
1 Mort – 230K int 6.875
Int. only for 5yrs
Pmt: 1339
Escrow: 160
2 Mort – 47K int 9
P and I Pmt: 360.00
Income: Surplus of around 2 to 3 hundred dollars.
Servicer: Aurora
Investor: Freddie Mac
Decision 2 in 06
Man…filling a house sucks the money out of you! Blew threw savings in the 1-3 months. Decided to refinance 2 we were still in “Prime Time” 06 to consolidate debt and keep a little for rainy day. House appraised for 310.
1 Mort …still the same.
2 Mort – 67K int 10
Arm 10yr Ballon Interest Only
Pmt: 690
Servicer: CW
Investor: Unknown
Trouble 1 in 07
Wife went in for routine surgery that had complications that landed a trip back for emergency surgery.
Decision 3 in 07
Decided to have Wife get better and find a less stressful job, we blew savings with time off of work and pay medical bills. We fell behind 2 months on first mortgage. Aurora offered modification.
“Not much help” Modification on first: Started 8/07 signed 4/08 struggling not to go passed 90 days.
Put amount owed to back of loan which got us current.
Change from interest only to P and I
New Pmt: 1575
Escrow: 274
Property Value went from 216 in 07 to 260 in 08. Is this normal?
Income: Don’t know what pay stubs and financial worksheet they were looking at. Deficient 600.
Trouble 2 in 08
Increase of mortgage pmt, gas, insurance, property taxes, etc. and wife sometimes working a full 40hrs a week.
Decision 4 in 08
I adjusted my taxes to a lower rate to accommodate the increase mortgage pmt and other things.
Decision 5 in 08
I got a second job adding 100 bucks a week to offset cost of everything going up…mortgage, gas, insurance, etc…
Trouble 3 in 08
Still fell behind a month on both mortgages. Houses around my area are selling as low as 99K to 130k. Granted I have a pool and may be able to get 150k?
Decision 6 in 09
I adjusted my taxes back and we are willing to fall behind on our mortgage even more.
Decision 7 in 09
Can’t pull the trigger because I can’t figure out what the right move is? I came across this website about 2 weeks and have read just about every forum…I’m completely obsessed and learning a lot. Knowing what I know now and wish I had a crystal ball and waited to buy a house just 2-3yrs later than what we did. Considering the decisions I’ve made…I feel they were all wrong except for 3 because you have to make sacrifices to keep the wife happy and good health.
This is everything I’m thinking about doing: Please help and let me know your opinions.
Hire Griswold to help modify but to do this I’ll defiantly fall 3 months behind. We are thinking we want to go this route because I don’t have any time because I work 7am to 11pm during the week and I won’t have time to call the servicer. We feel shafted from the first modification and I feel like real a dummy when it comes to mortgage.
Our hardship letter includes us having reduced income, me putting my taxes back where they need to be and the wife’s reduce hours. Should we mention the increase in property taxes? We have a deficient of around 1000 now plus the behind payments. Do they go off of Net Income or Gross Income because I kept reading that people are being denied because they show a deficit instead of a surplus? What is the purpose of a mod if you have a surplus? It would be great if we can get our mortgage lowered by 1000 bucks, wishful thinking?
The law office thinks it’s possible but doesn’t guarantee because our first was already modified? Does anyone think this is possible or at least 800? Am I making the right decision with lawyer? Should I give it one last fight and if it doesn’t work…I guess we walk and rent? Or should I treat it like a business and walk now, it’s obvious we will potentially save more even if they modified us? What will happen then, can they come after us if we foreclose? What should our back up plan be? Should we have known in 05/06 that the housing market was going to tank…were their indicators back then, if so what are they? Am I a dummy?

Wow...feel a little better getting all this crap out.

[Moe Bedard]

Hi AZ Dummy,


Welcome to the forum and thank you for joining.............

Just so I can get the facts straight currently...........

Who is the lender?
When was the modification granted?
What is the interest rate at?
Is it fixed or adjustable?
If adjustable when is it adjusting?
Are you paying interest only?
What is the loan amount?
Do you have one loan or two?
Is the property in Arizona?


I apologize if this info is somewhere in your timeline.........I just wasn't able to pick it all out..........

[AZ Dummy]

I figured...had it all nice and pretty in word but when I cut & pasted it in the forum...what a mess.

1st is with Aurora-Investor Freddie
modified granted 4/08
239K @ 6.8 rate fixed
pmt is 1860 P & I

2nd is with CW - Investor unknown
76K @ 10 rate 10yr Ballon ARM
pmt is 690 interest only

[Moe Bedard]

If this is your principle residence and you are in default you can ask ALS for the streamlined modification program that FreddieMac as the investor began on Dec. 15th. You may be eligible for it..............it can be done on your own, but if you don't have the time for the calls, it does take alot of follow up, then you may need the third party........they should be able to help you with this too.
here is the info.......
http://www.fhfa.gov/webfiles/169/new...MENT111108.pdf

Fast Track Workouts for Delinquent Borrowers With Freddie Mac-Owned Mortgages Underway - News Archive - Freddie Mac


ALS Home Retention
1-866-521-3828

[AZ Dummy]

Yes, our only home. On our 1st mod it referenced the ALS loan # and a Freddie loan# so I'm assuming they are the investor.

What do you think about CW?

[Moe Bedard]

you would need to contact CW on that one separately............but I have seen them lower rates on seconds and extend terms to remove the balloon.........

CW Home Retention
1-800-669-0102