Need Help with HomeQ Mortgage - H4H or Loan Mod?

[tabbykiki]

We purchased our house in Feb 2005 for $137K with an 80/20 (balloon) arm - first mortgage is with HomeQ and currently has a principal balance of $107K. Our mortgage broker convinced us to do the 80/20 (first home loan and we were so stupid looking back) and he said after two years we could refi the loans into one loan at a fixed rate. After a year and a half of perfect payments we tried to refi. We qualified to do so but had to come up with very high closing cost fees ($7K) so decided to wait.

Around the time the mortgage jumped my husband lost his job. I was eight months pregnant with our third child. At that point we were behind and just barely making the payments before the end of the month. Then it turned into being a month, then two months late. Of course, we couldn't refi at this point with lates on our payments and my husband losing his job. Luckily, we were able to rebound on the job front and have income coming in, but with the variable rates on the HomeQ loan it's killing us and making it hard to ever catch up.

The HOmeq mortgage started at 8% and has jumped to nearly 12%. We started paying $813/mo for the first mortgage when we got the loan and then the jump happened. Monthly payment is now over $1400/mo with escrow included. Plus our 2nd mortgage with Saxon is $289/mo (10 year balloon at 12%).

Last year our house entered foreclosure. We felt lucky that HomeQ decided to work with us and we were able to avoid the sherrif's sale and make good on the arrangements by borrowing from family and doing what we could. Needless to say, we are currently in a repayment plan again and aren't able to make the payment of $2200 (which was due on 1/15). We also owe $5,266 in escrow/taxes to HomeQ. To top it all off, we are self employed (full time now). We can document our self employment all the way back to 2003. In fact, the self employment was part time back in 2005 when we got the loan and was used as part of our stated income.

In December, our oldest child, whom is autistic, was diagnosed with a rare disease called Job Syndrome. The costs taking him to UofM hospital are killing us.

I've been reading a lot online about the "Hope for Homeowners" plan, loan modification and hardships. All the times I have called and begged for help with HomeQ no one ever mentioned these as possibilities.

I'm not sure what to do. We are past due on our account (thus the repayment plan) including escrow. We can't pay the $2200/mo through May (when the repayment plan ends). Even if we could pay it, it's almost just a temporary fix as the rate is still 10-11%.

If we were able to roll both the 80 & 20 loans into one with FHA at a fixed rate (H4H) we could easily afford it. Or if HomeQ would just let us pay the regular monthly payments at a lower interest rate and suspend the late fees and past due we could do it. It's just catching up with the past due that is killing us.

We've never had a HELOC or borrowed against the home. It was appraised for $144K two years ago when we tried to refi. Homes in our area (a tourist area) haven't seemed to lose much value.

Any experience with HomeQ regarding the "Hope for Homeowners" plan or a loan mod when there are past due fees and escrow? What are my chances for getting help. Will HOmeQ let me apply for the H4H? We seem to qualify based on everything I read online.

How long does the process take? Since our repayment plan is probably now broken does that mean they can start preforeclosure before any plan is worked out?

-Desperate in Michigan

[schwefls]

Hi tabbykiki welcome to our forum:

I wanted to stop in say hello and assure you, you are not alone. Someone will be reaching out to you with some soud advice/suggestions. In the interim please hang in there and know that we are here for you.

[Moe Bedard]

HI tabbykiki,



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

Because a refinance will have closing costs, and a modification will not..........if this is the only property that you own, you may want to go through the process with NACA instead.............they will put together a modification proposal based on affordability and it will be a low fixed rate modification that they will negotiate with your investor through Homeq........click on the link for the info..........
https://www.naca.com/refinance/refinanceTenStep.jsp



Please keep us posted on your progress...........

[tabbykiki]

schwefls & *** thanks for replying. I have spent most of the evening on the NACA website and have filled out all of the information. Unfortunately the closest workshop is almost 200 miles away (in another state) but it appears I can do it by phone. I am going to get them the docs they need tomorrow morning.

Yes, this is the only property we own.

More questions:

1. What is the success rate with loan modifications when using NACA?

2. Should I contact HomeQ even though I have submitted info to NACA or just wait it out?

3. How long does the process take with NACA?

4. Lastly, have there been any success stories with H4H? Is it worth it for me to go down this road?

I also want to say what a wonderful thing to have this forum. I'm so glad I found it. Thanks again.

[Moe Bedard]

The NACA questions you would need to ask them............we have had several successes on the forum with NACA and they have all been low fixed rates from 4-6%.

If you are going through NACA you would not need to submit your items to Homeq...............NACA will do this for you.

On the H4H..........we have not had any successes on the forum.......with your loan you have a second in place that can not be there if you were to apply for the H4H.............this is what is creating the issues with the H4H..........any additional liens on the property would need to agree to release their lien and extinguish the loan..........the investors are not willing to do this.

and thank you............we are glad you found us too........

[tabbykiki]

Crazy about the H4H with regards to the 2nd mortgage. It's almost like the program was doomed to fail from the onset.

I hope the NACA can help us out. I'm not sure if it puts us in a worse position in attempting to get a loan mod since we are in a repayment plan that has been broken? Is it better to be in default when attempting a mod or does it not matter?

Thanks again for all the help.

[Moe Bedard]

with NACA it does not matter.

[tabbykiki]

Okay, here's an update. I decided to call HomeQ to request a loan mod. I had to do something while I waiting to hear back from the NACA. I just hated not doing something.

So I get the same cust service guy I got the last time I called and setup my repayment plan. What's the chance of that? I told him I could not afford the $2200 payment which was due 1/15 and that I'm pretty sure the plan would already be broken. I asked for a loan mod. He yanked my chain and told me that the "computer" wouldn't give him the opportunity to request a loan mod until my plan breaks on 1/26.

Sniffing out his b.s. story, I played along for awhile (nicely) and told him that I'm sure a lot of people call and have sad stories and I understand that, but I am desperatly asking for his help and would like a loan mod. Magically he is able to "rerun my financials in the computer". Of course, he tells me that my financials are "drastically different" than the last time I gave them to him. Which is an out and out lie, as I know my fianncials. Nothing has changed! He tells me that if I would have given them these numbers last time then they would have never approved me for the previous repayment plan. Okay, whatever. Trying hard to still play nice.

I am given an offer for a loan mod at 8.125% for 5 years. (I'm currently paying 10.25%.) Only catch is I have to have a "downpayment" of almost $4K. I told him I don't have 4K, if I did then I wouldn't be having this conversation as I would be caught up! He needed a "yes or no" to the offer. I told him "no" only because I couldn't do the down payment. He told me that is the same thing as "refusing their offer". Crock of you know what.

I spent at least 40 mins. on the phone with this guy. Ended up finding out we had $1200+ in "suspense" on our account and if we payed another $1700ish on 1/30 it would take care of Nov & Dec payments which would mean we wouldn't get a breach letter and would keep us away from foreclosure. Then I could just pay Jan & Feb and I would be okay and the account would be "caught up" minus any late fees. I agreed to do this as we can swing the $1700 next week. Why not just tell me this last month when the original plan was setup? It's almost like pulling teeth....

My plan is to get caught up best I can and then reapproach the loan mod before our rate change in April. It could go down but it may go up, the rep didn't know.

I inquired about H4H and of course he was confusing it with HOPE and didn't even know what I was talking about... I know I wouldn't qualify now though cause of the 2nd mortgage, but I thought it was interesting that if I did qualify I'd have to go through this guy who doesn't even know what it is! Sheesh.