ASC Loan Modification

[tettyboop]

Hello, all. I am new to this site.

Have a question concerning loan modification with the infamous ASC. We are in an active chapter 13 bankruptcy and are making payments directly to ASC. The ArM has already adjusted twice and because of the fed rate fortunately has not sky rocketed over $200 a month. However, our payments are not affordable as the 13 payment plan puts us on a strict budget.

I submitted hardship letter, financial statement, proof of income as requested by ASC. Five weeks later received a denial letter from them-reason expenses more than income. I immediately called them and told the rep that I had been trying to contact the negotiator to submit updated financial paperwork to include the ARM adjustment and increase of income. The rep advised to submit the new paperwork and she would email the negotiator to ask if the modification could be reviewed again.

In the meantime NACA reviewed my financial information and stated they could help me. They have submitted financial information on my behalf to ASC requesting interest rate lowered to 5.25% saving $600 a month. At this point what should I do? I thought the whole point of loan modifications were because payments were not affordable.

[moomoo]

You can contact your chapter 13 lawyer and let them know about the situation. They can modify your chapter 13 plan and decrease your bankruptcy payment.

[tettyboop]

Yes..The lawyer gave permission for us to discuss workout options with the mortgage company to get rid of the ARM. He said the court would need to approve anything ASC offered. Naca also knows we are in bankruptcy. I will not pursue the modification on my own and let Naca continue with the process. Often after getting off the phone with ASC I am so stressed and frustrated. They have horrible customer service. I will also stop paying my monthly payment by phone. That extra $20 can go to something else.

[moomoo]

I know how frustrating it can be. I too am trying to work out options with ASC and it is very hard. I had an appointment with NACA also today and they asked for a few more things so they are going to finish up with me tomorrow. Hang in there.

[tettyboop]

Received a denial letter from ASC stating investor requires bankruptcy stay lifted in order to do a mod. Yesterday I called NACA and they said they received message from ASC stating that a modification would be approved if stay is lifted. We also received the same letter. It seems as if a negotiator was assigned on my request and a different one for NACA's request. My letter is from an "executive specialist". I don't know what that means but they also sent the letter to my attorney. My only problem is without the stay a foreclosure could come but the NACA counselor said they work with the lenders to hold off foreclosure while the mod is being processes. I'm scared....What to do?

[Dan Bailey]

tetty,
"It seems as if a negotiator was assigned on my request and a different one for NACA's request."

This could be causing part of the problem, if you have NACA working for you, it may be best to deal directly with them instead of you also calling the lender, this can cause crossed signals and paperwork confusion.

[tettyboop]

I haven't spoke to the lender since 12/08. Before I started working with NACA I applied for a mod myself and was denied. When I began the process with NACA, ASC began sending notices that they were reviewing my file again. I am going to go with the last letter that was sent both to naca and my attorney, this one seems to have more hope.

[tettyboop]

Today in the mail we receive a letter from ASC stating we may be eligible for a workout program, known as a short sale. This is not a workout program as we want to stay in our home. Should I call the number listed and tell them this? Also, I am still waiting for the attorney to submit papers to lift stay.

[tettyboop]

Still waiting for the lift of the bankruptcy stay..I received a call from NACA and a letter from ASC saying the investor requires the bankruptcy be lifted before a loan mod is offered. I am getting frustrated because finally someone wants to help and the attorney is not responding quick enough. If I miss a mortgage payment with the plan, the stay is automatically lifted...I'm trying to decide whether I should go that route. The counselor at NACA said they would ask the lender to hold off on any foreclosure procedding until the mod is approved. We are struggling to pay the mortgage..

[drraz]

I am also trying for a loan mod w/ ASC, altho I am not late & have no bankruptcy (just reduced income). They asked for info about my expenses, including utilities, childcare, etc, and that concerns me bc I think they are trying to look for reasons to deny me even though it would be easy for them to make my loan conform to the 38% of gross income federal guidelines.

Can u give me an idea of what you had to submit, and did they say what about your expenses made the equation out of whack, according to them?

[tettyboop]

I had to send my expenses and income.....First , I was denied because I had a deficit of $99. I then contacted NACA they worked out the figures for me.

[drraz]

OK well I'm showing like a $750 deficit! But that's why I need the mod. Is that what you're talking about? If I were in the black, I wouldn't need it. But if they were to reduce my primary loan's int rate from 6.5% to 2% (what I'm hoping for, at least temporarily), my monthly outflow would go down $1K, so I need the mod desperately.

Did you have to show that you were in the black NOW, or after the proposed mod?

[JT.ca]

I got denied because I had a defect of $300, I included in my financial's two incomes after taxes. On the HMA website it saids to do your financial's before taxes, which would increase my budget and get me in the positive. Then resubmit and hope for the best. This has been quite the learning process. I hope this helps

[drraz]

JT.ca, I am confused. If you don't show a 'deficit' then why would anyone need a mod? If my numbers showed me in the black then I wouldn't be applying for this. The reason I need one is bc I'm in the red every month, but won't be if I get the mod.

[JT.ca]

Income to debt ratio is like 63% and in my case I do not have any other bills besides credit cards and student loans. The financial's that were worked out by a HUD councilor are the basic needs to survive and are likely not a total of the monthly expenses. So even though I might be showing a surplus I'm still struggling. I was told that if you have a large, or even minimal deficit, the lenders consider that a negative. The reason being the people with a deficit are more likely to default on a mod than the one showing a surplus. I hope this helps

[tettyboop]

Update...My attorney has not successfully lifted the stay on the mortgage. I call weekly and to date still nothing. ASC sent a letter to me over the weekend stating we are in the review process, however, no approval will be received until the bankruptcy stay is lifted. I did not pay the mortgage this month hoping it would create a default in which the stay would automatically lift. No luck. I also received a message from a loan negotiator stating he wanted to go over financials. Why are they calling me? NACA submitted everything they should need. Are they trying to go around Naca? Should I speak to them? What to do about bankruptcy stay? It seems that finally someone wants to help me but my attorney is not doing his job...Help

[Moe Bedard]

we would be unable to advise you on any legal matters in regards to the bankruptcy............you are going to have to try to work that out with your attorney.......

[raharkne]

I too, am dealing with my bank and NACA....at this point I have my negotiator's direct number and she advises me to send everything to her first. If it is not something that will work, she will negotiate further. The NACA negotiators are very good at what they do...I just got okay'ed for my 3 trial payments (pending final approval), but my NACA girl says even those terms are still negotiable at this point. Hang in there...

[tettyboop]

Loan negotiator called yesterday, so I called Naca to see if I should return the call and speak to them. I was told that they might be calling to offer something so to call them but not to agree verbally on anything. When I called the negotiator he wanted to go over financials because I was negative $42. Some items were able to altered to make a small surplus. He said I had a good chance of modifying and would make 4 payments in good faith and then an approval. He said he would notify me and Naca shortly with the decision. He called me back 2 hours later and stated the file had to be denied again because the bankruptcy stay was not lifted. He could have asked me at the beginning of the call, I would have told him.
I am so frustrated with this situation. Finally, when it seems ASC is moving along I face another barrier. This time it is my attorney...

[Evan Bedard]

Hi tettyboop,


Most lenders will allow you to continue with a modification if you get a letter from your bk attorney stating that the lender can continue with the modification on your mtg...

[tettyboop]

I received a fedex delivery today from asc. It says per investor-the bankruptcy stay is required to lifted prior to modification. I placed a call to the attorney who also received a copy of the letter as well as naca. I feel as if I'm back to square one.

[tettyboop]

We received a ups delivered letter from asc offering a 5 month special forbearance plan. 4 payments 1530.72 1 payment 16,814.40. I faxed the consent order lifting the stay to naca as we are working with them. These payments are not affordable and only 200 less than what we are currently paying. What happens if we reject this offer?

[tettyboop]

What happens if you reject a special forbearance plan given by the lender? I dont want to be forced to accept something that is not affordable.

[tettyboop]

Okay, I cant keep from smiling.

A restructure request was submitted to my lender ASC by NACA on 8/26. This was the 3rd time in a year and a half. I waited 30 days and called asc and naca only to be told I needed a contribution letter submitted because my husband is the only one on the loan (new request). I immediately faxed it in...made my next weekly call to be told it was in review. I called naca yesterday and after being on hold for 2hours I was told nothing had changed. Then I called the lender and was told the request from naca had been denied because I was already offered a special forbearance in August. The rep said my next option was to do a short sale. I felt defeated and hopeless.
I signed onto loansafe and got all the email addresses of the wells fargo executives and proceeded to write my letter of dissatisfaction and a plead for help. I clicked on the "send now" button and said a prayer. I had nothing to lose at that point.

Tonight I received an email and phone call for an Assistant with the Office of the President of Wells Fargo. She told me to put the phone on speaker so both me and my husband hear the resolution.

Thanks to my prayers, Loansafe and my plead for help we were offered a loan mod according to the Hamp program. It will decrease the interest rate for 10.75 arm to 4.75 fixed for the remainder of the loan. 1st payment due 11/1. The attorneys office of wells fargo has already submitted the court papers to my attorney for signature. The package will be sent to both my attorney and us. Our payment will decrease 675.
Thank you for this website. I learned a squeaky wheel gets oil. I can go to bed tonight without worry.

[moomoo]

If you don't mind me asking, where did you locate the email addresses for the wells fargo executives. I only have one email address to the board of directors and was hoping to send out some emails as well. I have a very similar situation going on with them. I applied to the HAMP program 2 days ago and now they said I was denied and that I have exhausted my options because I applied twice. That is untrue because the first time that I applied was 2 days ago and my house has a sales date for next month. I have been trying to modify for over a year now and there have been so many problems with them. I tried back in January and they denied it based on incorrect information they had even though my faxed information was completely different than the numbers they pulled up. They resubmitted but before I got a response to them, I had to file for bankruptcy because the sale date was too close and they had not postponed it. I am thinking that possibly that old modification was frozen until this last month when the stay was lifted and it showed up and based on those old numbers, they denied me. Not sure really what they are doing but they don't even know what is going on either. They told me they really don't know why it was denied since I hadn't sent any paperwork but basically said that I had exhausted my options on the HAMP program.