Please help me!! NACA/Aurora - Need anwers quick!!!

[folide]

I have an 80/20 loan for $390k in California. The home is worth about $160k now. The first is interest only at 5.85 with Aurora Loans that will reset in two years and the Second is a 8.35 15 year fixed with Citimortgage. I have missed two payments already and after January 31st it will be 90 days late.

I have received a loan modification application from Aurora two weeks ago. Today I received a letter from Freddie Mac that they were the investor/owner of my loan.

I had not been very confident of modification because everything I heard of Aurora and the multiple investor issue. Now I am beginning to believe it might be possible to get a modification.

My question is do I fill out the application now and mail it back or do I wait until I am 90 days late and try the Freddie Mac streamline?

I am ready to walk away if I do not get a modification because of lower wages and the upcoming interest rate reset. What should I be doing now? Should I contact a Non-Profit like Hope?

[Moe Bedard]

Hi folide,


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

You can call ALS to start the modification process at this time........
ALS Home Retention
1-866-519-1456

but if you feel that you may need some extra help and this is the ony property that you own and it is owner occupied, then you may want to try NACA.........they are a non profit that will help put together an affordability budget and make a modification proposal to FreddieMac through ALS.................click on the link for the info...........
https://www.naca.com/refinance/refinanceTenStep.jsp



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

[folide]

On February 1st I will be 90 days late on my Aurora 1st and Citimortgage 2nd. I contacted NACA as recommended on this site and was working with them. I just need to fax one last document tomorrow for them to have a complete package together to submit to Aurora.

I had not contacted either one of the lenders at all since I stopped paying. Tonight I decided to call the ALS retention line to tell them that I still lived in the property and could not pay the total amount due and was working with NACA.

After they asked me a couple questions to my surprise the rep mentioned that I qualified for a streamline modification and that I needed to submit my last two paystubs or this years Tax returns and a signed hardship letter and I should hear back in about 4 weeks. I mentioned to them my concern about going 90 days late and them starting the foreclosure process if I do not send a payment in. The rep told me that if I sent a payment in I would not qualify for the streamline program.

What do I do here? Should I stop dealing with NACA and deal directly with Aurora? How should I handle the 2nd mortgage with Citmortgage. Can Citimortgage foreclose on me even as I am working with Aurora? Please help.

BTW, I live in California. 1st is at 5.875 ARM with Aurora for 312k and the 2nd is at 8.74 15 year fixed with Citimortgage for 78k. The property is only worth about 165k now.

[Moe Bedard]

Have you contacted CitiMortgage to start a modification with them yet?


By being 90 days late, you meet one of the stipulations for the Streamlined Modification...........but only you can decide if you want to see what the modfication turns out to be.........they have been lowering rates by up to 2% and extending terms from 30-40yrs...........so it has helped.............but if it isn't going to help you............NACA can still be an option.

However, we are not seeing principal reductions yet...........whether they will soon is anyones guess......

[folide]

I have not contacted Citimortgage. The NACA rep told me that the 2nd mortgage cannot foreclose, that they needed cooperation from the 1st mortgage.