Loan Modification with First Franklin

[eugene176]

Hi just wanted to share my loan modification journey with you guys. Just like some people on this forum, I am a bit confused and frustrated with the entire process.

Here is my background.

My partner and I moved into our first home in July 2007.
Mortgage of 400,000 at 7.6% (2,597/month) and 100,000 at 10.6% (927/month) due to reset in 5 years. Property tax not inclusive. We bought the house at $505,000 and it is only values at $375,000 at present based on zillow.com.

We are still current with our payments up to now but payments are becoming more difficult after my partner lost her job and I got a 10 % paycut.

Before the financial troubles, our takehome pay was around $167,000/year. Now it is almost down to half which is extremely challenging especially if you are raising 4 kids in the house.

So after some research, we made our first attempt to apply for loan modification through HOME LOAN SERVICES INC.
Loss Mitigation, loan servicing dept of First Franklin in January. Papers were received January 28. We were told that processing takes at least 45 days.

By the way, when we first submitted the pay stubs, letters and tax documents, my partner still was employed and my 10% pay cut wasn't implemented yet. So we tried calling them today to let them know about the change in circumstances. The person my partner talked to told her that she is no longer qualified to get a loan modification because she is no longer employed. My partner reiterated that there is a co-borrower on the loan who is still employed and that we are tring our best to still keep our payments current ---now touching our savings account just to keep the house. They literally hung up the phone after my partner started discussing the Obama Stimulus plan which was implemented today.

Anyway, I called again and I was told to resubmit a new set of stubs and financial hardship letter and fill up a new form for our expenses since there is now a change in circumstances. I'm frustrated because I'm not sure if they will have us wait another 45 days to get a response from them.

Has anybody been successful in getting a loan modification approved from First Franklin. Should we just seek the help of a third party? Again, we are still current with payments.

Please help.

[franklinhelp]

I AM SUPPOSED TO be close to closing on my loan mod with them- they told me they were just waiting for the escrows and once done we will be done.
I am 3 months behind but that has been going on since the gas prices killed me early last year - I will shout or cry soon on the forum except that I really am one who is ready to dump. I owe 580k and the value has plumeted to 240 (my appraiser) - 328 (franklin's appraiser) but if they listen to the Obominator's plan, hey 2% isnt bad, even if my kids commute 50mins 4x a day to school. I too am in florida and prices are horrid. My friend just offered to let me stay in one of their 4 homes close to the kids school at about $1000 a month. My mortage plus carrying cost is around $5400 ---- thats without being able to afford Termite control, keeping lawn maintenance and so forth. Don't look at it that you will be able to go to your savings....that's just crazy. What if you lose your job too?

I have thought third party - but who? They are leeches out there and I come from a family of lawyers - so call constantly and know one thing - I started the process in September - you have a long way to go. Make no decisions til you are worn down - meaning wait til you get an offer from them and then plan for your contingencies.... they do not care that you will (eventually) say to them, this is the last month I can do this - if that were true, I would have stopped paying in December. Now I am at the cross roads, piss away another $4600 mortgage payment knowing that it is only reducing my principle $312.oo on a mortgage that is at least $250k underwater ---- well I am now 6 months into Franklins craziness and if I drank I would be paranoid that what every one on the forum has been complaining about, its part of the Franklin Strategy. So folks, according to FF I am about 7 days from my offer. I doubt it. But for now, I have until the 11th or they foreclose (they let us go 11 days into the next month and I don;t know why they did, but these 11 days (less the 4 now we have into the month) I am thinking really hard....after all, neighbor hood homes of same s/f even if not as nice as mine (an any one say I was crazy for putting 14 custom lead crystal doors in the house) are not even selling at $189k so, not to press my point but like I said, rentals are looking good to me....just wish I knew what the consequences will REALLY do to my credit and chances of a brighter future. I am pretty well conected with some serious networking folks here and most of the banking pros in Orlando are saying WATCH - THEY WILL BE FIGURING OUT WHAT TO DO WILL ALL THOSE POOR SAPS IN THE REALESTATE MELT DOWN OF 2008-2009 BY THE NEXT PRESIDENTIAL ELECTION....MAKING THE PROGRAMS AVAILABLE TO ALL THOSE WHO SUFFERED IN THE HOUSING CRISIS.

Ideas anyone?