Starting New Load Modifcation - ASC

[Iowa0979]

My wife and I just completed our 4th and final payment of our forbearance repayment plan on Feb. 20th due for March 1st. In making the last payment, I asked what the next steps were, and the rep from ASC said we would be assigned a negotiator to present our case for a modification term and said I needed to submit the following items:

-Last 30 Days Paystubs
-Financial Worksheet
-Contribution Letter
-Hardship Letter

She then let me know if we did not qualify we would be back in foreclosure (something I was not told at the beginning). Since this got my anxiety up again, I started researching these things before sending anything in writing into ASC. That is when I came across this website. I have gained quite a bit of knowledge and realized I could have been crippling my loan modification without proper knowledge. We do not have extra money to pay an expensive lawyer.

I searching through this website and I noticed the Homeowner's Hope Hotline in the tools tab. I called and they put me in touch with a live adviser to review our situation. Since this was a non-profit company, we were not charged for this service. We talked about our scenario and how my job loss from last year caused us to get in the situation we were in. We also reviewed and completed a financial Worksheet. Upon review, she said we look to have a strong case to qualify for a loan modification of some sort since we are currently showing our net monthly income is about $400 higher then what our monthly expenses are. That apparently looks good since we do not want to show too much surplus of income or having our expenses exceed or income. She asked my what we were desired to accomplish for new terms of the modification and below is a list of what we are seeking:

-Current balance owed put in back of loan ($19,024.18)
-Fixed 30 year mortgage (we are in adjustable)
-Rate reduced to 5.00% (Currently 7.375%)
-2nd mortgage with ASC included

She said 5% right now has been about the going rate that she’d been seeing and is not unreasonable. Also, she stated if we desire to include our second mortgage, it would have to be considered as a refinance, which could be a possibility with the new Homeowner's Affordability & Stability Plan. If not, we would only be modifying the terms of the first and second mortgages separately.

She took my contact info and emailed me our Financial Worksheet and a Hardship Letter Template (I now have many) to finish completing our letter. After ending the call I phoned the mortgage company a few minutes later and they advised me we were just assigned a Negotiator that morning. I advised them I was working with the Home Prevention Foundation and they said they have worked with them in many cases. I let them know we would be sending in the desired paperwork tomorrow morning as I had to get to work.

So I am preparing to send in my documents this morning. I am anxious to get this process going as it sounds as if it could take some time. Any advise at this point before sending in the paperwork to the mortgage company?

[Moe Bedard]

Hi Iowa0979,


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


Try contacting and working with

ASC ART Team
1-866-398-7569



Keep us posted on your progress.......

[Iowa0979]

Thanks ***

What does ART stand for and are they different then the loss mitigation dept I have been in contact with?

[Dan Bailey]

ART is the home retention team....loss mitigation is "collections" they just want you to pay so they can put in a successful collection on their calling sheet.

[Iowa0979]

I have completed writing my Hardship Letter and here is what I wrote. I appreciate everyone reading this letter. Would also appreciate any feedback or advice:

To whom it may concern: >>>
I am writing this letter to explain my unfortunate temporary set of circumstances that caused us to become delinquent on our mortgage. We did everything in our power at that time to make payments but unfortunately we fell short and would like you to consider working with us to modify our loan since our monthly income has re-established. Keeping our home primary goal is to keep our home since we would like to start a family in couple years and we would really appreciate the opportunity to do so.>>
The main reason we fell behind was at the end of 2007, the financial business office I as managing seriously declined in profitability rapidly. My wages were decided on how well our office produced. Once the expenses were paid, I then was able to pay myself out of the profitability. I was still able to pay myself here and there; however, it certainly was not enough to make such a large payment our past due balance had grown to. This got to the point where I was not able to pay myself anything.>>
By April 2008, our corporate office closed down nationwide. We were looking to sign on with another brokerage company to start doing business again, and then our downtown city of xxxxxxxxx, IA was hit with massive flooding and was declared a national disaster site. Our office was on the second floor, so luckily nothing was damaged for us; however, were not able to get to our office for some time and the power was not restored for months later. This caused us to never re-start operating business again with that office.
Another opportunity came in the midst of this time to start a publishing company with a business acquaintance. The company revenue came from businesses advertising in our publication. We worked hard did as best we could, however, we never we able to become profitable with the economy sinking into a recession, and businesses that were advertising with us quickly began to cut back advertising. We could not continue to publish by the end of November.
In December 2008, I began working for xxxxxxx company. At this time, we started our first of four forbearance payments. I worked there for 2 months up to February. During this time, it was difficult, however, we scrimped and saved to make the remaining forbearance payments.
Another company I had applied for before called up and offered a much high paying position. I quickly decided to take that position with xxxx xxxxx xxxxxx and I began working for them on February 2^nd, 2009. I plan to have a very lengthy career with this company and I do not intend to take any position elsewhere.
Since our situation has gotten much better because from our temporary financial difficulty, we strongly feel the loan modification would benefit all parties involved. We’d appreciate you can working with us to lower or delinquent amount owed and or payment so we can keep our home and also make amends with your firm.We truly hope that you will consider working with us and we’re anxious to reach an agreement to re-establish strong payment history as well as financial stability.

Respectfully & Sincerely,
>>

Iowa0979

[Moe Bedard]

That is good Iowa............




Good Luck with the mod!!



Keep us posted on your progress............

[Iowa0979]

Update:

I faxed up all of our required documetation the lender required. Called in this morning to find out if they received the fax and if any new updates. they said the negociator seems to be moving quickly on our case and we should get an update next week. ASC did say that we got a loan modification on our second mortgage. It was assessed by the negociator on our first mortgage.

We were not even working on our 2nd mortgage and all of the sudden ASC issues a loan mod. The problem with it is, the issued this with our original income/expense numbers. They did not even modify it in my opinion. All they did was have us repay what we owe and spread that amount over the next 24 months with all of our terms staying the same. Another problem is the paperwork we just sent in will no longer show a surplus with the extra $350 more on the second mort.

ASC said that the "Duel Lien Loan Modification Dept." is now the dept that is handling this and I will have to talk with them on Monday to discuss the details further with this.

[Iowa0979]

Update:

ASC asked us when we finished with our repayment plan to send in our new income/expenses documentation. I communicated in full with them and get them sent in last week. I calling in this morning and they work our scenario off of our origininal income/expenses. Here is what has been done and also what will be done:

2nd Mortgage- Already approved by investor
no terms change: a 24 mo.repymt plan to payback all past due

1st Mortgage - Sent this proprosal to investor for approval
Change from adj to fixed
same rate of 7.325%
past due added back into loan

The girl I talked with sd since the new documentation came in recently, they would probably have to closed this review and restart a new case.

Do you think I should have just kept my mouth shut and took this as although not the terms I wanted, we did have an offer on the table?

[Dan Bailey]

Iowa,
Since this is a repayment plan, and not really a modification-does it help your situation?
Will you be able to continue with this plan? (i.e: can you afford it in the long run)

These are some questions Id ask myself.

Oftentimes, the lender will make a quick offer...it may not be in your best interest though.

I would also consider looking at NACA(non-profit that seems to have better workings than HOPE): https://www.naca.com/refinance/refinanceSubmission.jsp

[loupi]

Best of luck, I'm trying to work with the ART team, but it seems it's a crap shoot trying to get someone who has the experience to help.

Who did you talk to at ASC?

[Iowa0979]

Thanks Loupi, I am working with the Duel Lien Loan Modification Department. I really didn't know I was with this dept until I was told this weekend; however, the have not been too bad to work with.

[Iowa0979]

Update:

I Called in this morning and they said the first mortgage was approved for the modification. Problem is since they went off our original numbers, all they did was fix the same rate and include the amount due back on to the end of the loan. Since they used the original numbers showing way more income then we have, the negotiator would not offer mod for 2nd mortgage and simple mod on the first.

I am re-faxing in my financials again to restart a new evaluation for a new loan mod with both mortgages. What I am looking for is to have the rate reduce 2%on each loan; I do not think I am being outrageous in desiring that.

Does anyone think I should just take these and be happy I am out of foreclosure even though we make a less income now and do you think to Neg or investor will think we are trying to work the system?

[scv_guy]

I clicked on Tools looking for the Homeowner's Hope Hotline you referred to, but did not see anything. Would you please post the telephone # you called?

Thank you!

Originally Posted by Iowa0979

........ searching through this website and I noticed the Homeowner's Hope Hotline in the tools tab. I called and they put me in touch with a live adviser to review our situation. Since this was a non-profit company, we were not charged for this service...... >>

[Alexis]

Scv guy: We have been dealing w/ASC since 12/08, were told we didn't qualify for the re-fi then were passed over to H4H. Beware they are offering (at least to us) 30 yr fixed @8.5%! Even tho they adjust the principle at that rate it's not that different from what we're currently paying. Also you have to 'share equity' when selling. Just be sure to read about all of their stipulations before agreeing. Can't seem to find the phone #, their fax is 866.659.5933. Good luck, Alexis

[scv_guy]

Originally Posted by Alexis

Scv guy: We have been dealing w/ASC since 12/08, were told we didn't qualify for the re-fi then were passed over to H4H. Beware they are offering (at least to us) 30 yr fixed @8.5%! Even tho they adjust the principle at that rate it's not that different from what we're currently paying. Also you have to 'share equity' when selling. Just be sure to read about all of their stipulations before agreeing. Can't seem to find the phone #, their fax is 866.659.5933. Good luck, Alexis

Thanks. I actually found a couple of good contacts. 877-222-7875 Option #4 - Spoke to Katie in loan mods. I learned quite a bit in just under 30 minutes. I was shocked to get as much time and info as I did. I learned that you must write a UNIQUE hardship letter that does not appear boiler-plate. The same team reads each letter and anything that appears boiler plate does not read as sincerely as something from scratch. They really do weigh the content of each letter, performing a detailed evaluation, and that is one of the reasons it takes so long to process. I also learned that they take you very seriously as soon as you mention the possibility of bankruptcy. I asked a simple question about filing for B.K. under the new Chapter 13 guidelines, once law is passed. Almost immediately, I was told to call the same number, select Option #3, then again select Option #3 a second time. So, when I finished with Katie, I did and I was transferred to Rachael who gave me the run down on B.K. options. Basically, once BK is filed, and the homeowner is under federal bankruptcy protection, the lenders lose some of their leverage to negotiate. The ball is in the air at that point, taking the loan from "potentially bad" status to "bad" status, and they will want to work something out to eliminate the bad debt status. Especially knowing that a Chapter 13 can be converted into a Chapter 7 at any point in the process and they could be held with no recourse whatsoever. They will not jump unless you actually file the B.K., as they get threats of it daily and most are empty.

What an education!

[Iowa0979]

Update:

Tomorrow morning we plan to call the ACS and let them know we are accepting the loan modification. Although it is not what we really wanted, we will get the modification and get out of forclosure. Here was what was originally offered that we are accepting:

1st Mortgage: Same rate of 7.325%, it will fix in from an adjustable, and put the amount past due on the back of the loan.

2nd Mortgage: We get no modification and repay what is past due over 24 months.

I guess this is my last email to ask if anyone thinks I am crazy for accepting these terms and getting out of forclosure on our first mortgage. Any imput I can get before making the call tomorrow morning would be greatly appreciated.