Is a mod going to help with this?

[Shayster3570]

At the end of 2003, we refinanced (combined 1st mortgage/home equity loan and major credit cards) to make life easier, with my husband starting his own business, and it seemed to help. The mortgage was sold, to another company, and then got out of hand in March of 2005. We were facing foreclosure, and struggled through the company's forbearance program, because we wanted to keep our home. We kept getting bombarded with constant increases in the interest rate, and many fees still accrued. Now here we are, in 2009, struggling more than ever. Our payment over these past 4 years almost DOUBLED, and the principle balance went WAY up, not down. This is what I figured out from all the statements:

• 12/2/2003 Loan opened with Decision One- Interest rate 8.19% ($101,250.00-balance)
• Jan 2004
• Feb 2004 and
• March 2004 payments were $884.45
• 3/3/2004 Notified Ocwen purchased our loan at same interest rate, and payment.
• In March 2005, fell behind and entered a forbearance agreement. This raised the payment to $1000.00, after a $2654.00 down payment. During this time late charges still accrued each month at 37.82/month.
• We received a letter 11/28/05, the interest rate would be increasing to 11.19%.
• Struggled through almost the full year, then hit hard again. Another forbearance agreement, down payment of $1260.00/ and increased payments to the same. And again fees still accrued.
• Another letter 5/22/06, new interest rate to 12.19%.
• Another letter 11/19/06, new interest rate to 13.19%
• January 2007, another agreement. Down payment of $1200.00 and next payments up to $1281.66.
• By March 22, 07, the mortgage statement accrued $9213.39 (yes…9 thousand) in outstanding fees?!
• May 07, increase in interest rate, yet again, to 13.25%
• By Dec 2007, our principle balance was 98,858.51. The interest rate of 13.25%. The outstanding fees up to $9663.02 and late charges STILL accruing at 56.29/month.
• We were offered papers to “repair” our credit, from the mortgage company, still Ocwen. They would lower the interest back down to 10.62%, but the payment would increase to $1383.78, due to the adding of ALL of the accruing outstanding fees added to the principle balance, and the rising of the escrow payment.
• Made payments OK, struggling until June. Payments were late, which I paid the late charges in the payment, which was$1440.32. For some reason the late charges were put into a “suspense balance” and we were credited for the payment, but late charges still accrued?
• September 2008, yet another agreement, with a down payment of $1383.78, and payments increased to $1504.26. Late fees still accrue at 56.54/month, yet they are still adding money to a suspense balance?
• Paid until Feb 2009, and are wondering when it will stop? and principle balance at $117,158.67.

We cannot afford any higher of a payment, but we do NOT want to leave/loose the house.
Any Suggestions???

[Shayster3570]

Does anyone have any suggestions on this?

[Moe Bedard]

Who is the servicer on the loan?
Have you contacted them to begin the modification process to see if they are able to work something out on your loan?

[Shayster3570]

It is Ocwen. I have read other posts concerning them, some good, some bad.
I keep receiving the collection calls, but have not talked to anyone in the L&M dept. I called the number the rep gave me, which was an automated recording telling me what we need to send/fax etc. I just am worried they will try to keep the payment the same, or even raise it?!
Our taxes are not filed for 2008 yet, so I am unsure if I can use the bank statements. They said all revolving? bank statements. Not sure what revolving means.

[Moe Bedard]

With Ocwen and the new Home Affordable modification program...........they do all of the information online..................
here is the link to start..............
*Foreclosure Alternatives

[Shayster3570]

Well, here I go. This is the hardship letter, in the rough. Can anyone comment? I am concerned because of the self employment thing. I also am not able to send in taxes, they are not completed, but can send bank statements and also a profit/loss sheet.
Comments welcome!

[Shayster3570]

To Whom It May Concern:
I am writing this letter to explain our unfortunate set of circumstances that have caused us to become delinquent on our mortgage. We have done everything in our power to make ends meet but unfortunately we have fallen short and would like you to consider working with us to modify our loan.
Our number one goal is to keep our home and we would really appreciate the opportunity to do that.

The main reason that caused us to be late is we are self employed, and always waiting for invoice payments to come in. As of now we have a pending invoice reaching a 60 day past due, which in turn, causes us to be behind . This is an on-going problem, especially working for larger corporations who pay net 30, and/or only 1 time per month. We have tried to keep us with the payments struggling for the past 4 years, but now our mortgage payment has almost doubled, and we are in a corner, yet still wanting to fight.



We feel that a loan modification would benefit us both. We would appreciate if you can work with us to lower or delinquent amount owed and/or the monthly payment so we can keep our home and also afford to make amends with your firm. If the payment is lowered that we can work with, we are able to also set up an automatic withdrawl, pending it is close to the date of a direct deposit we receive monthly, which is usually the 8^th of every month, varying with weekends.


We truly hope that you will consider working with us and we are anxious to get this settled so we all can move on.

[Moe Bedard]

The first part is good.............but you left out the red points............

The best way to set up a hardship letter..........

* First, describe the hardship and the circumstances that caused it
* Explain what steps have been taken to correct the situation
* Provide the lender with your plan to get back on track and stay there
* Assure the lender that you are a responsible homeowner who just needs a second chance and that you are very motivated to save your home

[Shayster3570]

Dear ***,
First, thank you for the fast response, and this OUTSTANDING site, and for ALL OF YOUR TIME!!!
I thought mentioning the automatic withdrawl per month, was in my opinion, mentioning how to get out of the situation, once a modification is acceptable on both ends, and the plan to get back on track, and stay there. Should I re-assure them, that the guaranteed payment/month is contract work? As long as the contract is in force, the payments are made. But I did NOT want to sound negative, giving them a thought that what IF? the contacts expire?
I will re-write the last part you mentioned... about needing another chance, and motivated to stay in/save our home.
Again, Thank you In Advance, SOOOOOO very much for your time!

[Shayster3570]

Well, update... Received Ocwen's "package" through e-mail, with list of required documents. Got everything together and faxed 12 pages on MArch 31st. I needed to wait close to the end of the month, because they wanted a quarterly profit/loss statement because we are self employed. Received a phone call from Ocwen today. They just wanted to inform me they did receive our paperwork on April 4th. ???!!! I questioned that because I have conformation it was faxed on the 31st. Now, my dilemma is... the last set of papers we had gotten, gave a deadline to get a payment in, by the 12th. The rep told me that it takes 10 days for this mod. I KNEW that, that is why I had the papers to Ocwen before April 1st. Will they start forclosure proceedings if I do not make the payment on the 12th? I explained that we can not afford the original forbearance payment. She said I need to get "something" in. What is "something"? She couldn't answer. Then she said, in a round about way, not to "ignore" the notices, but to keep in mind they ARE working on our modification. Any views on this???

[kat10]

I don't know about your lender, but , WellsFargo continues default proceedings during a loan mod process. Total: $1500 in fees. As my rep told me " they continue the default process because they don't know if you will qualify for a mod."
They also took a "good faith" payment that was used towards our arrearages once the mod was approved.
Best of luck

[Shayster3570]

Funny, you had just replied, and I just received an e-mail and had to call Ocwen. I had spoken to an agent, prior to faxing our mod info. I called with questions because our taxes are not complete for 2008 yet. The man told me to fax the most current tax return we had, along with a self employment profit/loss sheet for the 1st quarter of 2009, which I did. Today, they e-mailed me, all info was not received, (after the fact they HAD my info for 15 days) and they need a profit/loss sheet for 2008. OK, so not a problem, but, I am not an accountant, and do not know exactly what info he uses. I had inquired about, what if after the taxes are finished, the numbers do not match? Ex. I give the accountant both gasoline/mileage info. We paid off the business vehicle in 2008, but I have no clue about depreciation, payments etc. Does anyone know where, online, there is a good statement for me to follow? I am just afraid, I will look like a "liar", if the info I give, does not match the tax return.
Also, inquired about making a payment...man told me... Even if I made a payment at this point, it would be returned to me???!!! That made me wonder...anyone heard of this? He said he never heard of a good faith payment?! I just keep assuring them, we are doing EVERYTHING in our power, at this point, to keep our home! But I feel the reps are not knowledgeable to where/what is going on. If anyone has ANY insight...please reply... Thank You In Advance...

[kat10]

Our good faith payment was made early on in the process. It was put into a holding account until the mod was completed. Then it was applied towards the arrearages.
Who does your books? Taxes? They will know what info is required for the P/L.
I wish you peace...

[Shayster3570]

We do not have someone do our books, except for ourselves. We just have the taxes done by an accountant.We are a small business, my husband only. My concern is something to do with depreciation. I know initially when we bought the business vehicle, it was ?written off? When figuring this sheet, do I still include the payments we made per month on the vehicle? I do not want to look like a "liar", or that I am trying to fudge numbers, once the taxes are done, the numbers do not match, or there are any other descrepincies. Any advice? The man from Ocwen just told me to write a letter explaining everything.

[Shayster3570]

Update...I faxed another 7 pages to Ocwen. I submitted the P/L sheet for 2008 and RE-faxed the YTD P/L sheet, adding 1/2 of April, and also another letter stating why the tax return for 2008 is not complete yet. So, in waiting yet another 10-15 days for a response. Now, after reading several posts reguarding Ocwen... I have a feeling there will be an issue with a signature. We did not hand sign the P/L sheet. I figured it out on the computer, wanting to e-mail it, but since more info was being re-submitted, I had to fax it. I do not have a scanner to upload the docs to e-mail. The comments I saw RE: tax returns without a signature, gave me this inkling. Will keep this updated. Hopefully I will not come off with...I knew it.....BUT.........

[Shayster3570]

Update... still had not heard anything back from Ocwen. In the meantime, they had started with the atty pending forclosure. I called the atty office and explained the situation. They told me it would take up to 6 months to forclose, and the mod should be in effect. They told me to keep them updated from time to time, not to rely on Ocwen to keep the records straight. PANIC! So, called Ocwen and spoke with them. All of my info was received and being reviewed. Asked about the atty letter and they told me, even though we are looking into a mod, they need to do what they do, when the account hits such a behind status. I had explained we TRIED to keep up with the forbearance payments, but they had gotten extremely out of hand. They said, just be patient. PANIC AGAIN! Also, the man mentioned a "down payment" will be necessary, not to spend our mortgage payments. Any one have any idea of how much this down payment will be? Anyone have success with Ocwen yet?

[bigdawg50]

WOW, I didnt realize so many were having the same problems as we are. Sometimes you feel like you are the only one in such a mess. We have lived in our home in Ohio for 18 years and are now facing foreclosure and I am scared to death. I sent 3 payments to Wells fargo and when i checked my account i noticed they were u.00napplied. Why would they do that? I am trying to get a modification also because we are living on y husbands SS disability now and wow are we struggling. I am looking for work, but nothing yet. They wanted a total of 6300.00 dollars to catch up our account and all i was able to send was 3900. I f they went by payments it would have us owing april and may payments now, but they dont look at it like that. Just give me some support and suggestions as to how to get through this. Lots of luck to everyone.

[Moe Bedard]

Hi bigdawg50,



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

Try to take a breather........there are many going through the very same thing as you are...........but you found us here at LoanSafe.........you are in the right place for assistance and support while going through these tough times................you are not alone.........

On Monday, try calling into the executive team and see if they can give you an update on your modification and also help escalate that file.......
1-800-853-8516

Also begin a thread at the top left of this forum section for you so that we can answer your questions, you can update on your story, and we can follow it to a success story........

[kat10]

Shayster,
Any time one defaults on a mortgage, whether a mod is in porcess or not, at a certain point in time the loan will go into foreclosure. It will be easier said than done but don't get freaked about this. I think the term "due process" can be used here because it is standard procedure for a bank to start default proceedings once the loan is not paid for a certain period of time. In California it is 90 days. Day 91 Wells Fargo has the right to start default proceedings.
As you've read in my postings, our home went into default even though I was dealing with Hope(less) and WellsFargo and had sent in paperwork to begin a loan mod. I learned it was part of the journey I was going to take. Scared the daylights out of me, because like yourself, I thought "geez, I'm in process".........bottom line...they don't know if you will qualify for the mod so they are safe guarding their asset.

It is important to put money away each month for a good faith, down payment on your mod. You should at least be putting away the amount that you can afford each month...such as the payment you anticipate after the mod . Wells Fargo would not/ did not start a mod until money was received.
They will ask for as much of the arrearages as possible. Offer them what you have. Ask that any balance not paid be put to the rear of the loan.

May you find peace in your journey..
k

[Shayster3570]

Update
Received an automated message to call Ocwen. Experienced hold times greater than 39 mins. Held out for 19, and someone was on the line. They just wanted to keep me abreast that it is still being worked on. Peperwork is 75% done and 25% needs to be completed. They told me to call back on Monday for an update. I am really concerned at how much this good faith payment will be. We are in the arears over 9k. Which I have NO CLUE how they figured this out!!! I don't have 9k saved! Maybe 2? Anyone know how much they look for? Plus I notice on the account statement, all the legal fees are starting again. Does it ever end?