Possible Mod...Homeowners Insurance Question

[sunshine80]

My info
I have an 80/20 on a house that is not worth what I bought it for in 2006
80 with: Americas Servicing Company (Well Fargo I think)
80 Interest: 7.5%
20 with: Select Portfolio Servicing
20 Interest: 12.35%

I'm the only owner listed but my fiancee has always helped me pay, but his business in which I also work for has slowed down and we cannot afford to keep paying what we are paying.
I'm still getting paid the same

My question is how will I go about asking for a loan mod. and how I will I fit my fiancee income into all this? Will I be asked for his income taxes also?

Is it better for me to hire a lawyer than try to do it directly with the mortgage companies?

Oh, I'm already 3 months behind

[Moe Bedard]

Hi sunshine80,


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


Have you contacted ASC when you were going to be late to see what the otpions were at that time and if so what did they say?

ASC ART Team
1-866-398-7569

For the financias they will as for household income and household expenses........so that would include anyone that lives with you that has an income.

The modifications given are up to the investor on the loan.........so whether you do this yourself, go through a non profit, or hire a third party........the outcome will be the same. If this is something that you are not able to do yourself and this is your only property and is owner occupied then a non profit such as NACA should be able to help you and their services are free.
click on the link for the info......
https://www.naca.com/refinance/refinanceSubmission.jsp

[sunshine80]

Ok this is my letter for Americas Servicing Company and I'm planning on sending one to my second mortgage company Select Portfolio Servicing as well

I was really hoping to take advantage of the H4H program but are the banks really doing anything like this?

I also have a question about Loan Modification and I'm sure it all depends on your lender but if I get a Loan Mod will they put the amount that I'm behind on at the back of the loan?

Anyways, here's my letter, please tell me if it's ok

Thanks in advance


ATTN: America’s Servicing Company
Loan Modification Department

Owner: xxxxxx
Property Address: xxxxx
xxxxxxxxxxxx

Loan# xxxxxx

I am writing this letter to explain the unfortunate set of circumstances that have caused me to become delinquent on my mortgage. First, I do have a second loan on my home. The loan is with Select Portfolio Servicing with an approximate balance of 47.945. There are no liens against this property. This is my first and only property and I’m currently living in it.

I have done and am continuing to do everything in my power to make ends meet; unfortunately I have fallen short and would like you to consider working with me to modify my loan. My number one goal is to keep my home and I would really appreciate the opportunity to do that. I have a 2 year-old daughter and I'd love for her to grow in this home that I love so much.

The main factor that contributed to me being late and unable to catch up is:

Curtailment of Income
My hours have been cut in half due to the deteriorating economy therefore I can’t afford my current mortgage payment.
My fiance who helps me pay the mortgage (works in the transportation industry) and he’s also making half of what he used to make before.

It is our full intention to maintain our family house and to become current on my loan. At this time we have exhausted all of our income and resources so we are turning to you for help. I also want you to know that I have done everything possible (cutting down on other expenses) to keep our home. I also feel saddened by the fact that my home isn’t worth that I currently owe.

We believe - we know that our situation is temporary. If we could just get some help, I can see a light at the end of the tunnel. I feel will be significantly brighter by the end of the year. Please do all possible to restructure my existing loan; modifying the interest rate to a lower fixed rate and extending the loan to 40 years (if possible) which in turn will reduce the principal, we will be able to make it. We would appreciate it, if you can work with us so we can keep our home.

We pray that you will consider working with us. We love our home, and want to do everything possible to get caught up Thank you for your consideration.



Sincerely and Respectfully,

[Dan Bailey]

Sunshine,
I wouldnt mention anything about principle reduction because it just isnt going to happen. The investers are just not doing it. (plus, extending the loan does not reduce the principle, in fact, it just may raise the principle a bit when payments in arrears are tacked on to the end of the loan). Other than that it looks good.

The decision to modify is up to the investor of the loan, ASC is the serviser...so they must make the decision to modify according to the investors guidelines.

[sunshine80]

Thanks Dan, I just spoke to them again and I will fax the letter and see what happens

I have another question, what happens if after adding all bills I'm about $200 negative, will they deny me the modification?

[Dan Bailey]

Sunshine,
That question is one of the most often asked (should I be positive or negative in my financials) and there is no answer. Each investor has different criteria for different situations. When the time comes to fill out financials, you can "hint" at asking "what they are looking for" and may or may not get an answer from the negotiator.

[sunshine80]

Thanks Dan, I really hope that -$200 wont stop them from helping me, I faxed all documents right now and let's hope they help me
I will keep you updated

[sunshine80]

ok, I received the foreclosure papers on Saturday for my first mortgage company which is ASC (America's Servicing Company) which is Wells Fargo
The guy that delivered the papers said I have 20 days to respond or I will lose all my rights. So I already had setup a meeting with a lawyer today but then I got a call from NovaDebt because I had contacted the HOPENOW hotline in January and they finally called today

The Novadebt lady took all my financial info over the phone and at the end I was about $120 negative, so she went ahead and called ASC to see what we could work out with them, the ASC lady said she couldnt offer anything because I was negative, then the Novadebt lady said to reduce $250 from my secong mortgage because she was sure she could work with them.
At that point the ASC lady said that they could offer me something which is this to stop the foreclosure

Pay $1846.81 by 3/24 (this is my regular monthly payment)
Pay $1896.31 by 4/23
Pay $1896.31 by 5/23
Pay $1896.31 by 6/23

so after this last payment in June I would need to call and see what modification they would do for me which could be lower monthly payment, lower interest or just nothing at all!!! which is my main concern, they are giving me any guarantees of anything, besides if I prove that I can pay all those months chances are that they wont do any modification at all right???

I'm really desperate, I do not want to lose my home and I cant really afford to pay so much anymore

Have any of you had anything like this worked out before, should I be better off with a lawyer?

The Novadebt lady said I was gonna waste my time and money with a lawyer!

HELP!!!!

[whatsinaname]

Try NACA - FREE

http://www.naca.com

[sunshine80]

I submitted a NACA application and I havent heard from them, but seeing this I'm really not hopeful anymore with a non-profit organization, I will most likely hire a lawyer

[MoneyPit]

On the NACA site under Home Save there is a Sale/Auction tab which will bring you to a contact sheet to fax to their urgent situation number.
It's worth a try!

[MichelleLynn]

It sounds a little like what I am doing now with First Franklin.. They told me I had to pay 1330 for three months, this was not towards my regular mortgage payment, rather it was for fees, and an escrow shortage..
This was called a Pre-modification.. They want to see I guess if I can make the payments and then after the last one is received I will see what modification they will offer...
At the least, it could give you some time to weigh your options. I would ask them what the money is for specifically..
Mine pulled me out of foreclosure, but NOT deliquency, so I continue to be deliquient on my mortgage,,
I would also make sure you have something from BOTH lenders saying that they are working together with this so you are nor blindsided later down the line..

Good Luck

[sunshine80]

I was served Foreclosure papers a week ago, and since nor NACA or HOPE NOW have been able to do anything for me, I hired a lawyer who will stop my foreclosure and will negotiate the modification for me.
My homeowner's insurance will expire on 3/30 and I do not enough money in my escrow to pay and I do not even know if the bank will disburse whatever I have on the escrow for the insurance payment...Does anyone know about this?

My other question is: Should I pay for the insurance since I'm trying to modify my loan and I'd really love to keep my home, I know I should ask my lawyer but I have my modification appointment is on 4/1 and just wanted to know if anyone here has had a similar situation.

[Mom2threepanicked]

I am almost positive that they will not modify unless you have homeowners insurance. I know that I had to fax proof of insurance when I sent in my final mod papers. I do have a different lender though.

Good luck, I hope that everything works out for you!

[HopingtoFind]

If you don't pay for Homeowner's insurance... lender will get one for you and pass on the expense to you. The one that they usually get costs a lot more.... so better to pay for insurance yourself..

[sunshine80]

This is an update in my situation

America's Servicing: After waiting for 3 months they offered a forbearance agreement of $1886 for 3 months ($40 higher than the usual monthly payment) and then they will consider a Mod. I told them I couldn't afford it and they told me to apply again.

Select Portfolio: I was on a forbearance agreement of $196 for 3 months and they just sent me the Mod. which $336 with the principal adjusted from $47,000 to $32,000 but the interest stays the same (12.375%) here's is the portion I don't understand:

"The borrower acknowledges that the modified principal and interest payments have been amortized a term which exceeds the Modified Maturity Date (as hereinafter defined) and that a ballon payment will be due on the modified maturity date. If on November 1, 2036 (the "Modified Maturity Date), the borrower still owes amounts under the Note and the Security Instrument, as amended by this Agreement, the borrower will pay those amounts in full on that date."

I gotta say I don't like what SPS is offering me, it still sounds bad with such high interest and that balloon payment. I got a call from them today and the lady said they will not offer another Mod at this time, other choice I have is refi or sell

ugh I don't know what to do, I feel so lost, if I had a Mod on my first mortgage maybe I had an idea if I could afford this one but I still don't have anything at all.

[Hopefull2009]

"The borrower acknowledges that the modified principal and interest payments have been amortized a term which exceeds the Modified Maturity Date (as hereinafter defined) and that a ballon payment will be due on the modified maturity date. If on November 1, 2036 (the "Modified Maturity Date), the borrower still owes amounts under the Note and the Security Instrument, as amended by this Agreement, the borrower will pay those amounts in full on that date."

It sounds like they took the difference between 32k and 47k (? the arrearage) and tacked it on the end and due as a balloon payment when you sell the property).