They said in the video if they where already signed up for MHA, all they had to do is sign an amendment to MHA, how do we know they didn't sign? I think the Gov went to way to much trouble setting up the program to let it fail. You have to keep in mind they're using LPS Lender Processing Services, Inc. to do a lot of processing for 2mp, that wasn't a small undertaking and cost some cash, they're not going to let it get pissed away.Originally Posted by davephx
Yes its been reported there are no participants. it is easy to sign up for but no one has.
Last week Treasury basically said this was true but its not dead yet. Treasury suggests its a problem of linking who owns the 2nds with the first which is where LPS comes in and is designing a matching program.
To me the bigger issues seems to be the very small incentive for the servicers in 2MP so I can see their point why bother. They can do far better going after us even for 10% since that is more than the incentive they would get under 2MP.
Keep in mind that video was for NON-GSEs only Dave. Different rules for Freddie and Fannie owned loans. I'm willing to bet this is a force deal for those, no sig necessary.
Here's a link to the text. Read the first page, it's the last paragraph: http://hmp.launchcontent.com/p/36484...%20non-gse.pdf
Although I havent gotten my first modified, I still intend to get the best deal negotiated on my 2nd. As I did with the first, I took a stand and was ready to walk away if they foreclosed on me. I really am wondering is I told Chase to pound sand on the 2nd (since they have the 1st and 2nd) what they would do. I suppose I wont know unless I do it or if any of us do it whom have succeeded in getting our first's modified.Again, I feel I would have to be prepared to walk in the event it would come to that. If more of us dont do this, the lenders will continue on this track.
Now that I have gotten this far, I am really starting to think about other options. If I could get any kind of principal reductions or a settlement on my 2nd, I would have alot more invested in holding on to my house. Im still 100K underwater and nothing will change that. I am really starting to think I am better off going down the street and doing a lease with option with a private owner or investor if I really want to own a house. The govt. has given a couple million to our regional area to stop foreclosure blight and giving all kinds of incentives to home buyers to buy up foreclosed homes...not that I could qualify any more.
I read some HAMP stats yesterday and about 900 have gotten trial mods and 98 have gotten permanent mods. The population is about 125-150K combined. I am grateful i got a perm mod but the win is bittersweet.
Oopps, sometimes I dont write what I am thinking. I have got my fist modified.
Here is the text of the letter I received from Bonnie Bloch, Cust. Advocate for Barbara DeSoer:
.... My research shows that Bank of America modified your HELOC effective with the payment due January 20, 2009; this modification will expire in December 2010 (this was a 2 year interest only modification). Currently, BofA has systems in place to begin implementing the 2MP with the release of final program policies and guidelines by federal regulatory agencies, which is expected soon. However, under the initial implementation of the program we will consider only modifications. I am unable to give you further details until we receive the final program policies and guidelines from the federal regulatory agency.
My research also shows that we cannot accept less than 85% of the outstanding balance on your HELOC as settlement in full. (I had offered 5,000 on 56,000). This decision is based on sound business practices. (Yes, of course BofA is ALL about sound business practices... not!!) As I understand it, you do have your house on the market and do not wish to sell it. (Can she be more inaccurate; it is NOT on the market and I do NOT wish to sell it, nor could I unless I did a short sale.) However, if your property is listed for sale and you have received an offer, please send us the details and we will give further consideration to your request for a settlement.
Moe, any advice would be greatly appreciated. There is one poster here who reported an amazing settlement on a HELOC with BofA, but unfortunately he has not provided any information as to who he dealt with and how he did it despite a few requests from myself and others.
This is a load of crap crew5. 85%.......I am hearing from attorneys 10-30%.
Good luck on the whole BK thing. Sounds like your are looking at all your options carefully.
Treasury Denies HAMP for Second Liens is ‘On Hold’ Update as of 1/9/10.
Treasury Denies HAMP for Second Liens is ‘On Hold’ HousingWire
BofA First to Join HAMP Program for Second Liens 1/26/10
BofA First to Join HAMP Program for Second Liens HousingWire
I could find much on the 2MP program that is much more current than this.
In December, industry professionals urged House lawmakers to ensure HAMP addresses second liens and the conflicts of interest that can sometimes arise when servicers of second liens also service first mortgages.
This looks interesting...conflict of interest?
The agreement with BofA indicates servicer approval for participation may be gaining momentum.
BofA already has infrastructure in place to execute second lien modifications under the Second Lien Modification Program (2MP) once regulators release final program policies and guidelines, according to an e-mailed statement Tuesday. BofA indicated the release of guidelines may be coming soon, although a time frame for execution has not yet been announced.
2MP will call for modifications that reduce monthly payments on qualifying home equity loans and lines of credit under certain conditions, including the completion of a HAMP modification of the first mortgage.
Thanks, Snapple, for your links. It 'sounds' like BofA will be on board, but unless they are willing to settle for MUCH less than 85%, it will be of no use to me as I am underwater. I've hit one brick wall after another but am still hoping to find a solution.
Re: Second Lien Modification Program - Supplemental Directive 09-01 My modification with B of A was finalized. I ran our credit and B of A destroyed our rating during the trial period. Our modification only resulted in a reduction of $60 per month! Certainly not worth destroying great credit over! Our trial payments were $1,000 less! I phoned and voiced our concerns and were told we did not have to take the offer and we could begin the process over. They could not and would not discuss the reasons for the reduction from $1,000 to $60! Our advise was to take the mod or be ineligible to participate in any further mods under the HAMP program! WOW! I am very concerned about our second through B of A. We really need that modified. I heard they are on board with the 2MP program. Any suggestions on how to move forward? Any stories of success out there? This program is so flawed!!
SDL,
Are you self-employed? It sounds like quite a big difference in payments. If you are significantly underwater, I would tell them to take a hike if this is NOT a long term sustainable solution. If they they will not discuss this, then I see red flags. If this is a HAMP mod, I suggest sending a letter in writing back to the address with the mod rejected written on it. Id ask for an explanation, and then I would cc a copy of the letter to TARP and OCC. Assuming they gave you a fed ex envelope, copy the label so you have tracking number to know it was received back.
I dont know why they would say that if you turned this down, you would be ineligible for any other mod in the future. I think that is not correct. Be ready to put on a good fight.
I just got a 2nd modified according to the 2MP program guidelines thru Chase. Havent heard of B of A people getting one just yet.
BTW, if you have already signed the perm loan docs for first, I suggest still doing all the things I said. Send letter to B of A via registered mail asking for a correction and still file complaint with TARP and OCC. Hammer on them to correct their mistakes or explain how they arrived at their figures. Dont take NO for an answer.
Snapple, congratulations on the 2MP mod! Would you be willing to share the terms and how you did it? I'm with BofA and they are stuck in the sand as usual. I got a letter stating that they only accept 85% as sound business practice, which made me chuckle as I highly doubt BofA knows the meaning of sound business practice!
But I am thrilled to learn of your great success!!
From BofA's pressroom today:
On April 1, became the first major servicer to begin extending 2MP modification offers to homeowners who have completed first lien modifications under HAMP; and ahead of full implementation of operational systems at the federal level.
I really wish those who have received 2nd mods would come back and share their story with the rest of us who have not been able to do so. It's very encouraging to read these success stories, but disheartening to those of us who are still out here in no-mans land! Please be a good neighbor and share! Snapple and one other who had gotten a 10% settlement, I'm appealing to you both.
Hey, Im here today for a little while.......I didnt get a settlement on my 2nd. I just got the 2MP program. Chase matched the same terms as my HAMP on the first. 2%, 3%, 4% and caps at 4.75%. My 2nd was only 30K so not big in the big scheme of things.
When HAMP first came out last spring I was already getting jerked around on my 1st by WAMU. I was delinquent by almost 1 year on my first and just had gone delinquent on my 2nd a few months before APril 2008. I was told my Chase rep in home equity just to fax in the same HAMP application package and just change the account numbers. I did as instructed. In the meantime WAMU did file an NOD and then recinded it when I think the OCC started corresponding with them about my complaint as well as the Chase attorneys got a letter from my attorney saying we were going to file suit for breech of verbal contract. I honestly dont know what pushed them over the edge to agree on a HAMP trial. Within about 6-8 weeks the Home equity dept was pretty aggressive in calling me and when they found I had gotton on HAMp trial they immediately cut my payment in half. In december they kept trying to get me to make it permanent when I said no, not until the 1st gets modified.
After the first of the year they seemed to change their stance. When I got the final mod I started asking about terms and they seemed to waver. I was told initially that they would match HAMP terms. They were trying to back out of those terms. Having had experience with them reniging on things, I argued on several occasions pretty strongly that they better do what they said they were going to do. I then sent a letter stating my experiences and how I felt they were trying to change the terms promised. They never responded and would not return my calls for weeks. Finally I got a contract that matched my HAMP terms. I know Litehouse was having problems with hers as we did our 2nd trial around the same time. not sure what happened with hers. I know I was ready to walk over it and I told them so. Im so underwater I am looking for a reason to walk.
Snapple, any chance you would visit with me about your attorney and the breech of contract letter? This is one area our firm feels strongly about!
Thanks, Snapple. I had so hoped you had settled. I'm on the last 6 months of my 2 year no interest mod with Skank of Am. They have told me on the phone and in writing that they had not confirmed the details of their 2MP, but according to their website today it has been implemented. Although I doubt they will agree to settle for anything reasonable (is that word even in their vocabulary??), I will continue to pursue it. I have emailed Barbara DeSoer again and most likely one of her lackeys will respond instead.
We were successful with our loan mod with Chase (8 months) and just filed for chapter 7. Today we got a copy of a motion to lift stay on our second. The servicer is Dovenmeuhle and does not participate in the 2MP. After all this, are we screwed? The second will foreclose? Arrgh!
firefighter, sorry I didnt respond...havent visited this thread for while. Id be happy to talk to you about the letter for breech. You can email me at my screen name at yahoo.com. Its my daughters email address so tell her to forward to me.
Shasta,
How much underwater are you? How many months delinquent on the 2nd? I am surprised the 2nd would file motion for relief of stay if they no longer have an equity position. Thats pretty aggressive. Maybe the attorneys just trying to make money off their clients and you (they usually tack on $800-1500 in legal fees). Personally I think that violates the BK automatic stay by holding you hostage in this way. Thats BS!
You might want to suggest your BK attorney contact them on your behalf. Most BK attorneys want extra money just to fight off this type of motion. Mine wouldnt even do anything. I had to call them myself and work something out.
Hi Snapple, see I'm out of the Chase thread and you still can't get rid of me!
We owe $206k on the first and $49k on the second, house was appraised at $190k. So, we're under by $65k! We haven't paid the second since January 09 - 15 payments. They sent a letter last October and I called the lawyer representing them and told them we were doing a bankruptcy. He said he'd call back in Jan 10 but he never did.
I wonder if the filing is routine? Someone on another board said credit unions do this often. I don't see any benefit for the 2nd to foreclose but what do I know?
I will talk to our attorney Monday but was just freaking out a bit today.I did mention offering a settlement (before we filed for 7) and the lawyer said lenders don't normally talk to them and I should try to do it myself. What irks me is we were going to do a 13 but he talked us out of it (they'll take your refunds, no purchases for years, blah, blah.)
Any experience with Dovenmeuhle? Anyone? Where's that light at the end of the tunnel?
Oh, and I pulled my credit reports and they have not charged off the loan (after being late for 15 months). Weird.
I contacted DeSoer's office again and this time her 'advocate' called me back. Although I insisted I wanted to speak with her, she told me that she ‘doesn’t take calls’. I reiterated my offer of 10% on the 2nd which is totally underwater. She said that they only accept 85% . I quoted from DeSoer’s own words in which she claimed that it made sense to forebear principal on the 2nds, and she was very evasive. She said her mod dept. would not accept it, and I said that if the pres of the bank authorized it, then her lackeys must follow her edict. I also said that I would take it to the press because she obviously lies. Now I am wondering if there are others out there who would like to join in and make a ruckus about DeSoer’s dishonesty?
Anyone have any ideas why the program didn't make provisions so the first lien holder could issue a loan paying off both the first and second to create one new loan?
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