Naca dropped the ball!!

[michigan tsunami]

Well, new figures state that my payment should be $150 lower a month than originally submitted. I would think this will lower my odds of an acceptance. Interesting thing is that Naca is loosely basing figures on the Making Home Affordable Plan aka Obama plan.

[helpsavemyhome]

This is a little off topic, but I'm going to post here since there has been other credit card talk. Has anyone here had a credit card company sue, freeze account, or file judgement for accounts totalling $2500 or less?? I have heard that cc companies usually won't take action unless the amount is over $5k. Just wondering about others experiences.

[dthom]

I received a summons from Orchard Bank (owned by HSBC) for a cc with a balance of $800. Didn't go anywhere because they tried to sue me because I was enrolled in an account protection program thru Acct Secure, that pays the payment when you or main breadwinner are unemployed. The cards that I have the largest balances on have not tried to sue me,yet. But to answer the question, yes they can sue you for any amount not paid. Don't thin they can file a judgement unless you don't appear in court. But now days even that isn't a given I guess with these banks.

[raejean]

Dear Michigan Tsunami,
I too am upside down, self employed, and had to start over with Naca, however I live in Colorado. Just a quick note- It is bad all over, not just Michigan. I am 40k upside down so to me the state you are is kind of irrelevant (sp?). Anyway Naca submitted my file 2/18. I got an offer on 3.18 but it was just an email saying I had been approved for 5% fixed. I too needed a principal reduction so I had to then wait for my docs because Naca was supposed to have submitted mine for 3% fixed. Since I didnt know if maybe they had done a principal reduction so I waited to see what the actual figures were and what the monthly payment was. Well I got the docs and there was no principal reduction and it was 5% fixed which actually raised my payment since I am in an interest only option ARM and have only been able to afford the minimum payment. So the deal ended up being no deal. After researching I found out that they offered 5% because NACA sent in my self employment income incorrectly, making it look like I made more than I do, and then to top it off they didnt put my car payment in the figures so it looked like I had over 3k left at the end of the month for a house payment!!! Not!!! So I too, had to start over. That is the part that is most frustrating to me now....having to start over when they submitted my info wrong! But it is what it is. So as of May 1 Naca re-submitted my docs (I declined the first offer). It seems to me they (Naca) should be able to just go back to the table and re-negotiate and tell them they screwed up and gave them the wrong finanicials for me, but apparently it doesnt work that way. So here I sit and wait. As of March I had never had a late payment, but when they sent the first offer it said not to make the April and May payments and first payment would be due in June. So like a dummy I didnt make those payments thinking Naca would just re-negotiate, but I was wrong. So, just a few things .....I personally have realized (dont like it, but realize) that a principal reduction is not going to happen, I did have to re-submit everything and start over, and I am currently waiting again and am now behind 2 months (since I spent the may and june mortgage payments trying to catch up on other bills). Again, I personally believe that if you want to stay in your home it is worth the fight and if I get to stay the market will eventually turn around, values will begin to rise, and the upside down will eventually be right side up. So I am giving it one last try but I have decided I am not making any more payments (and that is a personal decision I struggled with but have made finally) If they grant my 3% fixed I'll stay upside down or not, if they dont then I will have a little bit of money (from not making my payments) to go find something else. If you do have to start over make sure if you are self employed that they report your income off of your business bank accounts. That is how they screwed mine up the first time as they used my personal bank account info. They need you to use your business accounts and circle your business expenses and explain they personal items that are left. Also, I got the email address on here of Barbara Desoer president of B of A loans or something and I emailed her. I then got a phone call from B of A within an hour. That office is supposably trying to get the ball rolling with my lender but we'll see. I figure it was worth a shot. So hang in there, decide if you want to keep the home, and if so try again. I wish you and all the rest of us luck- we need it! But I do have confidence that since Naca got me the first offer, even though it was wrong, they should be able to pull it off again so there is hope!

[helpsavemyhome]

Originally Posted by dthom

I received a summons from Orchard Bank (owned by HSBC) for a cc with a balance of $800. Didn't go anywhere because they tried to sue me because I was enrolled in an account protection program thru Acct Secure, that pays the payment when you or main breadwinner are unemployed. The cards that I have the largest balances on have not tried to sue me,yet. But to answer the question, yes they can sue you for any amount not paid. Don't thin they can file a judgement unless you don't appear in court. But now days even that isn't a given I guess with these banks.

dthom, I'm glad I asked, because two of my accounts are from Household. I sure do not want to be sued. Did they issue the summons after you were sent to collections (over 120 days)?

[j-nice]

Help, depending on the state you live in will determine the final collection laws. But MOST credit collections follow the same process. After 180 days (6 months) of non-payment the creditor will charge off the debt (they write it off as a loss on their books), they then sell the debt to a collection agency for pennies on the dollar. The collection agency tells you they are trying to collect a debt for the original creditor which is actually a lie because any money they recoup from you they keep (the creditor has already written off the debt and sold the account). The collection agency then goes after you through judgements. If they sue you then you must show up in court or it is an automatic default judgment and they can garnish your wages or seize your bank accounts (actually up to 20% of your pay).

The dollar amount does not determine if they will sue you or not. They will sue you if they determine you are collectable (i.e. have an open bank account, gainfully employed, etc). It is necessary to stay in communication with the collection agency and explain to them your inability to pay. They are sneaky and will pull your credit reports to see if you are paying others and they can even run traces to determine where you bank at based on your social security number. Basically, if you haven't paid a credit card in 6 months you need to be careful with your bank accounts and read any mail sent to you by the collection agency.

[muntingangel]

dthom...how late were u before they sent u the summons, just concerned and now scared cuz i have an acct with orchard and Household financial (the one with household is the biggest one..$13k), which i havent made payments on for 5 months now. Iam also ignoring their calls and just having the answering machine deal with them. Dont know what to do or say to them cuz we dont have the money right now to pay (we are now in the process of a loan modification). Do u guys think i should just tell them the truth that i cant pay them now, would they understand...PLS HELP!!!!!

[dthom]

helpsavemyhome

I have 2 cards with Orchard Bank. Both had the Acct Secure payment protection. I received a collection letter in Feb on one card, I call the collector immediately and let them know that I was in process of activating the Acct Secure so I would not have to make payments while husband was out of work, but he had to be unemployed for 30 days first. I again called them when I received the summons to go to court, of course they were rude and said there was no such thing as a payment protection plan. I then had to call Orchard Bank and have them confirm that I was on payment protection and they had to call of the lawsuit. Atty Office was then called again, they acknowledge the collection had been called off. I was to receive a confirmation to let me know the court had been dismissed. Never got it. I am just waiting for the letter of default judgemnt to show up, if it does I will take my paperwork showing I did not have to pay due to the plan I had paid for. I had only missed 3 payments on that particular card by the way before it was sent to collections, and only 5 when they attempted to sue me.
I have had cards tell me they were sick of hearing about people who were out of work, even wanted me to get someone else to pay my bills, yeah right.
I have always been an excellent payer until now, now my husband and I have become garbage to these cc companies. Doesn't matter we always been on time until now. Oh well, I build my credit again after all is said and done.

[dthom]

muntingangel

I answer when I want to. I constantly try to negotiate a payment I can afford now. at least they will have on record that I tried. If they won't work with me, I just keep trying. I find if the caller is from U.S and not India you can make them understand more. The ones from India just seem to keep reading the same page over and over again. Do tell them the truth, they may not seem to care, but they record calls I believe, I would be rich if I had a dollar for everytime I have gone over our story, even told them how much mortgage payment is,utilites etc. Told them to add it up themselves. Usually they will agree to at least stop the calls for a few days. Ones they wouldn't work with us, we have just told that they can call but since they refuse to work with us, there is no reason to talk.

[helpsavemyhome]

dthom and j-nice, thanks for the info. When HSBC sells my account to a collection agency, won't I receive stuff from them in the mail? I haven't received anything yet, just a letter from HSBC themselves telling me that they will 'forgive' some of the balance, if I agree to make three payments of $280. Now, if I had that kind of money, I would be paying my bills to begin with.

[michigan tsunami]

My Naca status now says pending. Anybody have any idea what that means???

[sarge]

Originally Posted by michigan tsunami

My Naca status now says pending. Anybody have any idea what that means???

Good morning Michigan,

I think it means they have all the docs in hand and their people who verify everything is the way it should be are looking at it. Mine said pending for a while then changed to submit to servicer-restructure after the last phone appt.

[michigan tsunami]

I don't recall last time saying pending. It went from incomplete to submit for restructure.

[sarge]

Thought I would post the news for you Michigan folks since it involves your state.

KALAMAZOO – Michigan will receive an extra $2 billion boost from the federal government to help weather the restructuring of the domestic auto industry and create new jobs, Vice President Joe Biden announced today. The $2 billion is in addition to the $7 billion in federal stimulus money already headed to the state.

And Wayne, Oakland and Macomb counties will be the biggest beneficiaries.

Biden said the U.S. Department of Treasury will issue $2 billion in bonds for Michigan – called recovery zone bonds – which drew whoops of joy from Gov. Jennifer Granholm, who hugged Biden on the outdoor stage before a crowd of about 200 at a Kalamazoo high school. The site overlooked a stretch of I-94 that will undergo a$48 million reconstruction, with four new bridges, paid for with federal stimulus money.

Biden said the recovery bonds will be targeted to states most hard-hit by the economy. Biden said the three metro Detroit counties will be among the top 10 counties in the U.S. in the amount they receive under the new program.

Biden said Michigan should be at the center of a national recovery, and touted the road construction project as a sign of economic opportunithy the stimulus money is bringing across the country. Biden said Michigan has suffered more than any other state from the national recession, and praised Granholm for what he called her enduring optimism and efforts to bring new jobs to the state

He predicted that General Motors will emerge from bankruptcy “relatively quickly,” and said it was critical that President Barack Obama decided to try to keep GM and Chrysler out of liquidation, which would have cost a million U.S. jobs.

“This is a time of transitions, new beginnings,” Biden told about 200 listeners, including about two dozen road construction workers from the new I-94 project at Westnedge Road, a main road leading to Kalamazoo. “We’ve got to look forward, which we are doing.

“We’re doing everything we can to get Michigan back on its feet, standing taller than it ever has to the country into the 21st Century, like it you did in the 20th Century,” Biden said.

Steve Smalla of Allegan, a member of operating engineers union working on the I-94 project, said he was grateful for the federal money that will pay for it. “We look forward to the money and the good jobs here in Michigan.”

Biden was also joined by U.S. secretary of Transportation, Ray LaHood, Lt. Gov. John Cherry, and U.S. Sens. Carl Levin and Debbie Stabenow.

Biden’s Kalamazoo stop was part of a two-day tour to Pennsylvania, Kansas and Michigan to promote the administration’s pouring of billions of dollars into road projects around the U.S.

[Rumor]

We need some good news around here!! Thanks Sarge

[michigan tsunami]

Unfortunately, Granholm will apply that money for the state shortfall in its current budget. Billions of stimulus dollars were supposed to go to medicaid for the states low income uninsured. It didn't because the money wasn't "clearly" earmarked.

[kayberrie]

Since credit card stuff was brought up here - I thought I'd drop a possibly helpful line. Do a google search for "debt validation." I think most of the info is on a credit forum, but it might come in handy for some of you. I went through a portion of the debt validation process with a medical bill that got confused/missed (one bill was from Northwest Hospital and the other from Northwest Physicians - just thought they were one in the same not catching the Hospital/Physicians). There is also a book I read called "Good Credit is Sexy." It had some good negotiation letters on the disc that came with it. I think there might even be a foreclosure section, but I haven't gotten into that section because I've been doing so much net research with all the recent changes to how things work.

[dthom]

michigan tsunami

I agree, if any of that money really goes where they say it is going it will be a miracle.

As of this week, husband had to start having income tax taken out of his unemployment so we don't end up owing taxes next year ( still not sure if we will or not,but if we do maybe it won't be as much). Between state and fed taxes we will now have $120 less per month to pay bills with. Wonder how this will effect our modification if they ask of updated income proof again. So there went the additional $25 per week increase and a little more. Easy come easy go! Won't be long and he will have to file for first extension.

[FedUp02]

If you have a credit card that you have continued to pay at least the minimum monthly payment, or more when able, and are current, and they check your credit report, and it's not good, they will cancel the card.
Just a warning - keeping up payments on time every month will no longer mean sh#@ if your credit rating plummets.