Starting the AHMSI loan mod process...what's the best way to start?

[kalene348]

Hi Everyone,

I'm just starting the loan mod process right now....just spent 2 hours putting together my hardship letter!

Any suggestions on where to begin and who to fax/email the letter to first?

My plan was to fax and email my letter to Jeanne Drake and follow it up with a phone call, in hopes that she will tell me what else I need to submit.

Should I include other documentation (i.e. bank statements, tax returns...etc) with my letter or should I wait until my file is passed on to a negotiator?

Any tips are appreciated..thanks!

[Hank123]

Send in everything as a complete package! It may take a little more time for you to put together, but that's the best thing to do.

We sent in hardship letter, 2 bank statements for every bank account we have, 2 month's worth of paystubs, a breakdown of monthly expenses, last year's tax return, and IRS form 4506-T (you can get from the IRS website), allowing AHMSI to pull our tax return for 2008, as well as a copy of a current utility bill to show that we're still in the house.

We faxed it all over to Jeanne Drake's office and followed up the next day to make sure that they'd received everything.

Our negotiator faxed over a couple more documents that she needed and that was it.

Having everything ready to go made our process go much faster and much more smoothly, I'm sure.

Good luck!

[kalene348]

Thank you Hank123 for your advice!

Did you also include the "Financial Analysis for Loss Mitigation Workout" form that's on AHMSI's website? The customer service rep (aka the debt collector that calls me 4x a day) said that I should fill this form out...but from what I've learned on this forum, the customer service department and Jeanne Drake's department work differently.

Also, does anyone know if I can add my husband as a co-borrower on this mod even if he isn't on my current loan now? His income makes our situation look so much better; and in reality, it's how we've been getting by for the past 5 years!

Thanks again.

[Hank123]

Originally Posted by kalene348

Thank you Hank123 for your advice!

Did you also include the "Financial Analysis for Loss Mitigation Workout" form that's on AHMSI's website? The customer service rep (aka the debt collector that calls me 4x a day) said that I should fill this form out...but from what I've learned on this forum, the customer service department and Jeanne Drake's department work differently.

Also, does anyone know if I can add my husband as a co-borrower on this mod even if he isn't on my current loan now? His income makes our situation look so much better; and in reality, it's how we've been getting by for the past 5 years!

Thanks again.

Hi,

We did our own statement of income and expenses. Our negotiator sent us the actual form that she wanted us to fill out, which was different than the one on the website. I'd just go ahead and create your own, sign it under penalty of perjury, and include that with your package. If they want something different, they'll let you know.

I'm the only one on the loan, so while I included information about my wife's income on the income/expense sheet that I created, I didn't include it in form that she sent to us - the financial analysis form - as a co-borrower, since she isn't.

But in the hardship letter I discussed her income, I provided her check stubs, and the negotiator asked her to create a Profit & Loss statement since she's an independent contractor.

Hope this makes sense. And ask away - it's a scary process and having just finished it, I'd like to help people where I can.

[mmeisner]

Fwiw, I did like the above poster and included my Sig Others income, bank statement, and pay stub along with her signature to use when I submitted my paperwork.

It took me months before I finally contacted Jeaneen Drake who seemed to spark a fire under my account manager.

best of luck

[ekana777]

For what it's worth...hope it helps:

My story, as condensed as possible:

Bought in Florida 08/06. $465K. Nothing down. 80/20 loan through Option One (later AHMSI, of course). 7.5% ARM on 80, 12.5% fixed on 20. Stupid me, stupid bank...does'nt matter now...we're in the stew. Move forward. Began setting the stage in July '08 for a mod with AHMSI in anticipation of a potential layoff and a looming rate increase on the ARM. I was current, never late to that point. Got ZERO response.

LESSON 1: They WILL NOT acknowledge you exist if you are current. You must make the decision to go after a mod with all of the inherent consequences and stop paying, or get on with a short sale/foreclosure/some other plan.

I made the coice to bulldog it. I stopped paying in August '08. It got their attention. I began a process of calls/faxes/letters/threats (by them & me) and overall all-out warfare. Without rehashing details, if you have read any of the other accounts of dealing with AHMSI on this site...I did every bit of it and more.

LESSON 2: This is not for the faint of heart. Unless you have the tenacity, willingness and backbone to follow up EVERY DAY and keep detailed records, consider another plan or hire a reputable attorney.

Was denied a mod on 3 different occasions during Sept/Oct '08. Kept fighting & escalating the battle using every resource available (ie: call all of the "free consultation" attorneys in your area, search out sites like this one (the best I've found yet), ask questions of EVERYBODY...you never know who will come up with the next "best" suggestion, NEVER give in, never stop faxing/writing letters (forget calling...it's a waste of time and you'll have no verifyable record of the attempts you have made to reach a work-out when it finally goes to court).

LESSON 3: Trying to call AHMSI is a waste of your time. 'Nuff said.

October 15th 2008...the call came...lost job. Mod was actually in the works (hard to believe, I know). They tried to backpeddal but I kept after them to finish the mod. PLEASE NOTE: this worked for one reason only...I was put on a severance package that would continue to pay me as before for a period of time. Not everyone will have this benefit. Early November they approved a mod. The negotiator actually called me and said the following words to me, and I quote "This is our only offer...take it or leave it". I print this only to confirm the mind-numbing lack of professionalism and customer service at this pitiful excuse for a company.

LESSON 4: DO NOT take any of what you are going through with AHMSI personnaly. It will cloud your judgement and you will lose your focus

Mod docs came in November. 5% ARM on 80. 7% fixed on 20. Not bad for an amateur. Many were amazed that I got a mod out of AHMSI on my own...not me. Fast forward to April '09. HAMP program was announced in March. House sinking further underwater (current value...about $275K). WOW...I'm making payments on a house that I put nothing down on that has lost almost half it's value while property values continue to fall and I don't have a job and even if the market miraculously rebounded tomorrow it would likely be 30 years (aka...the rest of my life) before the home gets back even close to the purchase price...WAIT...what am I doing?

LESSON 5: Step out of yourself and look at the entire process as a business decision. Very difficult to take emotion out of it...but do it. It's a house...not your life. Stay rational.

After realizing and accepting that I could and would walk away if I had to, it was easy to take the next step. AHMSI needed to re-modify me to fit my current circumstances AND address their part in a bad business decision (ie: giving a 100% loan on a $465K house without any regard for a potential real estate meltdown...pretty lousy business planning, huh?). Stopped paying in May and began the mod process again. Was told "no 2nd mod within 12 months". BS, I say. The "old rules" don't apply. We are in unprecedented and uncharted territory. All bets are off. Throw out the "old" rule book and lets deal.

LESSON 6: Wake up. We are witnessing the biggest financial crisis, particularly in real estate, that this country has ever seen in terms of the sheer volume of it. New ground MUST be charted. DO NOT accept answers that begin or end with "that's how we have to do it based on our regulations".

I got calls every day, 2 times a day from our friends in Calcutta and Mumbai to make my payment until I invoked the hardship letter and told AHMSI that I wanted to be considered for the HAMP program. A program, by the way, that AHMSI DID NOT initially sign on to but, with pressure from the FEDS agreed to administer in July. All collection calls stopped. In fact everything stopped. No letters, no calls, no faxes, no response to my faxes/letters....WHAT IS GOING ON? Well, last week I got my notice that I MAY qualify for the HAMP program and all previous mod offers would be pulled (not sure what this means at this time) and that all foreclosure proceedings would be put on hold until it was determined if I qualify. Letter also said that if I do not qualify for HAMP I would again be considered for another AHMSI mod. I am in the process of pulling together the required docs and have until 9/21 to submit with an offer to "call if I need more time". I won't call, but you can bet I'll fax and write for additional time...the one commodity that is ALL in my favor.

FINAL LESSON: Time is your friend...especially if you have reached the point of not paying and accepted the road that puts you on. The longer you can live in the home without paying, the better. You don't even need to think about that. Understand this: Every day that goes by without AHMSI receiving a payment on their mortgages they are not fulfilling the demands of their investors. As that scenario unfolds and the home values continue to fall, there will have to be a day of reckoning. AT THE END OF THE DAY, THE HOME WILL ONLY BRING TO THE INVESTORS WHAT THE CURRENT MARKET VALUE IS. If that value is going down, they will want to stop the bleeding sooner rather than later. A foreclosure would fall into the later category because it WILL TAKE A VERY LONG TIME IF YOU EXERCISE EVERY LEGAL OPTION TO STALL IT. So, keep at at it and MAKE them negotiate with you. I'm hearing "they won't do principal reduction". I say BS. What do you think it is if they have to take a sale of $250K on a $465K investment? AND...with all of the expenses to carry the home for however long it takes to sell, they'll get even less. I say, knock off 40% of my mortgage to cover your part of the stupidity of WAY over-finanacing a home and lets set up a plan that works within my means for the remainder (a fair and equitable market value) so that I can pay my share of the mistake. Hey...isn't that what the HAMP plan REALLY says?

Last note: Go to the HAMP site and download the program. It outlines every detail and spells out what the mortgages companies are REQUIRED to do if they have signed on to administer the program. This should be your Bible.

Good night, and good luck.

[kalene348]

I cannot say THANK YOU enough for your advice and encouragement. I'm scared, stressed and nervous that we will lose our home... your help and support is very much appreciated.

As I was looking more into the HAMP program, it seems like this will only apply for homeowners that are current. Is this really the case? I've already missed two payments. Should I still submit the HAMP application form along with my other docs to Jeanne Drake's office?

[brynne]

Hello,
I have all of our documents ready to send in for a loan modification, I'm hopeful any way. I've been seeing a fax number for Jeanne Drake on the forum but it's not the number the customer service rep gave me. Which one should I use?

I hope this works, we're just barely staying afloat because of work loss and struggling to keep it all together. Thanks so much to all who are here. Your stories are encouraging!!