Here is my loan modification or foreclosure story. I am not sure which one it will be yet. I will document my journey periodically on this forum in case it helps someone, since I have received valuable information from all of you.
I purchased my home in 2004 for $415,000. Due to a period of unemployment, a break-up, and a current low paying job, I can no longer afford to make the payments on my 1st mortgage with AHMSI ($285,000) or my second mortgage with Wells Fargo ($125,000). I have already depleted my 401K and have run up $14,000 on my two credit cards. I would probably still be using those cards to help me pay both mortgages if Chase had not lowered my credit limits on both cards. I have never been late on either card, but since I started using them more frequently, they cut me off. I am now maxed out on both cards and have no way of paying my full mortgage payment. I am going to try to keep up with the credit card payments though. Below is what has happened so far:
July 1, 2010: First payment missed ($1335)
July 11: Mailed HAMP package to location in TX.
July 19: Received 3 calls including one robo call voicemail advising me that there is an important message for me and I should call right away. I didnít.
July 20: Received a call this morning from a guy in India. He wanted to know if I wanted to make a payment today. I said no, since I had sent in the HAMP paperwork and was waiting to hear back from them. Plus, I did not have the money. He warned me about hurting my credit score and about receiving additional collection calls until the payment was made, but overall he was pretty nice. (I am sure this will change in the future).
June 8, 2010: I received a letter from AHMSI advising me that my taxes have not been paid (I missed both the Dec 2009 and April 2010 installments). They were giving me 30 days to prove I have paid my taxes or they will pay them and add them to my loan.
July 9: Received another letter stating the same thing but giving me 15 days to either pay or prove I have paid my taxes or they would pay them an attach them to my loan.
July 20: Tomorrow I will be officially late with my payment ($450). I will probably be proactive and give them a call this week to see if a can do a loan modification with them. I could find no documents on their website so I guess I need to call them.
That is all for now.