A Nor Cal story with AHMSI and Wells Fargo

[Tryingtostayafloat]

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 1^st 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:


AHMSI:
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 didn’t.
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).


Property Taxes:
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.


Wells Fargo
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.

[Evan Bedard]

Welcome and thank you for joining the forum.

I'm sorry to hear the unfortunate circumstances that have occurred, but I would not be avoiding AHMSI at this time. After you apply for a modification it is crucial that you follow up at least once to twice a week to ensure your case is being worked on and no more information is needed from you. Pretty soon they should assign someone to your account that you can follow up with on a regular basis.

As far as your property taxes goes they are going to add them to your account if you do not make your installments on the due date. The taxes must be paid so you will not be able to avoid them being tacked on.

You definitely will want stick around this forum and feel free to join other discussions. Most everyone here is a homeowner just like you and going through the same things.

[Maurice Bedard]

Thanks for sharing your story. Yes, it does help the many people who will read your story for inspiration and tips. Your words will be forever immortalized on this site as part of history.

Sounds like a good plan.

I did find an online Wells Fargo mortgage help portal:

https://portal.earlyresolution.net/p...iz8Hu2iDOvS.go


Maybe you can get help there.

I look forward to reading your story as your progress~

[Tryingtostayafloat]

Thanks Evan and Moe for your advice and support. Moe, I tried the link you provided but all I got was the message, "Resource Not Found-requested URL not found on this website." However, I was able to talk with Wells Fargo this morning. Here is what happened:

I talked with two representatives from the Wells Fargo Equity Assistance Dept. The entire call took about 35 minutes. Both reps were nice and helpful, but keep in mind I am only 1 day late. Here are the details of my HELOC and call.

HELOC: $125,000 at 4.24% APR. I am only paying interest and must pay it back in full in 2014.

First representative: It took me 3 calls to get to the first representative as my calls kept getting disconnected. I used the ph# 877-628-9584. I was informed later that the better ph# is 888-248-1405. He asked me some questions and then connected me to a Home Equity Specialist (866-587-4012).

Second representative: She asked me a lot of questions including: my hardship, if it was ok to pull my credit report, my income, if I had any other assests such as 401K, stocks, bonds, insurance policy, cars. She advised me to send in my two most recent paystubs, my W2's for 2009 and a hardship letter including an explanation of how I plan to pay down my HELOC in the future. She told me to fax the information to: 866-593-3578. She said once they received all the paperwork, they would call me in 5-7 business days to discuss my options. (The first rep did mention they have a program where they will lower your interest rate for a 12 month period.) She mentioned that once they receive my paperwork the entire process could take anywhere from 30-60 days. She also gave me the mailing address so I will probably mail it to them to save some money.

Here are my stats:
Total loan amount: $415, 000 (I still owe $410,000)
Current value of home: $275,000
1st mortgage: AHMSI, first missed payment July 1 ($285,000, 5 year arm that has already adjusted to include principal. Loan adjusts every 6 months based on the Libor rate. Current rate= 2.75%
2nd mortgage: Wells Fargo HELOC, first missed payment July 21 ($125,000, 4.24% APR)
Property taxes: officially delinquent as of 6/30/2010
Insurance: current
HOA: current

That is all for now.

[Maurice Bedard]

Don't pay your credit cards if you can't pay your mtg. Your credit will be shot either way. If you can, skip paying the cards and pay the mtg. If you still can't pay the mtg, don't pay either. Save your money for the move that may be coming, and get ready to file for bankruptcy, just in case. If you are paying on the second, stop that too. Always pay your mtg first. It is better to have a house and no credit cards, than no place to live and twomaxxed out credit cards. They will keep lowering your limit as you pay it off if you make payments. Use your cash for necessities. If you have your checking or savings with them too, change banks immediately.

[Maurice Bedard]

Thanks for the update. Sorry about that link. Here is another link https://www.wellsfargo.com/jump/mortgage/assist and then you could find links to departments or help on this page.

Good advice ******!

[yomann]

.............. If you are paying on the second, stop that too. Always pay your mtg first..............

It is pointless to pay on the 2nd, until you have resolution on an acceptabe mod with the 1st.

[Tryingtostayafloat]

******, thanks for the straight talk and good advice. Even if I stopped paying on my credit cards, there is no way I can still afford my mortgage. My strategy is to keep paying on my cards in case I need to move out into an apartment. I know a landlord will forgive a foreclosure, since most of their new tenants are former foreclosed homeowners, but probably not unpaid credit card debt. I also realize due to the many posts on this forum, that my limits will keep decreasing and will probably be closed as I become more delinquent on my mortgages. As I pay them down, I will at least have some emergency funds. I am planning on paying only cash now for most puchases. I realize now that the credit card companies giveth and they also taketh away. Credit can never be counted on. Finally, I am taking your advice about opening up a new checking account at a different bank. I know that Wells Fargo, and probably other banks, have been known to transfer money from your checking account into your HELOC as it remains unpaid. I am not going to let that happen. Thanks again.

Yomann, I agree with you. I am not going to pay on my 2nd until I get a loan modification from my 1st.
________

Total credit card debt: $13,570 (limit is $13,900)
Miinimum payment: $300
Ist mortage: stopped paying July 1 (payment is $1335)
2nd mortgage: stopped paying July 20 (payment is $450)

[Maurice Bedard]

If you quit paying, you wil have more emergency funds. Right before they foreclose and complete a sale, you can file bankruptcy and stay a while longer. If you save the cash from the mtg, and the credit cards, you will be able to pay maybe 6 months rent up front. A bankruptcy will look about the same to a landlord or property mgr. Believe me, as a former landlord, I would rather have several months prepaid rent from someone with a bankruptcy that one month at a time from someone who protected their credit cards but gave up their home. That would show me that you continue to desire to live using credit. If your house is foreclosed, you won't be able to use the cards for any type of emergency. Save the cash, and you know it will be available

[Tryingtostayafloat]

******, Thanks for the advice. I guess I am not mentally ready to even consider bankruptcy or not paying on my credit cards at this point. It took me a long time to finally realize that I could no longer pay on my mortgage and may face forclosure. I now realize that foreclosure may be a good thing. I can move closer to my job (I currently have a 60 mile round trip that is getting on my nerves). I will actually be able to save money, and I won't have to worry about mowing my lawn or doing yardwork. I am not really emotionally tied to my home. I am going to do more research though, and I suppose as I go through the loan modification process and continue to get calls, I may be more open to the bankruptcy.

I did just get back from opening up a new checking account at a bank other than Wells Fargo. I will also update my direct deposit to this new account.

That is all for now.
____________________

1st mortgage: AHMSI, $285,000 (first missed payment July 1)
2nd mortgage: Wells Fargo, $125,000 (first missed payment July 20)
Current value: $275,000

[Tryingtostayafloat]

I called a few apartment communities today to see if they would accept a renter with a foreclosure and bankruptcy on their credit report. The consensus was that a foreclosure is acceptable and a bankruptcy is too, as long as it has been discharged. They all said that I may have to pay a higher deposit though. One said the deposit would double with a foreclosure and bankruptcy.

Does anyone know approximately how long it takes from the time you file bankruptcy to the time it is discharged?

Also, does anyone have an opinion about if I should file bankruptcy or not, if I can not get an affordable loan modification? My only debt other than my home is the $13,570 I owe on two credit cards. So if I am able to rent an apartment for $1000 and pay the minium on my cards which is $300, I would still have $740 left over for utilities and groceries. My total net income right now is $2040. If this was you, would you still file bankruptcy?
______________
1st mortgage: AHMSI, $285,000 (first missed payment July 1)
2nd mortgage: Wells Fargo, $125,000 (first missed payment July 20)
Current value: $275,000

[Maurice Bedard]

You could file just to slow down the foreclosure and save the payments while living there until your BK is final, or discharged, or you cancel it. It could eliminate the amount owed on the second completely, and keep them from coming after you. And maybe justfiling the BK will help make the bank know you are serious about needing a mod. If you haven't already, apply for the mod and wait a while before filing for BK. If you file for BK first, you have to wait until it is discharged to apply for HAMP. Based on the little info given, I don't think you have enough income to qualify for HAMP, even if they forbear the maximum amount. If you gross about $2500 a month, you only qualify for about an $800 payment including tax/ins/hoa. I am guessing about a $150k mtg. If the value of your home is $275k, they won't forbear that much. And they certainly won't forgive that much. You look like either a foreclosure, short sale, or deed in lieu of foreclosure is in your future.

Based on that, I personally would try to go through the mod process, while making no payments, and save the money, prepare to move, pack things, maybe rent a storage unit, and stay in the house until you actually have an auction date. Then file bankruptcy, make sure you save your funds in cash. The BK attorney can further delay the foreclosure, saving you even more payments.

[Tryingtostayafloat]

Thanks ****** for the advice. I do think foreclosure is probably in my future, so I guess I will just play the modification game as long as I can and see what happens. I did send the HAMP paperwork for my first mortgage (AHMSI) a couple of weeks ago (7/11) and have not heard back yet. I have not received a call form them in six days. I did receive a call this morning from my second (Wells Fargo) just wanting to know if I had faxed the HELOC loan mod paperwork yet. I told her I mailied it yesterday 7/25. Wells Fargo seems definitely on top of things which makes sense since they have the most to lose.

________________________
1st mortgage: AHMSI, $285,000 (first missed payment July 1)
2nd mortgage: Wells Fargo, $125,000 (first missed payment July 20)
Current value: $275,000

[Tryingtostayafloat]

I received my first delinquency letter from AHMSI. It said my payment is now over 20 days late and I should make a payment before it goes 31 days late or they will notify the credit bureaus and send me a Notice of Intent to Foreclose letter. They also offered 4 possible solutions:


-Repayment plan or special forbearance
-Loan modification
-Short sale or Pre-Foreclosure sale
-Deed in Lieu of Foreclosure

They also advised me to go on their website and fill out their financial analysis form and send a hardship letter, two current paystubs and two bank statements. It is interesting that they don't mention the HAMP program which is what I am applying for. I guess they do not want to advertise that.
___________________
1st mortgage: AHMSI, $285,000 (first missed payment July 1)
2nd mortgage: Wells Fargo, $125,000 (first missed payment July 20)
Current value: $275,000

[Tryingtostayafloat]

I just received my second call from a guy in India with AHMSI (the first call was July 20). He asked me if I could make a $1402 payment today. I said no. He told me that if I did not make a payment by July 31 he would report it to the credit bureaus and send a letter of intent to foreclose. I told him that I was waiting to hear back from the Hamp application I had already sent to TX. He said a loan modification could take from 30-60 days and he asked if I was not going to send my payment until my loan was modified. I said yes, that when I get an acceptable modification I would send a payment. He said he would document that. He also wanted to know why I could not pay and I told him that I had already put that information in my HAMP application. He also said that I should call in three days to update my situation. I do not think things are going to change much in 3 days though unless I win the lottery.
___________________________
1st mortgage: AHMSI, $285,000 (first missed payment July 1)
2nd mortgage: Wells Fargo, $125,000 (first missed payment July 20)
Current value: $275,000

[Maurice Bedard]

Whenever someone with a foreign sounding accent calls me, I tell them I can't understand what they are saying. It sounds terriblr to say this, but it really seems to confuse them, and they generally just say good day and hang up. I apologize profusely, and just tell them I have trouble with accents.

[CALIGurl]

Hi All,

We're currently in the process of a modification with American Home Mortgage except it's impossible to get a hold of the person handling the modification, Cal Nguyen. The customer service reps do a great job of telling us that we will hear something but it's been nearly 7 months since they've had our info. Does anyone have a phone number besides the main 877-304-3100 #?

Thank you!

[Tryingtostayafloat]

******- thanks for that suggestion. I may have to use it when they keep calling and asking the same questions over and over again.

CALIGurl-Try 800-505-3706. I found this number on another thread. I believe it is to their retention department. So you have been trying to get your loan modified for 7 months. What are they telling you is the hold up?

[Maurice Bedard]

The guy from India(?) hasn't called back after being unable to understand his accent the two previous calls. He had been calling weekly at least. Now someone named Jessica is calling, and seems to want to help, but reaaly can't do anything, since her job is basically to try to harass me into making a payment.

I think this may turn out to be a way we can fight against outsourcing calls to other countries, or at least to get people who can speak clearly.

[Tryingtostayafloat]

I received a letter from AHMSI yesterday acknowledging that they received my HAMP paperwork. I mailed it on 7/11/2010 and the letter is dated 7/27/2010 so it seems they are pretty on top of things, plus the calls have stopped (it has been 8 days since I have received a call from my friend in India). The letter basically states that as long as they have all the required documents, it will take 30 days for a determination from the date my package was received. They will use the NPV model to make the determination, and if I do not qualify they will send me a letter with the reason why within 10 business days. My favorite quote from the letter is:

"If the HAMP NPV model yields a negative result (that is, a foreclosure will provide a greater return to the owner of your loan than a modification), you are not eligible for a HAMP Modification."

At least they are honest. The bottom line is that the investor makes the ultimate decision whether or not you will qualify for a modification.

I am gradually accepting the realization that I will probably need to foreclose on my house. I recently discovered a leak in my hallway linen closet. I am not sure why this is happening since it is the middle of summer and it has not rained in two months. I am assuming that it is a duct leak from running the air conditioner, but I can not access that part of the attic to check it out. I know this will be another large expense though that I can not afford. The closet ceiling is now one big water stain and I have to use buckets to catch the water dripping. I am trying to use the air conditioner only when it become unbearable now.

Well, this is all for now.

___________________________
1st mortgage: AHMSI, $285,000 (first missed payment July 1)
2nd mortgage: Wells Fargo, $125,000 (first missed payment July 20)
Current value: $275,000

[Tryingtostayafloat]

Wow, I just got a voicemail from Wells Fargo (my HELOC) which said that they have received my in-house loan mod paperwork and the decision is still pending. The message stated that I did not have to call back. I am surprised to hear from them so soon since I just mailed the paperwork to them on July 25 and my first missed payment was on July 20. I have decided that I am not going to play the calling and waiting on hold game with either of my lenders, so it was nice to get an update without having to call them back. I am also fortunate that I am prepared to walk if I have to.

__________________________
1st mortgage: AHMSI, $285,000 (first missed payment July 1)
2nd mortgage: Wells Fargo, $125,000 (first missed payment July 20)
Current value: $275,000

[Tryingtostayafloat]

Wow, I just got a call from a rep from Wells Fargo trying to scare me into making a payment on my HELOC. This guy was really good and a bit intimidating. My first missed payment was on 7/20/2010 so I am only about 18 days late. I told him I would not be making a payment until I received an acceptable loan modification. He verified that a loan mod was in process, but then asked me if I realized that if I do not make a payment it could affect the outcome of my loan mod. He tried to get additional info from me but I just confirmed my address and confirmed that I am late with my 1st mortgage as well. I stood firm with him during the entire call and he eventally gave up when he realized he was not getting any money from me today. They actually called first at 8:30 AM which woke me up, but I did not answer. Then they called again at 10AM and I did answer, but it was just a recording telling me to hold for a bank representative. I held for a couple of minutes, but then no one came on the line so I just hung up.

I see that this process is not going to be easy especially as I become more delinquent with my payments. I am going to have to stay strong and be resilient to get through this.
__________________________
1st mortgage: AHMSI, $285,000 (first missed payment July 1)
2nd mortgage: Wells Fargo, $125,000 (first missed payment July 20)
Current value: $275,000

[SinkOrSwim]

Good for you! 'Strong and resilient' should be key words on this forum.

We, too, are in Nor Cal and basically facing a foreclosure, aka Strategic Default ~ whenever Chase notices we missed our first payment in July....

And when the phone calls start coming, I too plan to be 'strong and resilient.'

Thanks for sharing your story. And Good Luck!
____________________
House worth: ~$250k
Chase 1st: I/O ARM - $368k - Adjusts 2013
BoA HELOC: $7k

[Tryingtostayafloat]

SinkOrSwim, thanks for your encouraging words. I just read your thread and I agree, Chase does Sux. I had 3 credit cards with Chase and in August of 2009 they abrubtly closed one and lowered the credit limit on the other two to the current balances. Then, if that was not bad enough, they more than doubled my interest rate on both cards. I have had at least one of the Chase cards for over 20 years and during that time I have never ever made a late payment or went over my limit on any of my cards. I would have no problem with them doing this if I had handled my cards irresponsibly, but I have not. This has helped me to realize that it really does not matter how responsible you are with your finances, the powers that be will always be able to take something away from you. If I decide to declare BK7, I am going to lead a debt free life and pay cash for everything.

I am not strategically defaulting though. I have come to the realization that there is no way I can afford my house. I am going to give them a chance though, and see if they will give me an acceptable modification. If not, I will have to accept the forclosure.

I can not believe that Chase has not called you yet. That is a good sign, and you probably will be able to stay in your house longer due to their disorganization. I do not think I will be that lucky since my banks are all over me. I will be happy if I can stay here through December though. Good luck to you too.

[Tryingtostayafloat]

SinkorSwim, Thank you for your encouraging words. I just read your thread, and I too, think Chase sux. I had 3 credit cards with Chase and in August 2009 they abrubtly closed one and lowered the credit limits on the other two to just the current balances. They also more than doubled the interest rate on both cards. I would not have minded this if I had been irresponsible with my cards but I had not. I had one card for over 20 years and had never ever had a late payment or went over the limit on any of the cards. It made me realize that it does not matter how responsible you are with your finances, the powers that be can always take it away from you. If I decide to declare BK7, I will pay everything with cash since I no longer trust credit. If it is not your money you do not have control over it.

I am not strategically defaulting though. I have come to the realization that I can no longer afford my house and if they do not give me an acceptable loan mod, I am going to foreclose.

I can not believe you have not received a call from Chase or B of A yet. It may be due to their disorganization which means you probably have a longer time in your house. My mortgagers are all over me, so I am just hoping to have until December before they throw me out. Good luck to you as well.

[Tryingtostayafloat]

****Update****

I just talked to Wells Fargo, and my loan mod has been denied due to my debt to income ratio. I currently have $3100 worth of bills each month and am only netting $2040. I really expected this denial so I am not surprised. She did say though that if I am approved for HAMP on my 1st mortgage that I would automatically be approved for 2mp with them. That will be my only option other than filing bankruptcy. I do not have much hope that AHMSI will approve me for HAMP, but I will wait and see. It looks like bankruptcy and foreclosure are in my future.

__________________________
1st mortgage: AHMSI, $285,000 (first missed payment July 1)
2nd mortgage: Wells Fargo, $125,000 (first missed payment July 20)
Current value: $275,000

[Tryingtostayafloat]

Well I got my morning wake up call form Wells Fargo. They called at 9AM on the dot. Of course I did not answer it since I was half asleep. The voicemail left said I should call them right away since they had something important to tell me. Yes, I think I know what is important to them....they want their payment. I assumed they would call back but no calls yet and it is almost 4pm. I also received a couple of letters from them this week. One told me I had been declined for the loan mod (which I was already told by phone) and the other was an offer to give me financial counseling for free. They state that it is a $150 value. I am sure they would be counseling me to pay my HELOC so I think I will refuse the class. Plus the only reason I am in so much debt is because of this house not due to reckless spending.

I did decide to investigate my hallway closet ceiling leak today. I was getting nervous since the leak was now coming into the hallway and the ceiling was buldging. Plus I was nervous about the mold growing on the ceiling. Is it the toxic mold? I do not know, but just in case I have to live here another 6-12 months, I want to get rid of it. The ceiling is about 4' by 1' so it is not that large of an area. I tore out the shelves so I could get my ladder and myself in the small space. (The frame of the closet has been leaking for a couple of weeks now so I have just had a couple of buckets under it). I climbed up on the ladder and poked the ceiling with a screwdriver and a steady stream of water came out. I then took a knife and cut around the edges of the drywall but it did not come down even though it was very soggy. I then took a pair of long pruning shears and began to poke at the ceiling and the drywall came crumbling down along with the popcorn insulation. So it was a big mess. As the insulation came down, a pink, plastic water pipe became exposed. This pink water pipe had a tiny leak in it . It was so small that it was misting and not dripping. The pipe says right on it that it is approved as an undergroud water main...then why was it it my attic? Oh well, I am glad I found the source of my problem and I put some electrical tape around it which caused a steady drip into a bucket. I now have to figure out how to fix it. I am hoping that plumbers putty will do the trick at least temporarily.

This house is slowly becoming a money pit. I guess I should not really complain since I have lived here almost 6 years with no major problems, but now they are starting. In the past, I would have paid some one to find and fix a leak, but now I have to do it myself. It actually made me feel good that I figured out the source of the leak myself. Now I just have to figure out how to fix it.

[Tryingtostayafloat]

I just talked to Wells Fargo (I figured I should probably answer the call since they called twice on Saturday and twice on Sunday). The guy was actually pretty nice. He advised me that I am now 27 days late with my HELOC payment. He also said that after I am 60 days late, the loan will start being prepped for charge off and sent to their attorney's office. He said that I would still be responsible for the debt. I do not think this is the case though since CA is a non-recourse state and the HELOC was used to purchase the house, but I was not going to argue with him. I also have the option of bk 7 since my income is so low. I just told him that I was still waiting to hear from my 1st regarding my HAMP application, but that if it wasn't approved I will be foreclosing. He offered to transfer me to his supervisor to see if anything could be done but I told him I did not have time for that. I told him that I had already been denied on August 9 for a loan mod. He said that I would probably be getting another call in 3 days.

I will probably keep answering their calls until I get the final word form my first regarding my HAMP app. I am surprised that I have not received a call from AHMSI since July 27. If I am declined for the HAMP, I will either file for BK7 or at least send a cease and desist letter to stop the calls.

__________________________
1st mortgage: AHMSI, $285,000 (first missed payment July 1)
2nd mortgage: Wells Fargo, $125,000 (first missed payment July 20)
Current value: $275,000

[Maurice Bedard]

Your pipe should say what type of pipe it is. You can repair it by finding the same type of pipe at a home depot, buying a connector fitting, and cutting a small piece to cover the hole. Get the right pvc cement and cleaner, shut your water off, drain your pipes by turning the faucets on, dry the pipe, and apply the cement to the piece and some to the pipe. It isn't really a cement. It actually will bond the two pieces together by 'melting' them. In the alternative, you can cut out about one inch of the pipe and get the connector piece and glue that in. You can even buy all the pieces at the same time and try the quick fix first. All the pieces and glue shouldn't cost more than $5. Just buy two of the connector fittings. Another option is a couple of hose clamps and a piece of rubber. Is this pipe hard plastic or flexible? If it is flexible, all you need is to splice the two pieces with the right size fitting inside the pipe and a couple of hose clamps.

[Tryingtostayafloat]

Wow ******, are you a plumber? Thanks for the advice. I will probably try your first suggestion and see if that will work. I do not want to cut the pipe as once I do that, and if am unable to fix it, I will have to call in a professional. The ACE Hardware guy told me I should use this selffusing tape, but it did not work. I still have the pipe wrapped in a combination for selffusing tape and electrical tape so there is just a very slow drip coming from the pipe which make it manageable. I am not sure how long it will last though.

Still no word from AHMSI about my HAMP app...no calls and last letter I received was on 8/3/2010. No calls from Wells Fargo since 8/15.

[Tryingtostayafloat]

I just got my first certified letter! It from the law firm of Moss Codilis, LLP. They are representing AHMSI and the true owner of my loan: Bank of New York Mellon Co. The letter states that I am in default on my loan and basically that I have until 9/21/2010 to pay up or they will start to accelarate my loan toward foreclosure. My 1st is currently 52 days past due so that letter came quicker than I expected. there is still no word on my HAMP mod and I received one call from them lately on 8/19/2010 but no message was left.

Wells Fargo, though, has been hounding me every 3 days. I talked to a woman this morning who was again pretty nice. She said that they are required to check in with me every 3 days even if my situation has not changed. I was kind of rude to her and told her that the calls were a waste of my time and hers as nothing has changed, and I am still waiting to hear from my 1st. She said she would transfer me to her supervisor who could stop the calls every three days, but after waiting a couple of minutes on hold, I just hung up. I guess I will just tell them the same thing in 3 days. It is now starting to feel like Ground Hog day. Has anyone seen that *****? I am now 33 days late on my 2nd.

________________________
1st mortgage: AHMSI, $285,000 (first missed payment July 1)
2nd mortgage: Wells Fargo, $125,000 (first missed payment July 20)
Current value: $275,000
HOA: $54 a month (current)
Insurance: $40 a month (paid through October 2010)
Property taxes: $5000 per year (delinquent since 6/30/2010)
water pipe in closet: still leaking...slowly

[Tryingtostayafloat]

I finally received a letter from AHMSI in regards to my HAMP app. They are saying that they did not receive a copy of my most recent, signed federal tax return. Yes, they did! However, now that I am thinking about it, I am questioning whether or not I signed it and included copies of my W2's...so why do they not just say that on the form? Because it is just a form letter. I now see why this is a common problem. The banks are not specific enough in regards to what they are actually missing. I have until 9/17 to fax in the "missing" document. I will probably do it, even though it will be a waste of time. I am not sure why it took 3 weeks to notify me of this but, I am grateful that this just extends the process, which means I will be able to stay in my home longer. I am already resigned to the fact that I am going to eventually lose my house so why not just play the game.

______________________________
1st mortgage: AHMSI, $285,000 (first missed payment July 1)
2nd mortgage: Wells Fargo, $125,000 (first missed payment July 20)
Current value: $275,000
HOA: $54 a month (current)
Insurance: $40 a month (paid through October 2010)
Property taxes: $5000 per year (delinquent since 6/30/2010)
water pipe in closet: still leaking...slowly

[Tryingtostayafloat]

I just got off the phone with Wells Fargo. The first person I talked to just asked me the standard questions. She was mainly concerned if I was going to make a payment since I am 43 days late on my HELOC. I just gave her my standard answers. Once she realized that she was not getting a payment out of me, she transfered me to her supervisor who was actually a team lead and very nice. After asking me a few questions about my bills and my income, he said that even if I did get a HAMP mod with my first, AHMSI would probably only be able to reduce my payment by $300 and WF would only be able to reduce my payment about $150. This reduction would still not be affordable to me as I net $2000 and my bills are over $3000. He of course asked me what my intentions were if I do not get the mod. I said I would just foreclose. Before I hung up, I asked if the calls would stop coming every 3 days. He said the calls would stop since he is going to move my loan forward. I assume that means the loan would be moved closer to being charged off.

I am glad I talked to this team lead since he seemed to actually analyze my situation and give me a realistic scenario-no games, or trying to get money from me. He even said he had just gone through the loan mod process himself and was approved after 11 months.

The only update I have from AHMSI is that they sent me a whole new HAMP packet. Hello....I am already applying for HAMP and just mailed out my "missing" document on 8/29. It shows that they are just checking things off their list of government requirements so that they can show that they were actually trying to help the homeowner. I got a voicemail from them on 8/27 and on 8/31, but I have not returned the calls. It they call at a time I am available, I will answer the call.

[frazzeled]

Tryingtostayafloat, do you know who your negotiator is? I have receved the same letter saying that they received my application and I should hear something in 30 days. Well my 30 days was up on August 29, and still no word.

[Maurice Bedard]

I started this assinine process over a year ago. When I got my trial packet, I immediately sent in all the documents. If I had known then what I do now, I would have sent back all the same documents each time they sent me another trial packet, which happened at least 3 times. Maybe each time you send it in, someone different will get hold of it, and maybe there is only one person allowed to approve modifications in the whole bank. If that one person doesn't get your app, you don't get approved. I say send as many applications as often as you can. Maybe not by overnight express, but by regular mail at least. Maybe we should all agree to send in at least one full HAMP application every week, even if we are already on trial plans. Maybe that will remind them to look at our files.

[Tryingtostayafloat]

frazzeled--No, I have not heard from a negotiator yet. I do not even know if I have been assigned one or not. I am assuming that I will not be assigned someone until they have all my HAMP paperwork. I received a letter from AHMSI 3 weeks after they received my packet saying that I was missing my tax form, so I am not sure why you have not heard from them yet. Maybe it is because they do not need any additional documents from you. You may want to call and find out. I decided that I would do all my communications with them through mail unless they call me. I read too many postings on this forum about being transfered from one agent to another, getting different answers everytime, and waiting on hold for extended periods of time. I do not want to deal with that. I also do not want to keep faxing the same document 2o times, and of course, the USPS is cheaper.

******--I thought about sending the application again with all the required HAMP documents for just the reason you mentioned, but I ended up just sending my 2009 tax form and w2's. I made a copy of the letter that they sent me and I highlighted the part where they asked specifically for my tax form, so I am hoping this will satisfy them. If not, I am sure I will hear from them again. I am not really in any hurry and I do not think they are either.

[Maurice Bedard]

I think we could really make some waves if we all work together. I have an idea that is simple. We all make multiple copies of the HAMP applications, and all the required forms they ask for, then everyone sends in one set every week by regular mail. This will let them know that we can all work together, and will cost less than a dollar a week to sent in the required 5-6 pages that are required by the actual HAMP application. All the bank statements, utility bills, etc. are not a requirement of HAMP, but the banks just demanding all they can get on you to add to their profile.. And if we can't mail it, we could overwhelm their fax machines. If someone doesn't, I will start a new thread next week or so to see how many can comply.

[Tryingtostayafloat]

The reason given for my HAMP denial was that I failed the NPV test. "...the cash flow produced by modifying the Loan is expected to provide a lower return to the investor than proceeding with a foreclosure action." The letter is dated August 26, so they made that decision almost a month after receiving my HAMP paperwork. I am not sure why they asked for my tax return then, since they obviously made the decision without it. I printed out the in-house mod paperwork from their website and may send that in to see if I can qualify for that. I am sure that it will just be postponing the inevitable foreclosure though.

I did make an appointment with a bankruptcy attorney on Monday. I am thinking about filing Chapter 7 since I know that I can not afford to keep my house. The BK7 price quoted was $2000. Does this sound like a reasonable price? I am in California. I found this attorney through the Employee Assistance Program that my Employer provides as a benefit. The hour consultation is free and they say I get 25% off any service, so the $2000 fee is with the 25% discount. I was hoping to pay only $1500. Any opinion on this would be welcome. I will also post this on the bankruptcy forum.

Here is what the bankruptcy would cover:

$290,0000 (1st mortgage)
$125,000 (2nd mortgage)
$14,000 (credit card debt)

[Maurice Bedard]

The fee is reasonable but you could find cheaper, but the fee you are paying should include more time spent by the atty making sure that there are no better options. You may ask about a ch13, and see if stripping the second is possible. Once you go through the BK, yo might be able to pass the NPV, so it might be worth waiting if possible before going with inhouse.

What you need to do is ask for the inputs they used for the NPV test, so you can verify they used the right info. The most important inputs are income, and home value, but things like months behind, tax.ins payments, and anything else can be just enough to change the result from negative to positive. An error of $100 income could be enough, or getting the correct property value. You need to do this before going for the inhouse. You have thirty days to ask for the inputs used. Do it in writing ASAP. Once you get the inputs, you have some time to challenge them. You can actually pass or fail the NPV test by $1, so it is worth knowing.

If you do qualify for a mod through HAMP eventualy, your payment would be 31% of your income, and if you earn around $400 a month, they don't even need any forbearance.

Wells Fargo makes many errors so don't give up to easily. You should go ahead though with the bankruptcy. That may even make them more anxious to work with you. And it is possible that a chapter 13 will include your atty fees, so you may not have to pay anything upfront. Make sure you get the positive and negatives of both a ch13 and a ch7. Besides stripping the 2nd, a 13 could allow some time to pay back your late mtg payments.

[Tryingtostayafloat]

I got my morning wake up call from AHMSI. I haven't answered their calls in awhile so I answered it. It was 8:30AM. I was told that I was currently in review for an in-house modification and was assigned a negotiator on 8/26. His name was Jeff. I was told a determination could take 30-60 days so I should call them every 7 days to check in (fat chance of that happening). I was really surprised to hear that since I received my 2nd certified letter from them last week. It basically said that they have not been able to get in touch with me and that if I do not call them by 9/14 they would start the foreclosure process. I guess this is what motivated me to talk to them this morning...not that I am afraid of foreclosure, but I am trying to lengthen the foreclosure process.

Wells Fargo has also started to call me again. Since 9/7 I am getting two calls a day from them. They are not leaving messages though. However, I did have a quiet weekend since I did not get one call from either lender.

BANKRUPTCY UPDATE: I did talk to a bankruptcy attorney for about 25 minutes last week. It was only 25 minutes since he cancelled our original phone consultation without telling me, and then caught me the next day right before I had to leave for work. We only talked about chapter 7, as I do not want to keep this house. I do qualify for BK7 and if I filed it would wipe out all my debt. I would even get to keep my car and all my household stuff. The bankruptcy would take about 3 1/2 months to complete. The attorney fee is $1650 and the cost to file in CA is $299. I am still on the fence about filing bankruptcy though. I did check out how to file it myself which is possible. I would just need to fill out the right forms and fill them out correctly to save me the $1650.

******-I haven't inquired about why I failed the NPV test. I guess I have just been sort of lazy. I am not sure why they just don't include that with the rejection letter. It would save everyone some time. Bottom line is that I know I can not afford my house even if I could get the 2nd stripped away. That would still leave me with a $290,000 mortgage and a gross income of only $2600 to pay it with. My 60 mile round trip commute is really getting on my nerves and I just had to spend $260 on getting repairs done on my car which is the miniumum work that needed to be done (my check engine light came on). I still have another $400 worth of repairs left to do, but since it was not and imminent need, I am going to postpone those repairs.

Oh well, that is all for now.