My OOM / AHMSI loan mod journey begins

[WWJBD]

I've been lurking the forums for a while and reading everyone's excitements and disappointments. I've finally decided to post my situation so I can hopefully inform, share, and contribute as much as reading all the other posts have done for me.

My problems started after 9-11. I had a good civilian government job and I was activated with the Texas Army National Guard unit after the terrorist attacks. I took a $50,000 dollar cut in pay to serve my country which I still to this day do not regret or become resentful over the pay cut... My country's safety and freedom is more important to me than a paycheck.

My wife and I plus one child enjoyed a lifestyle we could financially support at the time but when my regular job's paycheck stopped coming in the bills started to pile up. A large part of it was due to my daughter attending a private Christian school which wouldn't let us out of our contract so it all went on the credit cards. Plus our townhouse was more than we could afford after the pay cut so the difference we couldn't make up went on the cards as well.

After my deployment was over I received a promotion with my civilian job and was relocated to Sacramento, CA. I was able to purchase a modest home in the suburbs and we were very happy to be together after being separated for 22 months and we added one more addition to our happy family as well.

The cost of living in CA we found was much higher than in TX and our credit card bills became increasingly difficult to pay despite my pay raise. I filed for CH. 13 and was on the program for about a year. I made the decision to refinance my house so I could opt out of the CH. 13 and pay off my creditors in full. I have a job which requires a high security clearance and the CH. 13 was affecting that clearance.

After I did the refi less than a year went by and I had creditors I didn't know existed which had bought part of my credit debt from other companies that didn't file during the CH. 13 process. I was being harassed all over again and as I was no longer protected by the court I made a knee jerk reaction and a poor choice by doing a second refi. OOM was the mortgage co. on both refi's.

My balance is now $375,000 on a house that has depreciated greatly in the last two years and now valued at $225,000. I'm paying 8.8% interest now and OOM / AHMSI has told me my rate will significantly be increased come 12/1/08.

I was going to try a loan modification myself but after seeing all the hassle everyone has gone through I'm speaking with the law offices of Paiva & Associates to see if they can help me. I haven't sent in my payment yet as after speaking with them I noticed in the last week it seemed many people dealing with AHMSI loan mods were getting declined. I wasn't sure if I wanted to pay $2995 just to be turned down. The person with whom I have been dealing with has been very friendly and I emailed my concerns to him and he responded quickly by saying their office was aggressively researching why AHMSI is declining so many loan mods.

I was told by Mr. Paiva's office that because I have a steady job and been with my agency for quite a while that there was a high likely hood that I could qualify for a loan modification but obviously stated that they couldn't guarantee anything which I understand.

At this point I am willing to pay for the loan modification knowing that if it falls through I gave my best attempts at staying in my home. I'm over the mental road block of dealing with a foreclosure if that's what I have to do. I haven't really researched the absolute down side to foreclosure and what it will cost me in the long run but at least I can say I gave it a good shot.

As everyone else has done I will update this thread as things progress. I think I'm starting early enough that I should have a definite answer by the time my loan resets to include any potential SNAFU's along the way. By the time 12/1/08 roles around I hope I'm set with a new loan modification but if not I guess I'll stay in the house, stop paying the mortgage, safe enough to move out and find a place to rent right before it's sold off.

The one good thing about Sacramento is there's more supply than demand so I shouldn't have any trouble finding a rental home to move my family into.

Sean

[elpjohnson]

Sean....

Welcome to our forum and thanks for joining......

I can totally understand you being apprehensive about doing the modification yourself as it is a daunting task.....as I'm sure you've read, I was recently denied a loan modification because my investor refuses to do loan modifications due to some sort of legal clause (BS). I am working with an attorney who found violations in my loan documents and we are hoping to get them to modify my loan because of those violations.......even though I was denied, I'm not giving up, I'll keep going until they either deny me, I sue them, or they foreclose on my house......something is going to happen, I just don't know what the outcome will be. I am happy that I spent the money on an attorney because if I had to do this myself, I think I'd pass out from the stress of the whole process, plus, AHMSI is VERY difficult to deal with.

Only you can make the decision on whether you hire an attorney to do your mod for you or not but it may be worth paying for a document review to see if you have any violations and maybe you can start from there. also, it's never too early to start on your loan mod even if you are doing it yourself with the help of this forum....just know it can be done and you can be successful.

Good luck, God bless and THANK YOU for your service......keep us posted on your progress, attorney or not.

PS I'm originally from Sac (only live an hour away now) and you definitely won't have trouble finding a rental.

[TXHomeowner]

Hey Sean - I just wanted to stop by and welcome you. Thanks for posting your story and please keep us posted on your progress.

Good luck!
-TX

[caligirlsteph]

HI, welcome. This forum helped me be even more determined than I was already to get it done!! Best of luck to you. Hope it goes smoothly.

[WWJBD]

I got a quick turn around on my question to Mr. Paiva's office about AHMSI denying loan modifications.

I was told that even if my original loan docs do not have any major violations, they could still make a good case for me and even if they were declined they would continue to send in loan modification applications until they accept it.

I have a feeling though after reading so many of these posts that I'm sure my original loan application will have major errors too.

I've been very impressed with their office in So. Cal with their turn around time of information. I feel like I'm talking to straight shooters and that gives me hope for a successful outcome.

I'll be putting together the remainder of my packet this weekend and send it off on Monday.

Sean

[elpjohnson]

Excellent....make sure you keep us posted on your progress!

[WWJBD]

***UPDATE***

Not my good news but I thought it was pretty good customer service on the part of Mr. Paiva's office who called me up today and let me know that they closed a loan Mod with AHMSI today with a fixed rate and the interest dropping from 9% to 5.5%.

I haven't even gotten in all of my paperwork in yet and they still called to tell me that. I thought that was pretty cool. So some good news on the front lines about someone getting a good loan mod from AHMSI.

I hope it was someone on here.

Sean

[TXHomeowner]

That IS good news!! Thanks for letting us know. Maybe things are starting to look up...

-TX

[daniel18]

Hello! Who do you have doing the document review? Also, what type of mortgage do you have and did the law office modeify with AHMS? thanks and good luck!

[Moe Bedard]

daniel,


This is the attorney doing the doc reviews.............


Law Offices of Gregory A. Paiva & Associates
1325 Corona Pointe Court
Corona, California 92879
Telephone (888) 432-6634
Facsimile (951) 860-4763

[RudyJay]

Sean

Good luck with the mod... there has been successes.. hard as they come ... there are successess..you have legal representation so... go for it

[scarednmontana]

hello and welcome...thank you for your story....

[frankie_d]

I just received mod approval yesterday. I started the day before they became AHMSI but that should not matter. My interest rate went from 11.42% to 5%. Also I have not made a payment since April and have been able to pay off other bills. It can work as they have so many homes right now they do not want any more regardless of what some of the people there say.

Good Luck

[elpjohnson]

Awesome news frankieD.....

I am so happy to see more and more success stories with AHMSI!

[RudyJay]

Congratulations Frankie... feels good doesn't it...rj

[frankie_d]

It does feel good. Still very unhappy with the sevice I had received up till now. I had called and tried for months and I do mean months. Persistance does pay off some times.

[WWJBD]

****UPDATE****

I received a call yesterday from Cheri at Mr. Paiva's office and she told me that there were some major violations found in my loan documents. The good news is that my forensics audit came sooner than expected so I guess at this point I'm ahead of schedule for at least the time frame I was anticipating.

She asked me a few clarification questions / follow up questions and said she would be forwarding my file onto an attorney who would be calling me back shortly to discuss the legal aspects of the violations found in my loan docs and discuss what course of action I want to take.

Based on what I've heard and what I've read, I'm going to ask for a 5% interest rate locked in for 30 years. I asked Cheri if that seemed unreasonable and she stated that they have had success with those options with AHMSI recently so that was encouraging.

I'm sure there are plenty of people with success stories that are not on this board which would account for their office stating they've had success stories with AHMSI.

I'll keep the udates coming as I get them. So far I'm impressed with the customer service and overall performance of Mr. Paiva's office. Hopefully things will continue to keep rolling this good.

Sean

[Moe Bedard]

Hi Sean,

Thanks for the update!! I hope you hear some great news soon!

Good Luck on the mod!!

[elpjohnson]

Sean, nice to see you around here.....thanks so much for the update. Your news is very encouraging and hopefully Paiva's office will be able to use those violations to get you the loan mod you need.....I'm sure it will happen, it's only a matter of time!

Take care....

[WWJBD]

***UPDATE***

Today has been one of the good days during this difficult journey yet the fighting is only just beginning.

I received my 67 page forensics loan audit today which highlighted the major violations. Here's a rundown of what was in the report. I don't understand all the numbers and I cut and pasted right from the report itself. Sorry if this seems long but I’m sure some of you can make sense of the numbers or at least would want to see what comes back:


FEDERAL HOEPA (SECTION 32)

HOEPA Rate-based Test: FAIL
Loan data: 13.341%
Comparison Data: 12.920%
Variance+0.421%

HOEPA Timing of Disclosure Test: FAIL
HOEPA Negative Amortization Alert: ALERT
HOEPA Advance Payments Alert: ALERT
HOEPA Increased Interest Rate Alert: ALERT
HOEPA Rebates Alert: ALERT
HOEPA Notice To Assignee Alert: ALERT
HOEPA Expanded Disclosure Requirements Alert: ALERT
HOEPA Call or Demand Alert: ALERT
HOEPA Loan Flipping Alert: ALERT
HOEPA Repayment Ability Alert: ALERT

************************************************** *****************
FEDERAL TILA
TILA Finance Charge Test: FAIL
Loan data: $1,140,051.76
Comparison Data: $1,536,176.52
Variance: -$396,124.76

TILA Rescission Finance Charge Test: FAIL
Loan data: $1,140,051.76
Comparison Data: $1,536,176.52
Variance: -$396,124.76

TILA APR Test: FAIL
Loan data: 10.915%
Comparison Data: 13.341%
Variance: -2.426%

TILA Right of Rescission Test: FAIL

************************************************** ******************
CA AB 489/344 (DIVISION 1.6 OF THE FINANCIAL CODE)
CA AB 489/344 Covered Loan APR Threshold Test: FAIL
Loan data: 13.341%
Comparison Data: 12.920%
Variance: +0.421%

CA AB 489/344 Covered Loan Prohibited Practices Legislative Summary Alert: ALERT

CA AB 489/344 Covered Loan Prohibited Practices Legislative Summary Alert (Continued): ALERT

CA AB 489/344 Covered Loan Prohibited Practices Legislative Summary Alert (Continued): ALERT

************************************************** ****************

FEDERAL HOEPA (SECTION 32)

FAIL
This loan has terms that exceed the rate-based threshold. (12 CFR § 226.32(a)(1)(i)) [Amd. 2001] / [Original]
The annual percentage rate (APR) at consummation is 13.341%, which exceeds the yield of 4.920%, as of September 15, 2006 on 30 year Treasury securities (the Treasury securities having comparable periods of maturity), plus 8.000 percentage points. The yield is as of the fifteenth day of the month immediately preceding the month of the application for extension of credit, which was received by the creditor on October 17, 2006.
************************************************** *****************

FAIL
This loan failed the timing of disclosure test. (12 CFR § 226.31(c))
The Sec. 32 (HOEPA) Disclosure Date is not within allowable limits or was not provided. The creditor shall furnish the disclosure required by § 226.32 at least three business days prior to the consummation of a mortgage transaction covered by § 226.32.
************************************************** ******************

FEDERAL TILA

FAIL
This loan failed the TILA finance charge test. (12 CFR § 226.18(d)(1))
The finance charge is $1,536,176.52. The disclosed finance charge of $1,140,051.76 is not considered accurate because it is understated by more than $100.
************************************************** ******************

FAIL
This loan failed the TILA rescission finance charge test. (12 CFR § 226.23(g)(1))
The finance charge is $1,536,176.52. The disclosed finance charge of $1,140,051.76 is not considered accurate for purposes of rescission because it is understated by more than 1/2 of 1 percent of the face amount of the note or $100, whichever is greater.

************************************************** ******************

FAIL
This loan failed the TILA APR test. (12 CFR § 226.22(a)(2),(4))
The annual percentage rate (APR) is 13.341%. The disclosed APR of 10.915% is not considered accurate because it is more than 1/8 of 1 percentage point above or below the APR as determined in accordance with the actuarial method.
************************************************** ******************

FAIL
This loan failed the TILA right of rescission test.
Closed-end (12 CFR § 226.23(a)(3)), Open-end (12 CFR § 226.15(a)(3))
The funding date is before the third business day following consummation.

The consumer may exercise the right to rescind until midnight of the third business day following consummation, delivery of the notice required by 12 CFR §226.23 or §226.15, or delivery of all material disclosures, whichever occurs last.
************************************************** ******************

CA AB 489/344 (DIVISION 1.6 OF THE FINANCIAL CODE)

FAIL
This loan failed the APR threshold test. (CA AB 344 §1 [CA FC §4970(b)(1)(A)])
The annual percentage rate at consummation exceeds by more than 8% points the yield on Treasury securities having comparable periods of maturity on the 15th day of the month immediately preceding the month of the application date.
************************************************** ******************


What was really great was that I received a phone call from Mr. Paiva himself. I knew someone from the office was supposed to call me today but didn't expect to hear from him personally. He assured me that there were some major violations found and commented that the -$396,124.76 was especially troubling and the -2.426% difference was a big violation as well.

He didn't just pay me lip service but made several comments about my file and what it meant and even though I'm sure other people provided the information, he was still well informed and obviously gave my file more than a glance before calling. He said my packet was sent to AHMSI today and that I should expect at the very minimum a three week delay in their response although it could take longer and in some cases he said it could be sooner.

I can't tell you how pleased I am with Mr. Paiva's office. Everyone I've spoken too has far exceeded my expectations. I really feel like someone is out there fighting for me and there to answer questions for me when I have them.

I was told the initial offer will be 5% locked in for 30 years.

Okay, so know the waiting game begins. The only thing that leaves me uneasy is the inconsistency in which AHMSI seems to have when doing loan mods. Why some but not others receive good loan mods is beyond me. Why some people have had major violations found in their files yet can't seem to get AHMSI to deal with them. Why some people get fast results while others take months and months.

I pray for each and every one of you that is in this fight every night. If you're not a religious person than I keep my fingers crossed for you for the best possible outcome.

Hopefully time will pass quickly and I'll have an answer to post and hopefully that answer will be one of victory.

Sean

[elpjohnson]

Thanks for the update, Sean.....looks like you have some serious violations that are going to help you get the mod you need. As I'm sure you've read, my loan violations got me a loan mod with AHMSI 6% fixed for the life of the loan.....you'll get there and Paiva's Office sounds like they are really on top of it.

Good luck and I'm praying for you and your family!

[TXHomeowner]

Good Luck Sean! Keep us posted.

-TX

[WWJBD]

***EMOTIONAL UPDATE***

As if dealing with this loan mod with AHMSI isn't taxing on the emotions enough, now I'm dealing with a pending deployment to Afghanistan I found out about this weekend where upon I take a MASSIVE cut in pay from my civilian job.

The deployment is supposed to take place in March. I'm sure I'll know where I'm at with the house good or bad by then but my shoulders can only take so much weight.

If I lose the house that probably isn't the best time to leave my family. I was gone 22 months the first time and this time it would only be around 400 days but time gone from the family is time you don't get back.

Don't get me wrong, I love my country and service for this proud soldiers has taken it's toll on me as after 9-11 I did a deployment (another huge cut in pay) which in part help put me in the situation I'm in today.

I have a huge headache right now trying to cope with everything going on. Amazing how fast you can get knocked off your high horse when you think everything is going okay.

If I get the loan mod I guess that will make the deployment easier.

I'll be sure to post an update when I know about the deployment for sure.

Sean

[Moe Bedard]

Sean,

I would definately also tell this information to your contact at the attorneys office too...........maybe they can put a bit more heat on AHMSI in enough time for you to have some good news from the modifcation and some well deserved nice non stressful quality time with your family...........

[elpjohnson]

I am so sorry to hear about the tremendous stress you are under....however, I do want to thank you for the valuable service you provide to keep our country free and safe....I am praying for you and your family during this difficult and stressful time and am hoping for the best for you. Please keep us updated on your situation and know that we are hear to listen, give advice and lend support when you need it most.

God bless you and your family, Sean....we are here for you! Take care!