My story --My dilema!

[painterh]

Hi, I'm new to this forum, and wish I didn't need to be. I have mortgage with Option One (now AHMS). The loan is an ARM which was locked in for 2 years, which we took out in Feb 2007. At the time of refinancing our home with Option One, I was self employed as a contractor, and needed to refinance to payoff delinquent property taxes on my home, and to get away from another mortgage company that had us locked into an interest only mortgage with no reserves included. I became disabled due to a chronic back problem in October 2007, and applied for Social Security Disability. Since then, I have been waiting on a decision from SS regarding my disability. We were able to survive for a time on the proceeds from the sale of my business assets.

We are currently almost 4 most months delinquent, and received a default notice about 3 weeks ago. I tried to talk to the company regarding my situation, and was told to write them a hardship letter, but due to my income situation, there probably wasn't much they could about loan modification. I was put under pressure on the phone, to accept an arrangement of $1500 immediately and 4 payments of $1800 per months for 4 months to catch up the delinquency. We managed to send the money they wanted immediately, but our hopes of paying the other 4 payments of $1800 (@ 1.5 times our regular payment amount) were dashed by reality.

We contacted a company called "Springboard" (a credit counseling service listed on the default notice) They took information and created a hardship letter for us and sent it on to Option One (AHMS). I am supposed to call their Loss Mitigation dept this week. My wife and I are currently living on $1100 a month until SS makes a decision on disability. We have been in our home for 20 years, and raised most of our kids here do not want to lose it.

I don't know how this going to work out, but the stress is killing me. Our credit is in the toilet, and I have grave doubts about being able salvage my home. I am currently retraining for non-physical work by going to community college, but it is going to be a about 10 months before I have any marketable skills. If I get approved for disability, my wife"s income and mine would about $500 a month short of meeting our budget. I have never been in this position, and don't know what to expect.

[Moe Bedard]

Hi painterh,


Welcome to the forum and thank you for joining............

It sounds like you already got the process started.............I am going to move your thread to the Option One section so you can get support from others dealing with the same lender.........

Please keep us updated on your progress........

[wchamilton]

I just wanted to pop in here and say we're here for you... this place gave me the tools I needed to save my home, and if there's anyway we can do the same for you we will. We're here for you.

[elpjohnson]

painterh.....

Welcome.....I just wanted to stop in and say hi....I'm a borrower of AHMSI and have been going through this process for a really long time, so be prepared to spend a lot of time on the phone, faxing and writing letters. I am also disability retired and draw a social security income and it took a really long time for them to approve my case (after two denials) so I know how you feel about the waiting. Do you have an attorney for your social security case? Sometimes that helps to get the process going and especially if you have to go to hearing...it's definitely worth the expense.

Good luck with your loan mod and if you have any questions, feel free to post them and we'll try to get them answered for you. REMEMBER we are here to help, so reach out if you need to.

Take care and God bless!

[painterh]

Hi again.

I just got off the phone with the Loss Mitigation dept. She updated all my financially info verbally, and requested me to provide some documents. I was told that I was pre-qualified for a loan modification, and that within 14 business days, I would be contacted by a negotiator. Then I was told to expect the process to take from 30 to 60 days. The two modifications that were discussed were. 1. Put all past due payments and fees to the back end of the loan. 2. Reduce the interest rate and freeze it. This is an ARM loan which is due to adjust by March or April next year. Does anyone know if they ever convert this type of loan to 30 year fixed after lowering the interest rate? Anyway, I guess I have got the ball rolling.

[TXHomeowner]

Hi painterh! Welcome...sorry about your situation.

There have been a few (very few so far) success stories with AHMSI lowering and fixing the interest rate for the remainder of the loan. From everything I have seen, you must be a very squeaky wheel in order to accomplish this...calling and faxing everyday, writing to your congressman, getting the media involved, etc. The people that went out of their comfort zones and did those things have proven to be successful with the lower, fixed interest rates.

It's kind of a process that seems to start of slowly...then you must escalate it as necessary. We are all at different stages throughout this process. You can read most of our stories under the Option One Forum. I believe the key to success here is perseverance. You can do it!!

Good luck and keep us posted.

-TX

[caligirlsteph]

Hi and welcome. You have come to the right place to get support and questions answered. Lots of wonderful people around here.

I had a 2/3 ARM and not only did they change it from and interest only to a fixed but they also fixed my 2nd mortgage a year early. Dropped the interest rate considerably and I am very pleased with what we received. HOWEVER please keep in mind its a very frustrating to get what you want. Some people have been fighting several months to reach their goal. Don't give up and remember to fight until you get what you want!!!

We are all here for you. Best of luck!!

[mustangpg]

Don't expect to be called within the 14 days. Make sure you call them back I've been told witin 14 days twice and was told I would receive a call by Friday this week and it's Thursday with no call. Find the thread I'm stunned under Option One written by caligirlsteph, she has listed the contact info for the VP's. Good luck!

[elpjohnson]

I'm with mustang on the call....you definitely should not wait for them to call you, call them and check with them as much as you feel comfortable doing. AND they like to say that you are pre-approved for a modification, it's just another way to bs you. DO NOT TAKE THEIR WORD FOR IT.....they lie and cheat to get you to pay them money you don't have and then they deny you for a variety of stupid reasons. Not saying this to scare you but you need to be dealing with the Home Preservation Department ONLY, not the CSR's from India or even the one's in the US for that matter because they cannot help you....only Home Preservation/Home Retention can! They told me back in December that I was pre-approved for the "Bush plan" and that someone would call me and guess what? I was denied the rate freeze because of my LTV and NO ONE EVER CALLED! So, you need to make this like a second job and stay on them constantly. When you get assigned a negotiator, get their e-mail address so you can stay in contact with them. Keep at it, you'll get there, it just takes a lot of hard work and perseverance.

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

[vstopaz]

I hope everything works out for you soon. I can "hear" your pain. I have been feeling the same way. But you're definitely on the right track. Is there anyway you can push SS a little while you're waiting? Do they accept hardship considerations when going through their process? When my sister got permanent disability (she has MS), it took a long time...but they sent her a check that was dated back to the first day she applied. That might be something to look forward to. She got like $13k in one check. You'll be fine, just be prepared to fight and not give up. You're very rooted in your community, you CAN'T let them get you out of there that easily!

[painterh]

I have an update to my situation;
I sent Option one the hardship letter on 9/2/08, stating that the reason for my financial dilemma is a disabling back condition, and that I was waiting to hear from Social Security on my disability claim. I further explained that my wife and I had been trying to survive on her income while I waited to hear from SS. The letter was sent certified, and was received by Option One on 9/5/08. I have been approved for SSI (supplemental income) which is only a few hundred a month, however I had met the medical qualifications for disability. I was informed that my disability credits were insufficient due to missing records for 5 of the last ten years of work history. It seems the IRS lost copies of those years and as far as they were concerned I had to provide new returns for those years, which I have done. I feel confident that I will soon be granted disability payments.
We just today found taped to our front door, a legal notice stating that Wells Fargo was intending to do a public sale of the property on 12/19/08, unless we can pay the roughly eight thousand dollars in back payments and accumulated fees. I haven't heard from an Option One negotiator yet, but I understand that could take a while. Time is running out, and I am not sure if Social Security will come through in time. My back dated SS should be enough to pay much of the amount required, but would leave me without any funds and no guarantee that our loan will be modified. With my wife's income and my SS Disability, we can afford to keep our house, but not without a modification, however, our credit is now completely hosed.
I will be calling Option One tomorrow morning to find out if they are even considering a loan modification. I am also wondering about the loan modification service advertised on this forum, because I am really scared that I will not have time, or experience to do this myself. Any ideas would be greatly appreciated.

[Moe Bedard]

painterh,


Try calling this person directly from Option One.............and also faxing her your hardship letter with the loan number and a good contact number..............

Jeanne Drake-VP Home Preservation Dept.
Direct: 1-949-784-6011
Fax: 1-866-642-4196

[TXHomeowner]

Hey Painter - The only advice I have is DO NOT WAIT for AHMSI to contact you. You need to be proactive with them...not reactive. I would call the attorney's office on this forum and tell them your situation...see what they say.

Good luck!
-TX

[vstopaz]

I agree with TX. Don't wait for someone to call you from AHMSI. Call every day, fax every day. You will get help.

[elpjohnson]

Painter....

I was wondering how you were doing and if you ever contacted Jeanne Drake....please keep us posted on your progress.

[painterh]

Here is another update to my story. After sending Option One a hardship letter on 9/2/08, I received a call last week from a Jim Smith from American Home Mortgage Servicing wanting to speak with me. I wasn't home at the time, so I returned his call and left a message for him. I did not receive a call back, so I left a new message today, and said it was urgent I speak with him regarding my mortgage. I am not sure what his position is with AHMS, so I also called and left a message with Jeanne Drake for her also to call because it was urgent. Another new development is that I had a meeting with Soc Sec and they are in the process of updating my earnings record due to my giving them tax returns that the IRS accepted for some of the missing years on my report. I was told that if my credits were recomputed and found to be sufficient, that they would apply the medical decision already recorded and get my disability going. There is no way of knowing exactly how long it will take , but the rep. indicated it would not be very long (whatever that means). Meanwhile, we had a notice posted on our front door saying that Wells Fargo (apparently the ones funding our mortgage) intend to sell our home on the steps of the local courthouse on Dec 16th unless we can get something done regarding our default within three days prior to that date. It seems that time is running out, and I have no guarantee that I can show enough income to get a modification done unless Soc Sec comes through quickly. I am now looking at the very real possibility that I may lose this fight, due to the time limit I have with Wells Fargo. I just thought I'd let everyone know what's been happening.
Feeling defeated;

[Maia7]

Hang in there painterh. You've made all the right calls and you've done everything you can at the moment. Following up is your only job. The waiting is awful. But know that this *will* end, you will have a decision soon. I would call Jeanne Drake again tomorrow and specifically reference your foreclosure sale date of Dec. 13 and that is why it is terribly urgent they locate someone to work with you.

If you could just get a stay of execution until you know what your financial picture is going to look like that would be the most helpful thing. It sounds like you need AHMSI to do whatever they can to hold off foreclosure as your SSI decision is imminent. Once you have that data you can determine whether your house is affordable or not.

I'm so sorry, this is not good on a healthy person's body, I know this has got to be really rough. Take care of yourself.

[painterh]

Hello again;
Well, I just received great news a couple days ago. After leaving a message for Jeane Drake in the home preservation dept., I received another voicemail message from Jim smith from AHMS. I didn't understand all of it at first, but he said in part that something had been approved, and that some paperwork was headed our way. I didn't understand exactly what was approved, so I called Jeane Drakes office again and spoke to an Andrea (I believe that was her name) and she pulled up my file and informed me that they had approved fixing my interest rate at 5% for 30 years and all the back payments and fees would be rolled into the back end of the loan. My understanding (not having the paperwork in my hand yet) is that my new payment would be almost $350 a month less than before, and that after the paperwork is put through I would just start making the new payment on the due date, and start fresh. That's a HUGE relief!
I also got word from Soc Sec that my disability benefits were approved and I will start getting those on the first of next month. It feels, at long last, like the light at the end of the tunnel, might not be an oncoming train. I can finally focus on my re-education without worrying about which bridge my wife and I would sleep under.
I just wanted to say thanks for all the good advice and encouraging words I found on this forum, and say to all those that are still struggling in fear with similar mortgage problems; to Hang in there, and pay attention to the many suggestions and ideas presented on this forum. It seemed pretty hopeless for a while, but the many stories of success found here, helped me remain a little bit optimistic. So once again let me say thanks to all for your support and kind words. Miracles can happen.
Appreciatively; Painterh

[elpjohnson]

CONGRATULATIONS!!!!! Great news! Take care and God bless!

[Maia7]

THAT IS SO EXCELLENT!!!!!!!!!!!!!! Congrats. I'm starting to cry a little for ya! That is just an awesome deal.

Double check when you receive your paperwork the last page, called "Schedule A" that everything is line-item'd the way you expect. I found errors in my contract and it needed to be re-worked and sent back to me.

Also be sure to see if your property taxes and insurance are included so you fully understand your monthly payment.

WOOOHOO!

[Moe Bedard]

Congratulations!!
Great News!!
Please let us know when you receive the paperwork and if you have any questions on them.........

[Coloradofury]

PainterH - My husband and I have been following your story. God promised to take care of you and did He come through. I am thrilled. How we need more success stories like yours making there way into the world of hurting homeowners. God Bless! Enjoy your home at your new payment and our prayers are with your for your healing and new future.