Option One / AHMSI

[Juliette777]

I'm new to this forum, and I'm looking for some guidance. My servicer has contacted me and said they would like to help me go thru the loan modification process. We talked for around an hour on my cell phone Monday afternoon. My instincts for some reason do not trust these folks as I've been reading thru what appears to be more failures than successes. We discussed reducing the ARM to a fixed rate. Reducing the Principle and something they kept referring to as "forgiving" 5% of my debt. I've requested everything in writing although I did advise them they could do better on the fixed rate they were offering. Now here was what I found interesting. They said, I had to make the payments for 6 consecutive months starting 09/01/08 until 02/01/09 at which point they would modify the existing rate. They advised this was to prove my payment history. I said this was quite interesting as I've had my loan with them for 16 months now and wasn't quite sure why they didn't have the payment history they required. They seemed to be concerned about pulling my credit report and I provided what I thought was my most current score and advised that they were only qualified to provide me the rate and that they could do better. They also asked if I had money to put down on this ? They advised that I would need to escrow my taxes as well, which I advised that including my taxes into the payment would defeat the purpose of the loan mod, being that this is already close to September and dividing my taxes into the payment for the remaining 3 months of the year was ridiculous to even consider. The servicer advised this was on behalf of their investor and would not provide the investors name or information. They also thought that the home was not my principle residence, although I advised that they could review their closing documents since they are the servicer.

Can someone give me some of their experience, strength and hope with these folks ?

I've been reading how hard it is to get thru to do a loan mod etc, but it appeared that they were able to perform a bandaid solution for 6 months, at which point I told them they were potentially able to sell the note without them fulfilling their promise. Also can someone tell me the difference between a loan modification and a loan restructure.

I'm looking for a solution. I need help.

Thanks

[Dan Bailey]

Juliette,
Welcome to the forum and thanks for joining. ***, Moe or Andrew will be by shortly and answer your specific questions. Good luck!

[Moe Bedard]

Hi Juliette777,


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

What is your interest rate at currently?
Is it fixed or adjustable?
Are you paying interest only?
Do you have one loan or two?
Are you in default?
Are you taxes all paid current?
Had you called this person back using an Option One number for contact and ask for them to see if the are part of Option One for sure?

[Juliette777]

Hi ***,

Thanks for responding, here are the answers to your questions:

What is your interest rate at currently? 9.65 %
Is it fixed or adjustable? ARM
Are you paying interest only? Yes
Do you have one loan or two? One Jumbo Loan
Are you in default? Yes
Are you taxes all paid current? Yes
Had you called this person back using an Option One number for contact and ask for them to see if the are part of Option One for sure? Yes

[Moe Bedard]

Juliette,


Did you hear anything more today on how the mod is progressing?

Here is an additional number to call to check......
Home Retention Team
1-877-304-3100


Please keep us posted on how it goes............

[Juliette777]

I'll try that number in the morning, however, there has been no formal paperwork exchange or approval on the loan mod. I'll keep you posted. Thanks again.

[Juliette777]

***,
I called that home retention number but after being on hold so long (more than 10 minutes), hung up the call. I called the number to the person that had been calling me and left message number 2. I'll try contacting that VP number next. I contacted the HOPE hotline and set up an appointment (soonest was 9/7). I set up a NACA appointment for the end of the month.
Can you tell me the difference between the loan mod vs a restructure ?
Thanks again.

[Moe Bedard]

Some lenders refer to a loan modification as a restructure, but AHMSI refers to it as a modification....... that one...........

Here are some of the possible solutions that we may be able to offer you. Fax your information to 866.452.1837

Repayment Plan or Special Forbearance
American Home Mortgage Servicing Inc. may be able to arrange a plan based on your financial situation to spread out repayment of your past-due balance over an extended period of time.

Loan Modification
It may be possible to modify your mortgage contract to incorporate your past-due amounts and sometimes even reduce your monthly payment. This may be done by extending the loan term, lowering the interest rate or capitalizing past-due interest. However, this is a legal change to the terms of the loan and involves obtaining approval from the loan owner or investor.
Items you need for a Loan Modification:

Hardship Letter
Two Pay Stubs
One Bank Statement
Mortgage Insurance Claim
American Home Mortgage Servicing Inc. may be able to work with you to obtain a one-time loan from the mortgage insurance fund to bring your mortgage current. Then the borrower would have to pay back this loan to the insurance company over time.

Short Sale or Pre-Foreclosure Sale
This will allow you to avoid foreclosure by selling your property for less than the amount you owe on your mortgage. This may be less damaging to your credit than a foreclosure.
Items you need for a Short Sale or Pre-Foreclosure Sale:

Hardship Letter
Pay Stub and/or Bank Statement
Letter of Authorization
Purchase Agreement

Deed-in-Lieu of Foreclosure
As a last resort, you may be able to voluntarily "give back" your property to the lender. You won’t be able to stay in your home, but it is not as damaging to your credit rating as a foreclosure. This option is only available if there are no other liens or judgments on the property.
Items you need for a Deed-in-Lieu of Foreclosure:
Hardship Letter
Pay Stub and/or Bank Statement

[Juliette777]

***,
Thanks again. I will print the hardship letter from the toolkit. Where do I get the mortgage insurance claim ? I thought when I spoke to the rep (who incidentally isn't calling back now) they were going to do a 5% forgiveness on my debt ? do you know what that is ?
Thanks. I'll keep you posted.

[Moe Bedard]

I have not heard of a 5% claim........