So Frustrated and Confused

[LaurenSch]

I lost my job in June 2011. While I was back to work FT in February of 2012, I managed to get behind on my mortgage. AHMSI/Homeward, put me on a repayment plan that started in March of 2012. Fast forward to July 2012. I have never had a problem with the repayment until July. The payment was to come out on the 26th, the same day my payroll was deposited. My bank debited the mortgage payment before depositing my check. The payment bounced. I called them that day, they said they had not received it returned and told me to call in 2 days. I called in 2 days and they said that I was kicked out of the repayment plan and now they have escalated my escrow account as being due. They said that they sent me a letter back in March about the escrow, this is a letter I never received. They are willing to put me back on a repayment plan but the amount is HUGE and includes the escrow shortage. They told me I could ask that department for a stretch out of the escrow shortage to 36 months, which I did. I faxed them paperwork etc and it's being looked over. In the meantime, I scheduled a payment for the end of August, but they are not saying it's in repayment until the escrow shortage is taken care of. I don't have 10k to give them for this. I can't understand why they would simply kick me out of the repayment plan when it was going fine and was set to be over at the end of August? Does anyone know anyone I can speak to at their offices about this without getting a run around at every turn? I am terrified I am going to loose my house. I also requested loan mod papers but I haven't gotten them yet. Thank you for your help.

[Evan Bedard]

They told me I could ask that department for a stretch out of the escrow shortage to 36 months, which I did. I faxed them paperwork etc and it's being looked over. In the meantime, I scheduled a payment for the end of August, but they are not saying it's in repayment until the escrow shortage is taken care of. I don't have 10k to give them for this. I can't understand why they would simply kick me out of the repayment plan when it was going fine and was set to be over at the end of August? Does anyone know anyone I can speak to at their offices about this without getting a run around at every turn? I am terrified I am going to loose my house. I also requested loan mod papers but I haven't gotten them yet.

Welcome and thanks for joining the community.

Do you happen to be unemployed? If not, why exactly are you going through a repayment plan?

If you have not received any paperwork that states the repayment plan is still valid I would not recommend sending a payment in at the end of the month. This is because no agreement is valid until you receive it in writing they could hold your payment in an escrow account until the account is satisfied.. You may want to continue pursuing a loan modification because this can permanently lower your mortgages payments and will add the entire past due amount along with any fees you may owe to the back of the loan.

I'm not sure if you are aware of the Home Affordable Modification Program (HAMP), but this is the program your servicer is going to review your mortgage for when first applying for a loan mod..

Home Affordable Modification Program

You may be eligible for HAMP if you meet all of the following criteria:

• You obtained your mortgage on or before January 1, 2009.
• You owe up to $729,750 on your primary residence or single unit rental property
• You owe up to $934,200 on a 2-unit rental property; $1,129,250 on a 3-unit rental property; or $1,403,400 on a 4-unit rental property
• The property has not been condemned
• You have a financial hardship and are either delinquent or in danger of falling behind on your mortgage payments (non-owner occupants must be delinquent in order to qualify).
• You have sufficient, documented income to support a modified payment.
• You must not have been convicted within the last 10 years of felony larceny, theft, fraud or forgery, money laundering or tax evasion, in connection with a mortgage or real estate transaction.

*Eligibility criteria are for guidance only. Contact your mortgage company to see if you may be eligible for HAMP.



Get more information on how to apply for a modification ›




If you do not meet these guidelines it is important you tell them you want to go for a regular in-house modification so you do not waste months of your time. For an in-house modification the requirements above will not apply as almost any type of mortgage or loan amount can qualify. Please feel free to join in on other threads as most members here are homeowners like yourself pursuing some type of loan workout.

[LaurenSch]

Hi again and thank you for your help. Yes, I am going for a HAMP Loan Mod. I am working on the paperwork this weekend. Is there an amount of extra income that should be available? Thanks again.

[Evan Bedard]

Hi again and thank you for your help. Yes, I am going for a HAMP Loan Mod. I am working on the paperwork this weekend. Is there an amount of extra income that should be available? Thanks again.

No there is really not a set number for loan mods, but do you have a significant amount left over each month?

[LaurenSch]

No there is really not a set number for loan mods, but do you have a significant amount left over each month?

No, maybe 400 dollars at the most.

[Evan Bedard]

Although there is no set guideline you may not want to show more than a $200-300 surplus at the end of the month..

[LaurenSch]

Okay, thank you. Also, I just finished my hardship letter, something in which I've never written before. Is there anyway I can send it to you to look over for me? I appreciate all of your assistance in this.

[Evan Bedard]

No problem, if you would like you can just copy and paste it right here in this thread and I will go over it for you. Just make sure you do not post any personal information such as account number, property address, first/last name, etc.

[LaurenSch]

To Whom It May Concern:


I am writing this letter to explain the unfortunate set of circumstances that have caused me to become delinquent on my mortgage. I have done everything in my power to make ends meet but unfortunately I have fallen short and would like you to consider working with me to modify my loan. My number one goal is to keep my home and I would really appreciate the opportunity to do that.


As a widow, I have raised my 4 children in this home and the last thing I want to do is loose it.


The main reason that caused me to fall behind is the loss of my employment in June of 2011. The company I worked for closed after many years, leaving me with Unemployment as my sole income. In the middle of all of this, my family suffered devastation as my mother passed away from bone cancer and my only brother was killed. Financially, this weighed on me heavily, as there was little outside help, with their final expenses.


While I did return to work full time, in February of 2012, I am now making only near half of what I did. Which in turn has left me further and further behind. Now, it's to the point where I cannot afford to pay what is owed to Homeward Residential.


It is my full intention to pay what I owe. But at this time I have exhausted all of my income and resources, so I am turning to you for help.


When I originally got behind, I went on a repayment plan and made those payment's on time. Unfortunately, the July 26, 2012 payment crossed the same night as my payroll did. The debit for the mortgage came out, before the credit of my payroll, which in turn had that payment returned and was not redeposited. The money for my payment was and still is in my bank account.


This removed me from the repayment plan, when it was scheduled to be finished August 26, 2012.


Also pending, was a shortage in my escrow because of Homeowners Insurance, Property Taxes, late fees etc. All in which, since I was removed from the repayment plan, came due immediately.


I feel that a loan modification will give me the chance to get this all back on track and start fresh on a positive level.


My situation has gotten 100% better, because I have returned to work full time and I feel that a loan modification would benefit greatly.


I would appreciate if you can work with me to lower my payment so I can keep my home and also afford to make amends with your firm.


I truly hope that you will consider working with me and I am anxious to get this worked out.


Sincerely and Respectfully,