Finally offered us a 5% mod after we ignored them for 5mo's

[Coloradofury]

To answer some of Conundrum's queries, you do have to decide why you purchased the house - do you love it - have you made it your family home, do you have kids with friends down the block - or has it become more of a burden?
We had to ask ourselves all of this. We could rent for less as well, but we'd have to move, lose the neigborhood pals my children have grown close to. Legally/financially we may not be able to buy again for 10 years if we abandon this home. We'd have to deal with life as renters - what does that mean for our pets, what will the neigbors be like, can we find a respectable person to rent from? There's no tax advantage, no pride of ownership, and much less enjoyment when you're living in someone elses property where you don't care to plant, paint, or do the home projects that make a house your home and build equity. It was easy to lose site of what we wanted after AHMSI jerked us around for a year, lied to us, strung us along and then harrassed us with phone calls for payments they knew we couldn't afford. We would have given our limbs for a 5% offer a year ago and despite what's in it for them - we'd probably be crazy to turn it down now. There is no telling if the markets will adjust over the next 5-10 years and give us all back the equity we've lost. But how will we feel if they do and we walk away from the opportunity to salvage the homes we've fought so long and hard for? Personally I'm looking at the offer as an answer to prayer and I'm for fighting on.

[sofla1]

Love your idea, but it seems there are 3 of us that are posting that received this offer? I just got off the phone with AHMSI and my operator seemed baffled that I was asking questions. She told me people who got these offers who were interested in saving their homes were thrilled and just signed and sent back. She also said NON-NEGOTIABLE. I haven't gone up the chain, though. Not going to do that until I am more clear in my own head what I want in the long run.

[sofla1]

Coloradofury you are right! I would have given my left arm (I'm a lefty) for a 5% deal... this too is our home; the kids don't want to move, we have friends and have put a lot into this place. I feel so jerked around that I am more concerned about signing away my rights to fight the original note when we probably should all look to the future and protect ourselves going forward. Good luck with your decision!

[Coloradofury]

OK I'll have to count how many of us there are - I thought at least 4,but someone mentioned another thread where the same offers are being referred to. Maybe it's the very same ones (the 3/4 of us). So our offers only started coming last week and we've barely had the time to review - or have our attny's review. Once again I do not take stock in AHMSI's word that these are hard and fast offers with no negotiation. Haven't we all been fed similar lines of BS from this company - times have changed and they are proving more desperate to work with us.
I'll update as to any progress my attny might make. There is no reason not to put forth our offers based on what we believe is fair and what we can each afford. I'm praying for earth shattering negotiations on all of our behalf!

[Maia7]

Hi Everyone - on my way to work I thought of something that might be helpful for folks receiving this offer who wish to collaborate. Maybe getting the three or four of you together on a conference call would be handy? There are a few free services like WebEx and GoToMeeting to quickly setup a call to discuss options for operating collectively. Just a thought. Good luck!

[sofla1]

If you guys want to talk, I am okay with that. Do you think just 3-4 of us will have any power? All I want is the 5% fixed for the life of the loan and I can chalk the rest up to paying for my ignorance. All day I have been waffling between just signing and fueling up to fight.

[Maia7]

Sofla1 - if you have time (when do you need to respond to this offer?) I would counter. Countering cannot hurt. They're not going to take the original offer off the table if you simply counter (within their time lines of course).

Reading your earlier post it looks you would be gambling on your circumstances changing in five years in order to refinance. You also would be signing away any future damages.

Consider that carefully.

The other option is to sit tight for a month and see what the government has to offer.

I can't tell you what to do. It's a tough choice. Just be aware you are signing away your right to recourse and gambling on your ability to refinance. If you feel good about those odds then you should go for it and promptly begin paying off principal and getting your credit in shape for a refi five years down the road. Because that's what it's going to take: good credit and equity. If you don't feel good about those odds you should start working other angles.

[Maia7]

Hey Sofla1 I just found where you state this expires on 11/14. If I were in your shoes, I would put together my loan modification request along with this letter and any documentation you have on the house's current value to Jeanne Drake's office. In your hardship letter if I were you I might acknowledge your gratitude for AHMSI's attempt to reach out and correct this situation.

I might also say you are really eager to come to a speedy agreement. You might tell them that while this offer is certainly generous, you are worried about being able to refinance in five years as this offer is INTEREST ONLY and won't give you much room to get some equity going so you can refinance. It might be swell if they could alter this almost right offer slightly so as to make a dent in the principle. It would be even better if they could just go ahead and fix the rate for the life of the loan so you or their investors don't need to gamble on future variables working out.

Good luck.

[tramer]

I just had to reply. My story is posted as of yesterday, our cashiers check was lost and our mod. denied. After logging onto this website, I got the phone numbers and emails. I faxed Jeane Drake our hardship letter, left her a message and emailed my hardship to all the emails. I have been working with a housing counselor for 3 months, feeling lack of power.

Anyhow, my husband recieved a phone call from Jeanne Drake herself first thing this morning. She took all of our information, and was very nice. She said she would get back to us, with what she could do today. (We shall see). She also asked where we got her number, she chuckled when we told her. She also is aware we have already filed a complaint with the FTC about losing our check and telling us false information. They are scrambling.

I will keep you posted. It is just amazing to sit with nothing for 4 months and then to get someone actually moving all of the sudden. Makes me wonder????????????

[sofla1]

Maia7 -- Thank you so much for the kind words. I have a Nov. 14 deadline. I am weighing everything out, just thinking out loud. If there was no attachment to the property it probably wouldn't make much sense to stay. I am talking to my accountant tomorrow, as someone here wisely said this should be more of a financially-based than legally-based decision.

[Maia7]

Originally Posted by tramer

I will keep you posted. It is just amazing to sit with nothing for 4 months and then to get someone actually moving all of the sudden. Makes me wonder????????????

Awesome Tramer! I found Jeanne Drake to be a really nice human being. She is completely reasonable and very professional. She and the folks that work for her seem to be able to evaluate the situation and put together something that works for everyone - if you are a good candidate for a refi. Which means you have good employment prospects and you make enough money to make payments on a loan with fair terms for both the investor and you.

I hope things go absolutely swimmingly for you.

[acesfull]

I have deciced to not make another month payment which incidently is $3300.00 per month. I will for go my good credit score of 715 to help myself get a better loan from my present AHMSI loan shark company.
I am now paying 8.23%, I can ref because like most of us our equity as fallen on our homes. My present balance is $353k the sale value in this market is maybe $310k so I am upside down about 43K minus realtor comminsions. My salary fell from 114K to 79k. I lost my benefits and company car, so more expensives were incured.
How can I prove to AHMSI that I can make my payments and have a win win situation for then and me. I want to stay in my home but need some time to get back on my feet. Thanks for listening.

acesfull

[Coloradofury]

Hello Acesfull - So your pretty much where I was a year ago. Twice I attempted the modification, the first time I showed too much income and the next time not nearly enough. It's obviously critical to provide proof of being just in that range with an extra $150 a month. However, that guarantees you nothing. Some get a workout some don't. In my case, we quit paying our mortgage 6 months ago and certainly are not bringing in any more income, yet just weeks from my foreclosure sale date - I get a shock offer to reduce my interest rate from 9% to 5%.
If you read the thread I am still not completely able to meet this new payment and have read success stories where AHMSI has reduced the first and 2nd so I am working to have that done. Unfortunately, I expected my attorney was working this, and just got off the phone to find out he hasn't even made contact. So as of right now I am going to work it myself and bombard AHMSI with my counter offer - using of course all the fantastic contact info provided all over this site. I will update the thread with my status.
As for your fight, be armed with patience as your faxes will be lost, you will speak with one incompetent person after another and will have to call a million times to get anywhere. It would be of tremendous benefit to comb through the forum and get some good contact names, fax and ph #'s that *** has listed.
Please continue to update with your progress and especially when you need encouragement. If it weren't for Loansafe I wouldn't have had the energy to keep going. Will be putting you on my mortgage prayer list!

[acesfull]

Originally Posted by Coloradofury

Hello Acesfull - So your pretty much where I was a year ago. Twice I attempted the modification, the first time I showed too much income and the next time not nearly enough. It's obviously critical to provide proof of being just in that range with an extra $150 a month. However, that guarantees you nothing. Some get a workout some don't. In my case, we quit paying our mortgage 6 months ago and certainly are not bringing in any more income, yet just weeks from my foreclosure sale date - I get a shock offer to reduce my interest rate from 9% to 5%.
If you read the thread I am still not completely able to meet this new payment and have read success stories where AHMSI has reduced the first and 2nd so I am working to have that done. Unfortunately, I expected my attorney was working this, and just got off the phone to find out he hasn't even made contact. So as of right now I am going to work it myself and bombard AHMSI with my counter offer - using of course all the fantastic contact info provided all over this site. I will update the thread with my status.
As for your fight, be armed with patience as your faxes will be lost, you will speak with one incompetent person after another and will have to call a million times to get anywhere. It would be of tremendous benefit to comb through the forum and get some good contact names, fax and ph #'s that *** has listed.
Please continue to update with your progress and especially when you need encouragement. If it weren't for Loansafe I wouldn't have had the energy to keep going. Will be putting you on my mortgage prayer list!

HeyColoradofury,
First thanks for the prayers. How long does it take in your state to evict you from your home? I got a contact name from this board Jeanne Drake from ***. One of my big hurdles will be trying to prove my income. My contractor boss is an old school guy and does not believe in computers or paying for union employees. He is a good man an pays me in cash each week, $1500.00 this may seem like alot but I was make $2600.00 per week on my last job and also had benefits and a company car.That was 8 months ago. Things have been tough but I am only 1 and a half months behind on my $3k mortgage. All other debt up to date. I am just hoping that AHMSI, will give me a chance to prove my creditworthness with a loan mod.
if they won't lend a hand, I maybe forced to take advantage of the NJ forclosure laws and live in my home rent free for 10 months. I will get a letter out to Jeanne Drake on Monday and hopefully something positive will happen?
I was or thought I was very secure in my previous job 11 years of service, 114k a year plus a nice bonus, a company car, health insurance, and then this housing bubble and other type construction projects coming to a halt due to the credit crunch, etc etc. Thanks for your reply and keep up thre prayers and the good fight. Sincerely,

acesfull

[sofla1]

To all who received those unsolicited 5%-5 year loan mods... has anyone tried to modify the offer? I am still unsure of what to do. I am also self-employed and cannot jump through the hoops they set up... I just don't want to be in the exact same boat 5 years from now. Don't they see this is how we got into this situation in the first place? I know I am just ranting... but how can they expect to offer a modification with no docs necessary, then require all this proof of income, etc. for it to be liveable?

[Coloradofury]

How long does it take in your state to evict you from your home? I got a contact name from this board Jeanne Drake from ***. One of my big hurdles will be trying to prove my income

Acesfull - Typically we expect 5mos till eviction but we've watched folks stay in their homes for more than a year while going through the process. We are at the 7mo pt right now and should we allow the foreclosure (on both of our homes) we would likely file bankruptcy immediately, giving us another 3-6 mo's before eviction. We just hope we don't have to go that route - as you obviously don't.

[Coloradofury]

In proving your income, will your bank statements provide support, along with a sworn statement from your boss? You sound like a really solid modification candidate from everything you've said. I am so sorry about the job situation. I lost a great job due to a pregnancy disability 3yrs ago and have tried to replace it with just about anything decent since - with no luck at all. Count yourself blessed in the economy to be making what you are and I will continue to the prayers for your success story. I just read a wonderful success story whereby PainterH received a much needed modification this morning. I have more and more hope that AHMSI is making amazing strides in it's duty to finally help the struggling American homeowner.

[Coloradofury]

To all who received those unsolicited 5%-5 year loan mods... has anyone tried to modify the offer? I am still unsure of what to do. I am also self-employed and cannot jump through the hoops they set up

Sofla1 - I haven't read or heard of any counter offer attempts but that doesn't mean it will hurt to try. With the deadline acceptance for both of us being just several days from now - we have to make all attempts asap. I don't have any expectations but I have fought this battle so long and hard I am not ready to give up until I have seriously exhausted all my effort. Like Maia7 noted, AHMSI can't take their offer off the table due to our negotiation attempts, contract law doesn't allow that. I am not at all surprised that reps will immediately act shocked and dismayed that we would dare appeal for a better loan. You are right that many of us who accept the 5% ARM will be right back here in 60 months. We can look at it as buying us time if nothing else.

[sofla1]

Coloradofury - I know, we are in the same position. Can you afford the initial 5% payment? How upside down are you in equity? These are the considerations... if AHMSI would fix the rate, I would consider the neg. $200K I would be signing on to, although just typing it sounds like a crazy thing to do. I can do the payment. As settled as my family is in this house, as much as I want to keep it, I know it doesn't make financial sense to stay. I seem to want to anyway. Such a hard decision.

[eatacheesesteak]

We bought our 1st and only home in 2005. Due to a Ch. 7 bankruptcy only a year and a half before, the best mortgage we could get was a 30-year fixed rate mortgage for the first 2 years and an adjustable rate thereafter. The initial interest rate was 7.05% and our mortgage payment (including taxes and insurance was $2150./mo. Once the 2 years expired it increased to 10.75% and our mortgage payment went up to about $2900./mo. We fell behind. I tried unsuccessfully to renegotiate with Option One/AHMSI. The best they could offer was to put my arrears on the back end of the loan and pay as usual. I found that to be unacceptable and stopped paying in February 2008. Option One filed a foreclosure action against us in July or August. We moved out into an apt. having given up hope of continuing to live there and not wanted to be evicted in the middle of our childrens' school year. We signed a 12-month lease beginning October 1, 2008. A week or so ago I get a Loan Modification Agreement indicating they will lower our rate to 5% for the next 5 years then it will go back to the adjustable rate for the remaining 22 years with the arrears put back into the loan which takes the principal balance from $255k to $278k. They want the Loan Modification Agreement and down payment back by Friday. We doubt we could ever own a home again if we don't take the offer. We hope to be able to refinance in the next 5 years. It will cost $475/mo more than renting but if we can hold onto the home by refinancing in the next 5 years one day we will own the home. I called to renegotiate the Loan Modification Agreement but they told me in essence "take it or leave it." An Answer is due next week in the foreclosure action. Do I sign it and hope to refinance in the next 5 years? Do I refuse and hope an attorney can find a loophole I can fight the foreclosure? Do I keep calling AHMSI back and try again to renegotiate? So many questions - so little time. Would you recommend I let them know we already moved out? Do you think this would help? Some posters reported great success which gives me hope. Any help/advice would be greatly appreciated.

[Maia7]

Hi eatacheesesteak and welcome!

It is certainly a gamble to have hanging over your head hoping you can refinance in five years. This is what it will take:

1) Be able to have equity in your house by value going up and you paying on principal
2) You having excellent credit

Good news is, you have some other options! Try two more things before accepting their offer:

1) Submit a hardship letter countering their offer asking for a fixed rate for the life of the loan
2) Take advantage of and invoke the 90-day "Project lifeline" described on their web site here: American Home Mortgage Servicing Online > Support Center

This 90 days will give you some time to explore options that are being rolled out by the government, work with an attorney on a loan mod, or work with an non-profit like Hope Now on a modification.

[Coloradofury]

Thanks Maia, I wasn't familiar with Project Lifeline - I just copied some qualification info if found via your link - and which could present a problem:

How can I tell if my mortgage might qualify under the plan?
Loans that qualify under the plan include all 90-day delinquent nonprime, Alt-A and prime loans as well as second liens and home equity loans that are not:
• In active bankruptcy
• In active foreclosure with a sale date less than 30 days away
• For investment properties
• For vacant properties

EataCheeseCake - I am so sorry you had to go through the move out and only now have an offer coming your way. Don't you just want to scream "AUUGH, when does this all end!?"

OK - now to sort through it all:
- Can you meet the increased payment of $500a mo?
-Can you come up with the downpayment by Thursday?
- Do you love the home?
-How undervalued is the home at the new principal?
-Is this the only loan on the home or are you in a 80/20 structure?
-Have you spoken to the apartment mgr to understand if they will let you out of the lease?
-Are you spiritual - do you feel a leading in prayer one way or the other?

Reducing your interest rate to 5% is wonderful, but after you've already uprooted your family and gone through the emotions of packing and leaving, it almost seems like insanity to move back in. $500 is a lot to me, but it's a home and not an apartment. How important is that to you?
With all of our combined experience with AHMSI we should all expect push back when we attempt to negotiate on our terms. But they are desperate and if you are still undecided I highly recommend you push and push hard with your written counter offer - advising them what you have been through, that you already moved out and accepted the loss and explain you want it back . Outline what would make it affordable. It cannot hurt to attempt the letters, emails, and phone calls. If you don't get the answer you like, you can still accept or decline the offer in the next couple days.

If you work hard, you will very likely be able to qualify again for a home, maybe more easily then you would be able to qualify for a re-fi 5 yrs from now. Do not convince yourself that this is your only chance to ever own a home again. So many folks are offering rent to own opportunities on property and their will always be new programs surfacing.

Best of luck to you and your family. I urge you to get on your knees and pray for an answer - but also pull any last bit of persistance you have left and respectfully request further negotiation!

[Coloradofury]

Sofla1 - We can definitely afford the principal payment, it's the 2nd that's not so certain. We owe $285k, the new loan will put us at $298k, which makes us about anywhere from $30k-$40k upside down. You say you believe it doesn't make financial sense for you to stay. If I honestly believed that, I wouldn't accept the offer..

[Maia7]

Excellent advice Colorado.

EataCheeseCake - I think ColoradoFury is right in starting with these questions, especially having already moved.

There are options for you to pursue (outside of this offer they've sent you) if you do want to keep this house. Fire away with more questions if you've got em. We're here to help.

Coloradofury and sofla1 - wishing you good luck and thoughts as the clock ticks down on your decisions over the next few days.

[sofla1]

I spoke to my accountant this afternoon, even though I know the numbers do not work. I don't think I ever gave you my figures so here goes:
initial 8.8% payment was $3168; two resets (maybe three I stopped opening the mail) up to $4260 or so after the first reset. I stopped paying then -- October 2007. My mortgage was for $432K. The 5% offer has now an additional $64,637.50 for a total of $496,637.50. I put the house on the market at $375K got a low offer of $325K after 90 days on. Rejected. My house is probably worth somewhere between $300K and $400K, no way of really knowing as there are few sales. I have a second for $69K that is with another bank. That payment is about $600 a month, again not sure as I stopped opening their mail as well. That puts me somewhere between -$265K and -$165K in neg. equity, or thereabouts. Rentals in my area will run me about what my house payment with taxes, HOA and insurance would be maybe a little less for a nicer/bigger house. Might be able to get something for less. But I will not have the huge debt. I know it makes absolutely no sense to stay, I think I am just really tired. The thought of packing, moving and finding a safe rental is daunting. The only reason I am considering the offer at all is, I think, I am too tired to move. Thanks everyone,for all your help!