Attempting a Loan Modification with AHMSI

[Zerboy]

I recently contacted the loss mitt department to try a loan mod as we have a neg am loan that has adjusted once already and is set to adjust again in 2009. The loan amount is well over the actual value of the home. I contacted Hope Now and they took our financial info and submitted it to AHMSI, that was it. I then contacted AHMSI, and they told me to send in a hardship letter with my w2's and paystubs. I did that as well, and after a few weeks I was contacted by a rep that attempted to modify my loan by telling me I need to bring in another $1500 a month, and they would modify my loan for me. I explained everything in my harship letter and over the phone that I am the only wage earner in the house, and they still wanted me to bring in $1500 a month to get the mod. They would not reduce the principal amount, instead, they added on the excessive pre payment penalty penalty price and offered a rate of 5%. Nice rate, but a loan amount of $317k for a house worth about $220, come on. Any advice out there, this loan has been a huge burden for well over a year now. Should I call an FHA lender, and see if they would work with them on the Hope for Homeowners bill? Man, I am desperate, as many of us are. What a nightmare. I am happy to have found this forum, becuase the reps sure don't seem empahthetic to my issue probably becuase they have not experienced it before. We want to stay in our home for many years, and we want to be able to live and save and put our lives back on track. Thank you.

[elpjohnson]

Zerboy......

Welcome to the forum and thanks so much for joining.....you should try contacting the VP's over at AHMSI.....here's the contact info

Jeanne Drake-Direct phone line 949-784-6011
Fax Line 866-642-4196

Jim Davis- Phone-904-996-9696
Fax-904-996-9653

Fax your hardship letter and financial's to both Jeanne and Jim, then follow up with phone calls to both.

[elpjohnson]

Really? They added a pre-payment penalty? Are you sure it wasn't capitalized interest and late fees etc? Are you behind in your payments?

[Zerboy]

I have never missed a payment, so it could not be late fees.

[Zerboy]

What is capitalized interest?

[elpjohnson]

I'd have to have *** explain that to you.....I wasn't late either and they added like $9500 to my loan in capitalized interest, escrow etc.....I think that's the fees they are trying to add to your loan....not a pre-payment penalty. I just took the deal because it was the only way they would modify my loan....so I sucked it up

[elpjohnson]

Generic definition of capitalized interest....

Capitalized interest has to do with the interest that is associated with just about every type of loan agreement. Basically, capitalized interest can be understood in terms of expensed interest that occurs when the regularly scheduled loan payments are not made on time. In many types of loans, that unpaid interest that is part of the delinquent payment is added to the principal balance of the loan.

However, capitalized interest can does not necessarily only occur when payments are late or are missed. The interest can also be amortized in situations where payments are deferred for some reason. For example, if the borrower works with the lender to suspend payments for a short period of time, this is known as forbearance. During this arranged time, payments are not considered to be delinquent. At the same time, the portion of those deferred payments that would have gone toward the accrued interest on the loan will be added back to the principal, creating capitalized interest.

There are actually some situations in which capitalized interest may be in the best interests of the borrower. This is especially true if the purpose of the loan was to create an asset that will be capable of generating revenue once it is completed. One of these situations would occur when the purpose of the loan is to finance the construction of a building. Seeking a deferred payment arrangement does create more interest and higher payments down the road, but it also frees resources to be devoted to the project. Once the building is complete and can begin generating revenue, the additional cash flow will offset both the higher loan payments and the capitalized interest.

In some cases, a lender may be not be agreeable to a deferred payment schedule, but will be open to receiving only payments on the loan interest for a period of time. In this scenario, the borrower may choose to use part of the loan proceeds to make the payments on the capitalized interest. This allows the borrower to buy some time until the project is completed and the assets begin to generate revenue to cover both the loan principal and the interest.

Hope this answers your question.....

[Zerboy]

How long did it take to get your mod worked out? Was it worth it, did it really help. Are there certain bullet points to hit on? Was an FHA refi out of the question?

[elpjohnson]

Well, as you can see by my signature, it was a 10 month battle for me, approximately 8 months with an attorney. Yes, it was worth it! It saved our home! Our payment went from $4300 to $5034 after it adjusted....we just couldn't afford it. We were initially denied because the investor wasn't modifying but my attorney found violations in my loan documents and got us a loan mod of 6% for the life of the loan. Our new payment is $4165.....so we're saving a few hundred a month. BUT we were in an interest only for 5 years that was adjusting every 6 months....we just could not afford not to take the deal. Our payment now included principal and interest, which is good because we're finally paying it down a bit. I wasn't happy about the capitalized interest but what could I do? It was the best my investor was going to offer, so we took it. I am so happy we did....now I can sleep at night.

If you have time and want to read my story check out "Update on Option One, Success at Last" in the Success Section of the forum.

We couldn't do FHA because we were way over the limit.....

Hope this helps......

[charlener1]

Just rcvd call from negotiator offering 4 step from 5.00 to 6.00% final fixed rate they attached the arrears and no payment due until Feb 1st I thank you for all the hard work you guys did to help me

[Zerboy]

Called Jeanne Drake twice today, left vm's both times. Also, I emailed my hardship letter to all of the email addresses *** recommend in this thread. I am hopeful. To all of those that have succeeded in this process, congratulations. You have earned it, this is not easy. I will keep everyone posted on the status of my loan.

[elpjohnson]

Don't forget to contact Jim Davis as well....he was instrumental in helping me get my mod and has helped other members.

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

[Zerboy]

I just spoke with Jeanne Drake and she stated that they are re-reworking my original modification. She said hat there was too much negative surplus and that their investor guidelines allow for a better modification than what was originally offered. I am not sure what will come of the new mod, which they are supposed to call me tomorrow to let me know, but I am hopeful. Should I contact Jim Davis too, even though Jeanne Drake is re-working the mod? I am greatful for this forum and its founding authors, I have made so much progress in the last few days with the information that has been gifted to me by other members. I will keep all posted.

[elpjohnson]

Zerboy.......

That's a great update! I would just leave it up to Jeanne for now, and let her work her magic on it. I'm praying that you get a great mod out of it.

Keep us posted on your progress!

[charlener1]

me too give her a chance be really nice and patient and I believe you will be waiting like the rest of us for our papers .....5 days and counting

[Zerboy]

I have left a few messages with Jeanne Drake about the re-mod. I have yet to hear back. She said that I would hear from someone the following day after we spoke, but I yet to hear from anyone. I will continue to call. I'm not sure if they are still preparing the-remod, but I am just curious, of course, what the re-mod is going to look like.

[elpjohnson]

You're doing the right thing by calling and following up.....I would continue to do that until you get some sort of an answer from them.

[charlener1]

true just remain patient but persistent

[Zerboy]

Alright, the modification has been approved and overnighted to me. I will have it tomorrow to sign. They did a principal reduction deferrment, which was deferred to the end of the note and fixed the remaining balance @ 6% for 28 years. If I refi or sell then I must pay the deferred amount in full, but it is a silent second only due if I refi or sell and it is also interest free. I will have no payment until Feb 1, 2009. We worked on the payment with our current income and expenses and they came to a number that we can afford. We feel so blessed to have this happen to us. A huge burden has been lifted. God has provided, as he always does in his time, we are so grateful. Every day for two years I have thought about this loan, and now my family and I can move forward, and fall back in love with our home. What a feeling!!! They said this was one of the first option arms they did a principle reduction on. Has anyone else had this done on an option arm? If so, does this modification seem right with regards to the rate, term, a deffered principle on the back end? Just curious. I would like to take this moment to thank this forum as well as well as its founders. I stumbled upon this site trying to pay my mortgage online. I immediately becmae a member. Now, 5 weeks later, I am having my loan re-modified. My first attempt did not pan out, so after I read the threads here I decided to try again with the contact info found within. This site gave me the info and guidance I needed to try again and be sucesful. Thank you to the founder of this forum, you are literally changing lives.

[elpjohnson]

Congratulations on an awesome modification!! Enjoy your home and family during this holiday season....God bless you and your family

[charlener1]

AMen to that I have been spreading the word about this site its wonderful to see it work out.... the mortgage guys want to help us and we want to keep our homes and each sucess helps the economy Merry christmas

[Zerboy]

Does anyone know if AHMSI is doing principal reductions without deferring the principal? My entire principal reduction, $182K, was put on the backend of the note. It's a heafty number that was deferred as a silent second, due as a balloon payment upon maturity of the loan, so I am wondering if this can be dwindled down before I sign the modification papers I received. It does not look like they are truly writing off any principal, it's just due at maturity or when/if I sell or refi. I just want to get this right before I sign the docs, so I don't go through this again. Is it worth going back to my negotiator and asking for them to work on the deferment amount before I sign? Am I being too picky? It sems time sensitive, and I am not sure how much they will negotiate with me since the paperwork was sent to me already.

[Moe Bedard]

There are not any investors that we see doing principle reductions on firsts...........we just had another member receive a similar mod and I was trying to explain to her that it isn't a principle reduction because the 120k is due in a balloon payment at the end of the term.............

What you can do to eat away at the balloon is to pay a bit extra of principle per month if the modification helps you otherwise.

[cutie73]

Hello,

Can anyone tell me about Chad Stuck, the negotiator at AHMSI?

[Moe Bedard]

cutie73

You may want to start your own thread with information about your loan and where you are in the process so that you can ask questions, receive advice and update there.........