Here's my story... Need advice..

[stephweena]

We bought our house 9 years ago. In January of 2006, we refinanced and pulled out money to help send our daughter to college. Our broker put us in an interest only ARM with a 2 year prepay penalty. The interest rate was scheduled to reset in April of 2008, so we got started on the refinance process in the beginning of 2008. In the meantime, my husband, who is self-employed in the construction industry, is experiencing the worst year to date. It turns out we could not refi- nobody doing stated income, no value in property, blah blah. The April 1st payments went up $600, to $3,100 a month.. and we made them for a while. To do so, our saving depleted and had to sell my husband's classic car. We started the loan modification process in July and send in all required papers. In the beginning of November, they notify me that they need updated statements and P&L. Of course, we refaxed current papers and P&L that I wrote up myself. Well, the lady from Citi Residential called and offered a 30 year fixed at 8.67%, making my payments $3,300 a month. Okay, so I'm out of my ARM, but I can't even make the $3,100 now and I'm 3 months behind.. how the heck am I going to make $3,300?! What do I do now??

I came across a company out of Arizona. They are an FHA approved lender, have a staff of loan mod. specialists, and charge $1,500 x 3 with a money back guarantee. They believe they can get me a better deal. Do I go with them? Could this be a scam? Can they really help me?

Please help! ASAP.

Thank you,
Stephanie

[Moe Bedard]

Welcome to Loan Safe Stephanie and thanks for sharing your story so others can learn

Being self employed and using P & L's is a nightmare in the loan modification process. My experience has shown me that self employed borrowers have the absolute toughest time and if they do get a loan modification, it is unfordable like in your case.

I feel that you just need to resubmit and make you case in a thorough and logical manner detailing your income, expenses and your husbands business.

Try this email address homeowerhelp@citi.com and put LoanSafe.org member in the subject and start the process again.

As far as Itellichoice, they are an MLM organization and NOT an FHA approved lender. They are owned by a debt settlement company called Mantis Financial Group in San Diego California.

I would stay away from them if I were you.

[stephweena]

Thank you, that's exactly the answer I needed.
I'll definitely use that email, and keep you posted.

[Moe Bedard]

You are most welcome and please do keep us posted. I have an interesting read for you on smalll business owners sent by a colleague that you may want to read. Mortgages Targeted At Small Businesses Deemed "Toxic"

The nation's small businesses own ninety-three percent of all "toxic" mortgages and are at risk of defaulting on their loans/payments. The data, released today by the National Association for the Self-Employed (NASE) in coordination with Prof. Samuel D. Bornstein and Jung I. Song, CPA of Bornstein & Song, CPAs and Consultants, shows that these "toxic" loans did not go to subprime borrowers.

Rather, these "toxic" mortgages were targeted to small business owners who were prime and near-prime borrowers and may now find themselves facing sky-high monthly house payments. The results of the study were extrapolated based upon an estimated 16.2 million self-employed small business owners in 2007, according to the Small Business Administration's Office of Advocacy.

With the majority of the nation's small businesses being run from a home office, this alarming evidence has significant implications for businesses owners facing foreclosure who may be forced to shut down for good. The "toxic" mortgages that were marketed to prime or near-prime borrowers include Alt-A, Alt-A ARMs, Option ARMs, and Interest-Only.

I wish you the best of luck!!!!

[stephweena]

I apologize for not posting sooner. I've been playing the waiting game. Used the e-mail address you provided and was contacted by Steve Gilson.We re-worked the p&l's over the phone ,he was forwarding this on to the loan mod dept.Well,this was back in Dec. As of about a week ago I discovered that Steve is no longer with the company,the servicing of my loan has been transfered to AHMSI and my house has gone into foreclosure.A little miffed ,I should say.So now I begin the process again(third time,I think).Hopefully this will be it. Thanks for listening.

[Moe Bedard]

To go through the process with AHMSI............you can fax your hardship letter to the office of the VP of Home Retention and follow it up with a call..........

Jeanne Drake (VP Home Retention)
Phone: 1-949-784-6011
Fax: 1-866-642-4196


Jim Davis
Phone: 1-904-996-9696
Fax: 1-904-996-1727

[stephweena]

sent in all requested paperwork.We were contacted within 24 hrs. Our neg. is Rosa. Last Fri. she called to say the package was ready to be submitted.As of today I still have not heard anything. Ugh!