Trying to Refinance Since 10/'06 to Present

[bkmilton]

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Dear Caring Humans,

Over the past year, I've attempted seven times, spending an average of two months with each hopeful refinance agent only to view documents with outrageous fees, $10,000-$12,000. Back then I had almost $100,000 in equity in a home where my two now grown children were raised, 18 years. Unfortunately, in '04 the home was refinanced into a "pick a pay" mortgage as a 3/1 ARM with negative amortization monthly when you can't afford even the interest only payment. The first year and some months was okay for I made the Principal/Interest or Interest only until the rate began to climb to the present rate of 9.03%. Mid October 2007 the 3 year prepay penalty disappeared.

June 2007, after being degraded, disrespected, humiliated, viewed as incapable of teaching teens in special education after 16 out of 38 total years teaching special needs children, I retired. I'd just reached the top of the salary schedule and hung in there one more year so that salary amount would factor into my retirement though constant negative feedback had my initials all year. Along with job problems my mom passed after 5 years looking after her. We had grown very close. My husband left me after his Mom passed and he inherited 1.8 million dollars.

I have some great predator stories from many aspects of life. The two lenders I dealt with were Countrywide and Washington Mutual, the rest were brokers, two of which lied in retaliation when I refused their so called great offers and one who thought he deserved $10,000.00 for his services. That one was recent and the costs were approximately $24,000.00. A couple brokers appeared to be doing illegal maneuvers.

These bottom feeders have wasted my time to the point home values in my area, Temecula, Ca., are falling and homes are selling at rock bottom prices. This all began around Dec. and Jan. Bottom line my equity is gone and I'll be lucky if I can refinance, hoping this one is oh so caring as the others!

What's happened to our country? The dollar means more than people, when the dollar has no value really.

BKMILTON

Welcome to the forum and thank you for joining.

If I can what is the balance on your loan presently and what is the value of the property conservatively today? There is no excuse for the Broker behavior that you have experienced, however I am not surprised, the one that wanted money for delivering nothing is a real prize. Great fellow/gal, should be nominated for the Nobel Jack@ss Prize of humanitarian contributions.

The issues that you are facing is that with an Option ARM you are close to full monthly payment adjustment if the cap is 110% or 115% and you have only made the minimum payment all or part of this time. Who is your lender? Have you approached them for Modification...this is difficult on Option ARMS, but not impossible, please read JacMac's Sucess story, her modification was an Option ARM Mod. They can and will have to be done, the lender's need to wake up and smell the coffee on this fact or they will be the biggest property owners in the United States and so Real Estate Property poor that they will make even the Federal Deficit look mild. No joke actually. Please could you tell me who your lender/servicer is and have you approached them for Modification as of yet?

[bkmilton]

Thank you Poppy for Caring. To address some of your inquiries, according to my last statement payoff is $333,400.00+2 or 3 thousand for that ongoing neg. am. Three years ago and I swear on my life, when I cluelessly signed for this mortgage, the payoff was $320,000.00. During the first year and some months I managed to pay it down to $318,000.00. I distinctly hearing the broker repeating over and over, now remember to make an extra payment each year. Great Advice!!! In 2004 my home appraised for $400,000.00 and on Oct. 29, 2007 it appraised for $435,000.00. Between Thanksgiving and now the bottom hit here in Temecula. My mortgage company is First Federal and I despise them. The first time I called the lady worked with me for some time but was unable to help, leading me to believe First Fed. only submitted ARMS. In fact, she acted so concerned she referred me to a friend of hers but he was a waste of time. Recently, I called and was transferred to the "cleaning man" who said he had one plan to offer me another ARM with a prepay plan. I went crazy and after ranting over that idea, he relented. The best he could do for me was 7%. Now this company charges me $45.00 when a company calls for payoff and charges me $30.00 for payoff. It's only $30.00 for an update. These charges are posted on my statement monthly. This past year I've been out money for appraisals and charges. Twice I paid by phone to try to avoid interest they charge $10.50, but if an associate is needed the charge is $20.00. The last comment the cleaning man said to me was are you at 110% or 125%...not yet, but not far away.
I'm hoping those at Wachovia in the local office or the young man at Mission Capital Funding in Orange Co. care enough to get me out of this mortgage.
BKM

Before you spend another dime you need to ascertain if the collateral will support the request, is the value in the property to support the requested and necessary amount of credit that you require to payoff that nasty Option ARM. You need at least a 90% LTV to make it fly. That should be the first thing, if is not do not spend another dime, no one can fight that problem. If is not a problem, then step two.

Then do not go to a Broker....only go to a direct lender if there is enough value to support the request. Direct lenders have bottom feeders too, but they tend to weed them out so there are a limited amount of them in the Direct Lender employee pool, they do not last long. Wachovia is a Direct Lender, Bank of America is a Direct Lender, in your area there are multiple smaller Banking institutions that have mortgage banking platforms that will not tolerate this outrageous fee driven behavior from their employees. Mission Capital is most likely a Brokerage not a Direct Lender and oh they will tell you why they are better, but there are very few that really deliver on that promise. Now the going rate on A paper fixed rate 30 year product should be not much more than 6.50 to 6.75% and I believe that I might be high on that, but I have not checked pricing and rates for a while. As long as there is no cash out there should be no up pricing for the product and for that matter a good solid institution will not charge that much more for cash out, but your goal here is to do a rate and term.

When you get ready to close......do not pass go, do not collect the commensurate 200.00, find a experienced and savvy real estate attorney to review your loan documents. For the experienced person the documents are easy, but for others not. Any riders to notes will connote ARM or Prepayment Penalties. There are few that do not like Condo/PUD riders, they have to do with the Deed of Trust and the way the property is established in its title. Be wary of any riders to the Note....they are land mines.

Finally as badly as you need the refinance, if you do not like the terms, do not sign, walk, and fondly but firmly tell the person that pulled the bait and switch tactic in no uncertain terms your honest and unbiased opinion of their professional ethics and lack thereof.

[bkmilton]

Poppy, Wachovia's underwriters and appraisers are looking over the last appraisal completed on my home Oct. 29, 2007, value was $435,000 with payoff $335,000 +. I haven't heard from them yet. This agent is going for an ARM 7/1 for low payment providing me $4000 cash back. I need to pay a dentist bill that's over $2000 and knock down a credit card due to auto repairs.
The other Broker/Lender, tell me they are lenders, are trying to put together a 30 year loan with 10 year interest only. Included refinance later on with only proof of income. The agent's roommate is an appraiser, he suggested to use value of $425,000. I'm Paniced Now and will take your advice and see a real estate attorney. I must get this done this month straight forward.
Thank you,
BKM

My advice....stay away from the 7/1, I/O 10 year, get a good fixed rate 30 year vanilla loan, yeah I know the others are cheaper, NOW, but later, NOT. Mission may be a quasi direct lender, i.e. some delegated authority, but I do not think that they are real players....mostly Brokers.