My story and a few basic questions that I can't find answers for anywhere.

[mts21015]

Please let me know your thoughts on this hardship letter.

Thanks...

To Whom It May Concern:

I am writing this letter to explain my unfortunate set of circumstances that have caused me to become delinquent on my mortgage. I have done everything in my power, including taking on additional work both in the morning and evening to make ends meet but unfortunately I have fallen short and would like you to consider working with me to modify my loan. My goal is to keep my home for my three children and me and we would really appreciate the opportunity to do that.

My first late payment several months ago was due to my ex-husbands inability that month to pay the required support as mandated by the divorce agreement and because of the instability of his income. He is a 100% commission salesperson and he was never able to pay this back payment.

For the last four months my ex-husband has substantially decreased his required payments to me due to the economic downturn and the subsequent drop in his business and income. Now, it is to the point where I cannot afford to pay what is owed to America’s Servicing Company. It is my full intention to pay my mortgage but with my income as a school teacher along with the diminished amount paid to me by my ex husband, equal to the state mandated child support for my three children, I can no longer afford my mortgage at the current established payment and I am turning to you for help.

I would appreciate it if you can work with me to modify my loan to lower my mortgage payments so my family can keep our home and also afford to make amends with your company.

I truly hope that you will consider working with me because I am anxious to get this settled. I appreciate your prompt attention.


Sincerely and Respectfully,

[mts21015]

First, my situation.

Ex husband cut my alimony payments completely and pays just child support. I know I can go after him legally but that costs money which I don't have and he doesn't have the money to pay even if I won.

My DTI is currently 46/99.4. My current payment is $2680 and I need it to be around $1700 to work which will leave me $250 after expenses. My DTI with a payment of $1700 will be 29/83. That's a big decrease and I don't know if that's possible. I understand that I'm supposed to be around 31% but if I increase the payment so that I hit that mark, then my left over cash is on a net basis is $50.

Servicer: ASC

Status: I had a rolling 30 for 12+ months. Finally, they talked me into a plan to catch me up. I couldn't afford it and now I have missed two payments. I have received a notice of intent to foreclose and have 45 days to respond. I have called ASC to start the loan modification process but haven't sent them anything yet.

House: IF I can sell it, I will be under water after real estate commissions.

Does starting the loan mod process delay the foreclosure in practice?

Do my ratio's above look adequate for a loan mod?

Should I submit my modification info to ASC first or should I work with NACA first, they have a seminar next weekend but I want to get started now?

All of these ratio's are based on Gross Income, except left over cash which I figured out with my net paycheck + child support.

Any tips for working with ASC?

I really appreciate any insight.

Thanks.

[Moe Bedard]

Hello and welcome to the forum! Let's see if we can guide you in the right direction.

ASC can be very tough to deal with. But not impossible. The loan modification process does always not stop the foreclosure process. But it can and many lenders are doing that when someone is in the process.

I have also seen homeowners get foreclosed on during that time. Yes, scary times we are in.

I would wait and work with NACA, if that is what you have planned. Get all your ducks in a row and then work in tandem with them during the process.

It seems like you still have a very high back end ratio. What do you owe on the home? At $1700 is that taxes and insurance?

What if you found a home for $1200 a month. Could you lead a better life with your children and have an extra $750 a month as opposed to just $250. You have to ask all these hard questions right now in order to make the BEST decision for you and your kids!

You'll make it through this!

[mts21015]

$1700 includes insurance and taxes.

I may move, but not within the time frame for foreclosure. If the payment is around $1700, then I will be able to afford the home. I'll wait a year or two, and then sell it.

I'd still like someone to answer the questions I have above if possible.

Thanks

[Moe Bedard]

I answered all your questions.

FYI= Your income is based on net, not gross.

In order to properly help, I need my questions answered also. That is how this works.

[mts21015]

I'm sorry Moe, I did not understand your answers. So are you saying that I should not send in my loan modification information directly to ASC and that I should wait to meet with NACA next week some time. Or when you said work in tandem, did you meet that I should send in info and have NACA send in info. I don't understand.

I thought DTI was based on your gross income, not net? I'm not sure what you mean.

I owe right around $330k and I may be able to get $340k if I can sell it.

In the area where we live I have been looking for rentals. A four bedroom place is very hard to rent for under $2000/mth. I was thinking that if it came down to it I could rent a 3 bedroom and have my son live in the basement. Even then, the rent will be around $1500. Maybe I'll get lucky and find something for a little less but I need to stay in this school district.

Thank you for your help.

[Moe Bedard]

No problem! We have to do our best to communicate without seeing each other and I type fast (and bad ) and sometimes leave out words out that would help you understand more.

I recommend waiting for NACA and then once it is confirmed and submitted, make sure you stay on top of both NACA and ASC by getting updates regularly.

In regards to calculating income for DTI's etc., this is based on your net take home monies every month after all your household and living expenses. Unfortunately, they do not figure it off your gross income.'

$330k is not too bad and at 3%, you can get that payment you need. Good news is I have seen 2-3% come out of ASC many times before.

I understand on the rent issue. It makes sense to stay in your home if you can because it looks like rent is about the same. I probably would try and work it out like you, but would make sure I had 2 to 3 back up plans in case in didn't work out with ASC.

Please keep us updated and maybe someone else with ASC experience can chime in and help you. I wish you the best!

[mts21015]

UPDATE:
Well we've been in this process with NACA and ASC since I first posted and we have nothing yet. NACA says they are communicating with ASC but "we only email them once every two weeks." They don't have any updates from ASC.

Today NACA says that your home is being foreclosed on July 1st. But I haven't received a notice of foreclosure and the court house has no record of a foreclosure. I did receive a letter from an attorney stating they have been hired to collect a debt. I ask NACA where this info came from, they state "I don't know, it's just in your file."

I call ASC to find out my status, they tell me my file has been closed.

I feel like nobody knows whats going on with my loan including me. Does this sound normal to you? After 3 months shouldn't I get some sort of response from ASC? Now they are telling me a manager will call me back today.

I am getting very concerned. Any insight would be appreciated.

Thanks...

[Moe Bedard]

Yes, this worries me very much and for NACA to treat you this way is total BS. Do you have the ability to pay your mortgage if they work with you?

[mts21015]

Depending on the modification, yes. School teacher with steady income.

[Moe Bedard]

Then there is NO reason whey you should not be getting help. I would call another non-profit that might be located in your town. This sale date is coming to close. You can send a Qualified Written Request and start emailing your senators, mayor etc.

By all means, please just do not count on NACA.