I may be saved (May 5th sale US Bank)

[Tim G.]

My hardship started when hurricane Ike slammed into the gulf coast. The power at our home was out for approximately 2 weeks and I wasn’t able to return to work during this time. At the time I was selling cars and financially we were doing fine. Post hurricane sales plummeted and the automotive market hit all time lows, sending commission only employees like myself into a financial nightmare.
One day we were watching television and president Bush came on. He told the people in the areas he declared as disaster areas, Galveston county where I live being one of them, to contact their mortgage lenders and auto finance companies for payment deferments to help in these difficult times. So I contacted US Bank, my mortgage lender to ask for some temporary assistance. I was told that it would be no problem to work a few payments back into the loan to help lift the pressure a little bit. Since then I have kept in contact with them on a weekly basis. I was sent paperwork to fill out and asked to provide certain documents which I did both. Then I was told that a processor would be contacting me to let me know what has been worked out , as there was many solutions to help. I continued to keep in contact and was told it was in “review” status. During this time I was also in the middle of a substantial insurance claim due to the hurricane. In November myself and my wife on separate occasions tried to make payments and where told we could not, but where given no reason why, just reassured everything would be worked out. My wife asked if we would be foreclosed on and was told no, that the process just took time and that someone from loss mitigation would be calling to tell us with what arrangement had been worked out. All the while we were under the impression that this was all part of the deferment plan post hurricane Ike. Though we where told not to worry we continued to keep in touch though no one was contacting us with a solution.
In December the insurance moved us to a different city, a little over 20 miles away, while our home was being repaired for 2 months, December 8, 2008 through February 8, 2009. My children could not even have Christmas at home. Though in a different city my children still had to attend school back home. We incurred over $3,000 in additional expenses from the commute and storage costs that we have still not been reimbursed for. During this time I also lost my job at the dealership. Still I was still calling to check the status of my loss mitigation case and was still told I would not need to make a payment.
When I found a new job I called to inform US Bank of the change in that and my bills and filled out a new financial budget worksheet and sent in new documents that where requested and wrote a new hardship letter, I was even told I had a surplus and something would be worked out. At this time I again tried to make a payment and my payment was refused and returned. I called back to make a double payment and it was refused again and I was told we where still in review with no processor and reassured that foreclosure would not be in our future. I have done everything asked of me and in a timely matter. Then as a surprise I found a foreclosure letter in the mail on Saturday March 29, 2009 ten days after foreclosure had already started. Prior to this letter I did not receive the letter of demand giving me 20 days to bring my loan current before going into foreclosure which is required by law. If I wasn’t able to make good on the agreement made over 3 years ago I would have run away from this already, but instead I am here begging for a solution and any opportunity to reinstate my original agreement or one seen fit by US Bank. There is a sell date of May 5, 2009 on our home and still no solution has been worked out. If I couldn’t afford my home I would not be trying so hard to stay as I would never want to put my family through this again. I did not choose not to pay but did exactly as I was instructed to do by US Bank employees. I have as 1yr old daughter, a 2, 6, and 8 yr old sons with no where to go. I am begging for help to save my home and am willing to do whatever is asked of me, I am running out of time and need a solution fast.

[Moe Bedard]

Hi Tim,




Welcome to the forum and thank you for joining..............


US Bank is participating in the Making Home Affordable modification program.........in order to be eligible for the program.............the mortgage payment on the first lien alone including PITIA, would need to be more than the 31% target that the program is working to achieve of gross income...................
if you qualify for this new program, US Bank should be able to put the foreclosure on hold while you are going through the process.........

The guidelines state:

Front-End DTI is the ratio of PITIA to Monthly Gross Income. PITIA is defined as principal, interest, taxes, insurance (including homeowners insurance and hazard and flood insurance) and homeowners association and/or condominium fees. Mortgage insurance premiums are excluded from the PITIA calculation.

The borrower’s income will be verified by requiring a signed Form 4506-T (Request for Transcript of Tax Return) and obtaining the most recent tax return on file for each borrower on the note. For wage earners, the two most recent pay stubs for each wage earner on the note will also be required. For self-employed borrowers or for non-wage income, the borrower’s income will be verified by obtaining other third party documents that provide reasonably reliable evidence of income.

Borrowers must also represent and warrant that they do not have sufficient liquid assets to make their monthly mortgage payments.

The borrower’s Monthly Gross Income is the amount before any payroll deductions includes wages and salaries, overtime pay, commissions, fees, tips, bonuses, housing allowances, other compensation for personal services, Social Security payment, including Social Security received by adults on behalf of minors or by minors intended for their own support, annuities, insurance polices, retirement funds, pensions, disability or death benefits, unemployment benefits, rental income and other income.



The contact information for US Bank along with the information regarding the program can be found here.........

Making Home Affordable - Loan Modification and Refinance



These are what most lenders consider to be generally acceptable hardships....

1. Loss of job or reduction in income
2. Death of the homeowner, spouse or family member
3. Illness of homeowner or family member
4. Divorce or separation
5. Forced job relocation by employer
6. Adjustable rate reset-payment shock

The best way to set up a hardship letter..........

* First, describe the hardship and the circumstances that caused it
* Explain what steps have been taken to correct the situation
* Provide the lender with your plan to get back on track and stay there
* Assure the lender that you are a responsible homeowner who just needs a second chance and that you are very motivated to save your home.






If this is the only property that you own and you need additional help with the process...............you can try going through NACA instead........they will work with the investor on your loan through US Bank to try to negotiate a modification............their services for the Home Save modification program are free...............here is the link for the info.......
https://www.naca.com/refinance/refinanceTenStep.jsp

[Tim G.]

I spoke with US Bank this morning reguarding a loan modification and I was informed I have a negitive income, which is impossible. I had to stop paying on some credit 2 years ago due to a new baby and an employer who couldn't give me a set schedule. These accounts had been charged off well over a year ago. The loan modification officer I was assigned told me I had to get proof from the lenders that they were charged off, a credit report wasn't enough. I called a few and they refused to send/email or fax me any information. I called my loan modification person back to explain that it will be impossible for me to get this info, which he probablly knew. He insisted I either reduce my debt or get higher income and refused to postpone my sale date. I was in tears! Why are these people so unhelpful?

Well the HUD person I had been dealing with called me and said he talked with someone at the bank and they informed him that I have more debt than income. I explained my credit problems, and he said a credit report should do. That he would call the bank and call me back. He did! And within the hour! He told me the loan modification officer will be calling. I will pay my next three payments and can not be late. Then they will either have me on a loan modification with the payments I missed reworked through my balance due, which will either make my payments go up $2 or down $10 or anything in between. Or I will owe the money to HUD at the time of a sale or at the end of my loan. I'm not to familiar with this.

I asked about them removing my sale date and he said the guy from US Bank will do that and will let me know when. He also said I should call the sherrifs department to make sure it is removed. Ahhhhh! I can breath a little easier but am still very uncertain any of this will work out in my favor.

I had made an appointment with a lawyer to file Capter 13 before getting this news and don't know if I should keep it.