My Story with Homeq

[djbrianb]

I found this board and it has been a great source of information. I just dont know where to start.

Here's my story:

My wife and I purchased our home in August 2006 in the San Francisco Bay Area. Our loans originated with New Century but were bought out and transferred to Homeq in December 2006. We purchased the home for 523K and is now estimated on Zillow to around 457K....OUCH

Currently we pay $2909.19 on our first loan with an interest rate at 8%. Our second loan is fixed $1116.36 with a rate of 12.5%. That brings our total payment every month to $4025.55.

In January 2007 we had another child and my wife was out from work for 4 months. This put us about 30 days behind on our payments. We were basically playing catch up every month. We were able to get on a repayment plan with Homeq for 8 months after going back and forth with them for several weeks. They are indeed truly hard to work with. We were able to pay off the repayment plan early and now have been current every month. Thank GOD! The only negative thing is that our credit was affected and showed 30 days late every month.

Now my dilema starts as our interest rate on our first loan according to Homeq goes up September 1, 2008. I look at my closing paperwork and the loan resets October 1, 2008. Where did these guys get September 1, 2008? Sounds a little fishy to me. Anyways, the reset brings our payment from $2909.19 to $3509.19. After six more months it goes up to $4009.19. Keep in mind we still have our second loan on top of that.

I called Homeq and asked for their Loan Retention Dept. They asked me why, and I told them I wanted to check about a Loan Modification. I was quickly turned away and was told that since September is far too out, that I would need to call in 60 days before September 1st to see what solution can be offered. Paying $4625.55 (total starting Sept 2008) is not affordable. Let alone paying $5125.55 (total six months after Sept 2008) is very not well worth it and has me thinking about walking away!

Any suggesstions or tips you can offer a newbie here would be appreciated! Thank you.

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

A lot of them say that, do not stop at that first contact, I would call in again and tell them that you are being proactive and focused in your goal to attach this problem before it becomes a problem. Request a modification package and begin now....the earlier the better. I would send it to them about 120 days to 90 days before the event occurs as they are so slow in the process that if they were any slower they would be going backwards.

The rolling 30 day late is not nice, but it could be worse.

[markflorida]

wait till you hear this one

We have never been late on the mortgage 1st or 2nd. Our rate adjusted in February and we got a 33% increase or $1100 payment increase. We began the process of the loan modification back in October..Same result as everyone else no response from Homeq. I have emailed the president and the CFO. Asking for some answers.

Now we live in Florida we bourght our home for 485K 2yrs ago it may be worth 375K to 400K actualy the whole value of the 2nd mortgage has disapeared.

Today I get a call from Homeq that our modification has been DENIED. We have never missed a payment NOT ONE. we were denied because they said our debt was too high to handle the loan. (uh yeah thats why we dont want it to go up) I am not on the loan so they wont count my income.

So then they ask if we want to do a short sale ( on the same phone call )
So we have no option but to not pay themortgae , go into forclosure, lose the house have the bank lose 100k and then we get hit for a deficency judgement.

What sense does this make. Today I ordered title work to find out who owns the loan and I am going to try to contact them

Any other suggestions?

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

So ask for another modification and yes if you are a member of the household that income can be used...!!!

This is a household issue, not a who's on the loan issue. The reasonable thing to do is request another mod package and also request to speak to a Negotiator right off the bat regarding this issue. They have certainly modified loans using income that was not that of the borrower but that of another household member of long standing.

The title work may or may not be reflective of who the investor is, likely not. Twere it me, I would request another modification package, and provide documentation that you are a legal long term resident of the property, have been since day one and contribute and have been contributing since day one to the payment on the loan and to combined household debt.

Further more QWR the loan and get everything in that file to fight this issue with qualified doc review and legal assistance.

QWR -- there are examples of the letter in the Tool Box. In that letter demand your Life of Loan History, copy of Note, Deed of Trust, Riders, all Assignments of the Deed of Trust, TIL, Right of Rescission (if refi), Lender Final HUD-1, copy of initial loan application and final lender loan application, all disclosures and all loan documents in your file, copy of appraisal. Send this three times certified return receipt required and also send it to the Broker, Title Company and all others in the Chain of the Transaction.

This thread has a really good example:

My Countrywide escapade and Hi!