Help!!

[tjstaber]

Hello- My husband has was making 32.00 per hour and now is making 22.00 per hour which is a significant problem for our family. We are now looking at losing our home. We recently filed for bankruptcy but did not include our home. We love our home and want to stay here and have our children grow up here. Does anyone know of any options that we may have??? thanks!

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

What Chapter of BK? There is a huge problem if it is a Chapter 13 as you can not modify the loan when you are in a Chapter 13, the lenders can not change your financial situation and the courts can not force the lenders to do so anymore with the new BK rules. How many payments are you delinquent? Who is your servicer/Lender? Was this a refinance loan or purchase loan? What is the balance and the value of the house now and then when you got the loan? What is the present rate, is it an ARM or fixed Rate loan?

Please we need more information to assist you.

[tjstaber]

Hello- We filed a Chapter 7. Our lender was HSBC but was sold to Gray Solutions and now is in their loss & mitagation department. We have an interest rate of 8.8 and it will go up in 2009 and then again in approximately 10 years. Do we have an options?? Our credit is obviously bad at this point. We are both full timed employed. Thanks, Tally Jo.

[Moe Bedard]

Tally Jo,
Has the BK been discharged yet?

We also really, really need answers to the other questions as well, we have to be able to get our arms around the situation and address them in specific for you to benefit from our suggestions.

[tjstaber]

Hello- The situation is unusual. Our lender was HSBC and that is who we were making payments to. We had them debited from our checking account. We thought we were three payments behind. We received a letter from HSBC in January that said it was transferred to Gray Solutions. I contacted Gray Solutions and filled out all of the information packet. We were assigned a representative and I contacted her. She said that we had not made a payment since September. She said that Gray Solutions has had the account since September. I explained we have made payments to HSBC and we only received a letter in January that it was transferred. She had me fax her the letter and the bank statements that showed the payments we made to HSBC.

We did refinance for the current value which is 220,000.00. Our Chapter 7 will be discharged in April I believe.

Does this help?

Since you were in the transfer of servicing mess, you have some real issues that need to be dealt with. You do need to do a QWR with both HSBC and with Gray, both of them did not follow RESPA and notice you as to the transfer of servicing whether due to perceived default on the part of HSBC or otherwise.

There is a letter that HAS to go out from HSBC to you noticing you that the servicing has been transfered at the time of transfer so that this mess with payments does not become an issue. That should have been sent to you in September when the loan was transfered. Then simultaneously to that letter from HSBC, Gray should have sent one to you as well identifying themselves as the new servicer. I will post the RESPA Regs below.

The fact that the Chapter 7 is still in process is potentially the reason the loan was transfered, BK causes a rather fear reactive response in the Lender/Servicer and they do transfer loans that appear to be in distress, either delinquent or in BK, to parties that are skilled in the management of those loans that have those particular characteristics. Gray Solutions was hired to do the dirty work.....i.e. foreclosure....that is the plain and simple fact of the matter.

Now the fact that you drew the property/loan through the BK process and re-instated that obligation is a mixed blessing, the loan therefore in a Chapter 7 from the lender's point of view is free and clear of the BK process and can be treated as such. That is a lender point of view, not a legal one, I am not an attorney. Having said that, as above, it is mixed in it's blessings, you can negotiate with the lender/servicer freely or they can proceed to foreclose if that is their choice. You really need to speak with your BK attorney about that matter and obtain clarification on the issues there so that you have good solid information to deal from, I am not an attorney.

Now the question that I would ask, was the entire servicing process transferred to Gray or was just the legal portion of the process transferred to them? If just the legal process, then HSBC still retains the day to day servicing issues, not Gray...

It appears that from your post the full servicing was transferred, if that really is the case...then RESPA servicing issues were exposed to risk and potentially violated. This again is an attorney issue......please QWR the file, that data is presented below with the RESPA that pertains to both.

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 to all servicers in the history of your loan, 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!

Your Rights and the Responsibilities of the Mortgage Servicer


When you apply for a home mortgage, you may think that the lender, or loan originator, will service the loan until it is paid off or your house is sold. However, in today's market mortgage servicing rights often are bought and sold. The Real Estate Settlement Procedures Act (RESPA) is a consumer protection statute. Sections 6 and 10 of RESPA provide you with certain rights regarding the servicing of your mortgage and escrow account. Please read this important information concerning your rights and the responsibility of your loan servicer.

Duty of Loan Servicer to Respond to Complaints. If you have questions or problems with the servicing of your loan, the servicer is required to respond to you. Write to your servicer and call it a "qualified written request under Section 6 of RESPA." It should be a separate letter and not mailed with your payment. The mortgage servicer must respond to you within 60 business days of receipt. (See Sample Written Complaint to Lender.)

Loan Transferred to New Servicer. Your loan servicer is required to notify you in writing at least 15 days before the servicing of your loan is transferred to a new servicer. The notice must include the following information:

* The effective date of the transfer, the date your current servicer will stop accepting payments and the date the new servicer will begin accepting them.
* The name, address, and toll-free or collect call telephone number for the new servicer.
* Information that tells whether you can continue any optional insurance, such as mortgage life or disability insurance, and what action, if any, you must take to maintain coverage.
* A statement that the transfer of servicing does not affect any term or condition of your mortgage documents other than the terms directly related to the servicing of the loan.

Treatment of Payments During Transfer Period. During the 60-day period beginning on the effective date of the transfer, the payment may not be treated as late if you mistakenly send it to the old mortgage servicer instead of the new one.

Escrow Account. RESPA does not require that you maintain an escrow account for the purpose of paying property taxes, hazard insurance, etc. Nor does RESPA have any jurisdiction over the decision of the lender or servicer to require or terminate an escrow account. RESPA does, however, provide you with the following protections with regard to the escrow account:

* If your lender or mortgage servicer requires you to maintain an escrow account for the purpose of paying property taxes, hazard insurance, etc., RESPA requires that the servicer pay such items by the dates due to avoid a penalty or late charge.
* RESPA sets limits on the maximum amount of money the servicer may require you to maintain and pay in the escrow account. (More information about escrow accounts, including how to calculate the maximum amount RESPA allows the lender to require in the escrow account.)

PMI (Private Mortgage Insurance). RESPA has no jurisdiction over the lender's decision to require PMI. Nor does it have any jurisdiction over the lender's decision to cancel PMI. (The PMI Act provides information regarding cancellation of PMI.)