Could I Get a First Franklin Modification?

[Horseymen]

I am a new member - I am up at 3:15am doing research because I am sick over my situation, and you guys have done a wonderful service. Poppy - I have read several threads due to my searching - and your attention to people's personal purgatories is admirable.

I currently have a 10% rate with First Franklin and a 10,000 dollar prepayment penalty to get out of it in the first two years.

I had over a 700 mid credit score when I received it. It was last May as with others when all the other subprimers started going out - and I was put in this loan as a last resort.

My payment (without escrow) for a 185000 dollar house is 1617 a month. At 5.5 to 6% - it would be about 1090 or so. I jumped into something ignorantly (and I will take personal responsibility for that) - but what makes me sick is that they won't let me get out of it for another 15 months.

I looked at the statement the other day, and I have paid in the 8 months I have had the loan approximately 13,000 dollars to them. I have built 500 dollars in equity. I am paying 1525 in interest every single month. They have made their money on me.

I called for a loan modification. I am not behind so no help. My personal perspective on life is that your mortgage is the FIRST thing you pay. I have the means to refinance and get out of it - but they won't let me. I'd accept a loan mod - but they won't do it. I would pay 10k to get out of it - but that would make me even sicker - having paid them nearly 25k for 500 dollars in equity.

So here I am - I have a 2/28 ARM - within a month of getting it - they said they'd freeze that ARM for 5 years as a courtesy to me... I appreciate their courtesy - really! Now, I have nearly no debt and enough verifiable income (I was self-employed last year - now I am gainfully employed with W2's) to get an FHA or conforming loan.

Should my strategy be to get a loan mod or to get them to waive the prepayment penalty?

Thank you for joining and welcome....

Personally I would make this a two pronged attack, go for the modification and go for the removal of the prepayment penalty. You loan appears to be highly predatory. When you originated this loan if you scores were in the mid 700's and as you say you were self employed, there were other avenues that were far less costly and the prevailing rate at that time does not support the rate you were so graciously afforded. In other words there were a substantial number of products out there that would have allowed a lower rate and the ability to qualify versus this toxic gem.

Now, FF is Imploded, could not have happened to a greater group of folks, they are horribly slow in the modification process, but as I understand it they are selling out portions of the servicing to Wilshire and others...Vanderbilt, etc...depending on the collateral, seasoning and performance. All of these servicers are equally as poor in their response to the borrower. They still presently have your loan and as such start the process with them, I sincerely doubt that they are going to be cooperative, and also in my opinion they need to drop the rate, not freeze it. So apply for modification and pursue the modification, I am not of the opinion that they will be very accommodating.

Due to the predatory nature of this loan (believe me it is obnoxious) and the fact that there were other products out there that would not have had the rate or the Prepayment penalty...you may have some real compelling factors to have the prepayment relieved.

I would QWR the file, then I would get all my closing documents and origination documents together and consider the prospect of having the document forensically reviewed by a qualified party, to allow for further violations that would allow for negotiations to relieve the prepayment penalty and get the heck out of this ugly loan. I would also find a good Direct Lender....Credit Union, Bank or true Mortgage Banker to make application for a new loan, it is a shame to have to pay closing costs again within 18 months of the last refinance, however, it would be paramount to get out of this loan. So if you are qualified for the FHA or even Conventional product, get one from a reputable and honest Credit Union, Bank or Mortgage Banker.

The only thing that this loan is going to do is adjust upward, this was fully indexed and as such all these things do is to go up in rate. The problem with these products is that they start up fully indexed and then can by virtue of the way that they are designed go further up on the loan rate, even as the index that drives them is going down.

[Horseymen]

Does anyone have fax information so I can fax fax fax - call call call - email email email?

[Moe Bedard]

Horseyman,

Here you go......

Please try this number 1-800-622-5035 and the following extensions...24267 Bill Thompson, 24267 Marchele Andrews

Here are the fax numbers including one direct efax number...412.918.7340 or 7307 or 7336

E-Fax direct 724.498.4930 Galen

This is the Loss Mit Department and they are working and they are modifying.

Keep us Posted Please.....

Yep...here you go...

I have more numbers if you need them...

FAX 412.918.7340/412.918.7307/412.918.7336 - they get a lot of faxes and this is right into loss mit.

Phone....800.622.5035 - Bill Thompson 24267

Marchele Andrews EXT 24267

[Horseymen]

I have an ARM with Countrywide that taught me the very meaning of the mortgage industry quicker.

My mortgage broker suckered me in with a 5.9% teaser rate for 3 years - and I was told - "this is an ARM - but rates could go down!" - imagine my happiness as for the last 3 years, rates have gone down!!

Except one very minor problem.

It wasn't explained to me that my rate would *NEVER* go down. My rate is a 6 month LIBOR + 6 point margin - meaning my teaser rate of 5.9% will go up every 6 months to what the 6 month LIBOR is PLUS 6 points - so unless the LIBOR goes negative, it will never go down.

I realized this through this site in February - I actually don't live at the house anymore - since there was a 3 year prepayment penalty - I decided to rent it out over the last year. The tenant is still in there - and it has been a blessing in disguise (although I have no real desire to want to get into real estate/leasing)

The rate goes up in June and from 5.9 to 7.9% - it will go up in November to 9.9% - and more than likely will top out one year from now at 11.9%

I have paid the payment on time for 36 straight months.

I called in in February to start the process - I just wanted to get the ARM frozen.

I gave financials and they said I would hear from them in a month.

I call 30 days later - and I was told that I didn't fax anything in so the 30 days is from the time they get faxed bank statements, etc.

So I did that - called back in early April, they told me I would get it escalated to a workout negotiator.

called back in Early May - still not assigned, still put in to be escalated.

called back a week later - told that it was eligible for a streamline modification, 99% of these went through and not to worry - everything was in prime consideration. I was told I would hear that day.

Never heard back - called the next day - told I was lying or misinformed about the conversation the previous day - that was not going to happen.

Finally got a supervisor on the phone - she told me since it was current - there was nothing they will do - that the investor (wells fargo) wouldn't allow anything.

Called the office of the president - the rate adjustment in May (despite the rate going down 2.25% during the 3 years!!) would cost me nearly $300 a month and the next one in November would cost another $300 - which puts me from just getting by to looking at a foreclosure in 6 months.

Ranted and raved, got someone on the phone - she read me the investor guidelines and said "they will not - no matter how late you are - no matter how close you are to foreclosure - modify the rate and term on the contract. Out of every 50 clients we serve, this is literally the rare exception - we are able to help out 98% of people - we are not able to help you out."

I said, "Even if I sue"?

She said, "Even if you sue."

I said, "Even if I am on the brink of foreclosure because I can't pay that?"

The supervisor said "No matter what. Wells fargo isn't budging."

So - I have an "absolute and unconditional no" - any ideas?

[Moe Bedard]

Before I do what I am about to do I will give you the chance to clarify..........

1st scenario you have a loan with First Franklin and need advice........
2nd scenario you have now have a loan with CW totally diffferent and need advice........

Having trouble here???

Please do tell............something is just not right here...........