| Aurora Success!
Never really started a thread of my own, so will post our information in a single post right through to success to help others.
Bought home in third quarter 2006 (high point). The loans were an 80/20 used for purchase. The plan was to put the money into fixing up the house and then refinance it down to reasonable interest rates (as our existing ones were quite high). We did what we were suppose to; however, the 100% loan structures vanished in 2007...in 2008 values began sliding...there was no way we could continue like that (drawing from savings).
My spouse lost her income in 2008, further putting pressure on us. In late 2008 early 2009, all our credit cards began hiking interest rates on us (despite us not having been late on anything). Car broke down, no longer had savings, could not afford to replace transmission; however, could replace car (rolling negative equity of course into the next with no money down). Started living on credit cards, things just kept getting worse.
In Feb. 09 we applied for help with Aurora and Wells Fargo. Aurora agreed to place us in their modification (prior one before HAMP). Wells Fargo would only agree to a temporary modification (which they never answered truthfully if the interest was simply deferred to the end of the loan as a balloon). Aurora denied us for the first mod (this would have modified out interest only as we were on an interest only loan for 10 years). They moved us into the HAMP program, though we had to keep making our normal payments until the plan was available. In April 09 we were approved for the trial payments (4 of them). We made all 4 of them and our credit card payments and car payment. We had no money left to pay the second mortgage. If you ask why we paid the credit cards first (global default, they set the rules not me). WF had no such default and was not in a position to foreclose (Washington is a single action state).
After making 4 trial payments, Aurora had told us we were approved, but needed to make a 5th payment. We did make the 5th payment and received the docs as promised. We have signed and sent them back.
To date Wells Fargo has offered nothing, many lies, conned us into a payment which I had to fall behind on the car payment to make promising a mod that they later denied. I have offered settlements based on what I could borrow from friends and family. They have accepted nothing, leaving their recourse to be charge off and likely suing me.
I will post again to the thread if we manage to keep the home and deal something out with Wells Fargo. So far it is unlikely, we are going into BK and not sure if we will reaffirm the house unless WF can be stripped off and dealt with.
HELPFUL information about WASHINGTON state -- These are things I have found out by research and consulting lawyers:
1) Washington state is a non-recourse state. Don't let a second mortgage lie to you. It is non-recourse if they choose to foreclose from the second position (one action rule). Now they will claim it is not non-recourse, because they make the assumption that the first mortgage would foreclose (which would then allow them to seek one action = deficiency). Their way around this in the past was to buy out the first mortgage and then foreclose from the first position allowing them to sue from the second.
2) Bankruptcy Chapter 13 can strip a lien, chapter 7 will not. Do not assume all our unsecure debts will require payment under Chapter 13 (for example worrying that simply stripping the lien on the second, will result in you having to pay back a HUGE amount in Chapter 13 to the lien holder, that is not the case).
3) Always return the phone calls if you miss them. I rarely let one time slip past; however, never believe most the crap they are shoveling at you. Always remember they are a collection company at that point attempting to collect a debt and they will lie to you and promise anything to get a payment and do not care where you need to get that payment from.
In the end, if you wish to keep your home, never give up fighting for it! You can see from my post above, though not the longest, by the time we are finished with the second, filing bankruptcy etc...it will likely be about a year since our journey began. My wife and I already feel tons of relief even though at this point keeping the house is not completely known, we at least feel as though between this message board and talking with lawyers that people have our back.
The best you will ever feel is when you have gained all the knowledge you can that allows you to know your position and talk intelligently with the mortgage people calling you.
Wish everyone the best of luck and will post an update on the second when I have it.
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