Colonial Mortgage - CANNOT GET ANY ANSWERS FROM THEM!

[WeNeedAnswers]

Is anyone else having this problem with Colonial National Mortgage? Our son's small family experienced a large drop in their income when his wife lost her job. Up to that point, they had been making their house payments on time for over 7 years. As a result of the income loss, in June 2009 our son applied for a loan modification through Colonial Bank (his lender). He was not allowed a forebearance, which would have reduced his payments each month for a short period of time, giving him a chance to get back on his feet. As a result, he was not able to make his house payments at all. As his home loan became more and more delinquent, he started getting threatening letters and phone calls. He tried and tried to get information (some reassurance) from his lender that his loan modification was being processed; and he didn't have to worry about the letters and calls. Then a man showed up on his doorstep with a foreclosure notice. Being very worried, he called the bank again where he was passed around from person to person, ending with a voice message. He left a voice message but never received a call back. He called again and again, getting no response from Colonial Bank. About 3 weeks ago a guy showed up on his doorstep, unannounced and at 10 PM at night. Only his wife and 8 year old little girl were home. It really scared them. This shifty guy left a notice saying they were going to auction off the house on Dec. 4. Since then, our son still hasn't been able to get any answers from Colonial. We tried ourselves to talk to his bank, but they would not talk to us. What can he do??? Who can he talk to??? Will they be taking his house on Dec. 4 if he has a modification loan in the works and has not heard anything from the bank? I told him to keep calling them; but in the meantime ...he's scared, his wife and child are scared, and we are scared. This isn't right! Does anyone have any suggestions? Has anyone else had this problem with Colonial Bank? HELP!!!!!

[rookie]

Were the modification papers filed by your son to Colonial? Does he have proof of this filing? Did he receive a NOD in the mail from the bank?

I would seriously think about consulting with an attorney on this, and quickly!

[rookie]

Wait! You said he was not granted a forbearance...was he denied the modification also? Did they say why they would not give the forbearance? Is he working? Does he have ample income?

If he doesn't have the income necessary, the modification will be denied. More than likely your sons credit is shot.

I just wonder if a Chapter 13 bankruptcy filing may help. It will stop the foreclosure process temporarily, but the stay can be lifted, and the house can still be lost.

[WeNeedAnswers]

Thank you for your input. I called my son again to make sure I could answer your questions accurately. During his first conversation with Colonial (in June), they said they would make a decision about granting him a forbearance AFTER they received and processed his application papers. This was supposed to happen within 8 weeks. That was at least 4 months ago! He did receive one call back early on from Colonial. The woman told him not to be concerned and they would be processing his papers. (I realize now that we ASSUMED the woman found his name in the lender's computer when she told him that.) That's the last time he was able to actually talk to anyone who supposedly knew anything.
Yes, he works. He has a full time job and not many bills. He's been with his employer for over 18 years and is still not making an adequate wage. He has Type 1 insulin-dependant diabetes (juvenile diabetes) and lost his private medical insurance when the monthly payments got too high. (His employer doesn't offer health insurance.) Now, each month, he has to pay for 2 insulins, medication for the nerve damage in his legs and feet from the diabetes, blood pressure medicine and 4 other prescriptions plus the diabetes supplies he needs. He applied for prescription assistance from the drug companies over 2 months ago and has heard nothing. We help all we can but we have also lost income due to the sad state of the economy. We may sound pathetic, but we are all just average people trying to make an honest living. We had applied for a loan modification (Obama's plan, not the bank's) the month before our son (May 2009). Our lender (Citi-Mortgage) granted us a forebearance almost immediately. Like our son, at that time, we had been making our monthly payments, but were on the verge of not being able to. Our modification is still being processed; and Citi-Mortgage has always been good about answering our questions. We've been comparing our experience with our son's. There's no comparison! He has never received any mail correspondance from Colonial regarding his loan modification application. It feels like he has fallen through the cracks. We continue to encourage him to keep calling and calling until he gets some answers.
His gross income is almost $2,000. a month; and he just paid off his car...Which he would tell them if he could talk to someone. He should be able to qualify for a loan modification. It seems like he could be a poster boy for President Obama's program.
A new development: He tried again today to get some information from Colonial. He actually talked to someone, but got no relief. They told him they would be processing his application this week. I sure hope so. We'll see. Sorry for the long "story". I hope I answered your questions. If not, please ask again. Thank You!!!

[rookie]

I'm sorry about his situation. It's a terrible economy out there, and if it's any consolation, he's not alone.

My advice would to be to keep on Colonial as much as possible. He needs to call back in a couple days and see how his application is going. It's a hassle and a tiresome job, but if he wants to save his house, he needs to fight to keep it.

Trust me, the banks doesn't want that house back. They stand to lose a lot of money with a foreclosure.

Honestly though I don't know how they can file a foreclosure without a NOD.

If you still get the run around in a couple of days, I strongly suggest you head over to NACA asap. More than likely they will be able to assist you.

Here's their web address:
https://www.naca.com/index_main.jsp

[worrywart1]

Colonial Savings/Colonial National Morgtage is a servicer. We also have to deal with them....

Your son might want to get an experienced real estate agent that specializes in short sales. This will stop the forclosure process and allow them some time to find another place/house to rent.

Unfortunately, we cannot get a forbearance either. We've been trying since May to get our loan modified with no luck. He may be able to contact HUD but it may be too late.

OR he can contact an attourney to see if he can file bk to slow down the process and start anew.

From what I understand a short sale, although still damaging, is a little better than forclosure or bankruptcy.

I would call HUD ASAP....If no luck then I would so a short sale.