Aurora Income Help - Loan Modification Forum

Timmy19 · 10-30-2009, 12:50 PM

This is my first time posting online so I hope I am doing this correctly.

I have a 80/20 loan with Aurora and Chase.

Aurora: 632,000 at 6.375% monthly payment $3357.50
Chase: 158,000 flexible (trying to work on payoff with them)payment of about $650 per month. I stopped paying both in July 2009.

The value of the house has gone from $790,000 in 2005 to $583,000 in 2009. A loss of over $200,000. I am in California.

I have been trying to modify the loan with Aurora but they keep saying that my income of $6900/month is not enough.

I am trying to understand the percentages but I am having a hard time with it. I received foreclosure papers last week and I am panicking.

If Aurora would modify my loan even at 4% that would mean a monthly payment to about $2106/month and I am not including taxes or insurance which I am always paying personally on my own. This is also about the amount that the MHA Payment Reduction Estimator shows online.

My financial analysis form already shows a surplus income of $1450 after all my expenses are paid because I am quite frugal and do not waste money. A 4% loan would be 31% of my income.

What am I doing wrong in my math? What am I missing? Why does Aurora say I do not earn enough to do any kind of loan modification?

I have been grateful being able to read everyone's story and it helps not to be alone but I am so desperate.

Please help! Any advice would be profoundly appreciated.

heidi79 · 10-30-2009, 01:41 PM

There something definitely wrong there, the 1450, is that what u have left over with your payments as they are now, or are you using the desired payment?

Timmy19 · 10-30-2009, 02:10 PM

Thank you so much for your reply. As you can see I am completely puzzled trying to figure out what is wrong here. The $1450 is the surplus of a net Income of $6900 minus Expenses of $5431.48. The expenses include all of my mortgage payments for first and second, my insurance, property taxes, food, utilities and anything else. I have no other additional expenses at all. This is how it is now!

If I would have any more surplus than that I would not need a loan modification so I cannot figure this out and really need help.

Timmy19 · 10-30-2009, 02:21 PM

Sorry I forgot to mention that I am paying minimum payments on my credit cards which comes to about $300 a month. Since the amount always varies and is going down I did not include them.

ohhhdear · 10-30-2009, 02:32 PM

Sorry to hear this.

You have to include your credit card debt.

What I am wondering is this:--- Do you have the surplus of $1450 AFTER or BEFORE a modification.

I'm no expert at all-- but if you have this surplus BEFORE modification, they may likely say there is no hardship.

Maybe someone with more experience than myself will come along and answer you.

Timmy19 · 10-30-2009, 03:05 PM

This is my surplus BEFORE any modification. Aurora keeps saying I do not have enough income with $6900.

I have a lawyer! Three months ago they told me that I was a great candidate for the Hamp program. I found out that I was in Foreclosure through advertisements from other lawyers in the mail and when I checked on Realty Trac. Now my lawyer received the NOD and so did I and I am afraid more time is going to go by without anything happening if I do not step in.

My lawyer's assistant tells me that Aurora denies me because I do not have enough income. I tell them that I would not need a loan modification if I had more. I sent in a letter to the lawyer with all the numbers that I am calculating but I have not received a response yet from him. So far my lawyer has advised me to file for BK13 which does not make sense to me. With even just a minor loan modification to 4% I would be fine. My hardship letter is very precise and is accepted by both Chase and Aurora. My bank statements clearly show my income and where my expenses are going and how much. I used to have a FICO score of 850 when I bought my house and I still had a Fico score of 760 when I stopped making payments. I have always been a most responsible homeowner and consumer.

I am afraid that I am going to lose my house because something is going wrong here. My lawyer's assistant asked me again today to send in a revised financial form with MORE income showing but that is when I turn to you guys! My lawyer's assistant talked to Aurora at some point and e-mailed to me that Aurora would deny me even with an income of $7600.

If I can go through this any more than it is only because of your guys help. I do not know where else to turn.

Timmy19 · 10-30-2009, 03:57 PM

I am trying to think myself about what is going wrong here and I wanted to add some info.

Whenever I met with my lawyer in person or on the phone I always felt that I was in good hands and I trusted him. He is part of a reputable and trustworthy law firm here. However, whenever I deal with the assistant, I feel like I am getting a completely different company. I therefore asked my lawyer to change my assistant but it is the same story. Throughout October the assistant asked me to update financial forms, to send in this or that statement, and I thought that everything was being taken care of until I found out that I was in foreclosure. When I spoke to my lawyer about a week ago, he told me that he had been sick for most of the month.

I wrote a detailed letter to him this morning asking him the same questions as I am asking here but he has not called me yet and all I am getting from the assistant is again "turn this or that paper in".

That is when I turned to you guys! I am desperate.

Timmy19 · 10-30-2009, 07:47 PM

AT 5:50 p.m. my lawyer called and told me that after dealing and wheeling with a Aurora representative they will be sending me paperwork within the next week for a loan modification at $2156/month beginning in December.

The mere fact that two people took the time today to reply to my post is so much appreciated. It helped me to understand that indeed something was wrong and in continuing my reading of other people's posts and their links on loansafe.org I learned about Schwarzenegger's Senate Bill 94 which protects people seeking a loan modification in California against inefficient representation by companies, lawyers, and assistants.
The text of Senate Bill 94 can be found at: http://www.leginfo.ca.gov/pub/09-10/bill/sen/sb_0051-0100/sb_94_bill_20091011_chaptered.html

For whoever out there who was reading and listening today and especially to heidi79 and ohhhdear--- THANK YOU THANK YOU THANK YOU!

I am cautiously optimistic but this is the first light in my life after my accident in 2007 that crushed not only my car but also my work and income.

Losing my house would mean losing a home for animals and children that are benefiting from my work and who need me. Without the house, I would not have continued my work.

Thank you from all of us! Moe! Thank you for loansafe.org! Even though many of us do not write or reply, we learn so much. Thank you!

brokemama · 10-31-2009, 08:28 AM

Congrats, Timmy! That's a great mod. I did a 1st mod with Aurora several months ago. I want to modify the 2nd or preferably have it extinguished but am not yet actively doing anything (just weighing my options). Is your atty. handling the 2nd as well?

Timmy19 · 10-31-2009, 09:23 AM

Brokemama, Yes, he is handling the second as well but after yesterday's hard work he needs a few days before we continue on the second.
Did you get a Hamp or other modification with Aurora? Did they stick to their (paper) word after the trial period or did they change any of your numbers? I still want to learn as much as I can and be prepared.

brokemama · 10-31-2009, 01:57 PM

Hi, Aurora started to give me the runaround so I fed-ex'd a letter to the CEO of Fannie Mae who owns the mortgage. They had an exec take over and the mod was done very quickly after that. My house is about worth the value of the first; the second is worth nothing. I would either like to extinguish it or settle it. It's with BofA who I understand are difficult to work with.

Timmy19 · 10-31-2009, 02:48 PM

Unfortunately I do not know anything about BofA. My house is more than $200,000 under water and my second is $158000. I also want to work on settling it but my second is with Chase.

heidi79 · 11-03-2009, 08:38 PM

timmy, sorry I didn't reply to your earlier posts, i guess i don't get all the notifications when someone replies. I'm glad the attorney was able to do something for you, filing a bk when you can't get a mod is more like a stalling tactic, in the end there has to be a modification.

Stay on top of them!!!! Im glad you were able to get where you are now!

heidi79 · 11-03-2009, 08:40 PM

you have a lot of leeway when it's your only home and the second mortgage is not secured because the equity has gone down so much. at the very least, chase needs to give you a super low interest on a mod or you can settle it for a very small portion of what you owe.

through filing a bk, many times the 2nd lien will be eliminated (they know this, but don't think you do) lol! keep persevering, keep us posted.

Timmy19 · 11-04-2009, 02:00 AM

heidi79

Thank you so much for your replies. I am so stressed out and if it wasn't for people like you, I would not know what to do.

I really think my lawyer's assistants are messing up big time. My lawyer was sick and I ended up in foreclosure because of it. I think he is working hard now but I should never be in this position. When we first began this whole thing my banks said I was a perfect candidate for a HAMP loan modification (I agree) and three months later I am in foreclosure. I do not like to have to be on top of my lawyer's office but if I am not I will be losing my house.

I have two questions I would really appreciate some help with:

1. I have not received the Fedex on my first yet so I do not know any details. I am wondering how much paperwork will be included while being on trial payments if indeed it should come true. Do you know? I do not trust the information provided by my lawyer's assistants and want to be educated as much as possible. What paper work do banks generally require during the 3 to 6 months trial period?

2. Also, my lawyer's assistants keep telling me Chase does not want to settle but a month ago my lawyer said he is going to put in an offer. I don't think he ever put in an offer after our meeting because he got sick. I keep asking for the letter he mailed in and have not received it yet. My second HELOC is for 158,000 and my house is under water for more than 200,000. I only want to do bankruptcy if absolutley necessary. My question is, how much should I be willing to pay my second, Chase HELOC , for a settlement? I want to be prepared to respond in case my lawyer's assistant does come up with something to settle for. The assistant's information though is uneducated and inexperienced to help me make any decision.

Thank you so much! I would have given up without your support.

AZOwner · 11-04-2009, 05:25 AM

Thank you all for posting. We have a larger initiative going on to provide the American Homeowner a voice to get the system in some kind of order.

Please, Please, go to the Huffington article and post a message to the article, link above. We need to bring this fight back to the forefront. If you won't sign the petition, please leave a note at Huffington. Highlight some of your challenges with the issues.

Together we can make a BIG difference, individually we are a drop in the bucket.

Thank you.

Here are links to both.

http://www.huffingtonpost.com/richar..._b_342665.html

http://www.petition2congress.com/2/2564/petition-to-us-government-from-american-homeowners/

heidi79 · 11-04-2009, 11:17 AM

ur absolutely welcome, we're no experts but have been lucky to have gained some knowledge and been able to help others through the process.

I do not like to have to be on top of my lawyer's office but if I am not I will be losing my house. sucks to have to do it but .....

1. I have not received the Fedex on my first yet so I do not know any details. I am wondering how much paperwork will be included while being on trial payments if indeed it should come true.

Are you waiting on the hamp package? if so, the package has on official logo on it, it has a the trial modification agreement, the hardship affidavit, the 4506t form and possibly a financial analysis worksheet. they will ask for everything signed and returned along with paystubs, income tax returns, possibly a utility bill.

2. Also, my lawyer's assistants keep telling me Chase does not want to settle "they will want to settle once they see you are not paying and the real value of the house, once threatened with bk, they will definitely want to settle.

how much should I be willing to pay my second, Chase HELOC , for a settlement? i'm hearing of settlements as low 1% and going up to 15%, of course you'll have to start small becuase they'll try to drive you up, sometimes this settlement doesnt happen until they have sold your account to a colection agency.

10-30-2009, 12:50 PM	#1 (permalink)
Timmy19 Member Join Date: Sep 2009 Location: Southern California Posts: 25 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Aurora Income Help This is my first time posting online so I hope I am doing this correctly. I have a 80/20 loan with Aurora and Chase. Aurora: 632,000 at 6.375% monthly payment $3357.50 Chase: 158,000 flexible (trying to work on payoff with them)payment of about $650 per month. I stopped paying both in July 2009. The value of the house has gone from $790,000 in 2005 to $583,000 in 2009. A loss of over $200,000. I am in California. I have been trying to modify the loan with Aurora but they keep saying that my income of $6900/month is not enough. I am trying to understand the percentages but I am having a hard time with it. I received foreclosure papers last week and I am panicking. If Aurora would modify my loan even at 4% that would mean a monthly payment to about $2106/month and I am not including taxes or insurance which I am always paying personally on my own. This is also about the amount that the MHA Payment Reduction Estimator shows online. My financial analysis form already shows a surplus income of $1450 after all my expenses are paid because I am quite frugal and do not waste money. A 4% loan would be 31% of my income. What am I doing wrong in my math? What am I missing? Why does Aurora say I do not earn enough to do any kind of loan modification? I have been grateful being able to read everyone's story and it helps not to be alone but I am so desperate. Please help! Any advice would be profoundly appreciated.

10-30-2009, 01:41 PM	#2 (permalink)
heidi79 Senior Member Join Date: Jan 2009 Location: Miami, Florida Posts: 250 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Aurora Income Help There something definitely wrong there, the 1450, is that what u have left over with your payments as they are now, or are you using the desired payment?

10-30-2009, 02:10 PM	#3 (permalink)
Timmy19 Member Join Date: Sep 2009 Location: Southern California Posts: 25 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Aurora Income Help Thank you so much for your reply. As you can see I am completely puzzled trying to figure out what is wrong here. The $1450 is the surplus of a net Income of $6900 minus Expenses of $5431.48. The expenses include all of my mortgage payments for first and second, my insurance, property taxes, food, utilities and anything else. I have no other additional expenses at all. This is how it is now! If I would have any more surplus than that I would not need a loan modification so I cannot figure this out and really need help.

10-30-2009, 02:21 PM	#4 (permalink)
Timmy19 Member Join Date: Sep 2009 Location: Southern California Posts: 25 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Aurora Income Help Sorry I forgot to mention that I am paying minimum payments on my credit cards which comes to about $300 a month. Since the amount always varies and is going down I did not include them.

10-30-2009, 02:32 PM	#5 (permalink)
ohhhdear Senior Member Join Date: Apr 2009 Location: Florida Posts: 268 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Aurora Income Help Sorry to hear this. You have to include your credit card debt. What I am wondering is this:--- Do you have the surplus of $1450 AFTER or BEFORE a modification. I'm no expert at all-- but if you have this surplus BEFORE modification, they may likely say there is no hardship. Maybe someone with more experience than myself will come along and answer you.

10-30-2009, 03:05 PM	#6 (permalink)
Timmy19 Member Join Date: Sep 2009 Location: Southern California Posts: 25 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Aurora Income Help This is my surplus BEFORE any modification. Aurora keeps saying I do not have enough income with $6900. I have a lawyer! Three months ago they told me that I was a great candidate for the Hamp program. I found out that I was in Foreclosure through advertisements from other lawyers in the mail and when I checked on Realty Trac. Now my lawyer received the NOD and so did I and I am afraid more time is going to go by without anything happening if I do not step in. My lawyer's assistant tells me that Aurora denies me because I do not have enough income. I tell them that I would not need a loan modification if I had more. I sent in a letter to the lawyer with all the numbers that I am calculating but I have not received a response yet from him. So far my lawyer has advised me to file for BK13 which does not make sense to me. With even just a minor loan modification to 4% I would be fine. My hardship letter is very precise and is accepted by both Chase and Aurora. My bank statements clearly show my income and where my expenses are going and how much. I used to have a FICO score of 850 when I bought my house and I still had a Fico score of 760 when I stopped making payments. I have always been a most responsible homeowner and consumer. I am afraid that I am going to lose my house because something is going wrong here. My lawyer's assistant asked me again today to send in a revised financial form with MORE income showing but that is when I turn to you guys! My lawyer's assistant talked to Aurora at some point and e-mailed to me that Aurora would deny me even with an income of $7600. If I can go through this any more than it is only because of your guys help. I do not know where else to turn.

10-30-2009, 03:57 PM	#7 (permalink)
Timmy19 Member Join Date: Sep 2009 Location: Southern California Posts: 25 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Aurora Income Help I am trying to think myself about what is going wrong here and I wanted to add some info. Whenever I met with my lawyer in person or on the phone I always felt that I was in good hands and I trusted him. He is part of a reputable and trustworthy law firm here. However, whenever I deal with the assistant, I feel like I am getting a completely different company. I therefore asked my lawyer to change my assistant but it is the same story. Throughout October the assistant asked me to update financial forms, to send in this or that statement, and I thought that everything was being taken care of until I found out that I was in foreclosure. When I spoke to my lawyer about a week ago, he told me that he had been sick for most of the month. I wrote a detailed letter to him this morning asking him the same questions as I am asking here but he has not called me yet and all I am getting from the assistant is again "turn this or that paper in". That is when I turned to you guys! I am desperate.

10-30-2009, 07:47 PM	#8 (permalink)
Timmy19 Member Join Date: Sep 2009 Location: Southern California Posts: 25 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Aurora Income Help AT 5:50 p.m. my lawyer called and told me that after dealing and wheeling with a Aurora representative they will be sending me paperwork within the next week for a loan modification at $2156/month beginning in December. The mere fact that two people took the time today to reply to my post is so much appreciated. It helped me to understand that indeed something was wrong and in continuing my reading of other people's posts and their links on loansafe.org I learned about Schwarzenegger's Senate Bill 94 which protects people seeking a loan modification in California against inefficient representation by companies, lawyers, and assistants. The text of Senate Bill 94 can be found at: http://www.leginfo.ca.gov/pub/09-10/bill/sen/sb_0051-0100/sb_94_bill_20091011_chaptered.html For whoever out there who was reading and listening today and especially to heidi79 and ohhhdear--- THANK YOU THANK YOU THANK YOU! I am cautiously optimistic but this is the first light in my life after my accident in 2007 that crushed not only my car but also my work and income. Losing my house would mean losing a home for animals and children that are benefiting from my work and who need me. Without the house, I would not have continued my work. Thank you from all of us! Moe! Thank you for loansafe.org! Even though many of us do not write or reply, we learn so much. Thank you!

10-31-2009, 08:28 AM	#9 (permalink)
brokemama Senior Member Join Date: Nov 2008 Posts: 203 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Aurora Income Help Congrats, Timmy! That's a great mod. I did a 1st mod with Aurora several months ago. I want to modify the 2nd or preferably have it extinguished but am not yet actively doing anything (just weighing my options). Is your atty. handling the 2nd as well?

10-31-2009, 09:23 AM	#10 (permalink)
Timmy19 Member Join Date: Sep 2009 Location: Southern California Posts: 25 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Aurora Income Help Brokemama, Yes, he is handling the second as well but after yesterday's hard work he needs a few days before we continue on the second. Did you get a Hamp or other modification with Aurora? Did they stick to their (paper) word after the trial period or did they change any of your numbers? I still want to learn as much as I can and be prepared.

10-31-2009, 01:57 PM	#11 (permalink)
brokemama Senior Member Join Date: Nov 2008 Posts: 203 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Aurora Income Help Hi, Aurora started to give me the runaround so I fed-ex'd a letter to the CEO of Fannie Mae who owns the mortgage. They had an exec take over and the mod was done very quickly after that. My house is about worth the value of the first; the second is worth nothing. I would either like to extinguish it or settle it. It's with BofA who I understand are difficult to work with.

10-31-2009, 02:48 PM	#12 (permalink)
Timmy19 Member Join Date: Sep 2009 Location: Southern California Posts: 25 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Aurora Income Help Unfortunately I do not know anything about BofA. My house is more than $200,000 under water and my second is $158000. I also want to work on settling it but my second is with Chase.

11-03-2009, 08:38 PM	#13 (permalink)
heidi79 Senior Member Join Date: Jan 2009 Location: Miami, Florida Posts: 250 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Aurora Income Help timmy, sorry I didn't reply to your earlier posts, i guess i don't get all the notifications when someone replies. I'm glad the attorney was able to do something for you, filing a bk when you can't get a mod is more like a stalling tactic, in the end there has to be a modification. Stay on top of them!!!! Im glad you were able to get where you are now!

11-03-2009, 08:40 PM	#14 (permalink)
heidi79 Senior Member Join Date: Jan 2009 Location: Miami, Florida Posts: 250 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Aurora Income Help you have a lot of leeway when it's your only home and the second mortgage is not secured because the equity has gone down so much. at the very least, chase needs to give you a super low interest on a mod or you can settle it for a very small portion of what you owe. through filing a bk, many times the 2nd lien will be eliminated (they know this, but don't think you do) lol! keep persevering, keep us posted.

11-04-2009, 02:00 AM	#15 (permalink)
Timmy19 Member Join Date: Sep 2009 Location: Southern California Posts: 25 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Aurora Income Help heidi79 Thank you so much for your replies. I am so stressed out and if it wasn't for people like you, I would not know what to do. I really think my lawyer's assistants are messing up big time. My lawyer was sick and I ended up in foreclosure because of it. I think he is working hard now but I should never be in this position. When we first began this whole thing my banks said I was a perfect candidate for a HAMP loan modification (I agree) and three months later I am in foreclosure. I do not like to have to be on top of my lawyer's office but if I am not I will be losing my house. I have two questions I would really appreciate some help with: 1. I have not received the Fedex on my first yet so I do not know any details. I am wondering how much paperwork will be included while being on trial payments if indeed it should come true. Do you know? I do not trust the information provided by my lawyer's assistants and want to be educated as much as possible. What paper work do banks generally require during the 3 to 6 months trial period? 2. Also, my lawyer's assistants keep telling me Chase does not want to settle but a month ago my lawyer said he is going to put in an offer. I don't think he ever put in an offer after our meeting because he got sick. I keep asking for the letter he mailed in and have not received it yet. My second HELOC is for 158,000 and my house is under water for more than 200,000. I only want to do bankruptcy if absolutley necessary. My question is, how much should I be willing to pay my second, Chase HELOC , for a settlement? I want to be prepared to respond in case my lawyer's assistant does come up with something to settle for. The assistant's information though is uneducated and inexperienced to help me make any decision. Thank you so much! I would have given up without your support.

11-04-2009, 05:25 AM	#16 (permalink)
AZOwner Senior Member Join Date: Jul 2009 Location: Phoenix, AZ area Posts: 324 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Aurora Income Help Thank you all for posting. We have a larger initiative going on to provide the American Homeowner a voice to get the system in some kind of order. Please, Please, go to the Huffington article and post a message to the article, link above. We need to bring this fight back to the forefront. If you won't sign the petition, please leave a note at Huffington. Highlight some of your challenges with the issues. Together we can make a BIG difference, individually we are a drop in the bucket. Thank you. Here are links to both. http://www.huffingtonpost.com/richar..._b_342665.html http://www.petition2congress.com/2/2564/petition-to-us-government-from-american-homeowners/ __________________ PETITION TO THE U.S. GOVERNMENT FROM AMERICAN HOMEOWNERS \| Petition2Congress \| Our Huffington Post Article: (leave a comment) http://www.huffingtonpost.com/richar..._b_342665.html

11-04-2009, 11:17 AM	#17 (permalink)
heidi79 Senior Member Join Date: Jan 2009 Location: Miami, Florida Posts: 250 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Aurora Income Help ur absolutely welcome, we're no experts but have been lucky to have gained some knowledge and been able to help others through the process. I do not like to have to be on top of my lawyer's office but if I am not I will be losing my house. sucks to have to do it but ..... 1. I have not received the Fedex on my first yet so I do not know any details. I am wondering how much paperwork will be included while being on trial payments if indeed it should come true. Are you waiting on the hamp package? if so, the package has on official logo on it, it has a the trial modification agreement, the hardship affidavit, the 4506t form and possibly a financial analysis worksheet. they will ask for everything signed and returned along with paystubs, income tax returns, possibly a utility bill. 2. Also, my lawyer's assistants keep telling me Chase does not want to settle "they will want to settle once they see you are not paying and the real value of the house, once threatened with bk, they will definitely want to settle. how much should I be willing to pay my second, Chase HELOC , for a settlement? i'm hearing of settlements as low 1% and going up to 15%, of course you'll have to start small becuase they'll try to drive you up, sometimes this settlement doesnt happen until they have sold your account to a colection agency.

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