just waiting for mod date..in my intertube!

[cindy deanne]

hi forum,
i hope my post finds it's way on this site.
here goes. ..
i have contacted downey savings in hopes to modify my neg am loan. it will reset in 2 months. we are paying interest only and are $40,000 in for deferred interest. i was told today by a very immature young man that downey could not help because our payments were upto date. he had received our info and he also found our loan to reset in dec and told us to call back in july. 4 months before reset to help. the letter from downey savings mort. dept. clearly states it will reset in 2 months. he sounded like a gate keeper not any help. he ended the conversation by saying if he sent the mod. request now it would just be denied. we don't want to be behind ..then call for help ...what the heck?

don't know what to do,who to call and no compass...i'm sinking fast...any lifeline suggestions?
thanks for ready my story..
cindy deanne

Wondered when Downey would find it's way here...Welcome to the forum and thank you for joining...

This means that Downey is about to start the Neg AM adjustments soon as well....

You need to be proactive, the fellow that you called on the phone was not in charge of the concept of work out. You need to call back and request the Loan/Home Retentions or Loss Mit Department. Yes you need to start now, before it is a problem.

So first thing, call back in tomorrow early and request the Department that you need. If they do not help at first, call back until you get into that department. Then get a phone number to "get around" that nasty person that answers the phone.

Get a Modification Package and begin the process now of completing it and sending it in to them...they are a portfolio lender, and as such may not have worked out with the investors the terms for modification yet. Neg AM products i.e. Option ARMS are the hardest to modify, and we are seeing different methods all over the board on how they are modifying them, even within the same shop...it is dependent on the Investor and their tolerance for taking less income than anticipated.

Please try what I have suggested above, and if you are not getting results ask to speak to the head of the department....the clone that answers the phone does not always, in fact does not know the facts or what may or may not being done in the modification of these products.

Let us know what happens and meanwhile....start getting the documentation together for modification, paystubs, W-2's, making a budget and a hardship letter.

[cindy deanne]

wow. it's almost midnight here in calif. and what a silver linning to have a response before i retire for the night. thanks thanks thanks poppy. i will do all you asked. i did submit the paystubs and w2's and hardship letter per downey's request. that "bank bouncer" confirmed he received it. he answers his phone as "downey saving" really generic and i had to call from another # because after literally 16 messages james never called back. caller id? i will call tomorrow and push my way through... i will post my results and hopefully my situation can help others w/ downer as their lender...

c. deanne

Yes they all have caller ID, they also have to adhere to some weird privacy rules as regards ID and other phone "stuff"....the transition in my shop at the time was not pleasant.

Please keep me posted, I am curious and also interested in how they proceed, they have a huge portfolio of the product and it is about time for them to start "bustin'" out as it were....

The big hit on these things will start this fall, and by Spring next year....Katie bar the doors...

[cindy deanne]

hi poppy and forum,
well i called james at downey and got the same answer. our loan on recored w/ them is to reset in dec. he said the bank had certain criteria for mods and we are premature in sending in our request. his title was modification"advisor".
downey's "doorman" said that that was it and wait until july. i was not given any other numbers to speak w/ someone else w/ more authority. i wanted to hear it from higher up. to no avail. truely freaking and sinking....
cindy

I am really, really behind here, if I can I will call someone in the next days and get some names and numbers if they have them for Downey Corporate.....however, please understand that I am underwater on work right now and it might be a early next week before I make contact with them in the voice mail hell that we have these days on the lender platforms.

[cindy deanne]

hi forum,

it's midnight, the time i usually come to grips and read the forum replies.
hi poppy. you really are so generous with your time. and still those with time don't extend their help to others. we are all busy and under tremendous pressure. the forum is a great way to see that i am not alone.
i can only imagine your work desk...so whatever info you find will be greatly,enormously appreciated. i will look forward to your post sometime next week or so. i will patch this "sinking sucker" and keep going
cindy

We aim to please and try to help....numbers are easy, the problem will be getting them to start the process.

[cindy deanne]

hi momof2...and forum members
i would love to have the avelo ceo email my sister is w/ them and i month from forclosure...she had the same song and dance..any any help and info would be great..she has gotten nowhere fast...
thanks cindy

[Moe Bedard]

Hi Cindy,

Is it at all possible to have your sister join us too...so we can get her full story......as it is much easier to offer advice directly to the person that has the hardship.......and we would love to try to help her too, if we can......

[cindy deanne]

hi ***..i will see her tonight and show her this website and forum...i think it would be great for her....she's not convinced..rather jaded and ready to walk...

[cindy deanne]

hi this post is for me this time...sinking cindy...
anyone with and downey savings stories or insight, info....
thanks

[Moe Bedard]

Just tell her to at least join and post her story and see what advice we can offer her first...............as you know from just starting your fight it does take a while but have her read all of the successes too.
We have an Avelo success and I wasn't sure who you said her first was with.......but have her read those successes.
I think it will help her realize that she too can do this and there are other options besides throwing in the towel........

[Moe Bedard]

I think for you Poppy is working on getting you some Downey contacts.....but you, I believe are the first member from Downey.......
Are you feeling like a pioneer.....

Yes I am, but it is the same person for the WAMU contacts and I think she wandered off into the Pacific Ocean....I need to call her tomorrow, I still need the WAMU and Downy Contacts from her......

[cindy deanne]

hi everyone...thanks for answering my message in a bottle.
this first for downey? i feel a lot more courageous because of all the support from this site. i didn't get anything but lost hold time from 1 800 "dope" now.
thanks poppy ! i knew you were still on it...sometimes i feel like letting the water in and flushing to the pacific myself!! again thanks for your time....time is so precious..

sinking cindy (w/ a little headwind?)

She was out today....they are making some rather large changes in her world...ergo, I assume that she is trying to make the appropriate changes in her world to compensate. Oh, the Lending Business, it ain't grand anymore.

[cindy deanne]

hi coronasteve. i just read your advice for the thread for looking4help. wow. a lot of great ,powerful information. it doesn't get any better than that. i have the same type of loan w/ downey. i need just as much help with info. we pay only the min. are defer2,000 monthly. it will reset in dec. noway to pay full amtz. amount. no equity to refi...that's where the water comes in. we're sinking! we are at 590.000 and by fall will be upside down...what do i do with my ducks? i wouldn't mind a mod. but i thik the apyment and piti will still be more than the min 2100.00 we pay now. and can't afford that. there is no more $$ to paydown deferred interest ,,, can you grab a bucket and help me pail out water a little ??? don't know where to paddle and i can't swim

sinking cindy

[Moe Bedard]

Ill make sure Steve knows about this

Steve is here, thank you for the kind words. Let me think about your situation and check out something online. Back to you in a little while.

Hey Moe!

Hi Cindy,

Starting with some basics...

1. When did you close the loan you are in? Was it used to purchase your home?
2. How do you know your loan will reset in December? Maxed out the 110% or 5 years?
3. How much have you deferred in total?
4. What was your original loan amount & What is the balance right now?
5. What do you think your value is?
6. Do you want to stay in your house?
7. Do you have access to money from ANY source to pay down the deferred interest? We can work the numbers to see if it makes sense, if it does, then great. If not, we go to plan B
8. What is the MAXIMUM you could pay over and above your minimum payment?

I'm sure your responses will generate a few more questions, but this will get us a start.

For anyone else reading this thread and you have an Option ARM and are worried about it. Post your information. Let's see what we can figure out together.

[cindy deanne]

1. it was a refi about 2yr.s ago
2. we called mod dept. and tried to work something out but was told only 4 months prior to reset...aug could we request. i think maxed out
3.deferred is almost 40,000...
5. maybe 600,000
6.not if we can't afford the fully amtz. payment
7.we have 10,000 in 401k and 2 other rentals homes with no equity.
8. maye 4-500
maybe selling while i can brake even is the answer..but probably have to short sale..some homes near are 535 or 575 as comps. is that an ugly process to deal w/ bank?
will we be liable for the difference from the sale in california? would the bank seek legal action to recover loss? that is my biggest worry
thanks again...
sinking cindy

So, your loan is recasting in December because you are reaching 115% of the original loan balance?

When you did the refi on this home 2 years ago, was the loan what you wanted and was it disclosed properly to you by the mortgage broker?

This is your primary residence?

As far as any deficiency is concerned from a short sale or foreclosure, you definitely need the advice from a RE attorney that handles these type of cases. There generally are tax implications too, so a RE attorney with tax background would be the best. Loans for purchases are treated differently than loans that are refinances.

If the loan you are in was not disclosed to you properly about the deferred interest, the margin and the interest rates, the APR, and some other specifics, a loan audit will find those violations.

These audits are really the cornerstone of creating a great case to the lender as to why they should grant you a modification instead of you suing them for rescission of the loan. If there are some issues in the loan that expose the lender to litigation, they would rather workout the modification and avoid the expense and publicity.

Option ARM type loans are usually full of disclosure errors, incorrect Truth in Lending disclosures, timely redisclosures, etc. that can really be great leverage against the lender.

Let me know if you would like more info on the loan audit.

We're here for you!

[cindy deanne]

yes. i think so. not sure.. i think it was a 2 yr. fixed the it adjusts.
no it was not. i was shocked to see the amount we were charged for the refi...the good faith was bull..my hands were tied and it was closing day. i also was upset to pay the interest because we closed before the 15th another 5,000. the loan officer was a friend.i didn't get the deferred interest part until a year later. not able to re refi beacuse of a 2 yr prepay penalty. the refi ate all my equity at the time
yesw i would like more info on the audit. maybe i have a chance. but after crunching numbers i think i just can't pay the 3500 dollar note. wow i regret a lot of things now!

Hi Cindy,

Sorry for the late response, I was away for the weekend.

The loan audit is a great tool. I/We go through the loan with a fine toothed comb looking for errors on the APR, violations, misrepresentations, fraud on the broker's part, etc. I would say that we find some sort of violation on probably 80% of the loans we review.

Some of these problems are so severe that getting the loan rescinded during the 1st 3 years is a possible remedy. Other violations have other remedies for the borrowers. In any case, the goal of the audit is to pressure the lender into helping you win a favorable ruling and/or a great loan modification. Believe me, the lenders know there are a lot of bad loans out there and when they see an audit that shows all kinds of issues that can get them in hot water, they are much more lilely to negotiate with you.

If you have more questions, please ask away and we'll get the answers for you.

Steve