My whole saga started when I refinanced in August of 2006 - The sad thing is I knew the type of loan I was getting into but didn't think much of it at the time due to the way the market was. We refinanced our home for $357,000 with an appraisal of $420,000 at 9% fixed for two years and then adjustable. We obviously did not have the best credit, but I saw this as a way to rebuild our credit over the next two years pay off debt and be able to sell our home. Even if the market slid a little I figured we would still come out with a tiny profit. In May of 2007 three weeks before I was going on maternity leave I received a letter that they had force placed an escrow account on my home and my payments were now going from $2800/mo to $3500/mo- even if I paid the $3200 in property taxes they paid (which I had told them I was planning on paying as soon as I got my tax return back, but they chose to pay anyway)- I would still have to have this escrow account for one year- I explained I was going on maternity leave and that $3500 was going to be beyond a stretch for us, but I was told there was nothing they could do to help. We managed to keep our heads above water for five months but the last month I was on leave we started to fall behind. I returned to work at the beginning of November only to lose my job on November 20 (do to the housing crunch)- by this time I was due for October and November- I immediately called ASC to explain my situation and see if there was anything they could do. I told them that I could not afford $3500 per month and I wanted to keep my home especially with two small children. I was told at that time that maybe we should look into a modification since my rate was going to be adjusting in August. I did financials over the phone and even though my husband was not on the loan they used his income. I was told to give it about 4-6 weeks and I would have some sort of answer. I was also told not to make any payments.
About 4 weeks went by and I called ASC to find out where I stood- I was told it was in review and that they had no other answers for me. I again reiterated how I wanted to keep my home and I was concerned because I was told not to make any payments and it was now affecting my credit and I was not going to be able to catch up- could I at least make partial payments over the next few weeks. I was told they would not accept partial payments. At the beginning of January I called once again- my instinks were telling me something was seriously wrong. I was told my file was on the "decision maker's" desk and she was swamped so to give it a few more weeks. I then asked could I at least get an idea of what my rate and payment would be? And was told no. I called once again on January 25th and was told I was approved for a modification and that I would receive the paperwork in the mail in the next few days- I asked for the terms and was told they could not be given out over the phone.
So when I received the paperwork on Febuary 11th imagine my surprise to find out it was not a modification but a forebarance agreement. I was to pay $3500 march 11, $3500 april 11, $3500 may 11 and then $22000 june 11th and once I did that they would review my loan for possible modification. I immediately "FREAKED" out and started screaming what the hell is this. I called ASC and was told by default services that this was the best they could do. I told them if I could afford the $3500 do you think I would have let my loan fall behind? I also said where the heck do you think I am going to come up with $22000 on top of that. The gentleman I spoke with said don't freak out I know it's worded funny, but that $22,000 you don't come up with it's added to the back of the loan providing you make the three payment os $3500 on time. I asked for that in writing and was told they can't do that but I am on a recorded line and they can pull this conversation anytime if needed. I actually considered for a moment asking my family to help with the three payments of $3500 but something told me to call ASC again.
So I called them and asked if I agreed to this forebarance what would my new rate and payment be. That is when the whole ugly truth came out. I was told that the Wall Street investors who own my loan do not offer lower rate and payment options and that ASC does not do that. I was like what the hell are you talking about that is what a modification is- hello. They said that at no time do they ever lower rate and payment, perhaps offer a fixed rate once I pay them the $10,500 but I will never get a lower payment due to the additional $22,000 they would be adding to the end of the loan.
I truly started crying on the phone, why did you put me through this since November. I told you I could not afford the payment and I did not want to lose my home, now my credit is beyond screwed up and my home is only worth $250k and now I owe $375k. The lady on the phone said that they should have told me this was a forebarance and that according to their records we can afford $3500/mo- I started laughing and asked her how she came to that- she said that it showed my net income at $8800 per month- I could help but laugh and said I don't know how you came to that. My husband's gross is $7000/mo and my unemployment is $1800/mo- if we netted $8800 per month I would have been making my mortgage payments.
She said we could do my financials again with the proper numbers but if at any time during the forebarence I lost my job it would render it null and void. So I lost my temper ' are you kidding me- do you people not listen or not know how to read- I lost my job in november and that is what started this whole crappy mess with you". She then told me there was nothing she could do to help.
I have called them probably 6 or 7 other times over the past for months asking them to please help me come to some solution as to I don't want to lose my home and that is what I have been saying since day one. I told them that all they really need to do is lower my rate and get me in a payment I could afford. But keep getting the same answer. So here I am about 30 days out from the end of my 90 default notice looking to rent. What really gets me is that instead of losing a little profit by dropping the rate 3-4
points they would rather take over $100k loss and have to try and sell my home. Because now my $420k home is worth $250 if they are lucky in a neighborhood with about 10 foreclosures and brand new homes that are twice the size being sold for $250k- so good luck getting their monies worth.
I am now trying to figure out for my future which is best just letting them foreclose or trying to do a deed in lieu of foreclosure now that NDEX West is overseeing my loan.
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