| Ln Mod & Lawsuit Aurora 1st/Homecomings Financial 2nd
Help!! Our home is in foreclosure. We are looking into the loan modification first and then we are looking at the possibility of suing Centex Mortgage for fraud. We need loan modification, chapter 7 bankruptcy and legal advice.
First things first. We are currently 5 months behind, soon to be 6 months on June 2nd. We have already received the Notice of Default that was filed on April 7th. Based on what we have read, the lovely notice that gets posted on our front door, will probably be on July 8th at which time we have 20 days to move out? Concerned! We are feeling the pressure!
We want to save our home. We paid $670k for our house and did 100% financing 80/20 in November 2006. We purchased in the first phase which was a joke in itself. The values of the homes started falling from that point on and higher incentives were given to the other phases. We can talk about that later.
As it stands now based on what is selling in our area with larger homes than ours, we are about $200k+ upside down, possibly more. Our $535k 1st mortgage is a five year Interest Only fixed rate with a current payment of $2010, that started at 3.50% for the first year ($1500), then it adjusted to 4.50% this January ($500 increase in payment), then it will adjust again to 5.50% January of 09 (I'm praying we will still be here). Our second is with Homecomings Financial approx $134k. I believe the rate is 9.25%, somewhere around there with a payment of $1034. Our property taxes are based on the $670k which is totally unfair. We have not paid those either. I believe we owe approx $13k in property taxes.
We did work with the both lenders in the beginning and were looking at the repayment programs. If it wasn't for the second mortgage we could of probably got by and not be in foreclosure right now. I think we waited too long.
I was a mortgage specialist and basically lost 75% of my income. My last check was in January of 08. We definitely have to file chapter 7 BK to eliminate a lot of unsecured debt. I am trying to find stable work but have been unsuccessful. If we move we will have to pay rent. We need to renegotiate our loan. We need some kind of loan foregiveness based on the value. We don't know what to do, where to start and frankly, I don't know if I can do the fighting for myself. I am so stressed out and depressed. I don't know what to do. I do at times want to just bury my head and just wash my hands of everything but I don't want to move or uproot my kids again.
As for the lawsuit, I feel that we were being pressured into purchasing our home for several reasons. We were captivated by the interest rate program and were told that they didn't know if they would have the program available in later releases (which they did). Prior to that we had first gone to one of Centex's other developments that were in the later phases near the high school where our son attends. That is where we first heard of the rate program. We tried to negotiate moving into a later phase there because it would be closer to the school, but were told the same thing that they didn't know if they were going to have the program. So, we backed out. We then just by chance had gone to check the tract that we are now in (and farther from the school). We had told them we weren't interested in buying and explained why (no available program). We wanted to wait. The rep looked surprised and said they had the same program and our home wouldn't be ready until the end of 06. So, there was the carrot. After sitting down with them we knew we could afford it. But the market started showing signs of decreasing values but we were told that they were not going to reduce prices. We did a stated loan only because I was new to my commission position. We more than qualified with the ACTUAL incomes that my husband and I had. We received some papers from the LO to sign. They were forms stating our income higher than what our incomes were. I called the LO and asked why they were stating them so high. She said that based on Salary.Com they were allowed to state up to a certain percentage higher. I explained that they didn't need to do that because our ratios were fine and within guidelines for a stated income loan. She said otherwise. She said that they needed the ratio's to be lower. I asked at that point what if we don't sign the form because I was uncomfortable with that. She said that we wouldn't get the loan and we would lose our $5000. In retrospect, losing the $5000k then would have been a way better choice to losing our home not to mention ruining our 700 FICO's at the time. We proceeded reluctantly.
We were told that they were ready to close. We were the first to move in, only to find that the phone lines had not been run to the boxes nor was the cable/dsl. We were without cable/internet and phones for 4 weeks. That was tough for me as an independent contractor because I worked from my home. Since all that of course within six months the values had dropped considerablly and they were giving backyard landscaping and window coverings. We feel that the builder was looking out for itself because we were in the first phase and they needed our homes to close to release the next phase.
We take full responsiblity for our actions. We should of just walked but we loved our home and let our emotions get in the way of making the right decision. It just burns me that builders get away with so much. When trying to find closed comps in my track to send to the county for my taxes, not one home in our tract came up. I was told that builders do not have to report their closings like resale homes do. I think that is something that needs to be changed in the RE market. I also don't think that builders should be allowed to process there own loans. I think that is a conflict of interest. They have their own appraisers, insurance and everything else! Which reminds me that everytime we asked what if we don't want to use their insurance company, we were told the same thing that we wouldn't get the rate program.
So sorry this is so long. But, I had to vent and I hope there is someone out there that hears our cry for help because we are running out of time.
Thank you all for listening!
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