Here we go again...

[dazednconfused]

I originally purchased my home in 6/2005 on a 2/28 interest only loan. I bought the home for 590K and have an 80/20. When the interest rate started adjusting my payments went from $1900 to $3097 on my first and my second was $900. The taxes on the house are $8,000 per month!!! My plan was to refinance into a fixed rate loan before my rate went adjustable but life had other plans. I lost my job and the industry I am in is in the dumps.

Add to that the fact that the loan program I needed no longer existed, stated income/stated asset on a jumbo loan at OVER 90% LTV. So instead of refinancing as I had planned, I put my house on the market in June and hoped for the best. I didn't receive one offer and only 2 people have looked at the house to date. I couldn't keep up the mortgage payments anymore, so I notified the lender that I needed a loan modification in 9/07 and they sent the loss mitigation paperwork.

I filled it out and explained my situation and they claimed they never received my paperwork, I sent in a 2nd package and they said "don't call us we'll call you" I called anyway, but I kept getting "we don't have any status". I even asked one of the people I spoke to, why they were taking so long to come up with a solution and he replied that they were overwhelmed, I told him that since so many people were out of work in the lending industry why wouldn't they hire some of them to help them get caught up and he replied well then we'll have to lay them off again (yeah right) I asked him if they didn't realize that the longer it took to get me an answer the more impossible it would be for me to be able to recover and he said he was "sorry".

I finally tracked down the Loss Mitigation person assigned to my file in December! She told me that she could not offer me a fixed rate based on my original interest rate or a deed in leiu. When I asked her if she couldn't or wouldn't she said that they might be able to give me a fixed rate but not as low as my 4.875% initial interest rate. I asked the loss mit. agent, what I would need to qualify for a loan mod. and she said I would need $11K dollars to catch up on my mortgage based on my original payment of $1900!

I'd also have to make payment arrangements on the 2nd and provide a copy of the terms of the arrangement in writing. I would also have to provide paystubs (I don't have any) and I would also need to show a surplus of income each month (what). In the 2 years my loan was fixed I was late a couple times, but nothing serious, I bought the house on a stated income loan so why would they insist on paystubs and income surplus? Especially when the house sat on the market with no offers and is worth less now than when I bought it?

If I truly didn't want to resolve the situation, I would have just walked away, right? Well needless to say they had me at "paystubs" and I lost all hope.

I just received a "Notice of Trustee Sale" on my front door, thank god I saw it before my 8 year old son did. The property is going to Sale on March 12. I don't have money for deposit and first months rent, but I plan on being able to scrape enough up in the next 30 to 60 days. Is there anything I could do at this point or will I have Sheriff at my door when this house goes up for "Trustee Sale?" Can they throw us out and keep our belongings?

Any information or suggestions would be greatly appreciated.

Welcome to the forum and thank you for joining....

Next who is the lender/servicer? How delinquent are you? Are you back to work? What is the loan amount today? Have you tried to renegotiate with the Lender/Servicer after the date was assigned?

No they can not take your belongings unless you leave them behind and they clear out the house.

[Moe Bedard]

Poppy just to ad here.............I am going to go out on a limb and say the $8,000 a month in taxes is a typo.........correct dazed?

Not in California and in some areas with Melaros (sp)....they can access up to 1.35% or better of the property value and there they do 100% of value unlike here. Yes a month, but a year, no, is reasonable. Some areas are ghastly in tax costs, Texas, NJ, New York, Washington State, PA, MD, whole eastern seaboard. Florida is hit and miss.

[Moe Bedard]

O.k. I know in N.J. the taxes are high too, but not $96,000 per year on a 590k house....

I think they meant a year....that is what I assume (I know what assume means), been pointed out to me over the years....

[dazednconfused]

Yes its a typo , my taxes are $8,000 per year.

Originally Posted by *** Damiano

Poppy just to ad here.............I am going to go out on a limb and say the $8,000 a month in taxes is a typo.........correct dazed?

[dazednconfused]

Thank You for having this site, my servicer is Everhome. I'm behind 9 months. I am self employed and don't have a salary, I have a renter and child support. I haven't contacted the lender since I was asked for paystubs and $11K and the repayment plan for the 2nd which was in late December. Should I contact them, even if I can't provide what they're asking me for, mainly paystubs??

Originally Posted by Poppy

Welcome to the forum and thank you for joining....

Next who is the lender/servicer? How delinquent are you? Are you back to work? What is the loan amount today? Have you tried to renegotiate with the Lender/Servicer after the date was assigned?

No they can not take your belongings unless you leave them behind and they clear out the house.

OK, yes you do need to contact the lender and if you have tax returns to reflect income through out the year that has to be used in lieu of paycheck stubs as you are not a salaried employee. I understand that they paralyzed you with the pay stubs request, this is normal, but there are self employed people going through this and you will need to provide them with the tax returns and a P&L for last year to reflect your income and expenses for the business last year if you do not have the 2007 tax returns prepared. You also need to request that they postpone the foreclosure date while you are going through the analysis of the income so that you and they can determine if modification or forbearance or a combination of both can be negotiated to get this to work.

So....take a deep breath, call the lender and start the process of explaining that you are self employed, have a renter and child support and those are the sources of your income at this time. Then you need to request the postponement of the foreclosure while going through this as well as requesting that some of the past due amounts be added to the principal of the loan since the funds that they want are kind of impossible. Also let them know that you have tried to sell the house, however there were only 2 people in 8 months time that even looked at it. They might not want it as badly if that is the case.

Next you need to execute a QWR to figure out what all those nasty fees are that they have added to your loan that I will post below. Please do not expect these people to return calls or really be all that concerned about the situation that you are in, they are not trained industry professionals, as you have determined, sorry to say.

Now the QWR often will make them take notice and work a little more aggressively at trying to solve the problem, so that is a good thing to send them. Also if modification seems to be all but impossible, talk to them about Short Sale, that will also "buy" some time for you. Ideally the goal is to get a modification and be able to stay, but have other avenues that you can take, kind of like a Chinese Menu Column A & Column B.....alternate plans for survival.

QWR -there are examples of the letter in the Tool Box. In that letter demand your Life of Loan History, copy of Note, Deed of Trust, Riders, all Assignments of the Deed of Trust, TIL, Right of Rescission (if refi), Lender Final HUD-1, copy of initial loan application and final lender loan application, all disclosures and all loan documents in your file, copy of appraisal. Send this three times certified return receipt required and also send it to the Broker, Title Company and all others in the Chain of the Transaction.

This thread has a really good example:

My Countrywide escapade and Hi!

[mreedlaw]

You probably already have this info., but here is Everhome's information, just in case:

CONTACT INFORMATION
Customer Service Department
P.O. Box 2167
Jacksonville, FL 32232
800-669-9721
8:30am - 5:30pm EST

FAX
Customer Service
904-281-6380

Hazard Insurance Department
904-281-6267

Tax Department
817-699-1445

PAYMENT PROCESSING
East Coast Center
EverHome Mortgage Company
P.O. Box 530579
Atlanta, GA 30353-0579

West Coast Center
EverHome Mortgage Company
P.O. Box 79301
City of Industry, CA 91716-9301


OVERNIGHT MAIL ONLY
EverHome Mortgage Company
8100 Nations Way
Jacksonville, FL 32256

[dazednconfused]

Thanks Poppy, I have a few (yeah right) questions.

To request the postponement of the forclosure date, do I contact Regional Trustee Svc's or my lender and should I also contact the court where the sale is scheduled to take place, if yes, is there a certain document I need to file with the court? Do I request the QWR at the same time as the postponement?

You also need to request that they postpone the foreclosure date while you are going through the analysis of the income so that you and they can determine if modification or forbearance or a combination of both can be negotiated to get this to work.

When I sent in my hardship letter and the loss mit. package, I explained my situation regarding my self employment, renter and child support. I also sent them a copy of the listing on MLS, showing how long the house had been on the market, should I do this again? When I ask them to add the past due amts to the principal, do I need to do it in writing or just verbally? Do I need to put together a letter detailing what I need, my original rate fixed, past due added to principal and if not a shortsale? Should all correspondence be sent in 3's to the same address, via registered mail?

So....take a deep breath, call the lender and start the process of explaining that you are self employed, have a renter and child support and those are the sources of your income at this time. Then you need to request the postponement of the foreclosure while going through this as well as requesting that some of the past due amounts be added to the principal of the loan since the funds that they want are kind of impossible. Also let them know that you have tried to sell the house, however there were only 2 people in 8 months time that even looked at it. They might not want it as badly if that is the case.

Next you need to execute a QWR to figure out what all those nasty fees are that they have added to your loan that I will post below. Please do not expect these people to return calls or really be all that concerned about the situation that you are in, they are not trained industry professionals, as you have determined, sorry to say.

Now the QWR often will make them take notice and work a little more aggressively at trying to solve the problem, so that is a good thing to send them. Also if modification seems to be all but impossible, talk to them about Short Sale, that will also "buy" some time for you. Ideally the goal is to get a modification and be able to stay, but have other avenues that you can take, kind of like a Chinese Menu Column A & Column B.....alternate plans for survival.

QWR -there are examples of the letter in the Tool Box. In that letter demand your Life of Loan History, copy of Note, Deed of Trust, Riders, all Assignments of the Deed of Trust, TIL, Right of Rescission (if refi), Lender Final HUD-1, copy of initial loan application and final lender loan application, all disclosures and all loan documents in your file, copy of appraisal. Send this three times certified return receipt required and also send it to the Broker, Title Company and all others in the Chain of the Transaction.

This thread has a really good example:

My Countrywide escapade and Hi![/QUOTE]

In a self help situation you need to contact the lender/servicer to postpone the foreclosure date and reapply or apply for modification. There is no guarantee that they will do it. You just have to try and see if it can be obtained. In the other side of the world you can retain an attorney to facilitate this issue. You can not just call the trustee or the attorneys in the foreclosure and get it postponed per se. That does require and attorney to represent you. However, again you can call the Lender/Servicer and make the request pending the Modification effort. I do not know what the outcome of this effort will be, but you need to try or they will proceed on schedule.

You will probably have to start the process again as far as modification/short sale, etc..so call first and find out. Again without calling you have no idea what stance they are going to take. Without being proactive and focused in this process there is no way that you can achieve your goals. Leaving it alone and not staying on top of it causes the inevitable to occur.

As for the QWR, 2 addresses the same and one random, which ones with this lender I would not be sure of, they are an unknown to me in their inner workings, they are an off brand so to speak. Always send certified return receipt on all documentation or FedX, UPS, USPS priority for the purposes of determining that they signed for it, you know that they got it that way.

[dazednconfused]

Thank you so much for your direct and clear responses, I appreciate what you're all doing here. I noticed you have some attorney's on here, I will definately contact one of them.

Originally Posted by Poppy

In a self help situation you need to contact the lender/servicer to postpone the foreclosure date and reapply or apply for modification. There is no guarantee that they will do it. You just have to try and see if it can be obtained. In the other side of the world you can retain an attorney to facilitate this issue. You can not just call the trustee or the attorneys in the foreclosure and get it postponed per se. That does require and attorney to represent you. However, again you can call the Lender/Servicer and make the request pending the Modification effort. I do not know what the outcome of this effort will be, but you need to try or they will proceed on schedule.

You will probably have to start the process again as far as modification/short sale, etc..so call first and find out. Again without calling you have no idea what stance they are going to take. Without being proactive and focused in this process there is no way that you can achieve your goals. Leaving it alone and not staying on top of it causes the inevitable to occur.

As for the QWR, 2 addresses the same and one random, which ones with this lender I would not be sure of, they are an unknown to me in their inner workings, they are an off brand so to speak. Always send certified return receipt on all documentation or FedX, UPS, USPS priority for the purposes of determining that they signed for it, you know that they got it that way.

[Moe Bedard]

The only attorney we endorse right now on this forum is Marshall Rosenbach...

His contact info is on the Home Page and on the banner on this page.....

[dazednconfused]

Its March 6th and I just received an offer!!! I have the property listed as a shortsale subject to lender approval and I got an offer at $450,000 today. What are the chances I can get anywhere with being approved to short sell? What steps should I take to make sure I get to the right people befor the Trustee Sale on March 12th??
I currently owe with arrears $490 on my first and $124 on my second. Please help, your advice is appreciated.

Your agent needs to get the offer submitted to the Lender/Servicer and then the postponement of the foreclosure sale pending approval of the Short Sale. You really need to be proactive in getting the Foreclosure postponed. By the way there has to be an agent to do a short sale, so if there is no agent, then the lender/servicer will not accept a Short Sale.

We have urged you to do that earlier, they can and will postpone foreclosure when modification or short sale is in the works.....please get the foreclosure postponed.

This is paramount in proceeding.

[dazednconfused]

I did it!!! I got the Trustee Sale postponed, my realtor sent the offer we received to my first and second lenders and the trustee. I called to follow up with each lender and let them know that I had an offer after 9 months on the market and kept calling each until all the paperwork with the exception of the payoff of the first mortgage were in. My lender on the first said the Trustee had to get the payoff and the Trustee said the lender had to issue it, after three days of trying to get the payoff from the trustee. I never got it in time, but the realtor called the lender and convinced them to postpone the Trustee Sale the morning OF!!! The lender agreed to give us 30 days to get the offer reviewed, PHEW!! Now we have another realtor bringing someone to see the house, WOW!! I hope the lender accepts an offer and lessens the impact this will have thru a shortsale. I really want to somehow fix this as much as possible. My advice, keep a recent payoff demand handy, ask for it just in case you have a similar situation. Hire a realtor that is personable and persistent. Make sure your realtor has your best interest at heart, the lender told me he had accepted a shortsale but they were only able to pay 5% commission vs 6% the realtor for the seller wanted and the realtor REFUSED! Make sure your realtor and the buyers realtor is flexible when it comes to the commission. Make sure your realtor puts the house on MLS at a competitive price with nice pictures and a description of all the great things about your house.
Keep your house presentable. I am being told that alot
of houses up for shortsale are not in good condition. I am still praying that the lender will accept the offer, everyone wish me luck!!! Thank you everyone for your advice and sharing your stories.

Now please fax out a confirmation to the lender(s) and the attorney in the foreclosure action confirming the information that the foreclosure has been postponed for 30 days....protect your @ssets...Make sure that your name, loan number, property address and last 4 of SS# are on all pages.

You need to do this because sometimes the lender/servicer does not adequately communicate with the Attorney.

Congratulations and your advice is great...thank you and our toes and fingers are crossed for you....

[dazednconfused]

Everhome is being responsive! They sent an appraiser over the weekend and now I am just holding my breath for the right answer, I am praying they accept the offer so I can move on from this experience, hopefully a bit wiser. Trying to go back to renting is no fun at all, but I am looking forward to paying alot less for living expenses, property taxes are no joke. While i'm on the subject of property taxes, shouldn't those be coming down with home values/prices?

[Moe Bedard]

Hi Dazed,
That is good that Everhome is being responsive......I hope they do accept the offer........
As far as lower property taxes a person would have to dispute the assessed value of the home through the assessor's office and they will investigate and go from there..........unfortunately they won't necessarily automatically do this...you have to dispute.

Good Luck with the offer......

Keep us posted....

It might be a good idea to get the taxes adjusted after the modification is finished and over...that way the two do not get confused in the process as the escrows can be reasonably returned to the borrower as there is a requirement that escrow accounts be reviewed and refunds issued every year or at the time of the escrow review for accuracy....this is required by RESPA reg every year....

[dazednconfused]

Well here it is May 5 and alot has happened, Everhome sent an appraiser and they evaluated the home and miraculously came up with a value that matched what they are owed almost to the penny. My agent sent the loss mit person several listings in the area and pleaded with the lender to realize that the buyer had no incentive to buy this home for more than what other listings are selling for. The lender realized that this didn't make sense and agreed to take the initial offer of $450K. Well it took quite a while for the loss mit. rep. to agree to this and the potential buyers grew weary of "waiting" and moved on.
Luckily another realtor called at the 11th hour once again and said he had a client that was interested. The realtor brought the client and once again we obtained an offer at the $450K price with 20% down. The loss mit. rep. was balking at approving the short sale but was convinced by the realtor to go with it considering the flood of property on the market and that something is better than nothing and we're off to the races again!! Now we have the daunting task of convincing the lender on the 2nd EMC to take a complete loss. When we received the first offer we contacted EMC and sent them a copy of the offer but their loss mit. rep. said nothing could be done unless the lender on the 1st Everhome accepted the offer. Now that Everhome has given us their formal approval they are requesting that we provide them with an acceptance from EMC. Anyone know what the chances are of EMC taking the hit on this one?

[dazednconfused]

agreeing to reduce a mortgage balance and payment without requiring the homeowner to refinance? I have been hearing that there are companies out there that are helping homeowners by negotiating the loan balance and payment reduction with the lender on their behalf, is this possible?? How does this work?

[Moe Bedard]

Dazed,

Principle reductions are not happening right now as part of modifications only rate freezes and reductions...........principle reductions are under the new proposed rules of FHA Secure and then only by the lenders choosing.........they don't have to participate.....

FHASecure New Guidelines
The White House announced on April 9th 2008 that they are taking action to provide additional assistance for subprime homeowners where are at risk or have the potential to enter foreclosure. These new guidelines would give FHA much needed flexibility and allow many more people to take advantage of the FHAsecure program which was designed to help homeowners in the first place but had hard to meet guidelines. That is all about to change.

These new FHAsecure guidelines are expected to allow up to half a million Americans an alternative to foreclosure by the end of the year. The Assistant Secretary of House is quoted as saying: “We want to be able to help families who are in the right house, but (in) the wrong mortgage.” This is very true for many American households that are trying to make ends meet in there trying times. These new relaxed guidelines for the FHAsecure loan has the potential to change the lives of hundreds of thousands of homeowners.

To qualify for the new FHAsecure standards you must fall into one of the two following:

Homeowners with ARM mortgages that where late on two consecutive mortgage payments or at two different times over the last 12 months. These homeowners must at least have a 97% Loan to Value (LTV) in order to refinance into this program.

Homeowners with ARM mortgages that where late three consecutive mortgage payments or three different times over the last 12 months. Homeowners that where late three times must have a 90% Loan to Value ratio.

Lenders do have the option to write down the balance to either 97% and 90% respectfully to make FHAsecure refinancing more accessible to more people especially those with 100% LTV. It is encouraged that the banks take these write downs and refinance as many as they can into safe FHAsecure loans, it is however voluntary for the bank to take such a write down to make the loan ratios work. The actual refinance amount will be determined with a qualified FHA appraiser and the ratios are to be calculated with the appraisers findings.

On average people able to refinance into an FHAsecure loan save $400 a month compared to their subprime adjustable ARM mortgage. For many Americans a savings of $400 or more per month can make a very significant positive impact on that homeowners finances.

[dazednconfused]

Thanks for the reply ***, I ran across this ad > <
and was intigued as to how they can "negotiate to lower your principal and mortgage payment without the homeowner needing to refinance. But I guess your saying it pretty much doesn't exist, right?
[QUOTE=*** Damiano;18694]

Dazed,

Principle reductions are not happening right now as part of modifications only rate freezes and reductions...........principle reductions are under the new proposed rules of FHA Secure and then only by the lenders choosing.........they don't have to participate.....