downey savings loan modification help

[dg112152]

I took out a pay option loan with Downey a few years back through a broker. My broker told me not to worry as I could aways get out of the loan with a refinance.

I called Downey since I am due to recast in a couple of months to see if I could get a loan modification as my payments are going to double.

Downey told me that my loan was sold to a company called GCM and they will not consider any loan modifications. They will not give me a number for GCM to call. They said if they still had the loan they could do a loan modification for me.

I cannot refinance as I owe $100,000 more that what my home is worth.

Any suggestions as I do not want to lose my home but will not be able to afford the new payments ...

[The Professor]

Please provide answers to the following:

In what state is the home located?
Is it your primary residence?
Identify the lender(s), current loan balances, and whether the loans were created at the time of purchase.
What is your estimate of the current fair market value of the property?

Daniel

[dg112152]

Hi - I appreciate your email - the property is in California and it is my primary residence. I refianced to pull cash out to pay off some bills. I have been told by a realtor that my property is worth $350,000 but I owe $460,000.

[The Professor]

Downey Savings has done a great disservice to borrowers, stockholders, and its depositors relative to its loan programs that are designed to place people like you in impossible to recover from circumstances.

You are between that rock and hard place. Characterizing the house as you have done as "my home" ignores the realities of the situation. An over-encumbered asset isn't an asset at all. It is a liability. Where your loan payment with the addition of property taxes and fire insurance (PITI) exceeds the fair rental value of the property, you need to take a serious look as to whether you are throwing good money after bad.

It is time to make a realistic assessment of your situation and measure the various factors to see if it makes sense to continue paying or let the home go into foreclosure. From a practical standpoint, while you have lost the purchase money protection providing the non-recourse nature of secured real property debt under California Code of Civil Procedure Section 580b, you will likely benefit from the "one form of action" law in this State (CCP Section 726) that effectively means that if the lender proceeds non-judicially through the foreclosure process you will not face a deficiency judgment.

As I always do, I suggest that you hire an attorney skilled in both real property matters and debt collection to provide you with a detailed opinion on what the likely consequences will be of the choices you have.

Take care,

Daniel

[dg112152]

Thanks Professor - I feel that if I could get a hold of someone at GCM that I could explain my situation and show them it would be in everyone best interest to try to work something out. Searching theinternet I read about the new California law that was passed, SB1137 - it states that lenders are required to contact homeowners and explore restructuring options before starting foreclosure? It seems that GCM/ or Downey is violating this new law.

Dennis

[dg112152]

Hi - this is Dennis - is there any other individuals that can help?

[Moe Bedard]

Did you get either your new statement for GCM or a letter from GCM yet?
If not you might have to wait for your new statement to get the contact info...........

[dg112152]

Thanks for responding *** - Downey told me that they sold the loan to GCM but they are still the servicer of the loan. They told me that they did not have any contact info on GCM and the GCM will not do any loan modifications ...

Dennis

[Moe Bedard]

Dennis,


The only thing that you can do in a case like that is try to enlist the help of either.........

NACA
or
1-888-995-HOPE

and see if they have had any luck with GCM..........

[dg112152]

thanks *** - I will call them - I also have been reading on the site about the QWR and I am going to give that a shot

Dennis

[Moe Bedard]

Please keep us posted on your progress............

[AmericanNightmare]

Downey Savings was notorious for making payment option-ARMs available in California during the "housing boom."

[dg112152]

will do - thanks ***

Dennis

[dg112152]

Does anyone have any contact info of any of Downey Senior Executives in there loss mitigation dept?

Please let me know

Denis? randing

[Moe Bedard]

This is the only contact info we have for Downey


Downey Savings Loss Mitigation
1-800-824-6902 ext.6696


This is a list of the senior management Downey.........but we don't have contact info for managers in Loss Mit............if I find any I will post again.....

Thomas E. Prince
Chief Executive Officer of Downey and the Bank

Jon A. MacDonald
Executive Vice President, Chief Operating Officer, General Counsel and Corporate Secretary of Downey and the Bank

Cliff J. Piscitelli
Executive Vice President and Chief Lending Officer of the Bank

Brian E. Côté
Executive Vice President and Chief Financial Officer of Downey and the Bank

Robert Suarez
Executive Vice President and Chief Information Officer of the Bank

Lillian E. Gavin
Executive Vice President, Director of Operational and Compliance Risk of the Bank

Kendice K. Briggs
Executive Vice President, Director of Human Resources of the Bank

J. Edward Adams
Executive Vice President, Director of Residential Lending of the Bank

J.P. Perfili
Executive Vice President, Director of Retail Banking of the Bank

Jane L. Smallwood
Executive Vice President and Credit Risk Manager of the Bank

David A. Casty
Executive Vice President, Manager of DSL Service Company

Edward A. Luther
Senior Vice President, Director of Major Loans of the Bank

Hugh C. Chewning
Senior Vice President, Director of Marketing of the Bank

Kent J. Smith
Senior Vice President and Controller of the Bank

Stanley M. Tarbell
Senior Vice President and Tax Director of Downey and the Bank

[dg112152]

Thanks *** - this is great!

Dennis

[dg112152]

*** - the $100 - $250 of surplus income on the budget ... is this based on my current mortgage payments or my mortgage payments after the proposed loan modification?

Please let me know - Dennis

[Moe Bedard]

Dennis............

Since you don't know at this time whether or not you are going to receive a modification you would not know what the payment would be..........so you would need to figure financials using the amount that you pay currently...........also the surplus amount is just a guideline form the success stories..........each investor has a different criteria.......so you might want to go over your financials with someone at downey before submitting them.

[dg112152]

Hi *** - but if I show a surplus of $250 per month based on my exisitng payment won't that hurt my changes on a loan modification? s

I really appreciate your help ***

Dennis

[Moe Bedard]

No it shouldn't........that is why I suggest that you go over the financials with them as each of the investors require different criteria...the surplus amounts are just there for a guide of what we are seeing from successful outcomes.............because they want to make sure that you can afford the household with a cushion if they were to modify and not just the mortgage squeaking by every month..............otherwise one would just end up in the same predicament even after a modification........

[Ledeen]

I'd like to know if you were able to get anywhere with Downey? I was told the exact same thing by them (The loan was sold to Greenwich Capitol and the investor was not allowing any loan modifications) However that was about a year ago and late last year Downey went under and was purchased by US Bank.... supposedly they're doing loan modifications but I still wonder whats happening to those of us, where the loans were sold to Greenwich Capitol.

By the way I have a copy of the SEC Filing agreement between Downey Savings and Greenwich, and it says they CAN modify loans when its in the interest of the investor....

I have an Option ARM with only 1500 before the reset.

I was sold this loan at 70% Loan to Income Ratio..... purely illegal I think.... I was lied to , and loan docs dont state any payments other than the minimum, of course thats the one, if you only pay it you loose your house...

I am just about ready to sign an agreement for a loan modification company, however I dont want to loose my money if these loans are still not being modified.

I read about the FDIC Loan workout model and based on their model I my loan would be a great candidate plus beneficial to the bank, compared to me walking away from the house.

PLease reply and let me know your outcome.

thanks!

Ledeen

[Moe Bedard]

Ledeen,


I have already posted this to you when you posted on another members thread...............

Ledeen,


The modification would need to go through Downey as your servicer........they will need to get approval from the investor, due to servicing and pooling agreements that are put in place with the investors on the loans......the servicer is not at liberty to let you know who owns the loan....if a foreclosure notice or any other legal document has been sent to you......this information is usually indicated on that notice.........
here is the loss mitigation number for Downey.......

Downey Loss Mitigation
1 (800) 824-6902, ext. 6696

If you need help with trying to obtain a modification and you meet the criteria of only owning the one property as your principle owner occupied residence, you can also try going through a non profit such as NACA.......their services are free............and they do the same thing that you would pay for by hiring a modification company...........so you don't have to pay anything if the answer ends up being that you are not able to get a modification.

click on the link for the info.........

https://www.naca.com/refinance/refinanceTenStep.jsp