Homecomings loan modification hard

[CoreyT]

I have a 30 year fixed rate loan (7.1% APR) with Homecomings. The monthly payment is $3465.00, including escrow for taxes and insurance (~$421). The principle is $429K. The loan is four years old. I'm embedding my hardship letter below. Any comments about my chances of getting a lower rate and a drop in principle or about my case in general would be greatly appreciated. Thanks.

From: Thursday, July 31, 2008
Brian and Corey TXXXXXXXXXX
XXXXXXXXXXXX Ave.
XXXXXXXXX XX. XXXX

To:
Homecomings Financial
GMAC Company

Re:
Account # XXXXXXXXXX

Subject:
Request for loan modification due to hardship

We are writing this letter to explain the extreme financial hardship that has caused us to be late on our recent mortgage payments. We have done everything we can to make ends meet but, unfortunately, we are falling short every month and would like you to consider working with us to modify our loan.

The initial cause of our financial difficulties is that my husband, a construction worker, has worked sporadically from December 2007 until recently. The result of the reduction in his income has forced us to borrow money from different sources to make our monthly mortgage payments. Even though we have taken in a renter and my husband has found stable employment, we are still finding it extremely difficult to make our monthly payments to Homecomings Financial, to others that we owe, and to cover our living expenses. We have considered refinancing our home to help consolidate and lower payments on the debt that we have amassed during our difficulties but this is not possible, as we now owe more for our home than its appraised value. It is our full intention to pay what we owe but we have exhausted all of our income and resources, so we are turning to you for help!

We would be happy to provide a full financial disclosure and truly hope that you will consider working with us. We are anxious to get this settled so we can all move on.

Respectfully,
Brian and Corey TXXXXXXXX

Home Phone:
XXX-XXX-XXXX

Cell Phone:
XXX-XXX-XXXX

[Moe Bedard]

Hi CoreyT,

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

A fixed rate might be a bit difficult to modify.........however, it is up to the investor on your loan...........you will have to contact Homecomings and see what options are available for your type of loan.............
The letter is very good..........and to the point........

Good Luck............

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

[CoreyT]

Thank you the message you sent , I got a call from the GMAC ResCap account today they said that I was approved for a loan modification and that they want us to fill out a financial package.
I just wanted say ThANK YOU LoanSafe you gave us hope!!!!

[Moe Bedard]

That is great news Corey..........

Please let us know when you hear........

[CoreyT]

Hey there! They offer us a 6.0 fixed rate, we say Thank you but can we get a lower rate. They called back and said that Got some great news we have a fixed rate at 5.3 They are going to take all the late charges away and the first payment will be in Nov. and need to give them the down by the end of Sept. Our home is under value, wanted to know if there was a way to ask to take off of the principle ? We bought for $420,000 and it is worth about $380,000. Thank you so much for keeping in touch it has meant a lot to me , It means a lot to me.
Sincerely,
Corey

[Moe Bedard]

Corey,


That is so Great!!!
I am so happy that your investor did work with you!!
Congratulations!!

Please let us know when you receive the docs and if you have any question on them.................

As far as a reduction in principal............the investors are not taking losses on firsts............some of the investors on seconds have been taking small reductions.........but that is about it........

[RudyJay]

OMG. CONGRATULATIONS....

[schwefls]

Corey:

Kudos to you, party hardy, you deserve it.

[CoreyT]

I got the loan papers I have one concern one this the interest portion is for three months added into my loan,but the escrow is only for two months instead of three months will I have to pay the different later. I call loss mitigation about this matter. I thought I ask for your input.

Thank you everyone for your positive respond it has meant a great deal.
Corey

[RudyJay]

The escrow account is for taxes and insurance?

[CoreyT]

Hello out there!!!!!!!! When I thought that everything was going good it got
bad again, my husband lost his job before x-mas. I haven't made the Dec.
payment and I don't know we can make Jan. What should we do?

[Moe Bedard]

Corey.........this is going to be a tough one..........they just modified the loan to a fixed rate of 5.3% and I am not sure what other options they will have................

Have you tried calling them and asking what you would need to do.........they will have to let you know what options you have..........

I am so sorry that this has happened..........

[CoreyT]

I have called they stated that they can't do another loan modification that
you only get one. They said to try and do the best we can to make the payment that they can't do anything else. Do you have any options?
Thank You Again...............

[Moe Bedard]

You can try NACA........but I don't know if they will be able to get you lower than 5.3% fixed............even if they go to 4.5-5% the payments still may be too high.............you can call and see if you meet the criteria........but they also will go through the investor and I don't know if the fact that you have had a modification will come up.

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

[CoreyT]

Thank You I will look into it. It means a lot that you have taken your time to help us out. Take care............

[Moe Bedard]

Thank you Corey.............I hope that they will be able to help you.


Please keep us posted on how it goes..........

Good Luck!