The Start of Our Journey

[Br&Ta]

I guess I'll use this as an introduction thread.

My name is Brandon; my wife and I have been living in a condo that we own for about 6 years now. We are, of course, underwater, by about $50000. That's not too bad compared to others, from what I hear. We just had our first baby about 4 months ago. We can easily make our monthly mortgage payment, but the space is quite small now, with the little one around. We are looking to short sale, mortgage modification, or strategic default. The one good thing, I guess, is that the loan is just in my name. So if need be, my credit will take the hit for a few years. I have many questions running through my head, and the process of a short sale, seems a long and difficult one. It looks like there is a ton of information on this site, and I'll try and weed through, to the information that would be pertinent to our case. These are a few of the questions right off the top of my head that I have.

Would we have any problems getting a loan, with just using my wife's credit?
If we did get approved for a loan under her, what are the consequences of buying a house under her, and walking away from mine? Again, if I have to take a credit hit, foreclosure or short sale, so be it.
Also, should I contact a listing agent now, or pursue an attorney first?

Thanks a lot. I am, and am not looking forward to this process. I appreciate all the help that is given and available to us from this website.

[Cat Damiano]

If you are going to try a short sale first you would need to contact the lender to get that going, they may also be able to refer you to an agent they have worked with in your area. As long as your wife is able to qualify on her own, you shouldn't have a problem getting a mortgage. As long as your wife isn't on the loan, it shouldn't have an effect on her credit.

Good Luck and please keep us posted.

[Br&Ta]

After calling Seterus, and Fannie Mae, it appears our loan is a standard 30 year fixed. Even though Seterus still claims they only service Fannie Mae loans. I was kind of surprised, because I only put down a few thousand on a $140000 condo. I thought the first home buyers deal was always a Fannie Mae, or Freddie Mac. I do pay PMI though. Can anybody tell me, or reference me on what to do next, to get the ball rolling? I live in MN. I should also say that we want to get out of this condo in the next year or two. We want to buy a house, and I have never missed a payment. I currently owe about $130000.

Cat, it sounds like first I should contact Seterus and ask about a short sale, or foreclosure? I'm assuming they wouldn't be interested in mortgage forgiveness. I think that's what it's called. Where they set up a new loan, on the current value, and forgive the difference? Still don't know if I'd even be interested in that. Sorry, still very new to all this, and there is a ton of info out there. I just want to get this going correctly.

Thanks

[Cat Damiano]

It would be a short refinance that you would be referring to, and it is an FHA program in which most investors do not wish to participate. I think in four years on the forum we have seen maybe one go through.

At this point you would just need to decide which route you wish to take, there is a good discussion thread on the differences here;

SS vs DIL vs FC Comparison

[Br&Ta]

So I found out from Seterus, that our loan is a Fannie Mae. It's amazing the run around I got. Two reps I talked to, couldn't definitely tell me if my loan was a Fannie Mae. I called again today, and the rep was able to look it up instantly, and give me the Fannie Mae loan number. I guess my question now is, does this change anything? Again, I'm not in a hardship, just underwater on my mortgage. Is it still possible to get a modification now? We would be willing to rent our condo out a few years and get another place. If not, we would just walk.

[Br&Ta]

My wife has been pushing for refinancing, rather than foreclosure. I called a few different mortgage companies about refinancing, and both stated because our loan to value ratio is around 150%, nothing can be done now. However, both stated, in a few weeks, there is a new program rolling out. My question is, what are the chances we get refinanced this time around? We have never missed a payment, and my credit is outstanding.

Also, in the event we do decide to foreclose, how quick can we make that happen? I understand so far, at the end of the year, the extension Obama passed about not getting taxed on the difference between what I owe on the loan, and what the condo would sell for, is up.

[Erik Sandstrom]

Hi Br&Ta,
It sounds like you have a few options you're considering. Regarding the refinance you absolutely have the ability to refinance at 150% Loan to value with the HARP 2 program which will be rolled out March 15th and our system will be updated the 19th to reflect the new changes.

If you're looking to buy you should do that now, not later - you have a good reason to buy another home because your family size has increased. Lenders will look at "buy and bail" and may or may not lend on your scenario. They think that you're buying a new home to walk away from your old one.

If you would like to go over a free rate quote to determine what your new payments would be, feel free to get in touch. That will help you evaulate the options you have to go with the one that will benefit your family the most.

In the event you decide to foreclose, that process can take anywhere from 3 months to 3 years depending on how you proceed with it. If you want to damage your credit the least a short sale would be the best direction to take.

[Br&Ta]

Thanks a lot Erik. I guess we'll wait for the Harp 2 program to roll out. We are hoping we can save a few hundred dollars a month with refinancing, so we can rent our condo out, instead of foreclose. Like I stated in my previous post, I wouldn't have minded foreclosing, just to get out of here. We plan on renting a few years, but if we can get approved for a new home loan with my wife included, while renting our our condo, that would be ideal. Sounds like it's a long shot though.

[Erik Sandstrom]

Not a problem, you're allowed to add a co-borrower on the loan as long as you remain on it as well. The co-borrower will also have to occupy the residence under HARP.

[Br&Ta]

Well, I received the first phone call from Seterus today. No message was left, and I'm about 5 days late on my payment. I'm sure the calls will become more frequent in the coming weeks.

[Cat Damiano]

Well, I received the first phone call from Seterus today. No message was left, and I'm about 5 days late on my payment. I'm sure the calls will become more frequent in the coming weeks.

Many members on the forum sign up for google voice to help with that;

Questions: Google Voice ,Cease & Desist Letters, Vacant house

[Br&Ta]

Thanks for the link. I made sure I deleted my phone number from their website, and added my google voice number. Looks like they still called my cell number . Oh well, I'll get that ceast and desist letter ready to go.

[Cat Damiano]

Thanks for the link. I made sure I deleted my phone number from their website, and added my google voice number. Looks like they still called my cell number . Oh well, I'll get that ceast and desist letter ready to go.

If your cell is a smartphone, there are many apps available to be able to block numbers, I use "Mr Number" and have all blocked calls get rejected immediately. This helps alot as the phone doesn't even ring.

[Br&Ta]

If your cell is a smartphone, there are many apps available to be able to block numbers, I use "Mr Number" and have all blocked calls get rejected immediately. This helps alot as the phone doesn't even ring.

Thanks, I'll give that a shot. Is there any reason I would need to have contact with them over the phone? We already know we are walking. I'm assuming when I send the cease and desist to have them communicate with me via USPS.

[Cat Damiano]

Thanks, I'll give that a shot. Is there any reason I would need to have contact with them over the phone? We already know we are walking. I'm assuming when I send the cease and desist to have them communicate with me via USPS.

The only calls you are most likely receiving while being in default would be from the collection dept. and sending the cease and desist will help with that.

[Br&Ta]

The calls are picking up a bit more. Usually get a few a day now. No messages left yet.

[Br&Ta]

Not much to update. I receive 2 calls a day with no messages left. Credit Karma lists my credit score as 757. I am technically only 2 weeks late on my payment though.

[Br&Ta]

One month and a few weeks behind on payments now. I still get a call or two a day. Starting to get a few on Saturday as well. I've received a few pieces of mail on how to avoid foreclosure and such. Credit Karma still listing my score at 757. I really wish I would have done this earlier. I feel so much better knowing that we are moving along in the right direction.

[Br&Ta]

So, the mailman delivered a few certified letters from Seterus to my wife today, while I was at work. They basically say, pay up now, or they will accelerate the maturity date of the loan, and the entire amount will be due. Sounds like we're finally getting somewhere. We've begun the house search, even though we will still be living in our house for another 8-10 months.

At first, I was very hesitant of foreclosing, but I now feel, without a doubt, that it was the right thing to do. We obviously still have a ways to go, and I'm sure there will be some bumps in the road as the process winds down, but that's ok. We have been able to pay off one of our credit cards, and save money each month. Looking forward to what the next few months have in store for us.

[Cat Damiano]

So, the mailman delivered a few certified letters from Seterus to my wife today, while I was at work. They basically say, pay up now, or they will accelerate the maturity date of the loan, and the entire amount will be due. Sounds like we're finally getting somewhere. We've begun the house search, even though we will still be living in our house for another 8-10 months.

At first, I was very hesitant of foreclosing, but I now feel, without a doubt, that it was the right thing to do. We obviously still have a ways to go, and I'm sure there will be some bumps in the road as the process winds down, but that's ok. We have been able to pay off one of our credit cards, and save money each month. Looking forward to what the next few months have in store for us.

It sounds like things are finally moving in the direction that you want. Good Luck with your walk and please keep the updates coming as it helps other going through similar.

[Erik Sandstrom]

In 3 years as long as you have improved your credit above 620 you may be eligible for an FHA purchase! Sometimes foreclosure is the best direction to take...

[Br&Ta]

In 3 years as long as you have improved your credit above 620 you may be eligible for an FHA purchase! Sometimes foreclosure is the best direction to take...

Good to know.

Just received another letter from Seterus about pursuing a DIL. Seems like we're getting more mail than phone calls from them. I entertained the idea for the night, but after reading a few threads, decided it sounds like more of a headache, than just foreclosing.

[Br&Ta]

Looks like my credit finally took a hit. Down to 709 from 757. Knew it was coming, but still disappointing to see it drop. I've received a few mailings for modification possibilities and short sales in the past month, and the calls have decreased significantly. I actually only get a call every few days now from Seterus, or an unknown number in Georgia.

[Br&Ta]

Received my monthly statement from Seterus, and found it interesting that there was a $15 charge for property inspection. Not sure if that was for the market value for tax purposes, or them checking on the house to see if it was still occupied? I have had no contact with them since my last payment made in August.

[Cat Damiano]

Received my monthly statement from Seterus, and found it interesting that there was a $15 charge for property inspection. Not sure if that was for the market value for tax purposes, or them checking on the house to see if it was still occupied? I have had no contact with them since my last payment made in August.

A market analysis should be a bit more than $15, it is most likely for the inspection to see if the property is occupied.

[Br&Ta]

It has now been 4 months since our last payment. My credit score is at 700, according to credit karma. Nothing really new to report. I get a phone call everyday from a Illinois number, and my wife gets a call or two from Seterus. Still have had no contact with them.

On a side note, I was happy to see the Mortgage Debt Relief Act get extended. Now just hoping the sheriffs sale gets dealt with in a timely manner.

[Evan Bedard]

Thanks for giving us an update and we are all very relieved the Mortgage Debt Relief Act has been extended for at least another year!

[Br&Ta]

Not much to update. I get 1 phone call a day now, from a New York number. Credit still showing 700.

[Br&Ta]

I've read a few threads about pursuing cash for keys. My question to those that may have went through the process, is when is a good time to inquire about making a deal? We are 6 months behind in payments, and I still have not gotten an official foreclosure notice. We actually have a new place to live, and I was wondering if it was worth the effort of staging the house to look as if we still lived in it, and stopping by a few times per week? Our new house is only about 15-20 minutes away. Any thoughts or recommendations?

[mountainboundinca]

Seterus also charges me $15 per month for their drive-bys - I just wave at them and if I see them next month, I will invite them in for a glass of red wine (we make wine so it is pretty darn good and 25 proof I have never contacted them at all since they took over servicing of my loan. ALSO I quit checking my credit score (call it denial or just self-preservation..) - I will tell you it has dropped over 100 points since I stopped paying BofA back in June of 2012......I don't care anymore, I use cash for most everything.....and prefer it that way....

[Br&Ta]

Seterus also charges me $15 per month for their drive-bys - I just wave at them and if I see them next month, I will invite them in for a glass of red wine (we make wine so it is pretty darn good and 25 proof I have never contacted them at all since they took over servicing of my loan. ALSO I quit checking my credit score (call it denial or just self-preservation..) - I will tell you it has dropped over 100 points since I stopped paying BofA back in June of 2012......I don't care anymore, I use cash for most everything.....and prefer it that way....

Good to know. If you don't mind me asking, have you received a visit from the sheriff yet, or seen your home listed for a sheriffs sale yet? I also haven't had any contact with Seterus, since missing my first payment in September 2012. We actually have found another house, and are planning on moving out the next few months. I plan on contacting them once we have confirmation the house is ours, and letting Seterus know we have no intentions of keeping our current one. Maybe that will speed things along, or get a cash for keys offer.

[mountainboundinca]

Good to know. If you don't mind me asking, have you received a visit from the sheriff yet, or seen your home listed for a sheriffs sale yet? I also haven't had any contact with Seterus, since missing my first payment in September 2012. We actually have found another house, and are planning on moving out the next few months. I plan on contacting them once we have confirmation the house is ours, and letting Seterus know we have no intentions of keeping our current one. Maybe that will speed things along, or get a cash for keys offer.

No - no sheriff, I know most of the local police, I live in a small town on a hill and most of them are scared of the livestock and rattlesnakes so doubtful

[mountainboundinca]

Also, just fyi, my attorney advised me to NEVER communicate with the bank.....he does but they don't respond to him either, even on the QWR and I have followed his advice to a tee other than the waves as the underpaid drive-by'rs of course.....

[Br&Ta]

I know this has been asked in a few other threads I've read, but what's a good way to find out which paper your foreclosure will be listed in? I'm assuming I should call the county court house, and maybe they could tell me? It's been 7 months now, and I haven't had any contact with Seterus.

[Br&Ta]

Credit jumped up to 703. I still have had no contact with Seterus. They call my wife everyday, and me, maybe a few times a week. Still haven't received any foreclosure notice either.

We are vacating the house this weekend, and moving to our new one. Glad to finally be leaving. It's been a long time coming. I am wondering how long it will take Seterus to change the locks? From other threads, it sounds like it could take a few weeks, to months. Fingers are crossed that it's just weeks, and we can get the process rolling.