Another HomEq war story

[rondadams]

We are in a battle with Homeq services due in part to a failure on our part to pay our taxes. They added the taxes automatically into escrow and proceded to charge us for them, as well as supposed back-dated homeowners insurance for a period of time in which we were covered by our insurance company. The charges they added were erroneous and extremely excessive which forced us into a situation where our payments were beyond our budget. We tried to make payments via dual monthly installments which we wired to them, only to find out that they were applied to escrow and not prinicple. They proeded to foreclosure in Nov 07, and we sought bankruptcy protection. We're still pending bankruptcy, but have not been able to get a consistent amount from Homeq of what we actually owe. We are supposed to go to court on Nov 4th, if they don't delay again. However, I'm wondering if there is a better option. The amount that we're set to pay in bankruptcy will eat up about 46% of our budget, which is going to make us tight. I am considering dropping the bankruptcy and looking into loan modification, but the thing I'm worried about is Homeq continuing to try and add on charges.

Should we go ahead with the bankruptcy and just try to make the best of it, or seek the loan modification ourselves, or hire an attorney to help with the loan modification? I like the idea of the bankruptcy because it will afford us the protection of the court, but it will be costly. I like the idea of seeking loan mod because it should lower our payments (in theory), but they'll still be able to mess with us and raise our payments. Anybody have any opinions?

[rondadams]

Another option? Would it be possible to do a loan mod inside of the bankruptcy? Right now we have an ARM and our rate is 10.1% which is pretty high. Will they work with us to lower it while in bankruptcy, or would we have to dismiss the bankruptcy and negotiate with them?

[Moe Bedard]

Hi rondadams,


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

The decisions that you are about to make are personal ones that are for your current situation.............the best thing that you can do is to go over the options with the bk attorney.............
if the bk is a Chapter 13..........most lenders will work with you on the modification, but some require permission from the court to do so........that you would need to ask Homeq...........but it should be possible to workout.


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

[rondadams]

HomEq is extremely difficult to talk to. Everytime we call them we get a different story about how much we owe, the status of our account, etc, even their own lawyers get conflicting information. However, we have been told more than once that they will not discuss loan modification while we are in bankruptcy. Should we write them requesting this, and explaining that we are about to go to bankruptcy, but we feel the terms are beyond what we can reasonably afford? Unfortunately, our attorney doesn't seem to have the answers on this, and says in her 20 years of handling bankruptcy this is the worst case she's ever seen and that she will never take another case involving HomEq again.

[Moe Bedard]

The investors have different ways of dealing with the bk cases...........some require permission from the court...........and some could require that the automatic stay be lifted before they will talk with you.........but this is something that your attorney should be able to help you with.........
HomeQ
Loss Mitigation
PH 1-877-867-7378
Fax 1-866-577-1227

[rondadams]

Isn't there a higher up contact for Homeq? I thought I saw it on here a while back, but cant find it right now.

[Moe Bedard]

Keith Becher (CFO)
1-916-339-6134

You would still need to find out from loss mitigation how they deal with BK cases and what you would need to do with the BK in order for them to work with you.

[rondadams]

As of 11/4, we've dismissed the bankruptcy due to their attorney's unwillingness to drop some of the charges we were contesting. So, it should be back in loss mitigation now, probably pending foreclosure.

[Merlin]

I'm doing a mod myself with HomEq. Just want to know how your mod turned out. You stopped posting. Hopefully your mod was a success.

[rondadams]

Sorry for going quiet. After my last posting we sent a letter and financial information via email to Art Lyons. About a week went by and my wife received a call from an administrative assistant who reported that they were looking at our information and somebody would be contacting us shortly.

Fast forward to today.

I just got off the phone with someone at Homeq. They are willing to do a modification, but I'm not sure if it's a good deal or not. At this point, just about anything is better than where we were a year ago when they started foreclosure procedings and we filed for bankruptcy to stop them.

They've offered us a 5 year teaser rate of 8.95% which will put our monthly payment around 1530. Should I push them for a better rate and/or something more permanent than the 5 year teaser they're offering? He didn't mention anything about Fannie/Freddie backing this, or anything that would indicate it falls under protection of the new help that congress approved. Should I ask about it, and just what should I ask?

[Moe Bedard]

Ron,

The modifications given are up to the investor on your loan.........Homeq is the servicer.........you can ask if that is the only options available from the investor......and if they would be willing to fix rate for life of loan.

[rondadams]

Would it be worth the time/effort to talk to HOPE/NACA? Can they offer us any leverage, or are we better off trying to do it ourselves?

[Moe Bedard]

Since it is the investor who has to approve any modification.........the outcome will be the same..........you should ask if the investor would consider a fixed rate.........you never know unless you try......

[Merlin]

rondadams,

I did a mod last Dec 2007 with HomEq (From ARM to Fixed Rate). HomEq should be able to give you a lot lower rate than 8.95% and fixed for the life of the loan. I know it is up to the investor to make that decision. Ask yourself "where would you be at financially after the temporary 5 year mod?". Can afford you afford the ARM payment after the 5 year temp mod? I would ask for a lower interest rate and a fixed rate. You might get it, if not at least you tried.

Merlin

[rondadams]

Any advice on negotiating with them to get a better rate/terms?

[Merlin]

I know HomEq is difficult to work with, but with your situation it seem to me they don't want your mod to work. How much lower did the payments go and can you afford the payments?
Every situation is different, in my situation they taking a big chunk off my monthly payments because my current monthly payment is lot higher than your payments.
I like my house, I want to keep my house, but if the mod they are giving me is not affordable, I'll just walkway. I don't want to be in a mod that in so many years down the road be in the same position now. It's mentally and emotionally draining trying to do this mod. I've been on a roller coaster ride since May.
If my mod works, fine. If not, it's okay, life moves on.