What happens after Forbearance Agreement?

[Lizzard79]

My husband and I bought the home we currently live in three years ago. On December of 2007 I lost my job and my husbands business took a plunge. We began having difficulty paying our mortgage. We started to look everywhere we could to get caught up, we got cash advances from credit cards loan from friends etc...All which only brought us more into debt and no money to pay them back.

Shortly after, we began receiving foreclosure letters from our lender. We contacted Wilshire and tried to work out a paypent plan where we can catch up with our outstanding balance. What they asked for was not feasable. We also put a request to remove escrow which was 1,000. on our payment that would be a relief for the time being. We were denied that request and told that the loan agrement we signed required our home to have escrow. We started to panic and were running out ideas and options until a friend of ours suggested we call the Hope Line, a government based counseling for struggling home owners facing foreclosure. Once we contacted them and gave them all the informtion they needed they told us we qualified for a loan Modification. Great! I thought there is hope after all! They would then contact our lender (Wilshire) and they would take matters into their hands.

I immediately called Wilshire and followed up on our case. They told us to send them a finacial statement , two months of bank statements and two years of taxes along with a hardship letter explaining what caused us to be delinquent. I immediately gathered all the information, faxed and emailed it to Wilshire. I continued to follow up with them and the status of our case. Every week I called I was told that an account manager was working on it and they would contat us. Meanwhile, we continued to send whatever paymets we could but our balance only grew as the months passed where we are 32,000.00 past due. We became worried as we heard no answers from them and we continued to received letters of foreclosure possibility with our statements.

On July 29th of 2008, we received a letter from Wilshire denying our request for a loan modification. I was shocked, I really believed that they would rather work something out than take a foreclosure. I called Wilshire and acquired reasons for our denial. I was told that there was not enough income to prove we could make payments. I was speechless! That was the reason that caused us to become delinquent and why we were asking for assistance. I was truly confused and I asked if we could make an appeal. She spoke to her manager and he agreed to look our file over. I would need to resend all the financial information and another hardship letter requesting they re-open the case. Well, the representative suggested I update my financials and show a higher income and that would better my chances. What do you suggest?

My husband came across this website. We read your sucess stories and are hopeful that you could provide us with assitance and suggestions on what we should do. We have truly ran out of ideas and we don't want to loose our home. Please help!!!!

[Dan Bailey]

Hi Lizzard, and welcome to the forum. One of the moderators will be by and read this to give you some suggestions. All of us here know how hard it is to deal with these companies! Dont lose hope!

Thats pretty shocking that they asked you to basically fudge your income to make it higher...

[schwefls]

Hi lizzard79 welcoem to our forum:

I wnate dto stop in say hello and assure you, you are not alone. Shortly someone will be reaching out to you with some sound advice/suggestions. In the interim please hang in there and know that we are here for you.

[Lizzard79]

Thank you, I am looking forward to it.

[Moe Bedard]

Hi lizzard79,


Welcome to the forum and thank you for joining........
For a modification a good guideline is when you put together your household income versus your household expenses you should be able to show a surplus of at least $100-$250 left at the end of the month....................
since you will not be able to "prove" more income..........you should work on the expenses that are able to be worked on such as gas, groceries, and miscelaneous expenses..............

Hope this helps you to give it another try.............
Please keep us posted on your progress.........

also put your hardship letter into the body of an email along with your loan number and contact info and send it to these email addresses.............

wcc_hope@wcc.ml.com
stacie_bartlett@wcc.ml.com


Wilshire Loss Mitigation
1-888-952-7339

Fax #
1-503-946-3846

[Lizzard79]

Thank you ***,

I am currently working on the financials, I appreciate your advice and I will certainly put that into efffect. I will keep you posted.

Also, do you think I should look for an alterante solution? Since Bush's new law with Fannie Mae and Freddi Mac, do you think we should contact them and see what the possibilities are through them?

Once again thank you,

[Moe Bedard]

The new program will not go into effect until at least October........so lenders do not have any ideas on that yet........

[Lizzard79]

Hello ***,

Yesterday morning I received a "Forbearance Agreement". I was confused and in disbelief with what I read so I immediately contacted Wilshire and requested more information. It turns out that they have arranged a payment plan for us until December of this year. Our mortgage payment has been temporarily lowered from 4,300. to 3,500.!!!!!!!!! YAY!!!!I was told that once these payments were made we would be considered for a loan modification. We have to sign the documents agreeing to their conditions along with the first payment but in their agreement there is a clause that specifically states that they are not in any obligation to extend or renew the offering. What does this mean? Would we still qualify for a loan modification? Although we are extatic, I want to make sure that it's not going to come back and haunt us. I would like to email you a copy of the agreement and perhaps you could shed some light on the subject???? I would really appreciate it!

Thank you for all your help,
Lizbeth

[Moe Bedard]

Lizbeth,

I would be happy to take a look.................go ahead and send it to ***@loansafe.org

[Lizzard79]

I would like to begin by thanking those who keep this forum running and go above and beyond to help all the people going through financial difficulties and are fighting for their homes.

On August of 2008 I was denied a Loan Modification by Wilshire Credit Corporation. My husband found this forum and suggested I join and tell my story. The support and help I received was unbelievable! I immediately followed up with all the suggestions given by your people and within a week I received a package with a Forbearance Agreement!

I was proposed a four months payment plan with a reduction of nearly $1,200.00 from our monthly mortgage payment. This agreement also states that upon the four month completion, I would be revaluated for a Loan Modification.

I am in the process of re sending my harship letter along with the financials, I would love your input on how I can proceed so that I can better my chances of a Loan Modification.

Should I make any major changes in our income? Should I keep the surplus the same?

fficeffice" />>These past few months have been an enormous financial relief for us and we are looking forward to closing this chapter of our lives and starting a new leaf. I would appreciate any help you can provide.>

[Moe Bedard]

The financials are a critical part of a modification and the criteria is different for each investor...........the best thing to do would be to go over your financials with Wilshire and ask them if you need to go off of gross or net income and what expenses you would need to include so you can be sure........

Wilshire Loss Mitigation
1-888-952-7339

Fax #
1-503-946-3846

Congratulations on completing the forbearance!
Good Luck with the modification!

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

[Lizzard79]

Thank you ***,

I will contact them first thing in the morning and will keep you posted.

[Lizzard79]

Hello ***,

Hope all is well!

I contacted Wilshire Credit Corp. they told me to include all house hold expenses and that they would need our net income for our financials. Since this would be our third hardship letter to the loan company I am really hesistant about what I should write so please forgive me all the petty questions.

We contacted a consolidation company, they have been a tremendous help in lowering our monthly credit card bills and they have also assisted us with our finances. Is this something I should mention on my hardship letter? Would this work for or against us?

The reasons we stated for becoming delinquent on our mortgage payments were loss of employment on my behalf and my husbands business decline. Since I've had a few jobs here and there but nothing to really help us get through. I started assiting my husband with the business and in turn things have really picked up which has helped us get financially stabilized. Since I have no prove of income other than what is brought in through the business, do you think it would help to mention this? Would they consider that employment?

Once again thank you,

Lizzard

[Moe Bedard]

Just mention the hardship with the business and then mention these steps that you are taking to better the situation including the credit counseling to improve the finances. That should help to let them know that you are trying......

[Lizzard79]

Thanks a million!

[heidi79]

Lizzard79, did you complete the forebearance plan successfully? Afterwards, have you been approved for a permanent modification?

[Housebroken13]

Does anyone know the answer tot he original question. No one can seem to answer. What happens at the end of the forbearance agreement?