EMC - Attempt at loan mod

[CashCow]

Hello all, I know this is most likely on here, but couldn't find it so I figured I would ask

How does your liabilities surplus need to appear to the lender to look favorable to getting a loan mod? For example, do you need to show a $550 surplus or a $500 negative every month? Which is better? I want to have this down before I call my lender (I am currently down 60 days)

Do you have to include credit card payments if you are currently not paying them? (I know that sounds bad, thinking about BK, overwhelmed and biz is slow)

I have two investment properties that have 1st and 2nd's on them that are upside down that I am letting go, will attempt short sales on those, so do I need to include those payments in the liability calculations since I am not paying on them?

I am self employed, my income is like a roller coaster and is all through bank statements, deposits, checks, wire transfers etc. so not sure if they will just take an average over 12 months or will instead look at the last two years tax returns and a P&L, anyone familiar with this?

In addition, my wife is on the bank statements, however not on the loan and doesn't want to go on the loan, if something bad did happen with the house, we want at least one of us to have good credit, not sure how the lender will look at that?

Loan Details:
-I have a first at 600k, purchase money, 5.375% I/O 5yr, 2 years left on it before adjustment
-I have a second at 150k, was purchase money at a high interest rate, but I did a rate/term refi a year ago to bring the interest rate down to 5.5% on a 30/15, now is even lower due to fed lowering rate as it is a HELOC

Total loans owed is 750,000, house is worth 450,000 at max

I am not sure what they can do for me on the first, I have heard of people getting 3% Int Only loans for 5 years and that would be amazing, but not sure how difficult that would be with EMC or if it is even true. Principle reduction on the 1st would be a dream come true, but then again, I have read that is unlikely (however still possible) at this time,even if you are way upside down. What have you all seen happen in these cases on a 1st?

For the 2nd, I am considering BK to wipe it out. My question is if I wipe out the 2nd due to BK and the house being so far underwater, is there a chance there could be a principle reduction on the 1st to make it inline with the value of the property?

I have avoided all calls from the lenders so far, wasn't sure what to do or what to say, hate to tell them I make 10k a month to find out I have to large of a surplus. Also since I am not sure if they look at bank statements or tax returns and P&L

In a perfect world, I could short sale both of the investment properties, get principle reductions on my first and seconds through a BK and lower my rate on my first to an long term affordable payment.....we will see

Sorry for the long post, I would love to hear what you all have to say

Thanks!

[Dan Bailey]

CashCow,
Glad you found the forum and posted . *** or Moe will be by shortly to give you some direction.

As far as liabilities/surplus...there does not seem to be a rule "set in stone", different investors have different criteria.

Being self employed, they will probably want to see every shred of evidence.

Your wife may not be on the loan, but they will look at any income she generates as part of the "household" income.

[Moe Bedard]

Hi CashCow,

Is your loan still being serviced by EMC or did the servicing go to Chase now?

[Jwinter81]

I just sent my info to Citi to be considered for a mod. Husband and I are also self-employed (same business), Citi asked for last 12 months business bank statements. I offered a 12 month P &L in addition because we had a 6 month loss, which is the basic cause of our hardship. They also asked for the statement on my 2nd, a completed workable solutions application (essentially a hardship letter with my proposed solution & a personal financial statement) . They did not ask for any tax returns as of yet, but I have them ready to fax, just in case. Don't know what your particular lender will ask for, but maybe this gives you a little insight.... Best of luck with everything!

[CashCow]

Originally Posted by *** Damiano

Hi CashCow,

Is your loan still being serviced by EMC or did the servicing go to Chase now?

Hi ***, it is now Chase on the bottom of statements, but EMC must be servicing since the statement still comes from EMC

What do you think about my situation?

Thanks in advance

[Moe Bedard]

I just wanted to be able to give the correct contact info for the right servicer so you can call and see what options the investor on your loan has...........for the financials you would need to see about the credit cards...........as far as surplus or deficit....you would need to submit your financial along with what they ask for from you for self employed...........they may also pull credit to check on your expenses.

EMC Loan Mods
1-877-362-6631


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

[CashCow]

Thanks again ***,

Do you have a expense sheet example that lenders use to calculate your surplus or negative every month?

I am not sure what number to give them for my income, since I don't know if they base it off of past three years, past year or what.

Can you shed any light on that? What number should I give them? It is better to tell them I have a large negative monthly or a bit of a surplus?

Thanks

[CashCow]

Just wanted to give you an update and get your thoughts: (again this is with EMC)

I got a letter in the mail, I am prob close to 3 months late at this point, I owe around $11,500 to my lender, the letter int he mail said "your house is your home, we want to keep it that way.....we believe your home may be eligible for a loan modification program"

So I called, wasn't what I expected....they said I have to make 3 on time payments for them to even consider working with me on a loan modification. I asked if we could talk about a modification that the letter mentioned and they said not till I make 3 on time payments

What should I do next? I was expecting they were going to be sending me a packet to work on a loan modification, the person on the phone didn't care

HELP! Need your thoughts on where to go next

[Moe Bedard]

Have you called the number I posted above and asked about this..and for any updates on your modification.......did they verify what you are being told from the letter.......because there are alot of scams out there trying to masquerade like the lenders.

[CashCow]

No, I didn't, sorry, I will call that number, the number I called was from the letter I got in the mail.

That would be pretty crazy if this company that sent me the letter wasn't really EMC and they were using their logo and acting like they were EMC when they really were not

[Moe Bedard]

We had seen that before from a company that was sending letters that looked like they came from Option One before they became AHMSI

[Lainy09]

Hi CashCow, I do wish you all the luck in pursuing your loan mod w/EMC. I can only share our experiences with them, and it wasn't pretty. They too were so bizarre with us in that they insisted we become current during this mod process--whenever I read about other people's situations, I always see how they want you to be LATE...I never understood that. We'd be trying to negotiate the whole mod thing on one hand, and stalling with the irritating collectors on the other--and they definitely never were in touch w/each other, that's for sure. I was not on our loan, just my husband, we did list all of my debts, though, as well as my husband's. I do not work, so their was no income to list. It was very easy for us to show a negative each month on their worksheet. There was one point where there was possibly something they were going to offer that would temp change the loan (for 5 yrs, I think) to interest only, and I recall the payments would not be much different from what they were under the (horror) option ARM we had.........so, to us at the time, on the fence, it seemed just to prolong the inevitable..and we were considering bk 7, considering moving into a rental, and didn't want to send them the $$$ for the mortgage on the "off" chance they'd grant us that mod...so we bailed, filed, moved. I hope someone has a positive EMC experience for you. I truly did not mean to post a downer, just what our experience was. Our home was/is in CA, purchased with an 80/10/10 loan for $605k originally, by the way...

[Lainy09]

One more thing, CashCow, we have also received letters that SEEMED like they were from EMC for a loan mod, but of course, in the tiny little print at the bottom, they admitted they were not affiliated in any way.......................beware Oh, and also, our house is worth appx 40% less than what we paid, too.

[CashCow]

*** - (or anyone else who can help) -

Still working on this with no forward movement. Been four (maybe 5 now) months without a payment on 1st or 2nd. I talked to Hope Now and worked with a counselor for two hours to fill out a detailed expense sheet and financial pkg that was sent to EMC about a month. I have called EMC several times over the past month with no luck. They keep telling me I have to make 3 on time payments before they will even consider me for a modification!

Has anyone gotten passed this part with EMC? Has anyone actually got a loan mod with EMC without having to make 3 on time payments first?

What if I make 3 on time payments and they decide not to modify me??

Thanks in advance for your help

[Moe Bedard]

It is a trial period because of the default and the interest rate being interest only and at a low rate..............they want to make sure that you will be able to afford the mortgage moving forward......there are no guarantees that they will modify after the trial period........but this is a decision that you will need to make based on your personal situation as to whether you would want to try and see.

[CashCow]

They haven't even gone over new payments, new interest rates or anything with me, so are you saying they want to see if I can afford the same payment I have been making for the past 3 years?

Is this normal or do they eventually bend and work with borrowers on a modification?

[Moe Bedard]

I don't know what you are being offered..............most trial periods are set at the rate that the payment may be modified to.........you will need to check with EMC on what exactly the payments will be during the trial period that they are proposing.............

[CashCow]

That is what I am saying, they said they won't discuss ANY mod terms or even BEGIN to talk to me about a modification until I make 3 on time payments at my current payment level, this doesn't seem right to me

The counselor who has my pkg from Hope Now won't even return my calls

What would you recommend that I do next?

Is there a executive resolution team at EMC that I can fax or mail to like there is with Chase?

Or would you suggest I try something else first?

Thanks ***!

[Moe Bedard]

They told you that same thing back in January..............so it must be according to the guidelines of the investor on your loan...........and it appears as though in order to obtain a modification on this loan........this is the only option to try.



The only contact number I have from this office is...........
1-214-626-3266


Corporate Headquarters:
EMC Mortgage Corporation
2780 Lake Vista Drive
Lewisville, TX 75067-3884

(214) 444-2800

[CashCow]

Thank you, that is what I was afraid of, I am going to ask who my investor is if I ever get a call back from my counselor. I talked to a mgr at Hope Now and she is working on helping me more as well

I thought I have read of people successfully getting their EMC loans modified on here? There wasn't any mention of this

Would you recommend I try sending a letter to CEO or to that office as you have recommended others to do for Chase?

What does that number go to and who should I ask for there?

[Moe Bedard]

It goes to the loss mitigation dept. mgr.

[snapple candy]

I just had someone show up at my door (on behalf of WAMU) wanting to see if the house was occupied and wanted to do inspection. This was totally unannounced and they were not let in the door by my children. I am in loan mod although process has not been good and I filed complaints. Anyone experienced this yet? Wondering what is up? Dont like surprise or unscheduled visits.

[CashCow]

***

Wanted to know if you thought I could work with NACA since I am not having luck with EMC or Hope Now?

Is NACA NACA or National Association of Consumer Advocates – Consumer Protection Advocates and Attorneys I saw a post where you wrote it was wrote naca.net and saw another one were someone wrote naca.com, so wasn't sure which one it was

ON the Naca.com site under home save it shows under criteria you cannot own other properties, I am looking for help with our primary residence, I have two investment properties listed on the MLS with a realtor that are both listed as short sales and are late, would I qualify or do you know if it is worth a call to them?

Thanks!

[Moe Bedard]

Wow.........I am not sure how that one slipped by.......

thanks....


Anywho..............this is how they have it worded on NACA.........so you would have to wait for the disposition of the other properties...........

You cannot own another property:

NACA cannot assist people who own other properties. If you own another property but are losing or selling it, we can assist you with your primary property after the disposition of the other(s). Servicers in the NACA Program also require owner-occupancy as a condition for accepting a NACA solution.

and here is the correct link............
https://www.naca.com/refinance/refinanceTenStep.jsp



I guess you didn't have luck with the Corporate Office.............

[CashCow]

Hi ***, I did call that number you gave me 214.626.3266 and it was the voicemail of a guy named Walt who is a bankruptcy supervisor with EMC, so figure that was not the place I wanted to be calling since I am not in BK, should I leave him a msg? Any other ideas?

I am lost on where to go with this, EMC won't return my phone calls, even supervisors I talk to say they will call me and they won't.