In foreclosure, need $8K by 2/5/09 or else...

[LoriLynn]

I am in need of some honest help!
Bought home last Dec, FHA fixed rate, Chase is lender. Only one mortgage. Northern California. Due to poor budgeting, decreased work hours, and not claiming enough deductions on our W4's, we are now in foreclosure, and I spoke with Chase yesterday and we need to pay $8K by 2/5 or else we lose the house.
I talked with Chase last month. I got into a loan repayment plan with them over the phone and paid what I could Dec 12 which was really for Oct 2008 payment. Jan 11 we were supposed to make a payment, but it's just wayyy to much. I had received the paperwork and was supposed to sign everything and mail it back, but I never did. Procrastinating, afraid to do anything, ashamed, I made the biggest mistake by never calling them back and telling them we couldn't afford the payments. They sent us an 'acceleration' letter and we can no longer be in the repayment plan because I never made the Jan 11 payment.
What really sucks is, last month I received a letter from CHASE that we have an escrow deficit, and that they need to increase our monthlies by over $500/mo to cover the deficit, which I think is just under $4K. Then if we did do the repayment plan, that was tacking on another $577/mo (til last repayment installment is made in Oct 2009). So between the escrow deficit and the repayment plan (which we can no longer do) our monthly payment would be $1100 more each month!! Went from old payment of$2477 to new payment $3000 adding the escrow issue, and the repayment plan upped it to $3500+/mo. If it weren't for the escrow deficit, we could have afforded the repayment plan (although things would have been pretty tight). When I first talked to CHASE and ok'd the repayment plan, the man mentioned by monthlies were going up but he didn't have access to that info as to why. I originally thought they were maybe charging us for homeowners insurance that CHASE enacted, because I had received letters from CHASE stating they did not have any proof of us having homeowners insurance, and if we didn't respond they would have to enact it themselves at a higher cost. I did fax them proof that we had a current policy and that it was up for renewal that same month (DEC) and gave the contact info for our insurance agent. So we are insured and the increase to our monthly payment was not due to that but due to the escrow deficit. I just never opened a letter they sent to me about the escrow deficit until yesterday. I talked to CHASE yesterday and mentioned, if it weren't for the escrow deficit, we would have been able to afford the repayment plan, and could they please help us out, but they said it's too late, acceleration letter sent, need $8K by 2/5/09.
Who can give me free help at this point? I can really only come up with maybe $4-5K. We already have a 401K loan through my husband's plan, it helped us get into this house. My 401K is too new and is worth less than $2K.
We short-saled our previous home (loan also CHASE). We miraculously got the FHA fixed rate loan for our current home while we were in the short-sale process with the previous home.

I cannot lose this house!!! I cannot believe what an idiot I have been procrastinating and being too ashamed and afraid to call CHASE when I should have, and now we need $ in 20days.

Please, I need help and I do not want to fall subject to some predatory foreclosure help company that will screw me over.
Need advice ASAP!!
Thanks for reading all my rambling. Feel free to ask questions.
I need some HONEST ADVICE!!

[Moe Bedard]

LoriLynn,


If this is the only property that you own and is owner occupied...........you can try going through the non profit NACA for help......the help through them is free...........if you qualify for the criteria.........which they will go over with you.............and during the process you receive a foreclosure date, NACA can intervene and postpone the date...........so you wouldn't have to worry there............since the options in your given situation are limited..........I would suggest that you give them a try and see if they can help.
click on the link to start the process............
https://www.naca.com/refinance/refinanceSubmission.jsp

[emorybetsy]

Don't be ashamed that you didn't call! Don't be fooled, not calling and not paying is no worse than calling and not paying. Bottom line is they want money you don't have. I don't think it would have changed the outcome.

I am up to date with the mortgage for now but the credit cards are a different story. I talked to them contstantly!!!! But I didn't have the answer or should I say the money they were looking for. Talk is cheap! Call or no call, the end result was the same, I am headed off to bankruptcy court, because they want their money and I don't have it, they don't care that I called them! I do hope things work out for you!

[Texan]

I was just informed by GMAC that I need to go ahead and list my house. FreddieMac owns loan. The guy I talked to at GMAC told me the "investor" will not approve my mod. This is all bullcrap people. They are not going to help us. I have lived in my home 51 years and now am going to lose it. They are lying to us and have no intention of helping us. F Mac supposedly received a bailout? Well that money is going to their Asian investors and there is no way we Americans will be helped. I am sick to death of their lies and deceit. Four months of trying to save my home when this economic crisis is NOT MY FAULT is gar***e! I'm fed up and if I ever get back on my feet am considering a class action lawsuit.

[HopingtoFind]

Hi Texan,

I know how upsetting this must be... If this is your only home... as *** always suggests you can try working with Naca.... maybe they can work with your financial situation and help resubmit to GMAC...