ASC Success, What a Mess I've Got Myself Into

[evel1999]

I refinanced my home in 2003, no cash out, and got a lower rate at 5.5% 15 year loan. That was a good loan with GMAC and boy do I wish I had kept it.

Anyway, my Mom passed away, she left her home to us three daughters. She left my sister a life estate, as she had low income. After living in the house 5 years, my sister decided we should sell the home and she would buy a new home. We put the house on the market, a year went buy and it did not sell.

During that time, my sister had her a new home built. She moved out the home with the life estate. (The house still had not sold). My sister needed her money out of the house to help make payments on her new home.

Well, my husband decided, we could be an investor. Get a loan and buy my two sisters out. Then flip the house and make some money. The house was lein free. No mortgage.

We also own our own home, like I said a 15 yr at 5.5% payments at $1400.00 a month. Our credit was ok and we paid all of our mortgage payments on time for over 2 years.

I went on one of those loan programs like lending tree. They offer you a mortgage co. Ameriquest Mortgage Co called us, they got our information from the web site. I told the loan office, I owned my own home, but I wanted to get a loan on a home I was 1/3 owner of, to buy my two sisters out, and own the home 100%. The loan office said he could help me do that.

All three of our names were on the deed. Each of us, girls had $50,000 that we figured we would get out of this. My husband wanted $30,000 to repair the home, as it was a 1960 home. So, with closing cost, $150,000 for the three of us, and repairs my husband wanted, we were told we could get $200,000.00 loan. House appraised for $260,000.00 After all was said and done, we figured we could flip the house and come out with $60,000.00 if we can repair it and sell it ourself.

Don't know how, but they gave us this loan. Oh I do! It was a 2/28 ARM. The loan broker said not to worry about the payments going up. You can always refinance in 2 years. We had a prepayment penalty of 1 year. We had to pay $1400.00 a month on our own home, and the other home was considered a 2nd home payments at $1500.00 a month to Ameriquest Mortgage.

We begin to work on the home. We ran into the problem of things costing more that we had allowed. We worked on the house 1 year, it set empty while we worked on it, and we made the $1500.00 a month payments.(That alone cost us thousands of dollars that year. Anyway, paying two house payments for a year was a strugle. We began to have financial problems. The house was almost finished, but we had run out of money, and needed to put it on the market.

I received a phone call from a mortgage co. Never answer a call like that.
They said they saw I had an ARM and would I like to refinance. I told him it was on an investment property, and I was thinking of selling it as it was hard to make two mortgage payments and I did not want to rent it. Everything in the house was new and I wanted to sell it and get the equity out of it when it sold.

He said I could just refinance it, take cash out, and pay off some bills with debt consolidation. He asked about my principle residence. Informed him it was a 15 yr loan. He said I could refinance that also, and take cash out and it would help pay off bills and get me out of debt and have a fresh clean start and some money also. I made the mistake of talking and listening to him and I have regrets because a stupid mistake like this is going to cost me my home I have lived in for 16 years.

The loan officer, said he was a direct lender, but they sell the mortgage after it funds. Anyway, he got me a loan on the investment property with Washington Mutual and I got cash out. Still had around $35,000 equity left when I put the house on the market. (but they gave me a 2 year prepayment penalty) on the investment home. I wanted to sell it right away. My daughter, in the mean time, needed a place to stay, so she asked to rent the home for the payments. My husband and I agreed. That would help us out on the payment on this home.

The loan office got us a loan also on our primary residence (my 15 year 5.5% loan went out the window). This loan was with Centex at a lot higher interest rate, but said paying off all my bills and being out of debt was showing it helping me. I fell for all this hook, line and sincker) I know, greed was driving him and us. Payments went up to $1750 and it was a 2/28 ARM. No prepayment penalty.

The biggest mistake I have ever made was getting these ARM. Now it will probably cost me my home.

After my daughter lived in the investment property for 1 year, they split up and moved out on me. I was having financial problems. It was had to pay two mortgage payments again. I fell behind on the investment property 30 days, and put the home up for sale hoping it would sell. That was Dec 2006. The market was just starting to get real bad. I was praying it would sell.

We listed it with a real estate agent. 90 days and it did not sell. Took off market and put up for sale by owner. By now, we were 60 days late. I told Washington Mutual, I was trying to sell please hold off on forclosure and give me time to sell. We got an offer of the $260.000.00 we needed. Closed Dec 2006. They took the $6000.00 prepayment penalty that was due, the back payments due and we came out with some cash and was just thankful we were able to sell and be rid of this.

In the meantime, with all this and some more setbacks,( 3 months late on Credit card and a loan payment) I was not able to pay my primary residence on the 1st of the month. I ended up paying late, payment plus a late charge. But I paid. But you know, once you get behind, it is hard to catch back up. I paid late for the last year on the mortgage but never over 30 days, so it is not on my credit report. We caught the credit card and loan payment up to date.

But Washington Mutual reported us 60 days late and the loan paid off on the investment property. This caused my credit score to go down some. I have spent the last 8 months trying to bring my score up, as I knew in 2007 my loan on my primary residence was going to adjust. But I did not realize how much. I thought if interest was at 6.5 for good credit, my loan was at 8.5, I figured it would not go up much if at all. Wrong. My loan is based on Libor plus a margin, so I found out. It was going thru the roof!.

I have been trying to refinance. The housing market began to fall, prices going down, mortgage companies closing their doors. My rate was going up.
I needed help.

I looked up the Libor on the internet to try to figure out what I was in for.
Libor was 5.5 my margin was 5. Looks like 10.5%. On no. Payment will jump $500 a month. Then adust every six months till it reaches 15% and payment over $3300.00. No one can pay this, I sure can't. What am I to do.
I am going to loose my home I have been in for 16 years.

I called a mortgage co to apply to refinance. They said I was approved for 8%(due to late mortgage on 2nd home), and late on credit card, and late on a loan payment. They sent appraiser out. The appraisal came back a lot less than I owe, and they would not do the loan.

I went back to the company who gave me the original two loans and asked them why can't they refinance my loan. (I paid off completely one of them).
I filled out the loan application. Said I would get 8% loan. That would keep my payments what they are now. Fine. They did research on value of home and said they could not get an appraiser to find the value that I owe. I said, you were the one who appraised my house originally. You are the one who over appraised my home and now I am loosing my home. You think they care, again greed was leading and leading to a downfall.

I was despressed and worried. My loan resets in three months. I decided to ask for a loan modification. My loan is serviced by ASC. When I called, you get the collection dept. It is the 10th of the month, I have not paid my payment as of yet. She wanted to know when I would pay it. I told her it would be the 29th and I would pay the late charge. I asked for a loan modification. She took my financial information, but said I was not deliquent(over 30 days) just late, and they could only help you if you were deliquent.
I was more depressed.

The next month, I got a letter from ASC saying my loan was to adjust in 11-07 and call their Adjustable Rate Specialist if I needed help on my loan. I called. they had no record of me giving my financil information over the phone and never heard of the person I had given it too. Was told they did offer a program to help but you have to be current on your mortgage. I was only 20 days late. Told her I would have the payment in by the 28th with the late fee. She suggested I talk with the Loss Mitigation Dept about Loan Modification. I did, she told me to fax my pay statements for me and my husband,financial statement and write a hardship letter over to the loss mitigation dept. I did. Called back to make sure they received the fax. They did and she said it would be 30 days before I heard anything.

In the mean time, I had been calling everymonth about my loan and letting them know that when this loan adjust, I will not be able to make the payments. I can't afford $500.00 increase.

I am on disability and my husband is on disability. He is 62 and I am 60.

I can afford my payments I just fell behind (but not over 30 days any month).

I received a letter from AMC saying they had received my package and was working on my case for a loan modification.

At some point, I guess I hooked up with the borrow's counseling dept. too. I did contact CCS for help with my mortgage. Together we talked to ASC and they sounded like "if you are not deliquent, we cannot help you"

Last week I got a letter from ASC saying "Congratulations your loan has been reinstated" and we are closing your case with the borrow's counseling dept.
I called ASC, as I do not want my case closed. I want it to stay with the Loss Mitigation Dept and to get a loan modification. She assured me my loan was still in the process of being reviewed. I don't know what to believe.

Senator Dodd comes on the tv, talking about help for homeowners. This got my hopes up that I might be able to get some help in saving my home before my rate adjust and I can't pay and they forclose on me.

Later that day, I saw an add on tv about FHA approved lenders. Again I fell for this. They were telling how they helped people in ARM get a FHA loan and save their home. This was the beginning of Sept. I had a little hope. So I called. Told the loan officer I needed to apply for an FHA loan to get out of this horrible ARM I had got into. I told him I had tried to refinance and got no where. He asked for documents and forms for me to sign. I faxed them to him. He called back and said I had been approved for a 7.5% FHA 30 yr fixed rate loan. He asked for more forms to be signed. I sent them. This week he sent out a FHA approved appraiser. I am waiting on the appraisal. Should know about that on Monday. He asked about late payments on mortgages.
I told him what my credit report shows. 60 days late on the mortgage on the investment property but that loan was paid off 8 months ago. (I was trying to wait till it was 12 months to refinance, but I don't have time, as my rate will adjust in 11-07.) I told him my credit report shows no lates on my primary residence. I told him I have paid late( but no over 30 days). Will this hurt me on an FHA refinance? Do you think he is trying to put me in that new program FHA Secure? I am going to ask on Monday.

I pray I get this FHA loan and can get out from all this stress. I just want to stay in my home, make my payments I can afford, and pay back the money I owe. I may owe more than the house is worth now, but still I have lived here 16 years and this is home.

I think I have been a victim of preditory lending with Ameriquest and the other mortgage co who called me and gave me two loans at the same time on two houses. I know some of this I am responsible for, and I accept responsibility for making a stupid mistake by taking out ARM loans and not understanding that adjusting up, means it will adjust, not it might.
We have not had 15% since on loans since the 80's, but my loan will be at 15% in 18 months,(with adjustments every six months). Standard loan loan will still be 6% for good credit. Is that a fair deal?

If I can't get the FHA loan, can you help me with a loan modification with ASC? I have submitted information requested to them for a modification but can't get anywhere. I did see where someone posted that they had success and got a modification with ASC. I have been looking for someone that could say they did, as that would give me hope also, that I might can get one approved if this FHA loan does not go.

If the FHA goes, we should close around Sept 28th. Do you think I have a chance on this loan with an approved FHA lender? I pray I do. I canot sleep and my illness is getting worse due to worrying about being put out of my house probably in about 3 months when this reset takes place on my loan.

thanks for letting me post my story and any help will be appreciated. I am like you, I think the answer is loan modification. It will cost me probably over $5,000 in closing cost if I can refinance.

[Moe Bedard]

Wow, what a story! You have definitely been doen the road of toxic loans and unscrupulous loan officers. I would definitley say you may have something there for a predatory lending case. But you would need an experienced mortgage law attorney to review the loan documents to see if you have case.

These loan officaers you have been talking to, sound like the typical loan officer bogus sales pitches we have all seen over the last few years. They tell you everything you want to hear, tell you yes, reel you in (BAIT) and then pray and hope that they have a loan when its all said and finished and then if they do, then here comes the SWITCH!

The FHA refi must be a FHA Secure because a traditional FHA loan does not allow lates. I'm curious, have you been paying for these appraisals? Plus you already "KNOW" there is no equity in your home. Do these loan officers know that and are they doing their due dilligence to determine so?

My guess is those lates on your investment property will hurt you with the new FHA secure. My understanding of this new loan is that you have to prove your rate adjusting caused the lates on your "PRIMARY" home and having lates on a non-primary may disqualify you. But if this new mortgage company knows what they are doing then they would know this. However, my guess is that you have another ill informed bait and swith loan offiser who doesn't know anything but to say "YES" and get you reeled in.

I think a loan modification is the only way and you should focus on that.

[evel1999]

On the loan with Dietch I tried to get the appraisal was $300.00 but I did not pay that up front. They just held my credit card to lock in the rate at 8.5%.
When the appraisal did not come back at 80% loan to value, to pay off what I owe and leave 20% equity in the property they would not do the loan, so I was not charged the $300.00 on my card. The appraisal did come back enough to get 95% ltv but they would not do that either, as the loan office I was working with had left the company. I wanted to purchase the appraisal, as it was enough to get 95% ltv, and the mortgage co that originally got me into this mess, said if I could get that appraisal, even tho it was $22,000 shot of what they appraised it for 2 years ago, they could go with my new appraisal, just get a copy of it by paying for it.

I called Dietch, and mailed them the $300.00. When they recieved my money and realized I was trying to get another loan using their appraisal, she informed me they could not put the appraisal in the new mortgage companies name because their appraiser work directly for GMAC and the appraisal could not be used, so they sent me back my $300.00. That was nice of them. I could have lost that $300.00. So that mortgage co that got me in this mess, said they could not do the loan, as they could not find an appraiser who could find the value at 95% LTV. (I think they thought my house was worth half of what I owe Ha They know they over appraised my house and they just want to drop it. They need to be sued and that appraiser.

Like I said, I saw an add on tv for a FHA approved lender advertising and called as my last hope. (except for a loan modification with ASC I am not giving up on that). The new FHA approved lender did not tell me on the phone that when the appraiser comes out I would have to pay the appraisal out of closing. He sent the appraiser out her to appraise my home for the loan. He said he felt it would appraise enough to get 95% ltv. I told him about the 60 day late on the investment property and that was paid off 9 months ago. I told him I had paid my primary mortgage last the last few months (but no over 30 days late ever). He said ok on that.

The FHA appraiser came out on Wed to do the appriasal. The company called for a $400.00 payment. I said, I will have to call the mortgage co as I was not told about this. I called the loan officer, he said I would have to pay the $400 out of closing and appoligized for not telling me this before.
Anyway, I want to save my home, so I pay the $400.00 out of closing for this appraisal. Now I wait till Monday to see if it appraises for enough and I can get this loan.

The strange thing is I have not received a Truth in lending statement or a loan lock. Am I being taken for a ride on the reading again? I looked on their web site and they said they can provide you a truth in lending statement if asked. I thought it was the law you had to have one within three days.

I am still going to try to get this FHA Loan. But I am still trying to get a loan modification with ACS too. I don't have much time before the bottom falls out here so I try all options till I have exhausted all of them and there is no hope of saving my home. I am going to ask the loan officer on Monday if this is the FHA Secure loan, or just a plain regualir FHA 203 loan. Like you said, it is FHA 203 the lates will cause them to decline me. Maybe under FHA Secure, I can qualify. But I am not late due to adjustment yet, I had some high prescription, dr bills, hospital bills and sometimes a month comes along and you cannot pay your mortgage right on the 1st of the month. I was late that month, and have been late every since, but not deliquent over 30 days, and have just not been able to get back on track to pay on the 1st. When this arm goes up $500 in two months I can't pay anyway. I know they want take partial payemnts so my only hope is a loan modification if this loan does not work for me. I am still working on that too and working on a new loan with FHA.

Do you think this is possible to get this FHA loan and does things sound right to you? I will know more this week because after an appraisal you usually know if you can get a loan or not.

[Moe Bedard]

Lenders and loan offciers are requires by law to forward a good faith estimate and disclosures within 72 hours after running credit and quoting a loan. Plain and simple. This seems to be the most abused and over looked abuses in the mortgage industry because it doean't support the bait and switch sales routine that is practiced so lawlessly in this undustry.

With the FHA Secure, the lates have to be on the subject mortgage and have to be as a result of your mortgage adjusting.

This just sounds like another ill informed loan officer selling you a loan that he knows nothing about and praying that there might be a loan there, like you, so he can make a commssion. But you want to save your home.

I don't mean to sound negative, I just know all to well what's going on this industry.
and look at what you have been through already.

So, what's the name of this company if you don't mind I ask?

[evel1999]

I went to the FHA guidlines for underwriting to try to find out if the late payments will stop me from getting a FHA loan.

I know my credit report has been run by this company, as that is where he had all the information on who I owe money too. So did I make it thru automated underwriting and not much required except my pay vouchers?

It said on the FHA guidlines they enter all the information. If they get approve/accept into the FHA system, then it is approved thru automated and not much else to be required except pay vouchers. Normal stuff. It would not have to be manually underwritten(I guess not looked at offically by an underwritter). So when they called and said they had good news, that i was approved for a 7.5% FHA 30 year fixed loan I hope that is true. I assume 95% LTV.

There are things on FHA guidelines that require it go thru manual underwritting. It list them. On late mortgage payments, it stated:

Manually underwrite if:

if you have 3 or more late payments over 30 days. (I don't)
(I have paid late but when I did it was around the 28th of the month)

1 or more late payments of 60 days plus 1 or more 30 days late
(I did have 60 day late, but then mortgage was paid off) (I hope it did not consider that and throw it into manual underwritting as the loan was paid off 9 months ago).

1 payment greater that 90 days.

All of these things would send you to a manual underwritting and the underwriter probably would not grant the loan

So am I a approve/accept or refere to manual underwritting?

I will know I guess on Monday when I can reach them by phone and when I find out what my home appraised for.

This is not FHA Secure loan guidelines, but regular FHA guidelines. So it appears you can have some lates, it would just be up to the manual underwritter when he looks at it.

I know they say no lates in last 12 months but is that late- paying between the 15ht and 30th of the month, or do they mean no going over the 30 days when you are really deliquent.

Hard to understand.

Moe you have me wondering about the lender now. May be bait and switch.
Tell me I am approved for FHA but come back and say, well couldn't get you that but can get you high interest, interest only and ect or how about ARM?

Only the next few days will tell if I am really getting a loan.

Can you help me with my loan modification if I need it. I am in the process of working on that but have heard nothing in the last couple of weeks. I did call them this week when I got that stupid letter saying "Congratulations your loan has been reinstated" from the borrower's counceling service and said we are closing your file. They assured me over the phone when I called that my case is still in loss mitigation. But I wonder?

I am really depressed now, my loan goes up 11-2 to $2200.00 (over $500.00).
If I can't get this FHA loan to refinance and America's Servicing Co keeps giving me the run around I will fall behind in payments at that time.

America's Servicing Co looses papers you send them, act like they never heard from you before. That was the collection dept. Finally got thru to the Loss Mitigation dept and they said my infor was in the computer. But since I got that letter from their borrower's counceling service I am still worried they just used that to close my file and figured that would end everything. I am calling back on Monday and make sure it is still in process.

[evel1999]

Well I called American Services Loss Mitigation Dept today, and they said they did close my case on Loan Modificaiton because I paid my payment on the 8-30-07 and am now not a candiate for Loan Modification.

I asked them what do I qualify for?

Nothing

I said, so you want me to miss three payments and then you will help me when I owe over $10,000 and you can add that back on to my loan. This is so frustrating.

I am back at square one.

Come, Sept 29, when I plan to pay my Sept payment, if I don't pay then I would qualify probably.

Probably the only thing that would happen, I would be headed for forclosure.

The government has got to force these mortgage companies and the investors to modify these loans so we don't loose our home.

What can we do, as homeowners, to get this to happen?

[Moe Bedard]

I'm sorry to hear that this is happening but as you know there are a lot of homeowners like yourself that are going through this very same thing. I know it doesn't make sense because there is no sense right now in the mortgage market and in particular, loss mitigation and loan modifications.
There are no clear cut rules or guidelines. It's going to have to take congress to implement changes and force lenders to modify loans for borrowers that qualify because their are no refinancing options or relief of these toxic ARM's.

What happened with the FHA lender?

[evel1999]

I have not heard anything from the FHA loan today.

Wanted to follow up on the loan modification info in this post. First, i'm very sorry to hear about your troubles, unfortunately you are definately not alone. As for congress forcing lenders to modify, as nice as this would be, it would (in my opinion) be a violation of the Contracts Clause of U.S. Constitution. Basically, the government is not supposed to interfere or alter the terms of a privately entered contract. That being said i expect a great deal of pressure from the government on these lenders and perhaps even some financial incentives. With respect to modifications, many of the lenders are still in the process of gearing up to facilitate these. I think in the next 6 months we will see a significant improvement with respect to lenders willingness to make essential modifications. In the interim, you may want to consult an attorney to advocate on your behalf. Although you may say the same things, attorneys are often able to get in touch with the right person, whereas you are stuck with customer service... Whether its me or another attorney, as always, make sure they have experience in the area.

Good Luck.

[evel1999]

update on my loan modification with America's Servicing Co.

I called on Monday, the Loss Mitigation Dept, and was told that in fact my loan modification had been closed and I paid my payment and was now current. They closed my case. They sent me back to the new Adjustable Rate dept. They said there was nothing I could do or they could do to help me as my loan was not current.

I read on another post about someone who is receiving help from them and was not behind in payments either. So, I decided to call again. I called the Loss Mitigation Dept again. He checked my file and said this is not the way the program is suppose to work. So he transfered me back to the Adjustable Rate Loan Section for these loans.

This person said also this is not the way this program is to work. She talked to a supervisor who is in charge of this Adj Rate Program to help homeowners . She also said this was not the way this program was to work, they want to help you before you wind up in default.

They took all my information on how my case was closed on the Loss Mitigation Dept because I made a payment, and assured me someone will call before Friday.

I am still waiting to here on my FHA loan I applied for.

Must keep all door open.

[Moe Bedard]

Great news. You sound like a fighter and you don't take no for an answer. You need to be like that when dealing with these loss mitigation departments.

Good luck on the FHA loan!

[mar639]

After reading your post I believe that since you are current with your payments , they closed your case. Now I just remembered something that one person told me at asc that I dont need ot make my payments until this matter is settled. and all fees and charges would be adde dot the new loan payment commencing January 08'. Now this doesn't sound right to me,because they want me to defalut first to be approved for the modification. Now I need ot be careful becuase I believe if I pay Oct. mortage they will probably close my case too... All this doesn't make sense but in a way it does. Think about it/

[evel1999]

Someone is suppose to call me back Friday from ASC. I want hold my breath.

I am facing that same thing, I want to keep my payments current to at least the rate resets 11-1-07. Hoping that I could get a FHA Secure loan. On that loan you can't be deliquent before the reset. But must be deliquent after that to qualify. Does that make any sense.

The loan officer I talked to about my FHA loan when I asked him yesterday about the FHA Secure, he said to qualify you have to be behind in payments to qualify, but can't be behind before the rate adj. So if you are trying to keep your loan current till you can get out of this mess, seems like you don't have a chance.

That makes sense about not paying but with the way the co is operating one person tells you one thing and another tells you something else. The law is if you don't make your payments they forclose. The law is on their side.
I am afraid not to pay while I can, they would need to give you something in writing saying you can skip payments to be safe.

But, come 11-07 when my payment goes from $1750 to $2200.00 I might can try to hang on for six months but I doubt it. But six months later, it goes up again another $500 probably to $2800. Doesn't matter what the market is doing it is that margin they add plus the LIBOR rate.

We are all in a mess with our homes. Stressed out over facing forclosure.

Maybe ASC will call back. I wonder if you can record what they say to you on the phone, they record everything we say when we call. But they do have a warning to that effect.

[evel1999]

When you get a loan modification and they say they are going to add the fees and etc back. If you don't make the payments and when they get around to doing the modification, probably if you are 3 months behind by then, all you owe will be added to your principle. We are talking about $10,000 it will cost and when they add that to the principal and redo the loan payments, they will be much higher because of this being added. If you are not making payments till then, or they going to forgive the back payments and just do your loan at the amount you owed when you quit paying?

[Moe Bedard]

I never see fees forgiven though I have heard about it. This is one of the ways these lenders make money. Off of delinquency fees and charges. The more you are late and in a hole, the more money they will make once they work it out with you. All lenders have different policies and guidelines on what they will and can do.

Most people confuse a loan modification with a repayment plan. Repay plans are usually for 6-12 months. When they do this they ask for good faith money and the balance needs to be paid out over the 6-12 months. They will figure your debt to income ratios to see what you will be able to make. The more you owe, the more your monthly payment will go up, making the unaffordable loan you had, even more unaffordable.

That's why I am a big advocate of loan modifications. The way these lenders have their loss mitigation departments set up to handle delinquent homeowners adequately is completey useless in today's lending and housing environment.

[evel1999]

Ok a repayment plan is just to catch you up on your back payments and get your loan current over a period of time, then you go back to regular payment and if you have an adjustable rate mortgage you are still in that loan with adjustments ahead of you once caught up.

What can a loan modification do for you?

I am right now late paying my payments but not deliquent as of yet. Are they going to say because I am late paying now I can't afford the loan anyway. What I want is my loan modified from a 8.5% adjustable rate mortgage( which was a 2/28). Sure I would like a lower interest rate that is lower than 8.5% but doubt I will get that. But I do want my adjustable rate done away with and be put on a 30 yr fixed rate loan. I assume they would armortize it over 28 years since that is how long I have on my loan.

On a modification how much money can you expect them to ask you for? Can they add it into the modificaiton?

What do people usually wind up with on a modificaiton and what can you expect to pay. I don't want to be unrealstic in what I ask them for but I don't want to be taken again also.

[evel1999]

Faxed all paper work back over to America's Servicing Co today, Moday, Sept 24,2007. Will wait again on a loan modification.

[Moe Bedard]

Sorry I missed this post and did't respond earlier.

What can a loan modification do for you?

It's when the lender changes the terms of your orginal loan and makes those new changes in the form of a new note. It is just like a stream line refinance. Lower the rate, principle, etnd the term of the loan etc.

What I want is my loan modified from a 8.5% adjustable rate mortgage( which was a 2/28). Sure I would like a lower interest rate that is lower than 8.5% but doubt I will get that. But I do want my adjustable rate done away with and be put on a 30 yr fixed rate loan. I assume they would armortize it over 28 years since that is how long I have on my loan.

Differnet lender will have different policies on how low they will go on a rate modification.

On a modification how much money can you expect them to ask you for? Can they add it into the modificaiton?

Usually they will ask for as much as they can get. There is not set amount. They say 100% you say 20%, they come back and say how bout 80%. Usually it will be around 50%. Or they can tack the amount to the principle or forgive some.

What do people usually wind up with on a modificaiton and what can you expect to pay. I don't want to be unrealstic in what I ask them for but I don't want to be taken again also.

There is no real research or numbers on this. All lenders are different and all loan modifications are different. Anything is better than nothing these days!

[mar639]

I just called Asc again and checked my status , once again they told me that they received all my paperwork and once again i asked them how long does it take to review the whole things This other person told me 2 weeks jsut for the paperwork to get to the lenders and for them to review it . And then I asked if soemone was going to contact me and she replied that "I "needed to check in on my situation by calling every two to three weeks. Seems like they actually don't know when or if the loan modification will be approved. I will call them once again on Friday to see where I stand. Also when I called , I know that they record phone calls, but this time there was an echo everytime I spoke to them, I could barely understand What I was saying to them. After you faxed your paperwork did you call them? If so did you get that echo ( very disturbing) ?

[Moe Bedard]

They don't know their left from their right sometimes. There is no set times and yes, you should call back often. Every 2-3 weeks will put you 6 weeks out. I would call a couple times a week and definitely call within 24 hours to see if they recieved your paperwork. Lost paperwork is very common. Yes, I heard the echo

We'll wait to hear from Evelyn and her experience.

[evel1999]

I called America's Servicing Co today to check if they have my fax and financial information that I sent over on Monday Sept 24 again for the second time. The Loss Migitation dept told me it is in the computer and takes about 30 days to review again. (This is my second time) But she stated again, you have to be behind in your payments at least two months. I am not. I am only late paying right now.

I tried to explain that I was told they have an arm retention section and I was told to fax it over to that section. (Seems like it is all in Loss Mitigation).
Loss Mitigation sent me again to that Arm Retention Section. The person I spoke with told me again for Loss Mitigation to even consider you for a modification you have to be deliquent on your payment. I told her I have not paid my Sept. payment yet but probably need to do so today. She advised me it would be best not to pay it as my case will be closed as soon as it is posted. I will be current again. I know I will, but my ARM adjust 11-07 and I need a modification on my loan immediately, as I cannot pay an extra $500 a month come Nov 07.

I am afraid to pay my payment as they will close my case again. I am afraid not to pay it as it lessens my options of getting out of this horrible ARM loan.If you don't pay and are deliquent past the 31st you are headed to forclosure. Once a deliquent payment is reported to the credit burea your option of refinance is gone out the window. Mine has already gone out the window anyway, so I guess it does not matter. Also, then comes all the attorney fees and charges they rack up that amounts up to about $10,000 that you have to pay them to rescue your home from forclosure.

If I don't pay my payment by the 31st of Sept, I will have to come up with two payments in Oct if I can't get a modification, to keep me out of forclosure. I can't do that right now. So, I have to decide what I should do.
I can put the payment in the bank and save it hoping they will modify my loan in the next 30 days and that will give me some cash when and if they come up with a modification for me to try to work a modification out with them. I will think about my options over the weekend. Once it is past the 30th of Sept the decision is made.

I talked to the person who is trying to get me an FHA Loan again today also.
I applied Aug 28, 2007 for the loan. Appraiser came out Sept 12. They claim housing has dropped so much in price. The appraiser was still working on the apprailsal today. Been three weeks. Doesn't sound right. Don't know if they will be able to appraise the house for enough I can get a 95% FHA loan for 7.5% for 30 year fixed. It sounded doubtful this week that the appraiser would get the price enough for the refinancing. I was hoping to close on that loan this month on the 28th today and be out of this mess with this loan. Doesn't seem that is going to happen. If it gets worked out on the appraisal it could happen next week. Don't know. But if a mortgage payment shows up late FHA may not let me do the loan. In limbo about that. My payments will be the same as they are now, and they would escrow taxes and insurance. That would be fine. I will just have to spend the next 20 years paying extra on the principle trying to make up on the principle and get it reduced on my home by paying extra to unload some of this being up side down. I got myself into this mess with the Mortgage companies help that gave me the loan and I will pay dearly for this mistake I made taking out an ARM that I truely did not understand. May pay by loosing the home I have lived in for 16 years, But that is life. If I can only keep my home.

If the appraisal comes back way low than I owe, then I will send a copy to Loss Mitigation and see if I can get a reduction on the amount I owe. Has been done but hard to do.

So I am in a rock and a hard place this weekend. What to do. I can't pay come Nov 07 anyway, so why throw good money after bad, so the bankruptcy lawyers always say to you.

I am open for all options. If the FHA loan was to come thru I will take it. If not, I hope to get a loan modification. My goal is to stay in my home. My husband and I are both very sick, old and on disability and this stress has not helped, but it could be worse.

[Moe Bedard]

Two weeks to get an appraiser out??? That's a joke. It should be a maximum of a week. A good lender or broker will have one in 3-5 days.

This story needs to be heard and Congress and the media needs to see what some of these these lenders are doing. Many make false comments that they are ctively reaching out and modifying loans. Just call them. That's all you have to do. BS. I have seen this and have done this WAAAAAYYYY too many times to know that is a complete rubbish and only a media ploy.

I'm glad you are really working your options and it seems like you have a lot of tenacity. I commend that. I feel you will find a way to save your home because you are exploring all angles and options. Plus you are educating yourself. You can tell from your post that you have LEARNED a lot about this and I'm glad you are a member of the forum.

Your stories will help others that are going through the same thing.

[evel1999]

Sorry Moe I did not explain it right about the appraiser.

The loan officer who is working on my FHA sent the appraiser out on Sept 12 about six days after I applied for the FHA loan. The appraiser came out and did what appraisers do. I had to pay $400 out of closing for the appraisal.
I figured the appraisal would be back by Sept 15. Usually takes 3 days to get back to loan officer and we would close on Sept 28.

It has been three weeks since the appraisal and the appraisal co has not come up with a price. They need to give me my $400 back, or give me an appraisal. The Loan Office said we were suppose to close on Friday Sept 28but can't close unless you have a good appraisal.

I think my house value the appraiser has come up with in mind is about $70,000 less than I owe.

I should know Monday if they can get the appraisal for enough to do the loan. If not I have spent $400 on an appraisal that will show my home is worth $70,000 less that I owe and I am upside down.

This is happening all over the place to other homeowners too. Some is true drop in price of value in the market today as prices are adjusting due to houses selling at a lower price now, a lot of it is appraisers overappriased properties during this boom and caused homeowners to take more equity in their home than they really had.(They made a lot of money in fees off of this practice, it put more in their pocket as there was more to take).

I owe $232,000 on my loan right now. It needs to appraise for $255,000 to be at 95%. When they appraised it in 2005 for the loan, it appraised for $275,000. That put me at 80%.

I will send that appraisal to my mortgage co if it is lower than I owe and see what they say about a modification to reduce part debt owed. They would probably do their own appraisal in that case and don't what to do if they come up with the full amount I owe. Will try to get whatever kind of modification I can that will help me if I can't refinance to an FHA Loan.

[evel1999]

I forgot to say, I finally, after months of trying, received a financial statement in the mail today from America's Servicing Co. Before when I requested on for the last 3 months, all I would get would be a letter saying the financial statement was attached, but there would not be one.
I did receive one today.

Before I gave up and just did my own and my own hardship letter and faxed that in. If you do that, be sure and sign each sheet with your signature and loan #. (If not, they will claim they did not receive it, or the pages get seperated and lost)

[Moe Bedard]

Many appraisers are taking peoples money when they are FULLY AWARE that the home will not appraise and there will be no loan. Why? Because they have a business to run and business is slow. This is a big problem with brokers ordering appraisal and appraiser doing them when if they did their DUE DILLEGENCE they would realize that the home does not have enough equity to qualify for the loan.

Didn't you have it appraised and it came in under value already?

I believe that must be illegal for an appraiser to hold on that long with no report that you already paid for? I'll look into that.

Take the darn broker that did not do his due dillegence to court or the appraiser and get you money back. That is not right and a scam in itself if you really think about it.