Option One -Loan Mod SUCCESS!!

[want2keepmyhome]

On March 3, 2006, my husband and I bought our first home using an 80/20 loan from Option One. Well, just like lots of people in this forum, things were fine in the beginning, then one by one, job loss, health, and rising costs just to live started to get us.

On January 13, 2008, I found out about foreclosure on my big loan. I was behind and trying to catch up, but it wasn't working. I am also behind on my smaller loan - might take out my small 401(k) just to get that caught up.

So, I call hopenow.org. They basically just write a hardship letter and send it to OOMC. I was able to stop the foreclosure with a forebearance agreement in the meantime. Hopenow.org was able to get in touch with OOMC. I told them that e-mail is the best way to contact me. I sent in my hardship letter, my w2s, my paystubs and my bank statements on 2/8 and 2/14. I am told it will be about 30-60 for a resolution. My ARM goes up on May 1, 2008 and I hope they have something worked out by then for both loans.

I think most people thought their situations would be better, they could re-finances, etc etc. I am just trying to hang on to my American Dream. I just want a freeze for a couple years, at least, so I can get back to normal.

Any advice for a newbie to this "house-saving" process.

[Moe Bedard]

Thanks for sharing your "American Dream" story. One that is all too common.

What concerns me is that you have entered into a forebearance agreement and that agreement may actually hurt your chances at getting a loan modification. Depending on the details of the agreement. Often, they will stipulate that you are to make payment on time for a year, before they will modify or remove the forbearance.

Do you know if yours has this wording?

One of the best pieces of advice I can give is to write a "Qualified Written Request" and make them document every darn penny you have paid and also the details of any fees and charges you have incurred as a result of your deliquencies.

When you do this, it will give you a 60 day window where Option One cannot report you late on your mortgage.

Option One is very slow, but not unapproachable on these matters, they are trying very hard with the volume that they have to modify as much as they can. HOPE is very good at helping, but you also need to stay proactive, involved and focused to make sure that this happens. Do not hesitate to call Option One to see where your package is and what the status is and HOPE as well regularly to check on the status of the request for modification.

[want2keepmyhome]

Well, it has been two weeks since the Loan Modification process has begun. I sent a follow up email last night, and this was the response from this morning:

I am just waiting for tax and insurance confirmation from my escrow department.

Once received I can finalize my workout.

Please confirm the following. Based on the pay stubs, you are both paid twice a month. I see monthly net earnings for XXX of approx $XXX and for yourself of $XXX.

I wanted to confirm to you that your hardship letter lists that both mortgages would adjust. Your second mortgage is a fixed rate and will not adjust. Only your first mortgage is an adjustable rate. (YEAH! AT LEAST ITS ONLY ONE!)

I am working to freeze your current rate of interest on your first mortgage. Your rate is currently 8.85%. I am developing the workout so that your first payment will be 4/1/08. You currently owe approx $XXX on your loan. We will need a deposit or down payment on the loan modification. With considering your first payment to be approx $XXX in April. What will you be able to bring into the loan modification signing in March?

All I am asking for is a rate freeze, so cross your fingers!

They are communicating that is the hardest part of this formula, the next step is to keep the momentum flowing, call, call, call and fax, fax, fax....

If you don't they will miss you.

[want2keepmyhome]

Thanks Poppy! I hope to be one of those success stories! And I will be sending a weekly e-mail to my negotiator. At least I will have information in writing and dated!

You rock Baltimore !!!!!!!

[want2keepmyhome]

Here is the response to my weekly e-mail to Option One:

I am still waiting on an internal update of taxes and insurance. Once received, I can confirm the numbers with you on the loan modification.

Guess I need to do that QWR(???) this weekend. Gonna have to light a fire....

That is actually a good sign, have they ordered Title yet? Ask them if they have, I have my reasons for wanting to know......

[want2keepmyhome]

That I am not sure of, but I will send an e-mail to my contact.

You all have been a wealth of information. Although I would not wish any of this on my worst enemy - I do feel better knowing that others are going through the same issues. Two years seems like a long time when you sign the ARM - but so much can happen in that two years that what you planned for just doesn't seem to work out.

Poppy and Moe - thanks for being the cheerleaders to me and everyone else. When you are bombarded by all the negatives on the news and in the papers - it's nice to feel like some is on your side.

We are at you side and I hope we have your back tooo.....

[want2keepmyhome]

Well here is the answer to the question that Poppy asked. My OOMC person is pretty quick to respond with e-mails.

I have ordered title. It should be back soon.

Now, Poppy, please tell me what your reasons are. I hope it was just to see if they were stalling - or how quickly they are turning things around.....

Real simple it has been my experience.....they do not order Title if they ain't going to try and do the modification....

That is a really, really good sign...

[want2keepmyhome]

This process doesn't seem so bad when you have people helping you through the steps - thanks Poppy and Moe!

Keep faith they are working this weekend at one of the Option One offices....actually I feel for the people in the trenches on both sides of this mess, none of it was directly their faults.

[want2keepmyhome]

I totally agree with you. Actually, I have been nice with my negotiator - and I do tell her with each question I ask that I understand I am not her only case. I also tell her to let me know what I can do to help make the process go smoother. I am glad they are working hard to get things fixed. When I get my situation cleaned up, I will still be on the forum to help other people get through it.

I am frankly really glad to see them as proactive as they are and as compassionate as they appear to be...they were rather tough from the other side of the world in 2004 through 2007 (early). The folks that I speak with are terribly nice and horribly over worked.

[Ragdoll]

Good luck with Option One, it does sound like you're on the right track. The only troubles I had was with getting hold of my negotiator, although he did tell me that he won't call if there's no news. I nagged him anyways. Honestly, I really liked him! The whole thing took a very long time for me, but I started before this huge wave of modifications. They are better staffed now, I believe.

[want2keepmyhome]

Ragdoll,

How long was the process? I just started in January.

Michele

[Moe Bedard]

Ragdoll has been working on it since October, if you go to her profile you can click to read all of her posts on her journey to the modification.....
Hope this helps.....

[luvmyhouse]

I did a loan modification with Option One. It's still not completely finalized yet either. I started the process in September, was assigned a negotiator in late October, and received an email the last day of December that our loan was approved for a modification. After the approval, it took about a month and a half to receive the paperwork. We signed and notarized the paperwork and now are waiting for the system changes to take affect. So, to make a long story short...it's a looooong, draining process. LOL! Hopefully, it will be smoother for you. I heard they streamlined their process.

[mreedlaw]

Wantokeepmyhome (Michele),
Glad to hear some promising news from my neighbor to the east...title being ordered is a good sign and please keep us updated on your situation and don't be a stranger, okay?

Thanks, Michael

[want2keepmyhome]

Once the title is ordered and once she gets the tax and insurance information - what happens next? Just wondering if anyone knows the rest of the process. Is there information out there about the steps to loan modifications. Should I do the QWR? Or is it too late?

Whatever help or information anyone can give me is much appreciated...

After title and tax information is obtained it goes to underwriting for the seal of approval and then to the investor with the recommendation for final approval....all in all about 10 to 15 (sometimes more) days...the title and tax issue is the final processing step prior to bundling the file to the underwriter and getting the approval on the deal.

Option One is running somewhere between 250 to 300 files per negotiator. I will correct myself here, the negotiators at Country Wide are not running 600 to 700 files per desk, more like the 250 to 300 range or less (The rep I spoke to yesterday was smoking other than a leafy green substance apparently).

[want2keepmyhome]

Just another weekly update response:

Good morning Michele: Everything is fine. I am still waiting for a report from our escrow department to finalize your loan modification. Your payment was received on 2/29. As soon as I receive my final escrow figures I can call you to go over the numbers. Don't worry I am still taking care of your file.

Thanks Poppy for the information regarding timeline. I am trying to remain patient - but it does get hard. I would love to have this wrapped up before the ARM goes up on May 1st.