FF first and HSBC second SUCCESS!!

[94DOHC]

I have been a lurker for almost a month now and finally decided to post my story. My story is so similar to many people here. We purchased our home in January 2005 for 585,000. We did a 80/15 so we would have a little bit of cash left over after the purchase. Our first is a 3/27 Interest only and I don't remember what the second rate was at, both loans were with First Franklin.
We remodeled the kitchen and in August 2006 with our house appraised at 695,000 we refinanced the second to payoff some bills from the remodel.

So we have a first of 468,000 with First Franklin at 5.99% interest only $3023 payment PITI and HELOC of 168,000 with HSBC currently 12.00% interest only $1700(prime plus 6%).

Fast forward to this year, our first adjusts to 8.99% on February and the payment is now $4155 PITI and will adjust again in August.

I had hopes of refinancing this year because our 3 year pre-pay is up on the first but of course our house is worth around 599,000 (maybe a little less) this puts us at around 106% CLTV.

The wife tells me "Honey you need to lower our payments". She doesn't want to pay Interest only anymore and it is getting harder to make the payments. We have never paid our mortgages late but it is getting pretty tight.

I have worked for for a company the writes loan origination software so I have a fair amount of knowledge on mortgages. I am thinking there is no way I can refinance our mortgages, mid 600 fico 105%CLTV AND lower our payments with a fully amortizing loan.

I search the internet and find this site.

All I can say is "WOW!!!!!"

I had never heard that a mortgage company would modify their loan terms.
So, a month a go I call both First Franklin and HSBC and ask for help. They tell me to send in a hardship letter and all my financials.

[Moe Bedard]

Hi 94DOHC,

Welcome to the forum and thank you for posting.......

If you haven't already done the hardship and financials there are examples in the Homeowner Tool Box to the left so you can get an idea of what they will be looking for. In the modifications they are, in most cases, requiring a fully amortized payment PITI.........but they have in numerous cases brought the rate down to the start rate and freezing it for a period of at least 2-5 years. You will have to tackle the two modifications separately...........as a matter of fact in the Success Section we just had a success with a 2nd from HSBC that a member had received a modification with a pretty great rate on a second. Read that for some encouragement that it can be done.

Please keep us posted on the progress and other questions you may have....

[94DOHC]

I follow all the advice given on this site. I fax, call, call, fedex and take copious notes. I call them almost everyday.
And then the news starts coming.
FF we received the package but haven't assigned a negotiator.
We assigned a negotiator but are going over it (20-30 day turn time).

But here is the surprising thing, after HSBC received my package at the right location on 3/19 it sat on someones desk for a few days so I started to call every day. On 3/25 it is assigned a negotiator and are reviewing my case. On 4/1 it is awaiting final approval. I know from this site this means it is with the investor. I ask for the terms but they don't know.
I call today 4/4 and the mod is APPROVED!. I ask for the terms and she says they have sent a letter on 4/2. I push a little more and she tells me it has been modified for six months and the payment due in May is ........ 605.44!!!!!!!!!!!! This is almost $1,100 less than what I am currently paying. I knew it would be an uphill battle with a HELOC but I figured I would try anyway and I am sure glad I did.

I am going to keep pressing for a permanent mod but this is great until I can get something from First Franklin. I am hoping that I can get my rate back to the initial rate of 5.99%. I would really like to get a fully amortized loan and pay the same payment that would be ideal.

[Moe Bedard]

That is good news so far..........

You know the deal...........it really is like a second job working at these modifications........they are so swamped that it is easy to get lost in the shuffle........that is why we repeatedly tell everyone that even if they say call back in 30 days...........you have to call at least every other day.....

Please keep us updated on the progress.......

[94DOHC]

Received my letter from HSBC and I can't believe what they did.
They lowered the rate from 12% to 4.24998% for six months. This drops my $1700 payment to $605.44!!!
I need to stay on my first with FF to get that worked on. After a couple of months I am going to go back to HSBC and work on a permanent mod.

[Moe Bedard]

Good Deal...........and Good Plan.............

Keep us Posted on the FF ordeal...........k........

[Moe Bedard]

That is one of the best deals I have seen! AWESOME stuff right there. I have been watching your story and you amaze me that you are so determined and dedicated to getting a loan modification, that this was inevitable and you must know how to submit one heck of a package to get such a sweet deal.

Good job and more "proof" that this can be done and if more people knew about Loan Safe, then there would be so many more homes saved.

Thanks for paying it forward and sharing your story, it will inspire others to take up the fight!

[94DOHC]

SUCCESS!!!!!!!

I received my first phone call from my negotiator this morning. My modification has been approved!!!! She is overnighting the docs. I pressed for the terms and she said it will go back to the initial terms of 5.99% for two more years then back to original terms of the loan. Unfortunately it is still interest only. I am going to continue to look into the FHA Secure loan. But at least I have time to breathe.
I am looking over my phone log for the last month and I have called a minimum of 3 times a week up to 6 times. Like I said this is the first time they called me. So anyone out there working on a modification do NOT wait for them to return your call, always call them.
They are extremely busy and on more then one occasion I heard her pull my file from the stack to take a look when I called. I am certain this moved my file to the top of the pile.

[EvelynJK]

Congratulations! I'm very happy for you. Not sure if we will be a FF modification success story, but its good to hear of others...

[schwefls]

Congratulations to you, very happy, savor the moment and party hardy

[Moe Bedard]

Congratulations!!

Just let us know when you receive the docs and if you have any questions on them........k......

[94DOHC]

Received the docs last week and sent them back on Friday.
It was a modification agreement that changed my interest rate from 8.99 back to the original 5.99 for two more years.

Unfortunately it is still interest only and will revert back to the original terms in two years.

But I don't have to make a June payment so at least we don't have to live paycheck to paycheck.

Total monthly savings:
Old First Franklin payment Interest only plus escrow $4130
Old HSBC second Interest only $1900
Total old payment $6030

New first Interest plus escrow $3029
New Second Interest $630
Total new payment $3659

Total savings per month $2371 !!!!!

[schwefls]

Congratulations 94 DOHC, kudos to you.

Amazing!! I hope they will do the same for me. I would be willing to pay IO for a few years to get caught up and hopefully in a few years we will be able to afford p and interest. Waht an awesome deal!!! One question what number do you have for FF and who was your negotiator? Mine is Erica.

[94DOHC]

800-622-5035

Candace was my negotiator.
My advice to everyone (echoed by everyone on this site) call, call, call.
I never waited for them to call me, I always called them. I only received one call from them, that was with my approval. (I was in my work parking lot and I make my calls when I get in the office).

[CHERYLG55]

How long did this process take with FF?

[94DOHC]

Looking at my call log (always log every single call) I made my first call on March 5 and received my Modification Documents on May 5. It looks like I called 32 times in 44 business days. Some people are calling more often

[CHERYLG55]

Alrighty then, I have to go make a call

[Moe Bedard]

Now that is a great success story! Great job and another victory!