Ameriquest Success II

[TxAngel]

Hello all,
I have a question about income for a loan modification. I have 2 grown sons who still live here and they help pay what they can afford a month and we put that towards the house note. My question is, when they ask on the financial papers for other income should we add that? I was reading where the debt/loan/ratio can't be that good(and ours isn't great) and am wondering if reporting that would hurt or help us?
I thought it would help us but after reading this, it may not?

Any advice? Thanks,
Linda

[Moe Bedard]

Good day!

The ins and outs of a loan modification are a closely held secret with lenders. But my experience with what you're doing has shown me that there is a fine line you walk in reagrds to income and qualifying. You show too much, you don't qualify, you show to little, you don't qualify.

Without knowing what your debt to income ratios are, I really can't give you advice there. If you can just post that on the forum then I can see what they are and give you some advice based on that in regards to the loan modification.

[TxAngel]

Hello Moe,

As you can tell I'm trying to do this right and have been upset for quite awhile after being turned down for refinance from a few lenders this past year.

We use Ameriquest, and after hurricane Rita they offered us a few delayed payments..we had roof damage, etc. So they put us on a payment plan..called forbearance.We also have an ARM loan to which has already gone up 300 and will go up more in Feb. Well, we still owe 7 months on the prepayment loan..but now, they have raised the payments from 907, to 1600.

We also have our taxes in with this to..we had got behind on those and started paying the city, and I get a call one day that they decided to pay them for us..needless to say it made the hubby even madder because we had an agreement with the city and it was working out that way..so now we have escrow with them.

I told the guy who has helped us with our account(prepay) that come Oct. we couldn't pay the 1600 from now until March 08, that we needed help now.
So I find out yesterday, he cancelled us out of that and put us in for the loan modification and if that don't work I have to come up with 4,000 they say we still owe to get it back to normal.

So we have 2 choices here.

Pay a small downpayment(he said 50% of the debt we owe) for the loan mod.(IF they approve it) or the 4,000 whole amount and stay in the ARM.
We need out of this ARM fast..we can't keep going. I have the 2 grown sons who have decided not to move out yet and help us until things get better.
The way I feel now is I've been told no all year to refinance, so I'll probably be told no this time to.

So, I want to do this right and am on pins and needles. We have been here for 15 years and this house is well taken care of. We got out of an owner finance thing and thought we were doing the right thing..now I know better.

We are in Tx, and I do have some equity in this house.They only let you borrow so much here. I also learned that once an equity loan in Tx always an equity loan later for refinance. So we are stuck..our scores are in the 500's now. We only have his income and the kids. We didn't have a problem with the 904(it was tight though) a month, we do have one though with the prepay added, the taxes(which we were paying anyway) and now the ARM making matters worse.
We keep trying and we're sinking..it's one big circle.I doubt if we could even rent anywhere either.This house was only refinanced for 70,000.

So the debt to ratio thing...I have no idea..do they go with before taxes out or after? I have figured before taxes we make 2780 a month.
After, about 2280. The kids help with their 200 apiece a month, being 400 extra.

We only have a truck note,330, conn's,40,that's it other than utilities and ins,groceries...if they check credit scores, then we lose probably.
They said the normal payment for the house with taxes is 1004 right now so I guess if you mean back to normal that's what it would be.
I want help before it gets worse and I've been persistant with this whole matter since we got into a prepayment plan.I call them every month and make sure we aren't missing the day it's due.

Ok..I've rambled enough..probably to much but there's so much to it and it makes me sick that holding on to a home or even trying to buy one anymore is a nightmare.I did call you and left a message..I can talk about it better on the phone..so I need help before Monday..I'm gonna fax them pay stubs etc..
HELP

Linda

[Moe Bedard]

OK, let's talk about your loan modification later today. Cal me around 2 pm PST. I have my sons game to attend shortly. But I will be available after 2. Don't worry Linda, we'll figure this out!

[TxAngel]

Thanks Moe,
I'll call you then

[Moe Bedard]

Nice talking with you on the phone is regards to your loan modification to help your stop foreclosure. Best of luck and please keep us all up to date on your pogress

[TxAngel]

Moe,
I wrote my letter today and am posting it here for you to read,if you don't mind..I did copy and paste some from all of the letters in the forum but added some of my own..I'll send it to them tomorrow, so write me back and let me know what you think. I added a clause on there about my bank letter..not sure about it but was honest.

To Whom It May Concern:

Due to the recent adjustment to the mortgage we currently have with your company, we are finding it very difficult to afford the new payment.. We have done everything in our power to make ends meet but unfortunately we have fallen short and would like you to consider working with us to modify our loan. Our goal is to keep our home as we have been here for 15 years and we would really appreciate the opportunity to do that.

The main reason that caused us to be late is that the ARM adjusting on the pre-payment plan (we had Hurricane Rita and wind, roof damage that put us in your disaster plan,that deferred our payments). This plan is adjusting up to $1600 and more starting in Oct. until(it has adjusted with the ARM and will do so again in Feb.) Mar.’08. We have made these payments in a timely manner for over a year now,and we want to keep making them on time to.
We had no problem with the $904.00 a month, but now, it’s to the point where we cannot afford to pay what is owed ($1600 now until Mar. 08). It is our full intention to pay what we owe.
Hopefully there is way to renegotiate the terms of my current mortgage to avoid default or foreclosure on our home. We would like to get a fixed rate on this. We have tried all year to refinance but we can’t. We were assured that refinancing would be no problem but that turned out not to be true due to the downturn of the housing industry.
So at this time we have exhausted all of our income and resources so we are turning to you for help.

Our situation has got better. Dwain has gotten a better job after the beginning of this loan and we know we can make the payments because we have been paying on time and we feel that a loan modification would benefit us both. We would appreciate if you can work with us to lower or delinquent amount owed and our payment so we can keep our home and also afford to make amends with your firm.

We truly hope that you will consider working with us and we are anxious to get this settled so we all can move on. We are attatching the pay stubs & *bank letter.
Dwain cashes his paychecks at the bank listed on his pay stubs.

*On the bank problem: why we have no bank statements at this time.

We had an account Wachovia for years. We had asked Ameriquest to take a payment out one month, then decided we had to wait an extra day. We called the lady up who had our account, and she said she wouldn’t take it out, just send it Western Union as usual...well, she did take it out and it caused our bank account to bounce big time. We are fixing to try to work this situation out as we need our account back. I blame the bank because we do not have overdraft protection and shouldn’t have been allowed to take it out…it would not have bounced so badly. Thanks for understanding!!

Sincerely and Respectfully,

[TxAngel]

Ohhhh...
I did contact a lady from HOPE(non profit) last night.
She helped me figure out how much we have left at the end ot the month etc..also told me a great place to save money on groceries a month to..and believe it or not, I live right by one of them...she said it was so awesome and that a lot of the people who work there use them for saving money to.

Thanks for posting these people!! I'm gonna sign up tomorrow and see about it. If it can save us $100 a month then that's great!!


Ohhh..by our figures it should show with a reg. house note of 1004, we have 441 left with kids paying their 400, or 41 left without their help..and that's the net monthly gross..do they look at before or after taxes? We did after taxes...
So far we are not negative, but with the big jump it would be.



Thanks Moe,

Linda

[Moe Bedard]

That's awesome Linda! You sound more hopeful today and I commend you for your efforts. Keep it up. I'm glad the non-profit counselor could help you and can you tell some of the forum reader what this grocery program is? Maybe start a new thread on it with info? Anything to help money wise right now is good for all homeowners!

[TxAngel]

Heya Moe,
I am in a better mood today..dunno for how long though,lol. I did post it in My Story part..I hope people read it..if they check out that website they'll be so surprised.
I'm going there tomorrow to sign up..I think I missed the deadline though this month.
I'm trying to stay positive..we have our health, and we'll make it.
Thanks for listening

Linda
TxAngel

[Moe Bedard]

Your welcome Linda! Just remember to stay positive and be patient with everyone because you'll need it. Things take time and especially in situations like this. You're right, we do have our health and everything else is just icing on the cake of life. Stress really affects our well being, os keeping that under control is somethink we all need to practice, including me

I look forward to hearing from you again soon!

[sofia]

Hai Guy!

Does the repayment plan have to be completed before the loan modification documents, or can the mortgagee attach the plan once the option has been completed?

If anyone knows, Please give some further information that would be greatly appreciated.

Thanks in advance !!

[Moe Bedard]

Well, if you do what you claim in your other post then you wouldn't be asking me. I'm here to teach and educate homeowners, not fly by night foreclosure consultants.

Sorry I had to ban you, but if you read my rules, you would have known that advertising has to be approved by me.

Have a great day!

[TxAngel]

Hello all!

Well it's finally over! We got our loan modified and fixed for the next 7 years.

We can afford the payments and taxes are included. We sent in our good faith money, saved our house money each month so we'd have it, and signed the contract and fed-exed everything and we got our confirmation letter.

We can now move on and get on with life, and move when we want to in a few years now..wow..I finally feel human and have my goals back!
This gives us time now to do what we need to and I couldn't have gotten a better Christmas present!
And we still have equity in our home..we are one of the lucky ones.

I never got shifted around, and always got to speak with the same person handling our loan. She was the nicest person and I could not have gotten better!
We have dealt with this all year..trying to refinance, and watching our payments go up. We took care of it in plenty of time.

All I can say is it takes TONS of patience, and staying on top of it..this lady heard from me 3-4 times a week(and I called until she answered to, never gave up) since Sept. 13..it took 3 long months.

I did everything right when they asked me, and it all worked out well!

It can be done..we did it. In fact, she told me they enjoyed working with ppl who helped them and were nice back..so be nice to! I remember one week she was as frustrated as I was about getting the title in..so they get frustrated like we do and ya gotta remember that as well and be nice back.

I won't tell ya the days/nights I've cried and wanted to throw in the towel..calling hubby at work telling him to come home and do it cuz I couldn't do it anymore..it's the waiting...and now I am so tired and sleepy and I know it's the relief I feel..I don't think I slept all year more than a few hours a night.

Don't give up!!!!! The gov't is trying to help..but it does concern me about them only freezing the rate you have for just a few years..I mean..then it starts all over again?

But I now have enough years to get it right and equity and KNOW what to do..this also taught me a lot.

Thanks Moe for this forum..I had no idea about anything and this place taught me so much!

This has been long enough but had to share..didn't want to say anything to soon until it was final!

I wish you all the best of luck and know that good things will come..just gotta have faith and hope and plenty of patienceSomething I never thought I had much of!!

You all have a Merry Christmas and a Happy New Year!

[momof3boys]

Wow!!!! Congrats!!! That is great news!!!! If you don't mind me asking, how much were you behind, and how much of that did you have to put down?

[TxAngel]

Hi!
Our loan was delinquent a few months about a year and a half ago when we had hurricane Rita come through. They put us on a pre-payment plan, and we paid on time every month. We were doing fine until the rate adjusted this past Sept...then I knew ahead in June when they added it all up, it was jumping up about 400 more a month and towards the end of the pre-payment plan which was to end in Mar '08 it was going up another 300.

So, we told them we knew we wouldn't be able to afford it when the rate jumped. They were really nice and told us since we had made all the payments on time(they still claim the loan is delinquent even in a prepayment plan) they had no problem trying to modify it.

Of course we still were very worried because we were told they didn't know if they could, then the pre approval(waiting game), which took almost 3 months(more waiting) and the actual approval took a week.

We just knew if they had to put us back on a pre-payment plan then the rate would keep adjusting and we wouldn't be able to stay here..no way.

We had to come up with $2500,(we got lucky again in that the title took a couple more extra weeks, which put us another month away from making a house note, so that bought us some time and extra savings) which worked out because we were told not to send a payment while they were working on it..so we saved that up and had it. I always talked to the same lady 3/4 times a week. I never got switched around to anyone...she was the sweetest lady!!

We had Ameriquest which changed over to Citi Lending.

Our debt to ratio was great she said..and she said that was the number 1 thing they looked at.

We have no credit cards, and only a truck note and utilities..she also said they want to see that you aren't out spending money and all and can't afford your housenote..and we didn't.

So..paying on time and have a good debt to ratio helped us...I also think because we were in a pre-payment plan because of a disaster that helped our case. We still have equity to..not as much, but we are way from upside down.In Texas you can't borrow but 80% of a loan.

A tip...save your money in your bank account, and try not to use your debit card a lot..to show where you go/spend, unless it's for a bill..I worried about that, that they would see what were were buying, etc..keep it to a minimum..they have to see what you are doing. So, for 3 months we didn't buy or purchase anything with our debit and kept our goodfaith money in there.

We don't use it much anyway..but if you do, don't for the time being.

Just my opinion about that.

So, we are fixed for the next 7 years, at 10.something %(I forget,lol).
It's better than the 12, and up to 13% cap we had.

In a few years we hope to move instead of refinance and I hope the housing market is better by then. We aren't making any big purchases or anything so we can now reach our goal. I'm happy we still have equity to...I feel so bad for the folks who are upside down.Thank goodness Texas wouldn't let us do that.

So, that's our story!! I cried a lot, never slept, and worried constantly even though she kept telling me it was going to go good. She kept my spirits up actually and made me feel better..she was wonderful to work with.

I told her I'd be calling her just to see how she was doing!

We formed a friendship through this..I know it sounds corny but we did..she said I was always patient and was nice to her..so that goes a long ways to!!
So..be patient, and kind and do what they ask you..I did it the very day they asked me to...never made them wait. So, you have to stay on top of it to!!! It works!!!
Good luck to you and all the rest of you guys..I think we'll see more getting help now!!

[Moe Bedard]

Awesome and congratulations TxAngel!

Thanks Moe for this forum..I had no idea about anything and this place taught me so much!

Oh geez, you sure know how to touch a mans heart. This makes me feel so good, it makes me get watery eyed and really touches my soul. You see, I created this place for you all and not me. I wanted a place where you could feel safe and not worry about being judged for being in the position you are in.

I have worked hard to get this website out there and to try and maintain it the best I can. It has been a struggle and a financial drain. But when I hear a story like this, it really reminds me why I created LoanSafe.org and why I NEED to keep FIGHTING for homeowners. This fuels my fire that sometimes dwindles. Thanks, I needed this right now.

I truly appreciate you coming back to the forum and not forgetting about us.

We will have to continue fighting. This gives people hope and encouragement to keep up the battle.

Great tips, great news from a great person. You deserve everything you have received and then some.

[Moe Bedard]

I will gather your story and place it permanently in a success thread this weekend. You will forever be immortalized as a person that fought back and won on this website TxAngel

[TxAngel]

Thanks so much Moe for the kind words! If it weren't for this forum I don't know if I would have done any of it the right way..I didn't even know what a loan mod. was. All I knew is they had put us in another program to try to help us, then I found this place and realized what it was and what was gonna happen. And the samples of those letters..I would have had no idea. I hope people keep posting on here and giving tips and info..it's such a help!!!
Just stay on top of everything..Don't quit! Gosh..I sure wanted to. I came close..but my house is worth more than giving up.
Thanks again to all of you..Moe..KEEP UP THE GOOD WORK!!!
Just a long slow process..but it is working!!!!
I would have posted along the way, but I thought if I said anything then it would be jinxed, so I waited until it was all said and done!

Good luck to all of you!!!! Good things are coming!!!
and BE PERSISTANT!!!!!!