HomEq Mod SUCCESS!!!

[myhouseismine]

My story is much like many people who are fighting to keep their homes. We found a house and we loved it. Sold our townhouse, then ran into our first predatory mortgage broker. Guy was trying to get us to take a high-interest loan because our our low, but do-able credit scores. We walked away. Then met our next and current problem. Some broker who loved to do business with Option One, First NLC, and finally who we have - Ocwen and HomEq.

Purchase story: We did an 80-20 loan in Feb 2005. 1st is interest only with HomEq and 2nd is 30-yr fixed @10.5% with Ocwen. Everything was fine until our 1st adjusted this past April 2008. Went from 6.99% to 9.45%. From 2382.80 to 3367.00. WE have good incomes, but this is a stretch. Tried the first loan modification guy in March 08- he laughed at me. Said we didn't have the income with all of our expenses anyway. Never called him back. Just started over last week with new guy and I think he feels the same way. We have been trying to refi for the last 4 months. Appraisal came in low with first bank so we were denied. Second appraisal came in good enough to refi, but no underwriter will approve the loan, just keeps coming back asking for more comps. NOTHING IS SELLING. We live in a high foreclosure area. What can we do?

My problem: I don't trust HomEq modification people. I am afraid to send in my paperwork because then they will discover what I have now discovered since looking through my closing documents -the mortgage broker screwed us - our income was INFLATED on the documents. I remember sending in our paystubs, so where did he get those large numbers? We don't even make that much now, but we can afford our home if we can get a better interest rate. If I send in our current info - will HomEq screw us?

Where do I start? Please help. We haven't been late ever, yet, I making the payments by the 29th or 30th of the month and the late fees are piling up.

If someone could lay out a plan, I am sure I could follow, but I don't understand enough about mortgage servicers to know my rights. I appreciate this site. I am strating to think there is something I can do, but I am overwhelmed.

-K

[Moe Bedard]

Hi K,

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

First lets start with trying to obtain a modification of the first with Homeq..... and then when that is in place we can tackle Ocwen.......we have contacts for both...........

What they are looking for in a modification is that you can afford the mortgage moving forward.......
When you put together your household income versus the household expenses you would need to show a surplus of around $100-$250 at the end of the month...........this is key to even being elligible for a modification.....

Then you would need to put together a hardship letter......(there are examples in the Homeowner Tool Box to the left of the forum) make sure the hardship letter has your account number, address of the property, and contact info.........send it to each of the email addresses below........they will contact you and get you started..........

Hope this helps.......just concentrate on the modification with this lender first.......

Please keep us posted on your progress.........


HomeQ
Loss Mitigation
PH 1-877-867-7378
Fax 1-866-577-1227




If you feel like you can't do this alone.............

Homeq works with
Neighborworks America
www.nw.org

[myhouseismine]

Is the $150-250 surplus before or after the loan interest rate/payment adjustment?

[Moe Bedard]

You would have to use the current payment amount because it had already adjusted.............if it wasn't adjusting until June or July that would be different.......but it had adjusted in April.......
And they do go off of your Gross Income not your Net Income........if that helps any

[myhouseismine]

That does help, but when I called in to do the loan modification on the phone the guy asked me for my Net income (what I bring home after taxes), not my Gross. Which one should I really use?

Did I mention I am still scared to death to attack this? But I am going to.
Trying to write out the hardship letter now. Herer was my first one - what am I missing?:

To Whom It May Concern:
This letter is to address the hardship we are facing with making our current mortgage payments on time. Prior to the reset of our mortgage on April 1, 2008 from 6.99% to 9.45% we were never late on our mortgage payment. Since the interest and payment adjustment, we have been able to pay our mortgage before being 30 days late, but it is becoming harder and harder to do so. We have been tapping into all of our reserves in an effort to keep up our mortgage, but we have run out of those reserves. We have no other choice than to ask for your help directly.

With the accrual of late fees and the struggle to continue to make our mortgage payments, we are asking for a temporary modification of our loan. We are asking that our current interest rate be reset to the lowest rate possible and for that reset to be in effect for the next five years.

Though we would rather refinance the mortgage than ask for a modification, the slowing real estate market, plunging home values, and plethora of foreclosures in our area has made it nearly impossible to do so. We are asking that you consider our good payment history prior to the interest rate reset and help us keep our home.

What do I need to add?

[schwefls]

myhouseismine:

YOU CAN DO THIS, do not be scared as the days go by you become more and more confident, just keep calling, calling, calling and fax, fax, fax. Remember good things come to those who wait and patience is a virtue. Be polite when calling in and you will WIN

[myhouseismine]

I did it! I sent off the hardship letter and all of that other stuff they asked for. I also sent TWO faxes tonight and emails to all three CEO's. Yes, I can do this. Here's the hardship letter I sent. What do you guys think?

May 27, 2008

Dear HomeQ:
This letter is to address the hardship we are facing with making our current mortgage payments on time. Prior to the reset of our mortgage on April 1, 2008 from 6.99% to 9.45% we were never late on our mortgage payment. Since the interest and payment adjustment, we have been able to pay our mortgage before being 30 days late, but it is becoming harder and harder to do so. We have been tapping into all of our reserves in an effort to keep up our mortgage, but we have run out of those reserves. We have no other choice than to ask for your help directly. Hopefully there is way to renegotiate the terms of our current mortgage to avoid default or foreclosure on our home.

We purchased our home in February of 2005 using a popular 80-20 purchase program. We had fairly good credit and were unaware of the better loan choices out there. We were assured that if we worked diligently at making our payments on time we would be able to refinance before the 3 year interest-only period was up. We agreed since we knew we were purchasing a home that we could afford and planned on working on paying down our debt and increasing our credit scores while we had the 3 year initial interest only rate. We did our part and kept our debt down to a manageable amount and as a result our credit scores increased. Since purchasing the home, we have started a family, but still have maintained a good payment history with all of our creditors.

It wasn’t until the rate adjustment in April that realized how bad of a situation we were truly in. After looking through the closing documents for our mortgage, I realize now that the broker inflated our income, which I did not misrepresent to him because I sent in paystubs and W2s. Further, we live in a high foreclosure area. The housing market is in a downturn and all underwriters seem to be running scared. We have been trying to refinance for almost 4 months. Every lender comes back with the same answer: unfavorable appraisal value. We actually did get a good value from one appraiser, but the lender just kept asking for more comparable home sales in the area. Nothing in our area is selling and what does sell is for much less than we need to refinance. The good news is that our current home value is higher than our purchase price, but just barely. There is not enough equity to refinance.

Though we would rather refinance the mortgage than ask for a modification, the slowing real estate market, plunging home values, and plethora of foreclosures in our area has made it nearly impossible to do so. We are asking that you consider our good payment history prior to the interest rate reset and help us keep our home. With the accrual of late fees and the struggle to continue to make our mortgage payments I fear we are at the beginning of what could be the end of us keeping our home.

We are asking for a temporary modification of our loan. We are asking that our current interest rate be reset to the lowest rate possible and for that reset to be in effect for the next five years. We are also willing to allow our taxes and insurance to be escrowed if that helps, we currently pay these ourselves (something else the bad mortgage broker told us to do). My husband and I are good people, with over 8 years of stable mortgage histories (including a property we sold to purchase this home) and 8+ years of stable income in the same line of work. We are victims of a lending industry that misled many homeowners. My fight back begins with you – we want to keep our home. Please help us.

To start, I have faxed this letter and the following attachments to your loan modification department :
· Last 2 paystubs
· 2007 Tax returns
· Homeowners Insurance Policy
· 2007 Property Tax bill
· Updated Financial Statement
Property Address:


Sincerely,

-myhouseismine

[Moe Bedard]

Everything looks good.......


Good Luck with the Mod........

[MLG619]

You can do this! I have Homeq and was scared death to contact them. I did and my Loan Mod specialist entered the info in the computer and she was able to tell me right then and there if they could help us out. We are in a forbearance agreement b/c of back tax issues and as long as we pay the agreement for 4 months our loan will go from 8.5% to 5% fixed for 5 years. Make sure when you talk to someone it's from the Loan Mod department. They have idiots in their collections department. I had to use net income also. Good luck to you!

[myhouseismine]

OK, so all of my requested documents for the loan mod have been received and reviewed. Guy assigned to my file called back. First he says the system tells him to offer me a repayment agreemant. Repay what I ask. We aren't behind on our loan yet. Then he asks for more bills. We come up with some bogus pet bills. Then "magically" the system tells him to offer me a reduced rate from 9.75% to 8%. The new mortgage payment don't make sense, though. We come up with more hair and barbershop bills. Then the system "magically" says offer 7.5%. I am now tired of playing along. I tell the guy what we can afford and I tell him to look at my NEW financial statement I sent in with my loan mod request. He does but won't budge from what I gave over the phone last week, which I just gave numbers without calcualtions or anything.

Are these companies really going to help some one like me? My husband and I have a good income. Have been making our mortgage payments, never late. Have good credit. What's the benefit to them to help us until it's evident we can't pay (lots of late mortgage payments)?

We are trying to be proactive and I think these guys are just playing around. This new rate has really stretched our income - REALLY. We are trying to hang on. My husband is even thinking about a second job.

Anyone have any advice on HomeQ and a successful loan modification when their mortgage was never late?

-K

[Moe Bedard]

K,

There are several HomeQ success stories...............just go to the Success Section of the forum and take a look........HomeQ would be in the thead title.......

[myhouseismine]

Today I have decided to send the three HomEq CEOs daily reports of my loan modification progress. I am hoping to shame them into helping me. I don't have a hardship other than this adjusted interest rate. I am getting no help from HomEq Loan Mod department so I will fight this fight the old fashioned way - pen to paper.

I will keep everyone posted. Wish me luck.

-K

[Moe Bedard]

K,

The modification department is working with you according to the post above........they are working on your modification..........

The members who put the hardship letters in the emails do get a response.......sending emails everyday......isn't really going to help the cause.......you have a contact person to work with and you need to keep on him to work with you..........

If you have not already..........go read the HomeQ success stories..........

Please keep us update here in your original thread...........thanks.......

[myhouseismine]

Thanks, ***. I did send the hardship letters in the emails. Yesterday. Haven't heard yet. I looked for HomeQ success stories, but found only 2. I hoping to be one, so if I seem overzealous I am just stressed out about hte whole situation. My loan mod person is not very good. I don't trust him. I will continue, though.

[Moe Bedard]

You can call in and speak to whomever answers the phone and ask for periodic updates on our file..........

[MLG619]

We weren't behind on our payments, they gave us a forbearance agreement b/c of our back taxes then we would get our loan mod in Oct. Call and speak to Michelle. She is the one who is helping us out. We had only $150 in surplus and our rate went down to 5%. All the ones that have answered the phone after I called to double check what Michelle told me were all very helpful and agreed with what she said. Our rate started at 6.25%, then adjusted twice since then.

[myhouseismine]

I have been hasseling HomEq for about a month now. I did all of my financials, sent in my QWR request, and sent in my hardship letter. I finally have a loan modification offer. The offer is 6.625%. My current rate is 9.75% after the adjustment. Preadjusment my rate was 6.99% I haven't even asked my second lender for a modification - trying to deal with them separately.

Here's what I am dealing with - I can get a refinance, but I have to chalk up $18K to do it - upside down on loans. This totally drains any reserves we currently have. I like this house, but not that much. I am probably getting the mod with HomEq, but I think that mods are just a band-aid. What happens if the market doesn't get better? If the interest rates are terrible in 5 years. Same situation, eh?

Now I am wondering, do I take the refi and drain EVERTHING (401k, brokerage accounts, credit cards), or just take the mod, pay the lesser amount and hold out for some other miracle with this house?

-My House!

[Bella]

Take the mod, it sounds great!!

Draining personal financial resources to refinance makes no sense at all.

[elpjohnson]

You know, I agree with what Bella says, the mod offer sounds really good.....as long as it is a payment you can live with until the market gets better or until you can sell and at least get a little something out f it......I would NOT drain all reserves for a refi though because you may need that cash on hand for some sort of an emergency in the future.

Just my .02

[myhouseismine]

Thanks. I am just holding out until I get the "official" word from HomEq on the mod. Then the actual papers making it real. I will cancel the refi after that.

Any advice on starting the modification process with Ocwen -my second? I am so drained by all of this. DOes emailing them work faster? I called and got the mod info emailed to me. Seems somewhat different than what I had to do with HomEq.

[liniw]

Thanks for posting your story. I'll be watching this thread and how it unfolds as we are also dealing with Homeq.

[myhouseismine]

OK, I finally received my loan modification papers via fax yesterday (I guess we can count this as one more home saved). I actually took the time to read and digest what it says and I am not signing it (Not until I can change a few things about it).

Here's the deal: 6.625% for 5 years down from 9.75%. Junes payment capitalized (added to the loan balance) along with all late fees. Problem: I already mailed via online billpay the payment. The full regular non-modified payment. If I accept the terms of the modification that would force me to accept the mod and my first ever 30-day late report on my credit. I was told that the payment once received would be returned anyway since my account is coded for a modification. Also, my first modification payment due July 1st must be by certified funds (western union). Why? I have never in 3+ years had a NSF check with them. Why do I need to send in the payment certified funds? Why would I knowingly agree to a 30-day late in order to accept this mod? My clean credit record (except for my maxed out credit cards due to a mrotgage I can no longer afford) is all I have left.

Am I not seeing the bigger picture here? Should I be forced to take the 30 day late mark on my credit? That will affect my chances to refinance later. Should I try to fight the certified funds thing?

I thought this was going to get easier. It hasn't. Clearly, the mortgage companies are still stinging people as they supposedly "help".

[myhouseismine]

OK, I did it, I accepted the loan modification from Ocwen. here are the specifics:

I was never late, just overwhelmed by the additional amount the mortgage adjustment would cause. Tried to refinance, no luck, upside down on loan balance. Started modification with HomEq, with help from this site, in May 2008. Got loan modification papers June 27th. They are putting June's payment to the balance of the loan as well as any startup Escrow charges. New payment is $2910, adjusted payment was $3367.

So, I guess I have a success, but I am afraid of it's true benefits.

-My House Is Mine.

[sonvme1]

That's great! You mentioned you got your modification from Ocwen, I thought it was HomEq. (curious because I am dealing with Ocwen)

[schwefls]

Congratulations myhouseismine, kudos to you.