Update Option One SUCCESS AT LAST!!!!!!!!!!!!!

[elpjohnson]

Good Morning~

I have been calling Option One every day since I found out my payment will shoot up by $1695 in August 2008. The status is that right now they have pre-qualified us for the "President's Plan" and they are currently reviewing our account. I have been assured by Option One that they "are here to help us" and will be there for us during this process. I have heard this twice now from the home retention department. I'm not sure if that is just a **** and bull story to keep me calm. We'll see, I am very skeptical but maybe Option One is trying to help their borrowers, only time will tell.

Now, keep in mind we are not behind and have never been late on our account, so we are good there. I'm just scared and worried that this crap will drag on for the next year or so while I try to get some sort of a modification on my loan. I know that lenders don't typically modify loans that are in good standing but I'm going to fight them until I get a loan modification of some sort in place. I can't stop thinking about it .....I cry at the prospect of losing my home.

I have been assured by people in the industry and by Option One that I will not have to face this extreme rate adjustment but that gives me no comfort because I know how difficult and long this process can be.

Moe, I want you to know that this site has given me the knowledge, strength , and hope so that I can stand on my own two feet against my lender Option One. Thank you so much for that!

Wish me luck I'm gonna need it!

P.S. If anyone has Option One for a lender and wants to speak to someone in the U.S. not India, I suggest you call around 7:30 am.

[elpjohnson]

I found out the phone number (supposedly) for the US offices of Option One the number is 1800-704-0800. It rerouted me to India today because I think the offices in the US are closed on Saturday. Again, I found that the earlier you call the more likely you are to get a person from the US.

If anyone has any information about dealing with Option One please let me know.

[Moe Bedard]

Moe, I want you to know that this site has given me the knowledge, strength , and hope so that I can stand on my own two feet against my lender Option One. Thank you so much for that!

Thank you so much for taking the time to thank me. I have been so busy lately in my community and then online, that It is hard to follow all the posts and I have been missing some because the forum is a lot more active during the week. I have been trying to find a sponsor so I can dedicate 100% of my time to LoanSafe. I am almost there.

It's people like you that keep me going and it also keep other homeowners spirits up. Many are not members, but they gain hope and knowledge from people such as yourself.

Wish me luck I'm gonna need it!

I wish you he best of luck!

P.S. If anyone has Option One for a lender and wants to speak to someone in the U.S. not India, I suggest you call around 7:30 am.

Great advice!

[elpjohnson]

**Update**

I just called Option One regarding the Hope Now plan and they said they reviewed my account and will be sending out a workout package to my house. I won't believe it until I see it but it's news all the same. Maybe they are just tired of hearing from me since I call them every single morning to find out the status of my request.

[Moe Bedard]

The squeaky wheel gets the grease. Yes, they get tired of borrowers calling and the nice ones that call all the time, usually will be helped, if they qualify. Most people give up. Way to hang in there!

[elpjohnson]

Well, I've been on the phone with Option One at least 5 times today.....urgh! I could just scream, I am so frustrated. I have been told so many stories today I don't know which one to believe. I was told I was going to get a loan modification letter in the mail then I was told I didn't qualify for the "Bush Plan" because they didn't call me back yet yadda yadda yadda. What a bunch of BS! To date I have only submitted my financials (we only had a surplus of $158 per month) as I am waiting for the paystubs for January because my husband got holiday pay in December and I don't want them to deny us based on that. I've got my hardship letter ready to go. Now all I need to do is submit the paystubs, w-2's, bank statements, etc. I am really afraid that they will see my husbands income and turn us down even though there is no way we can pay an additional $1695 per month. The situation is just ridiculous.....I'll say one thing, I am not going down without a fight! We have a plan in case things go bad and they deny us a loan modification. We decided to make them take our home from us or make them negotiate by not paying once the loan resets in August. It seems like a huge gamble but what else are we supposed to do? I know I'm just going on and on but I needed to vent.....I'm upset, frustrated, and scared.

[Brian K.]

If you plan to fight you will need some ammunition. You need to find TILA and RESPA violations in you loan. You should get your loan documents out and start reviewing them. Look for odd charges and inflated broker charges. You should also read the posts of sswiz to see how he finally got action. Kind of funny, by it worked.

[elpjohnson]

I know it sounds stupid but I lost all of my loan docs! So, I ordered them from Option One and am supposed to get them in the mail soon. I do believe that something is awry but I need to find out the info. Will my lender have all the docs I signed? Or do I need to go through my slimy broker to get the info?

[Brian K.]

go to the title company for the docs

[elpjohnson]

Got it...I will call them Monday morning.

[elpjohnson]

Well, I received a copy of my Hud final statement and it read as follows:

Lines 808 through 814
808. Tax service fee - Fidelity National Tax Service $65.00
809. Funding Fee - Option One Mortgage Corporation $50.00
810. Flood Certification Fee - Aculink Mortgage Solutions $15.00
811. Underwriting Fee - Option One Mortgage Corporation $850.00
812. Yield Spread Premium - First Priority Financial POC $1440.00
813. Broker Fee 1% - First Priority Financial $5760.00
814. Processing Fee - Mary Cuevas $595.00
Supplemental Summary $367.00

901. Interest 06/12/06 to 07/01/06 @124.000000/day - Option One Mortgage Corporation - $2356.00

1001. Hazard Insurance 4 mo @$127.17 /mo. $508.68
1004. County Property Taxes 6 mo. @$351.97/mo. $2111.82
1008. Aggregate Accounting Adjustment $-703.94

1108. Title Insurance - See Supplemental page for breakdown of individual fees and payees $1385.00
1109. Lenders Coverage $576,000
1110. Owner's Coverage $0.00
1111. Additional Check Fee - First American Title $50.00
1112. Overnight Mail Service - First American Title $60.00

1201. *Recording Fees $100.00

Brian this is what my settlement statement looks like....do you think there are any violations based on these figures? I don't really know what to look for so I thought I'd post it for your review. Let me know what you think. Thanks!

P.S. What is the title insurance for?

[Brian K.]

You paid your broker in excess of 7,000 for this loan. Do you think he earned it? The person who processed your whole loan only made $595.00. Think RESPA

Title insurance is legit. Its to protect the lender from title defects, such as a forgery in the chain of title.

You really need the whole package to find problems, but the TIL is a good place to start.

[elpjohnson]

Thanks Brian.....I should have my loan docs by next week and will let you know what the TIL says. I don't think my broker should have gotten a dime for this loan but hindsight is always 20/20.

[elpjohnson]

**Update**

Well I've been told that I don't qualify for the "Bush Plan" because we are at 88.6% LTV Not sure what that means. However, I was told today that I CAN apply for a streamline modification NOW (apparently, Option One changed their criteria within the last 5 minutes) even though my loan does not adjust until August. This all started because I received a letter from them saying that my rate was going to change in 180 days (it's actually longer than that) but okay....so, the letter said to call if you were going to have trouble paying the adjusted payment. I called and was told to go ahead and submit my hardship letter and paystubs...I plan on doing that on Monday.

You know what I think? I think they sent me that letter early because I sent them that QWR this week. It's gotta be that. I just wanted to update because we have a few more Option One people on the forum no and it may be of interest to them.

The phone numbers I have for Option One are 1800-648-9605. 1-800-505-3706, 1-888-275-2648, 1-800-704-0800. When you call always ask for a US representative so you don't have to talk to someone from India. Hope this is helpful....

[Ragdoll]

Erika, I was told by my negotiator that they ARE starting a streamlined process. He said it's too late for me - since I've been involved with the old "take as long as humanly possible" process since October! Supposedly I am his last homeowner from his "November" files. The only thing he's still waiting for is reports from the tax department at Option One. Then the modification goes to documents (another department that can take 2 weeks)UGH! So hopefully you will be able to do some kind of streamlined modification, this waiting is just killing me.

[elpjohnson]

Well, Ragdoll, I can understand your frustration. I know it must be tough to be in your situation and still waiting since October arrghh! I would be screaming by now, hell, I'm already screaming and my loan doesn't adjust until August. I am hoping that I can get into the streamlined process so my loan can be modified quickly. Now, are you going for a traditional modification or a rate freeze type modification? Are you or were you behind? I know I read your story but I don't remember if you were late or not....anything I can do to help please let me know, even if it's just support because we have the same lender.

[Ragdoll]

We are behind due to a huge home repair and the resulting snowball effect. I am told they will be rolling my lates into the loan, and fixing it for the rest of the loan, at a better rate. Sounds too good. So until it is all in writing, signed, etc. I'll keep at it.

[elpjohnson]

We are going through that now....we HAVE to replace our well and it's not cheap. We went to the bank to get a loan and I'm waiting to hear back from them. So, hopefully I can keep up on the mortgage despite this HUGE expense.

I'm keeping my fingers crossed for you that this gets done soon and you get the loan modification you need from Option One. Please keep me posted on your progress and I'll keep you posted on mine as well.

[mreedlaw]

Good evening Erika:

I agree that the YSP and the origination look a little steep to me...

The 88.6% LTV (Loan-To-Value) essentially means that the loan amount is 88.6% of appraised value of the home.

This is why there are so many homeowners with first and second mortgages - anything over 80% LTV triggers a PMI (private mortgage insurance) requirement, which is part of a monthly mortgage payment until the loan is "paid down" below 80% LTV. When I first bought my home I took out an 80% LTV first loan and a 15% LTV second loan (and put 5% as a down payment), but the industry typically refers to this a first & second loan as getting an 80/20 loan.

Anyway, I hope that your battles continue to go well and that you ultimately win the war.

[Ragdoll]

Thanks for your support. It's funny how this forum can make someone feel better. Just knowing that you aren't alone and a loser, lol.

Keep at it folks you are moving forward and rather well so far, I am beginning to think that the QWR letter causes some concern to them, other people have mentioned that as well. Hummmmmmmmm

The amount of the loan controls those fees, so I can not speak to the excessiveness of the fees without the amount reflected. The Broker fee states 1.0% so the loan amount would have to be 576,000.00 - what is really humerous is the underwriting fee - highest I have ever seen, did not know my work was worth 850.00/hour. Takes about an hour to underwrite one of these give or take. Full Doc about 1.5 to 2.0 hours as long as I do not have complex tax returns. Well golly the title insurance was for 576,000.00 so loan amount 576,000.00, nah 1% is Normal Usual and Customary. YSP did not appear egregious - I have seen over 20,000.00 in YSP on some of these, now that is obscene. Now what is fascinating is the cost of the title insurance, was this a re-issue, ie did you have one issued less than 1 to 2 years prior on another transaction...that may be high also.

Your LTV would have to fall under the 80% mark to meet "Bush's" plan, yep MI companies are not real keen on risk these days. Not to worry, not many people are going to qualify for just that reason.......PR ain't it great

[elpjohnson]

Hi Michael, Poppy and Ragdoll, thanks for your response.

When I went back and looked I mean really looked at what I was charged for this loan I was furious. I know other people are being charged much higher YSP but my broker did not deserve what he was paid for on this loan.

Michael, thanks for explaining the 88.6%LTV thing....I was really confused about that.

Poppy, you were right my loan was for $576,000. The underwriting fee was excessive as was the title insurance. You know we refied the year or so before this refi (Option One) and there was title insurance on that HUD 1 as well. So, are you saying they shouldn't have charged me for that? Should I write the title company a letter? I sent them a copy of my QWR per upon Michaels advice....I am just waiting for them to respond to my demands.

Again, Michael and Poppy thanks so much for your advice...it's really nice to have professionals to consult on these matters. You are BOTH much appreciated

California, Colorado and Arizona have rebate/reduction in Title Policy Fees for re-issue within a certain period of time. Colorado you have turn in the old policy, Arizona - never ran into a turn in policy condition, California, don't know, but if there was one recently issued they could have seen that and made arrangements to notify you of the procedures.....savings.....don't know, don't know if you got a rebate/reduction in fees for issuance.

I hate to say it, the Broker may be a real schmuck...however his fees were not excessive, he did not get them all if he was in a shop where he was only an LO, the shops generally get their cut and then the Broker gets a percentage or bps (another set of initials, we are so good at that "stuff"). My cut when I was an LO was 50bps or one half of the origination to a certain production status, it went up as I closed greater dollar volume. The LO does not get the YSP entirely either, only a certain percentage or bps - generally a set amount of 50bps or one half of the YSP, if it is a fair shop. Some shops keep it all and tell the LO to bad, you don't get any of this. This was not all that bad except for that damn Underwriting Fee.....damn. I wish I had that for every file I underwrote, I would be totally set for life.

[6wolverines]

Yeah, Erika. Our broker was paid an origination fee of 3.3705% or $4685.00 on a $139,000.00 loan. He also received a "processing fee" of $895.00 and $695.00 YSP. Although Poppy says your broker's fees may not be excessive, it doesn't change the old "pass the barfbag" factor!!! Particularly when your in the boat your in right now!!!

Fingers crossed on the loan for the well......And for everything else too!!!

Char

[elpjohnson]

Thanks, Char.....we got the loan for the well $18,500 WOW!!! Now that's gonna strap us a bit but we will get through it. Now I won't have water until Wednesday or Thursday.....ouch! We've been eating out every night (no water to cook or wash dishes) so that's getting expensive but our homeowners is covering that. I keep thinking it's almost over and that it's a dream but then I wake up and I have no water AND I'm in a F'd up loan! AAArrrGGGhhh! Oh and my broker got me for almost $8 grand that put me in this piece of $hit loan in the first place.....I'm just venting.

Poppy, you are right in the grand scheme of things my broker did not charge us excessively but he did get us into this loan and assured us we could refinance in 2 years blah blah blah. I'm sure you've all heard that story before. So, you have to excuse me if I think he shouldn't have made a dime off of me and my family.....oh well Hindsight is always 20/20. Now I just have to bust my a$$, stay focused, and get this loan modified asap.

Sorry for the mini rant.....It's been a long day and having no water is making me a grumpy girl.