Loan mod SUCCESS with AHMSI!

[Maia7]

I stumbled upon this from Google, so glad I found this amazing resource. Thank you to everyone for contributing to this community, I've already learned so much today. I believe in the strength of the people in this country and know we will pull through this.

My situation is complicated (to me) and I'm not entirely sure which approach to take. Here are the facts:


Loan Info

* Lender = Option One / July 2006
* I have both a first and second mortgage, my LTV ratio is more than 97%
* My first mortgage is an interest only ARM for 249k at $1580.80 per month. Currently at 7.1%. This is set to adjust 08/01/08
* My second mortgage is a 30 year fixed loan for 62K at $744.30 per month, currently at 14.1%


Payment Status

* March = past due
* April = going to be past due
* Reason = assisting my mother financially
* Total due to make current come next week will be $4,725

Other factors

* Property Taxes are also late $3,291



Upshot of all this is I have a great job and generally am able to make the monthly payments. I had an unexpected situation with my mother and really had to financially assist her over the last few months. This initially is what has put me behind in both payments and property taxes.

Now, I have the looming prospect of the rate going up on the loan this August. Because I've been late and the high loan to value ratio I'm told, I simply can't refinance. There's no way I can pay that increase.

I am able to borrow from family to bring the loan current (going to take me a few months to dig out and pay the property taxes) so that immediate problem is resolved I believe. I still have the issue of property taxes and the loan reset to contend with.

So, here I go - I need to get some help. What sort of help do I really qualify for? Should I be asking for a loan modification of a rate freeze? Should I not borrow money from family and instead try to get the late pays wrapped in to the new loan? Am I doomed? If I could just hit a reset button and start from scratch, I could afford my house.

Thank you for your good thoughts, I look forward to contributing my experiences as I go through this enormously confusing process.

Since you have gone delinquent prior to the adjustment there are not programs that will allow a refinance, just the same stuff you are already in and worse to boot. So, get the loan current and get those property Taxes paid if you can.

You have to get the loan current, do not fall behind they will start foreclosure proceedings and make it very difficult to pull through and make your stress levels go through the roof.

Since you have not adjusted yet there is a possibility of forbearance, however, they are addressing the loans that are adjusted, not necessarily the loans that are delinquent due to "choice", sorry, but that is a way that they look at it.

You really, really need to get everything current, this is a hardship issue, but before the adjustment, not after the adjustment and as such will cause horrible problems in modification.

You will need to start the modification process around the end of June to effectively address the issues of the rate adjustment prior to August. They are not modifying out much more than 2 months. They have to many in the pipeline that are already adjusted and in hardship due to the adjustment.

[Maia7]

Thanks so much Poppy. Affirmative, I get it. I'll be getting everything paid up current TODAY and getting all available resources channeled in that direction. I'll have to chip away at the property taxes running up to June and hope I can get there. I'll definitely be able to stay current on the mortgage once I'm caught up on the payments. So, sounds like I just sit tight and wait until it's closer to the rate adjustment before getting going with a loan modification.

Sorry to be the bearer of bad tidings on the get the loan current situation as well as the Taxes, but you are in a better position when the modification issues arise.

They tend to just streamline those through in about 30 to 45 days, of course they do not communicate, but they are modifying those more rapidly and with less headaches......

So, get this stuff as current as you can, and in mid to end June start the modification process so that by August 1st you will be in the position not to worry about the rate adjustment.

Keep us posted and let us know how you are doing.

[Maia7]

Hello All -

I posted a while back and received some good advice that it might be best to wait until I get closer to my ARM adjusting before starting the whole process due to the back logs at the mortgage companies. Well, sadly I was laid off last month and I've fallen behind by 30 days on my second, and my property taxes are about to go delinquent in a few days. In short, it's all a bit of a mess and I'm going to try to straighten it out.

I have just started a new job this week - thank god - and if I can get this rate reduced before it resets, all should be fine. If not, I can't make the payments. I've tried to refinance to no avail due to the loan to value ratio.

I wanted to document my experience here for everyone going through this process with Option One. My hardship letter and pay stubs will have to go out at the end of the month once I have them (new job, no pay stubs yet).

And here's my QWR:

This is a "Qualified Written Request" under Section 6 of the Real Estate Settlement Procedures Act (RESPA).

I am writing to request:

(1) Copies of all documents pertaining to the origination of my mortgage including my loan application, Right to Cancel, Deed of Trust, note, adjustable rate note, addendum to the note for the interest only payment period, Truth in Lending statements, Good Faith Estimate (GFE), HUD 1, appraisal, and all required disclosures and rate sheets associated with this transaction for the above referenced loan. The copies should be legible and all documents shall be copied in their entirety.

(2) A copy of the loan history including all payments made, all fees incurred, what has been paid out of the escrow account, and how all payments were applied. This information should cover the entire life of the loan.

Last month, I was laid off from my job and fell behind on my payments and property taxes. I’ve since tried to refinance with little success given the devaluation of the house since I’ve purchased in 2006. While reviewing my loan origination documents during my attempt to refinance, it became clear to me there are many inconsistencies in my documentation. In addition, the purchase price filed with my county is different that the purchase price on my loan documentation received at signing.

Upon further review, I have reason to believe that the loan terms were misrepresented to me at the time of application. I believe my income was misrepresented and documents were forged in order to do this. I believe the broker I was working with (who received a large sum of money – YSP – from Option One) failed to disclose the full terms of my loan. It is also my belief that certain documents may have not presented at all.

Lastly, I was informed by this broker that taxes and insurance would be included in my loan only to find out after closing this was not the case. I had received a document from this broker detailing my estimated monthly payments that were presented as all inclusive, ones that I could afford, only to find out there would be an additional 400 dollars per month on top of that to cover taxes and insurance after closing. It’s been a minor miracle I have been able to keep this together and make the payments over the last two years.

I understand that under Section 6 of RESPA you are required to acknowledge my request within 20 business days and must try to resolve the issue within 60 business days.


**********************

Thank you for this forum.
-Maia

[Maia7]

Hi All -

Wow, what a year. I was looking back at this thread thinking about the last few months. Right when I was digging out and making some headway, I lost the job. Oh well, gotta keep on keeping on I suppose.

I've sent two letters to Option One today. The first is my hardship letter (emailed/faxed), and the second is the QWR (faxed/certified mail). The QWR I ended up sending is as follows:

This is a "Qualified Written Request" under Section 6 of the Real Estate Settlement Procedures Act (RESPA).

I am writing to request:

(1) Copies of all documents pertaining to the origination of my mortgage including my loan application, Right to Cancel, Deed of Trust, note, adjustable rate note, addendum to the note for the interest only payment period, Truth in Lending statements, Good Faith Estimate (GFE), HUD 1, appraisal, and all required disclosures and rate sheets associated with this transaction for the above referenced loan. The copies should be legible and all documents shall be copied in their entirety.


(2) A copy of the loan history including all payments made, all fees incurred, what has been paid out of the escrow account, and how all payments were applied. This information should cover the entire life of the loan.

Last month, I was laid off from my job and fell behind on my payments and property taxes. I’ve since tried to refinance with little success given the devaluation of the house since I’ve purchased in 2006 and with the complication of an interest only loan, the Loan to Value ratio is too low to refinance in a traditional mortgage. While reviewing my loan origination documents during my attempt to refinance, it became clear to me there are many inconsistencies in my documentation. In addition, the purchase price filed with my county is different that the purchase price on my loan documentation received at signing.


Upon further review, I have reason to believe that the loan terms were misrepresented to me at the time of application. I believe the broker I was working with (who incidentally received a sizable YSP from Option One) failed to disclose the full terms of my loan. It is also my belief that certain documents may have not presented at all.


Lastly, I was informed by this broker that taxes and insurance would be included in my loan only to find out after closing this was not the case. I had received a statement detailing monthly payments that I believed were all inclusive, ones that I could afford, only to find out there would be an additional 400 dollars per month on top of that to cover taxes and insurance after closing. It’s been a minor miracle I have been able to keep this together and make the payments over the last two years.


In addition to falling behind, my ARM is going to reset in August. I fear this will be the weight that tips the scale pushing me out of being able to afford my home loan.



I would like a loan modification for both the 1st and 2nd loans held by option one to a 30 year fixed at 6 percent. I think you’ll see in my payment history over two years I have made every good faith effort to pay my loan on time and stay in my home. But now – staring down the barrel of my ARM adjustment coming in July - it’s time to get a loan I can afford and keep my house. Presently, I am seeking to modify my loan to a rate I can afford. 14.1 percent on the second is a little rich for my blood at the moment.



Fortunately, I have a new job where I’m making a great wage. I am in a position make my monthly payments at a reasonable 30 year fixed rate and that include taxes and insurance. I’ve included my bank statements, pay stubs, monthly budget, and my 2007 tax return as evidence of my financial fitness for your review in considering my request for a loan modification.



I understand that under Section 6 of RESPA you are required to acknowledge my request within 20 business days and must try to resolve the issue within 60 business days.


Sincerely---
*************

Now, I will begin calling them tomorrow to make sure they received all of my documetation. I sent pay stubs, tax info, bank statements, their budget doc, etc.

I'll have another update for you all again tomorrow.



M>

[Maia7]

Good morning -

There's been advice on the board to phone option one at about 7:30am pacific in order to get a US person pretty quickly - this is definitely true.

I want to say I've sent in a request for a mod before and it was completely ignored by Option One. Yesterday, I faxed in a another request along with my QWR. I cc'd the CEO of Option One on an email containing the same materials.

Well, this morning I called in and was told my case was assigned to a negotiator named Robin (anyone work with her before?)

While I realize this is just the beginning, I view this as a very very positive step. Getting traction with them in 24 hours like this is a miracle.

I was given Robin's direct line and extension. I will be calling her in exactly seven days. I'll post my update then.


QUESTION:
As an aside, I have seen conflicting info regarding payments during the mod process. I will be wrangling together enough to catch up my payments but I've seen others hold off on this until the mod is finished. Any advice on whether to make the payments/catch up while in mod or just sit tight?

Thank you!
M>

[schwefls]

Hi Maia7:

My suggestion. If they will take them then by all means continue to make them.

[Maia7]

oh boy, that was fast. So I called Robin today to make sure she had everything she needed to look at my loan mod. She when through my budget and insists she sees a surplus of 1500, which is TOTAL crap. In any case, she said I would be denied and is forwarding my application to the streamline rate-freeze department. I explained I was behind on my April payments, would be behind on may, and still have property taxes to contend with so in truth I don't have a surplus because of this backlog.

She essentially said tough luck, you don't qualify for a mod based on the surplus.

What do I do now? I can't stay on top of the back payments, taxes, etc.

I am really very very down today and totally overwhelmed. I have 3300 dollars in taxes that are delinquent, almost 4000 in mortgage back pay, 1700 dollars in bills overdue, and this lady thinks i have an extra 1500 bucks a month laying around. I'm EIGHT GRAND behind right now.

[Maia7]

Good morning all,

hope everyone is doing well this morning. I was called by a new negotiator in the streamline department this morning. The good news is they are going to freeze my rate. Beggars cannot be choosers. I'm grateful.

She conceded they did have my budget incorrect and that I only had a surplus of 100 dollars per month. However, she stated that a conventional modification is at their discretion and right now all they were willing to do was freeze my rates for five years.

Again, beggars can't be choosers.

I won't have paperwork from them until next week some time.

Yay?

M.

[schwefls]

Maia7:

I am glad this worked out for you. I agree something is better than nothing. Happy for you

[Moe Bedard]

Let us know when you receive the docs and if you have any questions on them............

[Maia7]

UPDATE

Well people, it's official, nothing but a pack of lunatics running these mortgage companies.

Here is what has transpired since I've last updated:

My negotiator asked me to send all payments in and be current before she could approve. That's fair. I sent in 1400 of 1700 required Saturday (my deadline was Saturday midnight) and was unable to get the remaining in until Monday AM because of ATM withdraw limits. They insisted on Western Union. I was a few hours late on the last 300.

I called first thing Monday AM after getting the remaining 300 in, hoping they would be human and cut me a break seeing as they were not even open and collecting the funds during the weekend. They picked up all monies I had sent at the same time.

Well, that was too much to ask, they now wanted June immediately western union. I told them I was not going to be able to do that until June 11. She followed with my rate freeze would subsequently be denied. I then emailed the CEO and director of media relations with the tale:


****************************
Dear Members of the Option One Team,

I am proud to say I am the first woman in my family to own property. Through much hard work and a loan through Option One, I was able to make this lifetime dream come true.

In April 2008, I was laid off from my job. I continued to scrap and save and make my mortgage payments. I have a ARM set to adjust soon and because of the loan to value ratio, I won't be able to refinance. I applied for a streamline modification (rate freeze) with Option One and I am very distressed at the process.

Last week, I was asked by my negotiator Sherry (x48736) to get certified funds to Option One for May's payment and she would finalize and approve the modification. This past Saturday I spent 8 hours working to get the funds to Option One but because of ATM withdrawal limits was only able to get 1320.00 of the 1660.00 owed. I spent a great deal of time and money on western union fees to do this. First thing Monday morning I sent the remainder once the bank was open.

I excitedly phoned Sherry looking forward to solidifying my rate and staying in my home. She informed me that because I was *several hours* late, my modification would not be approved and I needed to now send June's payment immediately.

I am heartbroken that I spent all this time, money, and effort only to be continued to be strung along with the promise of a modification if I would only send more certified funds. All I am asking is that Option One freeze my rate in good faith so I can stay in my home and continue to do this.

Instead, Sherry and Option One continue to place barriers in the way of doing this. I cannot continue to spend money on western union and time away from work and family try to accomplish this simple task. Please, don't put my family through any more hoops as we try to solidify our loan and rate. We're not asking for special treatment, new terms, or forbearances. I am simply asking for my rate to be frozen as is so I can continue to stay in my home.


****************************

I then received a call from the Home Preservation office. They stated that they had been reviewing my taped phone calls with my negotiator and that they were confused by my email because after listening to my taped calls with the negotiator they believed I had DENIED MY OWN RATE FREEZE. Which is totally insane. I told the preservation officer that I had NOT rejected a rate freeze but that I could NOT go through another round of sending June's payments immediately western union and that I couldn't do that until mid June. I wanted the rate freeze and I wanted to make my payments FOR FREE OVER THEIR WEBSITE LIKE EVERYONE ELSE.

She then says "Well what about this QWR? What are you wanting with that? Do you want us to respond to this?" I said I wanted the QWR to be acted on and I wanted all my loan information and all records associated.

She then started telling me she would freeze my rates once I received my QWR paperwork and reviewed it and then let them know if I wanted a response or if I would take any action. I said NO, ALL I WANT IS MY RATE FROZEN at this moment AND I would like my QWR filled. I did not think it made sense to hold my rate freeze hostage while I reviewed the documents. Which leads me to believe there are some unscrupulous bits to my records as they did not want to provide the freeze until they were certain what I was going to do with the records from the QWR.

This went back and forth for a while as she tried to gauge what my plans were. I kept saying all I want is my rate locked so I can stay in this house. That's it. BUT I also want my records because there is a lot of conflicting info with what has been recorded with the county as far as sale price goes.

At the end, she agreed to freeze the rate and send my records. BUT she did not want to send anything but the loan docs themselves. She did not want to send all records associated with the loan. Does it matter what she wants to do? She is only sending the loan docs. Is that legal?

Not sure where to take this now...I've got my locked rate but what's in those records they don't want to hand over?

M.

[Maia7]

One last bit of advice:

I REALLY encourage all who are dealing OOMC to conduct everything in writing through their negotiation process. There was a wide gulch between their understanding and my understanding of modern standard English. As in, no means yes, yes means no, etc.

All further communication I have with them will be in writing.

[Moe Bedard]

Maia,

If they don't send everything that you are requesting on your QWR, which is your right, you can file a written complaint with HUD and the FTC.....for that.........

And they should want to send you those docs right away because there is a clause in them that if you sign you are waving your right to file suit against Option One and taking the modification agreement instead...............
so I don't know why if there was info in your file that was conflicting that she wouldn't be bending over backwards to rush you the paperwork..........I agree with you.....they are without a doubt lunatics......

[Maia7]

Thanks, *** - you're right, that doesn't make a bit of sense. You would think they'd want me to sign and get me out of their lives.

I'll be sitting down with an attorney next week to review everything - historical and the new rate freeze if I ever get it - to make sure everything is legit.

Again, a huge thank you to everyone on this board.

[Maia7]

UPDATE

Hello! I hope everyone is doing well. I have an update:

I have not received my loan mod papers and Genie in the Homeowner's preservation office will not return my calls. She stated my loan rate would be frozen and she would be sending out the paperwork. That was June 3rd and I've not heard hide nor hair.

Yesterday, I received a letter from Option One informing me my loans have been sold and will be transitioned to American Home Mortgage Servicing, Inc. as of July 1.

I guess I just lost my rate freeze.

[Maia7]

I also have not received any of the paperwork I requested in my QWR....

[elpjohnson]

Hi Maia

I have OOMC and yes they do LIE and give you the run around! I got so tired of their BS that I hired the attorney from this site (Marshall) to handle my mod.....so far they have only offered me a rate freeze because I'm current BUT apparently we have some huge violations in our loan docs so we are going to try to use that to negotiate a fixed rate for the life of the loan. I know how you feel! I got that very same letter yesterday and called them to see if it would change the negotiation of my modification in any way and they said no but we'll see. In fact, they are so stupid that I paid an extra $200.00 to my escrow shortage and they applied it to the principal instead....boy, I let them have it. Just don't give up!!! I know it's hard and it's frustrating but don't let them have your house, it's yours NOT theirs! Good luck and I will keep you in my prayers.

Take care and God bless.

[Maia7]

Thank you Erika! I am really reaching the end of my rope. Actually, I think I reached it months ago. But strangely, this new downturn has given me a renewed sense of persistence. Not going quietly, not my style.


So, I wonder with the transition to American Mortgage whatever they're called is going to affect our ability to litigate for violations in our loan docs? Anyone know?

Thanks,
M.

[elpjohnson]

Good for you Maia.......persistence is key in this process, that is they only way you'll get through this mess in one piece.

You know that is a good question but I think that since it is just a name change and nothing else, they are still accountable for violations in our loan docs.....I'll ask Marshall when I get around to it.

[RudyJay]

This is a quote from Moe in a thread :

AHMSI just bought out Option One. I reported this on my blog last month. So, this letter is legit. Now, lets see how they handle you all. Please report back to me on this new AHMSI co.

H&R Block Closes Sale of Option One Mortgage Servicing Business
By Moe Bedard on May 3rd, 2008 | Edit

KANSAS CITY, Mo. – H&R Block Inc. (NYSE: HRB) today announced that it closed the sale of the mortgage loan servicing business of its Option One Mortgage Corporation (“OOMC”) subsidiary effective April 30, 2008. As previously announced, the purchaser was American Home Mortgage Servicing, Inc. (“American Home”), an affiliate of WL Ross & Co. LLC. Proceeds of the transaction at closing were approximately $1.3 billion.

“The closing of the Option One sale is a significant milestone in the transformation and refocusing of H&R Block,” said Richard C. Breeden, H&R Block’s Chairman. “We are pleased to safely transfer the servicing responsibilities of Option One into the hands of a respected and responsible purchaser. More importantly, we delivered on the promise we made to shareholders to change the future course of our company. Today’s transaction reduces risks and distractions from doing what we do best, which is serving the tax preparation needs of tens of millions of clients.”
__________________________________________________ _______________________

HOPE THIS HELPS RJ

[Maia7]

Gee, I'm really happy for H&R Block. Looks like they've weathered this crisis really well.

I can only hope the same or better for the rest of us they screwed over, er, uh - I mean assisted in attaining our dreams:

Oppenheimer analyst upgrades Block stock
H&R Block Inc. shares were upgraded to “outperform” and price targets raised to $27 by Oppenheimer & Co. Inc. today because of Block’s improved financial prospects after shedding its subprime lending operations.

Block’s shares at midday were up 92 cents, or 4 percent, to $23.24.

Oppenheimer analyst Scott Schneeberger also said in a report to clients that he expected Block to soon report $1.40 a share earnings for its just ended April fiscal year, exceeding a currently estimated $1.32 consensus forecast among other analysts. Schneeberger said he also expected Block to increase its earnings guidance for the fiscal year through April 2009 above a currently estimated $1.54 a share

Block’s sale of its Option One Mortgage Corp. subsidiary and accompanying layoffs and other cost reductions, plus a stronger than expected tax filing season, were the primary contributors to the raised expectations, Schneeberger wrote. He also speculated that in Block’s continuing drive to refocus on its flagship tax preparation operations, the company may sell its financial advisers arm. Shareholders would welcome a sale of the unit, which hasn’t turned a significant profit in the more than eight years Block has owned it, Schneeberger wrote.

[Maia7]

Update

Well, it has happened and I have received confirmation of a five year rate freeze. Not what I ultimately wanted but not as bad as losing my house

Now it's a matter of getting caught up, which would have been impossible if my rate adjusted up four or five percent. I AT LEAST stand a fighting chance now.

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To Loan Safe and everyone for your kind words and thoughts.

Maia

[schwefls]

Maia7:

SO happy for you, glad it all worked out.