Aurora Modification SUCCESS!!

[Walking Away]

Aurora home retention department is knowledgeable and friendly and I've had good conversations with most of them, but they are among the most heavily reported companies on a popular complaint site for not modifying borrowers despite their promises and for other unethical practices(I'm new here and not sure if it is okay to mention the specific site on this board). The home retention department is irrelevant if the underwriters are told by the CEO to not modify borrowers. I can only speak for myself and mention I've read a ton of internet complaints on them. So far they have completely hosed me and now I know I'm not alone after searching the web and a few people on this site. 1 person on this site said he got modified and would post when he got his paper work, but he never posted again to say he got his loan mod papers. I'm surprised this site has so few bad comments about Aurora despite other sites who have heavy complaints. They're large Alt-A company like Indy Mac; so maybe the complaints will pick up as Alt-A crashes down. For me my only hope of keeping my home is a loan mod that would reduce my payment. Aurora put me instead on a repayment plan with no rate reduction because they said I had to first do repayment plan and make 3 good faith payments that were $100 more than my regular payment. They said I qualified for repayment plan because I had a $250 surplus of income to expenses. I worked like mad about 60 hours per week every week to make the payments and then applied for the 6% loan mod. I'm blue collar and the shoulder and back pain do not allow me to work 60 hours/week year round, but a 40 hour week is okay and the 6% loan mod would knock about $375/month off my loan and would save my home. So I did repayment plan and then reapplied for the 6% loan mod and was stunned when the underwriter denied me because my $250 surplus had strangely grown to a $1,400 surplus. This made no sense at all but borrowers are never allowed to talk to underwriters or question anything they do; so I got rejected with no recourse. Aurora said they don't take part in Hope for Homeowners new program and my last hope is what's called a Fannie Mae Home Saver. With this; you pay the same payment as before; and then the borrower also gets a separate new loan at 5% for money owed. They call this a "Home Saver Program". It should be called "Walk Away Deal Clincher". With me I now owe 5 payments because I missed 1 initially and there was a 2 month delay as I waited for repayment plan and now another 2 month delay as I waited for loan mod decision and now wait again for Home Saver Program. Each time waiting I'm told not to pay them which is odd as it puts me further behind. I offer money but they say not to pay. Don't they want money? The government help line told me today to try a short sale and to get a bankruptcy attorney so I'll call attorney tomorrow. I like the house and will keep it if I'm modified to 6% range, but I'm baffled why they prefer to foreclose instead of modifying. If modifyed in April I would have made 11 payments this year instead of just 7 and I'd be psyched to keep the house. So none of this makes sense to me and I've read a ton here and still don't get it. Although lately Moe has began explaining the loan servicers are the main problem and maybe only judges can force loan mods and/or principle reductions(the best solution). I'm very curious to see how you make out with Aurora and wish you luck and hope you post how you do. I hope you do better than me and others on web.

[Moe Bedard]

If they say that you are qualifying for the HomeSaver Advance through FannieMae than your investor is FannieMae........have you asked about the Streamlined Modification program that is beginning on Dec. 15th........to which, if you are 5 months behind you will definately qualify for.........


Here is the press release in case you are interested...........
http://www.fhfa.gov/webfiles/169/new...MENT111108.pdf

[Walking Away]

Hi, thanx for responding to my post. I've all but given up so it's nice you showed an interest. Aurora said they don't have any info on any new programs. I called back and talked to another home rentention person and she said the same thing and added that Aurora doesn't have to take part in any Fannie program or government program; even if a person like me meets all the criteria. I called Fannie Mae and they said they are helpless if a loan servicer doesn't help someone like me. Is this true? I've all but given up on knowing who to trust. Fannie is the investor and they are at the mercy of the loan servicer? I think I meet the criteria for this streamlined program and also a few others, but I suspect my problem and many people's problems relate to Moe Bedards latest articles; which are now stressing that loan servicers are at the heart of the problems.

[Moe Bedard]

This is not correct at all and FannieMae has problems with ALS..........so I have a call into FannieMae and will post as soon as I have info...........

Did you get the name of the person at Aurora that you spoke with?

[Walking Away]

***; I don't remember the name of the lady who said Aurora doesn't offer the programs I asked about, but I talked to a lady today who I believe was Renee who told me they still have no info as of yet on the new Fannie Mae Streamlined Program which starts on December 15th. She's heard about it but so far she said no one at Aurora has given the home retention department any info on it. She did tell me that the lady who said last week they don't offer Hope For Homeowners was wrong and that Aurora does offer it, but she said she hasn't seen any borrowers try it and had no info to give me on it except to call FHA. She said to check back on december 15th and see if Aurora has info on the new streamlined program, but for now all I have going is that my Home Saver application is currently under review and would take 30-45 days before I get a decision(I applied on November 25th after the loan mod was rejected). The government helpline said to get a bankruptcy attorney, but I called Fannie Mae and they said if I do bankruptcy I can't do the new streamlined program if Aurora offers it to me. So I remain your typical confused homeowner who's told not to pay their mortgage but has no clue where any of this is going. Hey ***; if you talk to anyone at Aurora; I'm curious if they tell you the same thing as me; that they have no info on the Dec 15th program. Thanx for helping me

[Moe Bedard]

The program that is beginning on Dec. 15th is a better program than the HomeSaver Advance...............the HSA program uses a loan to catch up past due payments and bring the loan current.......that program is not a modification program that can lower rates or extend terms, it is a loan used in addition to a modification............the streamlined program is a modification that will lower rates and extend terms to make a payment more affordable........it will be rolling out in five days on Dec. 15th.

[Walking Away]

I'll call Aurora the 15th or the 16th and see if they have anything new on the Streamlined program. I hope they do because I meet the criteria and as you said; the Home Saver Program won't do me any good because it will be my same original payment, which I can't afford anyway unless I kill myself and work 60 hours a week. I'll let you know if Aurora lets me apply for Fannie's Streamline program

[Walking Away]

Hey ***; I called Aurora today to see if they had info on Fannie's new Streamline Program, but they said they still don't and I should check back Thursday or Friday.

[Moe Bedard]

It did just start yesterday.............there are a few other servicers who are working on getting all the info together as well. If they don't have the info by Friday then you may want to check with FannieMae as to when you will be able to get the modification because from the proposal it looks to be a better program than the HomeSaver.

[Walking Away]

Hi ***; I'll call Thursday or Friday and see if they have info. If they still don't I'll call Fannie Mae and see what they suggest. I'll let you know how I make out later in week

[Walking Away]

***; Aurora told me they are not offering me the Fannie Mae Streamlined Program; even though I meet the criteria and I have a Fannie Mae loan. They said they are now working on an interest rate mod of 2% lower instead of the Home Saver program. That would be okay and would keep me in my home if they really are considering this(after 8 months I have trouble believing anything I'm told). I called Fannie Mae and they said that loan servicers and lenders can do whatever they want and they don't have to offer me the Streamlined Program even though I meet the criteria and have a Fannie Mae loan. The lady added that for 2 days; she's received a lot of calls like mine and had to tell borrowers that Fannie Mae cannot force a loan servicer to offeer the Streamline Program if they don't want to. She emphasized my only recourse is to call Aurora and that Fannie Mae cannot help. I seen after 10 weeks the Hope For Homeowners had just 300 or so applicants, which is on pace for 1,500/year. They were hoping for 400,000 in 3 years; or 133,000/year; a comically sad miss. So are all these programs a joke and waste of time; if the investors like Fannie and Freddie are powerless against the lenders and loan servicers. Hey ***; no rush; I know you have lots of posts to respond to; but is all this info I'm being given by Fannie Mae; actually true??? They can roll out programs to help borrowers stay in their homes; but the loan servicers can ignore them and just foreclose???

[Moe Bedard]

I guess they can do what they want...............FannieMae just made another announcement today about the program.......I am still waiting for a call back from FannieMae to clarify the servicer's stance on all of this......which seems to be extremely uncooperative........

Media: News Releases > Streamlined Modification Program (SMP) Now Available to Borrowers

The 2% lower sounds great and that would be better than HomeSaver..........I hope they follow through..................

Let us know.......

[erichson]

Why were you denied for your loan modification originally? How long was the response time? I was told 4 to 6 weeks when I called.

[Walking Away]

Hey ***; curious what you find out from Fannie Mae. Just so you know; I called a second time to confirm what I was told the first time and both times I was told my only recourse was to call Aurora; that Fannie Mae can't force servicers to help. Thanx for the link; it's another promising press release and new program, but unless the politicians force loan servicers to modify; 2009 will get even uglier.

Erichson; I was denied because they said my surplus was too high and I could afford the house. To make a long story short--they lied. O, and the response time was about 6 weeks.

[Walking Away]

***, I've got Aurora loan and my investor is Fannie Mae and Fannie Mae says that they are at the mercy of the loan servicers. So even if someone meets the guidelines of a loan program offered by Fannie; Aurora doesn't have to offer it to the borrower. Investors set guidelines but loan servicers can reject anyone they want and foreclose on anyone they want; regardless of what the investors want. That's what Fannie tells me. In my case; instead of Aurora trying to get for me the Streamlined program like you suggested I try; Aurora refuses to allow me to apply for Streamline and instead is now offering me an interest rate of 1% less(8 1/4 down to 7 1/4). Surprisingly, they actually are offering a loan mod, but it will save me only about $130/month; after my missed payments are added to principle owed. I called a top bankruptcy attorney yesterday and probablly won't keep the house unless the paper work I receive is different than what I was quoted over the phjone(they said they mailed paperwork a week ago, but I didn't get it yet). Fannie Mae tells me the streamline program would have been much better; which is what you also told me. Fannie said I definitely meet all the criteria, but that there is nothing Fannie Mae can do because they are only the investor; and it's the loan servicer who makes all the initial loan mod approvals or denials. Fannie and other investors set guidelines but loan servicers can do whatever they want. Fannie says if Aurora rejects someone for a loan mod; the investor is helpless and the house is usually lost and there is nothing the ionvestor can do. That's the risk that the investors take. I had a question for you ***, with my situation. Can a good bankruptcy/real estate lawyer help me get a better rate after I receive the paperwork or is it a done deal and the 1% interest reduction is the best I can do? Thanx for any help

[Moe Bedard]

Your question is a question that I really am not able to answer. If this is the only property that you own.............why don't you instead try the non profit NACA to see if they can help with a fixed rate modification proposal.............their services are free to try.
https://www.naca.com/refinance/refinanceSubmission.jsp

[Walking Away]

Hey ***; that's a good link; it sounds like having a Fannie Mae loan is a losing deal and probably the same goes with Freddie Mac. This is the first indication to me that the main problem is Fannie and Freddie and not the loan servicers. They blame each other, but now I understand where you're coming from with your advice and info. I was confused why you seemed to be defending Aurora; or downplaying their road blocks. Now I finally get it. The government gives these quasi government companies $100 billion a piece and takes them over; then they keep the guidelines tough and modify as few people as possible because the gov has bankrolled them, which allows them to take their losses with foreclosures. Freddie wrote off $13 bill already and now asks for an added $35 bill so half their $100 bill is lost already; but their guidelines still prevent many mods. I should have joined your forum 8 months ago when I first had problems; but now I feel I better just get a top bankruptcy attorney this week and see what he recommends. I'm 6 payments behind because Aurora keeps saying not to pay since October; so hopefully the paperwork with terms from Aurora; arrives this week. My sense is that if I reject their offer and hold out; that foreclosure will begin. What throws me for a loop is that I was figuring a 2% reduction would make it worth keeping the home while no reduction in interest would lead me to walk away. So the 1% reduction throws me for a curve as I try to figure out if it's worth killing myself to keep the home. Thanx a lot for your help. I'll keep you posted with followups and if I call NACA number; I'll let you know wat they say. Reading about their campaign against Fannie explains to me the main problem for me is Fannie Mae; not Aurora(as much as I dislike Auriora).

[Moe Bedard]

I am neither an advocate of the servicers nor investors.............I am an advocate for the homeowners that are going through this and helping them is what LoanSafe is here for.
Aurora is a big brick wall standing in the way of most homeowners getting a workout..............their customer service is terrible. As far as FannieMae goes...............they are very hard to work with. FreddieMac on the otherhand has been much better at getting their workouts to the homeowners who needed it the most.


Keep us posted on what you hear.........

[RetroBoats]

Walking Away - what is the bankruptcy attorney telling you. Watch out for Aurora's advice about not making payments. One person will tell you to keep current or they won't help vs. stop making payments...all advice per Aurora.

[Walking Away]

Retro; for now; I'm waiting on paperwork with loan mod terms before I meet with attorney. They said on January 16th the loan was approved for a mod and the paperwork was being prepared and would be mail out soon. I haven't received yet so I haven't met with lawyer. I'm not really sure if I need a lawyer for loan mod paperwork; but thought it might be smart just to make sure I understand what I'm signing to. With sending payments; when I was on the 3 month "good faith" plan; I made payments, but then after I completed that plan and waited for loan mod decision; I was told to stop sending in payments. I got rejected for 1st loan mod attempt and was told to reapply for another loan mod and while waiting for this decision I was told to continue not paying. They said last week to wait for paperwork and not to pay Feb 1st; so I'll be 7 months behind next week. And Retro; after reading ***'s post; it looks like the combo of Aurora and Fannie is among the worst~figures

[RetroBoats]

Thanks for the info.....I hope it all goes well for you.

My friend has the same setup as you Aurora~Fannie Mae. It's tough when you can't get straight answers from Aurora....it makes it impossible to pick the right direction to go. She is trying the NACA route...so we'll see.

Please keep us posted.....I've got my fingers crossed for you.

[brokemama]

How did you find out who the investor is? I have Aurora and would like to find out who my investor is? I'm gearing up for a battle with them and need all the ammo I can possibly get.

[RetroBoats]

Aurora told my friend who the lender was. A couple of them would not then finally she talked to someone who told her....depends who you get on the phone. Might try calling again and some how working the question into the conversation.

[Walking Away]

Hey *** and Retro; I actually had some good news today which surprised me. Aurora called me with reasonable terms of new loan mod that will keep me in my home. I had all but given up on. They're offering me a 2% loan mod reduction and 40 years instead of 30 years; which saves me about $400/month. That's about what I needed to make the numbers work for me and keep me in my home. It's not finalized though and not a done deal. They said they'll send me the paperwork with the details they quoted me over the phone and that I should receive in about a week. When I get it; I have to sign and send back to them. The deal is that for 3 months I make my new payment, which is $400 less than what my old payment was; and then upon completion of the 3rd payment; I send in a recent profit and loss statement(I'm self employed; so don't have pay stub) and also hard ship reason or reasons. Upon this final 3 month phase; I'm hoping my new loan with modified terms will begin. I should be happy as hell, but part of me still worries. I'll post when paperwork arrives.

[Moe Bedard]

That would be the Streamlined Modification program through Fannie/Freddie..............so I am glad to see that ALS is finally implementing the program......................maybe FannieMae and FreddieMac contacted them and blasted them for not implementing the program.



Please let us know when you receive the docs.