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A Nor Cal story with AHMSI and Wells Fargo

Discussion in 'Option One Mortgage - American Home Mortgage Servi' started by Tryingtostayafloat, Jul 20, 2010.

  1. Tryingtostayafloat

    Tryingtostayafloat LoanSafe Member

    Here is my loan modification or foreclosure story. I am not sure which one it will be yet. I will document my journey periodically on this forum in case it helps someone, since I have received valuable information from all of you. :D

    I purchased my home in 2004 for $415,000. Due to a period of unemployment, a break-up, and a current low paying job, I can no longer afford to make the payments on my 1<SUP>st</SUP> mortgage with AHMSI ($285,000) or my second mortgage with Wells Fargo ($125,000). I have already depleted my 401K and have run up $14,000 on my two credit cards. I would probably still be using those cards to help me pay both mortgages if Chase had not lowered my credit limits on both cards. I have never been late on either card, but since I started using them more frequently, they cut me off. I am now maxed out on both cards and have no way of paying my full mortgage payment. I am going to try to keep up with the credit card payments though. Below is what has happened so far:

    July 1, 2010: First payment missed ($1335)
    July 11: Mailed HAMP package to location in TX.
    July 19: Received 3 calls including one robo call voicemail advising me that there is an important message for me and I should call right away. I didn’t.
    July 20: Received a call this morning from a guy in India.</ST1:p He wanted to know if I wanted to make a payment today. I said no, since I had sent in the HAMP paperwork and was waiting to hear back from them. Plus, I did not have the money. He warned me about hurting my credit score and about receiving additional collection calls until the payment was made, but overall he was pretty nice. (I am sure this will change in the future).

    Property Taxes:
    June 8, 2010: I received a letter from AHMSI advising me that my taxes have not been paid (I missed both the Dec 2009 and April 2010 installments). They were giving me 30 days to prove I have paid my taxes or they will pay them and add them to my loan.
    July 9: Received another letter stating the same thing but giving me 15 days to either pay or prove I have paid my taxes or they would pay them an attach them to my loan.

    Wells Fargo<ST1:p</ST1:p
    July 20: Tomorrow I will be officially late with my payment ($450). I will probably be proactive and give them a call this week to see if a can do a loan modification with them. I could find no documents on their website so I guess I need to call them.

    That is all for now.
  2. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    Welcome and thank you for joining the forum.

    I'm sorry to hear the unfortunate circumstances that have occurred, but I would not be avoiding AHMSI at this time. After you apply for a modification it is crucial that you follow up at least once to twice a week to ensure your case is being worked on and no more information is needed from you. Pretty soon they should assign someone to your account that you can follow up with on a regular basis.

    As far as your property taxes goes they are going to add them to your account if you do not make your installments on the due date. The taxes must be paid so you will not be able to avoid them being tacked on.

    You definitely will want stick around this forum and feel free to join other discussions. Most everyone here is a homeowner just like you and going through the same things.
  3. Moe

    Moe Call 1-800-779-4547 Staff Member Loan Safe Mortgage

  4. Tryingtostayafloat

    Tryingtostayafloat LoanSafe Member

    Thanks Evan and Moe for your advice and support. Moe, I tried the link you provided but all I got was the message, "Resource Not Found-requested URL not found on this website." However, I was able to talk with Wells Fargo this morning. Here is what happened:

    I talked with two representatives from the Wells Fargo Equity Assistance Dept. The entire call took about 35 minutes. Both reps were nice and helpful, but keep in mind I am only 1 day late. Here are the details of my HELOC and call.

    HELOC: $125,000 at 4.24% APR. I am only paying interest and must pay it back in full in 2014.

    First representative: It took me 3 calls to get to the first representative as my calls kept getting disconnected. I used the ph# 877-628-9584. I was informed later that the better ph# is 888-248-1405. He asked me some questions and then connected me to a Home Equity Specialist (866-587-4012).

    Second representative: She asked me a lot of questions including: my hardship, if it was ok to pull my credit report, my income, if I had any other assests such as 401K, stocks, bonds, insurance policy, cars. She advised me to send in my two most recent paystubs, my W2's for 2009 and a hardship letter including an explanation of how I plan to pay down my HELOC in the future. She told me to fax the information to: 866-593-3578. She said once they received all the paperwork, they would call me in 5-7 business days to discuss my options. (The first rep did mention they have a program where they will lower your interest rate for a 12 month period.) She mentioned that once they receive my paperwork the entire process could take anywhere from 30-60 days. She also gave me the mailing address so I will probably mail it to them to save some money.

    Here are my stats:
    Total loan amount: $415, 000 (I still owe $410,000)
    Current value of home: $275,000
    1st mortgage: AHMSI, first missed payment July 1 ($285,000, 5 year arm that has already adjusted to include principal. Loan adjusts every 6 months based on the Libor rate. Current rate= 2.75%
    2nd mortgage: Wells Fargo HELOC, first missed payment July 21 ($125,000, 4.24% APR)
    Property taxes: officially delinquent as of 6/30/2010
    Insurance: current
    HOA: current

    That is all for now.
  5. Moe

    Moe Call 1-800-779-4547 Staff Member Loan Safe Mortgage

    Don't pay your credit cards if you can't pay your mtg. Your credit will be shot either way. If you can, skip paying the cards and pay the mtg. If you still can't pay the mtg, don't pay either. Save your money for the move that may be coming, and get ready to file for bankruptcy, just in case. If you are paying on the second, stop that too. Always pay your mtg first. It is better to have a house and no credit cards, than no place to live and twomaxxed out credit cards. They will keep lowering your limit as you pay it off if you make payments. Use your cash for necessities. If you have your checking or savings with them too, change banks immediately.
  6. Moe

    Moe Call 1-800-779-4547 Staff Member Loan Safe Mortgage

  7. yomann

    yomann LoanSafe Member

    It is pointless to pay on the 2nd, until you have resolution on an acceptabe mod with the 1st.
  8. Tryingtostayafloat

    Tryingtostayafloat LoanSafe Member

    Menace, thanks for the straight talk and good advice. Even if I stopped paying on my credit cards, there is no way I can still afford my mortgage. My strategy is to keep paying on my cards in case I need to move out into an apartment. I know a landlord will forgive a foreclosure, since most of their new tenants are former foreclosed homeowners, but probably not unpaid credit card debt. I also realize due to the many posts on this forum, that my limits will keep decreasing and will probably be closed as I become more delinquent on my mortgages. As I pay them down, I will at least have some emergency funds. I am planning on paying only cash now for most puchases. I realize now that the credit card companies giveth and they also taketh away. Credit can never be counted on. Finally, I am taking your advice about opening up a new checking account at a different bank. I know that Wells Fargo, and probably other banks, have been known to transfer money from your checking account into your HELOC as it remains unpaid. I am not going to let that happen. Thanks again.

    Yomann, I agree with you. I am not going to pay on my 2nd until I get a loan modification from my 1st.

    Total credit card debt: $13,570 (limit is $13,900)
    Miinimum payment: $300
    Ist mortage: stopped paying July 1 (payment is $1335)
    2nd mortgage: stopped paying July 20 (payment is $450)
  9. Moe

    Moe Call 1-800-779-4547 Staff Member Loan Safe Mortgage

    If you quit paying, you wil have more emergency funds. Right before they foreclose and complete a sale, you can file bankruptcy and stay a while longer. If you save the cash from the mtg, and the credit cards, you will be able to pay maybe 6 months rent up front. A bankruptcy will look about the same to a landlord or property mgr. Believe me, as a former landlord, I would rather have several months prepaid rent from someone with a bankruptcy that one month at a time from someone who protected their credit cards but gave up their home. That would show me that you continue to desire to live using credit. If your house is foreclosed, you won't be able to use the cards for any type of emergency. Save the cash, and you know it will be available
  10. Tryingtostayafloat

    Tryingtostayafloat LoanSafe Member

    Menace, Thanks for the advice. I guess I am not mentally ready to even consider bankruptcy or not paying on my credit cards at this point. It took me a long time to finally realize that I could no longer pay on my mortgage and may face forclosure. I now realize that foreclosure may be a good thing. I can move closer to my job (I currently have a 60 mile round trip that is getting on my nerves). I will actually be able to save money, and I won't have to worry about mowing my lawn or doing yardwork. I am not really emotionally tied to my home. I am going to do more research though, and I suppose as I go through the loan modification process and continue to get calls, I may be more open to the bankruptcy.

    I did just get back from opening up a new checking account at a bank other than Wells Fargo. I will also update my direct deposit to this new account.

    That is all for now.

    1st mortgage: AHMSI, $285,000 (first missed payment July 1)
    2nd mortgage: Wells Fargo, $125,000 (first missed payment July 20)
    Current value: $275,000
  11. Tryingtostayafloat

    Tryingtostayafloat LoanSafe Member

    I called a few apartment communities today to see if they would accept a renter with a foreclosure and bankruptcy on their credit report. The consensus was that a foreclosure is acceptable and a bankruptcy is too, as long as it has been discharged. They all said that I may have to pay a higher deposit though. One said the deposit would double with a foreclosure and bankruptcy.

    Does anyone know approximately how long it takes from the time you file bankruptcy to the time it is discharged?

    Also, does anyone have an opinion about if I should file bankruptcy or not, if I can not get an affordable loan modification? My only debt other than my home is the $13,570 I owe on two credit cards. So if I am able to rent an apartment for $1000 and pay the minium on my cards which is $300, I would still have $740 left over for utilities and groceries. My total net income right now is $2040. If this was you, would you still file bankruptcy?
    1st mortgage: AHMSI, $285,000 (first missed payment July 1)
    2nd mortgage: Wells Fargo, $125,000 (first missed payment July 20)
    Current value: $275,000
  12. Moe

    Moe Call 1-800-779-4547 Staff Member Loan Safe Mortgage

    You could file just to slow down the foreclosure and save the payments while living there until your BK is final, or discharged, or you cancel it. It could eliminate the amount owed on the second completely, and keep them from coming after you. And maybe justfiling the BK will help make the bank know you are serious about needing a mod. If you haven't already, apply for the mod and wait a while before filing for BK. If you file for BK first, you have to wait until it is discharged to apply for HAMP. Based on the little info given, I don't think you have enough income to qualify for HAMP, even if they forbear the maximum amount. If you gross about $2500 a month, you only qualify for about an $800 payment including tax/ins/hoa. I am guessing about a $150k mtg. If the value of your home is $275k, they won't forbear that much. And they certainly won't forgive that much. You look like either a foreclosure, short sale, or deed in lieu of foreclosure is in your future.

    Based on that, I personally would try to go through the mod process, while making no payments, and save the money, prepare to move, pack things, maybe rent a storage unit, and stay in the house until you actually have an auction date. Then file bankruptcy, make sure you save your funds in cash. The BK attorney can further delay the foreclosure, saving you even more payments.
  13. Tryingtostayafloat

    Tryingtostayafloat LoanSafe Member

    Thanks Menace for the advice. I do think foreclosure is probably in my future, so I guess I will just play the modification game as long as I can and see what happens. I did send the HAMP paperwork for my first mortgage (AHMSI) a couple of weeks ago (7/11) and have not heard back yet. I have not received a call form them in six days. I did receive a call this morning from my second (Wells Fargo) just wanting to know if I had faxed the HELOC loan mod paperwork yet. I told her I mailied it yesterday 7/25. Wells Fargo seems definitely on top of things which makes sense since they have the most to lose.

    1st mortgage: AHMSI, $285,000 (first missed payment July 1)
    2nd mortgage: Wells Fargo, $125,000 (first missed payment July 20)
    Current value: $275,000
  14. Tryingtostayafloat

    Tryingtostayafloat LoanSafe Member

    I received my first delinquency letter from AHMSI. It said my payment is now over 20 days late and I should make a payment before it goes 31 days late or they will notify the credit bureaus and send me a Notice of Intent to Foreclose letter. They also offered 4 possible solutions:

    -Repayment plan or special forbearance
    -Loan modification
    -Short sale or Pre-Foreclosure sale
    -Deed in Lieu of Foreclosure

    They also advised me to go on their website and fill out their financial analysis form and send a hardship letter, two current paystubs and two bank statements. It is interesting that they don't mention the HAMP program which is what I am applying for. I guess they do not want to advertise that.
    1st mortgage: AHMSI, $285,000 (first missed payment July 1)
    2nd mortgage: Wells Fargo, $125,000 (first missed payment July 20)
    Current value: $275,000<!-- google_ad_section_end -->
  15. Tryingtostayafloat

    Tryingtostayafloat LoanSafe Member

    I just received my second call from a guy in India with AHMSI (the first call was July 20). He asked me if I could make a $1402 payment today. I said no. He told me that if I did not make a payment by July 31 he would report it to the credit bureaus and send a letter of intent to foreclose. I told him that I was waiting to hear back from the Hamp application I had already sent to TX. He said a loan modification could take from 30-60 days and he asked if I was not going to send my payment until my loan was modified. I said yes, that when I get an acceptable modification I would send a payment. He said he would document that. He also wanted to know why I could not pay and I told him that I had already put that information in my HAMP application. He also said that I should call in three days to update my situation. I do not think things are going to change much in 3 days though unless I win the lottery.
    1st mortgage: AHMSI, $285,000 (first missed payment July 1)
    2nd mortgage: Wells Fargo, $125,000 (first missed payment July 20)
    Current value: $275,000
  16. Moe

    Moe Call 1-800-779-4547 Staff Member Loan Safe Mortgage

    Whenever someone with a foreign sounding accent calls me, I tell them I can't understand what they are saying. It sounds terriblr to say this, but it really seems to confuse them, and they generally just say good day and hang up. I apologize profusely, and just tell them I have trouble with accents.
  17. CALIGurl

    CALIGurl LoanSafe Member

    Hi All,

    We're currently in the process of a modification with American Home Mortgage except it's impossible to get a hold of the person handling the modification, Cal Nguyen. The customer service reps do a great job of telling us that we will hear something but it's been nearly 7 months since they've had our info. Does anyone have a phone number besides the main 877-304-3100 #?

    Thank you!
  18. Tryingtostayafloat

    Tryingtostayafloat LoanSafe Member

    Menace- thanks for that suggestion. I may have to use it when they keep calling and asking the same questions over and over again.

    CALIGurl-Try 800-505-3706. I found this number on another thread. I believe it is to their retention department. So you have been trying to get your loan modified for 7 months. What are they telling you is the hold up?
  19. Moe

    Moe Call 1-800-779-4547 Staff Member Loan Safe Mortgage

    The guy from India(?) hasn't called back after being unable to understand his accent the two previous calls. He had been calling weekly at least. Now someone named Jessica is calling, and seems to want to help, but reaaly can't do anything, since her job is basically to try to harass me into making a payment.

    I think this may turn out to be a way we can fight against outsourcing calls to other countries, or at least to get people who can speak clearly.
  20. Tryingtostayafloat

    Tryingtostayafloat LoanSafe Member

    I received a letter from AHMSI yesterday acknowledging that they received my HAMP paperwork. I mailed it on 7/11/2010 and the letter is dated 7/27/2010 so it seems they are pretty on top of things, plus the calls have stopped (it has been 8 days since I have received a call from my friend in India). The letter basically states that as long as they have all the required documents, it will take 30 days for a determination from the date my package was received. They will use the NPV model to make the determination, and if I do not qualify they will send me a letter with the reason why within 10 business days. My favorite quote from the letter is:

    "If the HAMP NPV model yields a negative result (that is, a foreclosure will provide a greater return to the owner of your loan than a modification), you are not eligible for a HAMP Modification."

    At least they are honest. The bottom line is that the investor makes the ultimate decision whether or not you will qualify for a modification.

    I am gradually accepting the realization that I will probably need to foreclose on my house. I recently discovered a leak in my hallway linen closet. I am not sure why this is happening since it is the middle of summer and it has not rained in two months. I am assuming that it is a duct leak from running the air conditioner, but I can not access that part of the attic to check it out. I know this will be another large expense though that I can not afford. The closet ceiling is now one big water stain and I have to use buckets to catch the water dripping. I am trying to use the air conditioner only when it become unbearable now.

    Well, this is all for now.

    1st mortgage: AHMSI, $285,000 (first missed payment July 1)
    2nd mortgage: Wells Fargo, $125,000 (first missed payment July 20)
    Current value: $275,000

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