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CalHFA Condo Walk w/ Immediate Move Story

Discussion in 'Deed in Lieu of Foreclosure - Do You Need Help to ' started by stuckinsandiego, Apr 9, 2011.

  1. stuckinsandiego

    stuckinsandiego LoanSafe Member

    Here is my official walk story for those who are interested in a CalHFA walk that wants a quick foreclosure (no "hamster wheel").

    In summary, our 640sq ft San Diego condo that we bought in March 2006 was no longer safe or reasonable for us and our 2 year old to live in, and after a Short Sale and Loan Mod attempt and denial, we decided to walk.

    1st- CalHFA - $220k IO until April 2011
    2nd - CalHFA - $15 silent 35 years
    3rd CalHFA - $8k silent 35 years
    4th - Local city housing group - $22k
    5th - Local city housing group - $10k silent until March 2011

    Payment was $1720 (with insur. and HOA), April 2011 it would have been $2200
    Underwater - About $200k

    Our justification for a short foreclosure and immediate move is due to security clearance issues with my husband's job. Long story short, if we needed to move because of safety issues, we needed to do so quickly. Staying "rent free" would reflect negatively upon review if it came to that.

    So we moved to a rental home an hour away mid March and updated our billing addresses with everyone EXCEPT CalHFA (remember this for later).
  2. stuckinsandiego

    stuckinsandiego LoanSafe Member

    1st missed payment was March 2011. Phones calls started around March 16th. We switched our account to a Google Voice number prior to the missed payment and that was the only number they called. They called once a day (except Sundays), and I let them all go to voicemail. They left about 3 messages stating to call them back regarding an important business matter.

    We sent them a letter March 28th stating no further payments would be made, start the foreclosure proceedings immediately and to ceist and deist all phone calls. The calls stopped on March 30th. Around that time, we got a pink notice in the mail (forwarded from our old address) stating our account was past due.

    April 8th we got some more mail. One was a forward from our old address. Just a standard letter about one of our silent loans they send every year so you don't forget about them.

    The second was a larger envelope addressed to our NEW address. We had never given this to them, so I imagine they got it from our credit report. Side note: Once I updated our mailing addresses with our credit card companies, my free AAA credit monitoring service sent me an email stating there was new information on my report. It showed the new address, so this is the only way I think they could have gotten it.

    The letter said we had until May 4th to get current or they would take further action. Also enclosed was a loan modification packet. Funny how it didn't mention we obviously moved, therefore we broke the mortgage agreement anyway.

    Today we got notice that a certified letter was waiting for us at the post office. I will update Monday and let you know what it says.
  3. Screwed11

    Screwed11 LoanSafe Member

    Thank you, thank you, thank you for posting this thread. I have the same loans as you do - one loan with CALHFA and multiple silent loans with the local City. I have yet to come across anyone who has a municipal agency loan, so I'd be grateful to you if you could keep updating this thread as much as you can. We were supposed to default beginning in March, but had to postpone our decision as hubby's current employer only offered him a contract to hire position for 9 months, at which time he will convert to full time (and be subject to an array of checks, including criminal and credit). I can't tell you how depressed this postponement has made me, but it gives me time to get my ducks in a row.

    Could you also tell me if you talked to anyone about the city loans? I am actually MORE worried about the city loans than CALHFA. The city loans would be wiped out in the event of a foreclosure, hence my concern. Plus the fact that no one else here has mentioned these... you are the one other person I now read posting about a city loan. My loans are all purchase money loans but I am still freaked out.

    Thanks again for posting... will be following your story closely. Good luck and hope CALHFA forecloses fast so you can move on with your lives.
  4. stuckinsandiego

    stuckinsandiego LoanSafe Member

    Screwed - We talked with the city housing group prior to our walk. They were helping us with our loan mod paperwork with CalHFA for free b/c as they see it, it helps them to get us modified on the first so we will continue paying them (that mod was denied).

    We mentioned to the guy we really just wanted to move. He said "well if you do default, at least our loans are not on your credit report. Technically we can ask for the money through a lawsuit, but we have never done that yet."

    I don't know if they even can in California since it was all purchase money loans, but I am not sure about the laws in your state.

    So far with two missed payments, we haven't heard anything from them. Granted the phone number they had for us is now disconnected, we still haven't received anything in the mail.

    I will keep you posted on what happens.
  5. Screwed11

    Screwed11 LoanSafe Member

    Thank you.

    I'm in Northern California. We are going to talk to a *big noise* lawfirm soon. They charged a $1000 retainer and will bill us $400 an hour for a consultation, but we need peace of mind. I don't think the City will report us to the credit bureaus, since they're technically "silent" but the lawsuit is my biggest fear. Our loans with them are all purchase money too... obviously, we didn't want to refinance 0% interest rate loans!

    We would have paid them off for peace of mind again, but our loans with them total $270K. There's NO WAY on God's green Earth that we have or will ever have that kind of money lying around. But maybe the lawyer can help us figure this out.

    Thanks again for sharing your story. I appreciate it very deeply.
  6. stuckinsandiego

    stuckinsandiego LoanSafe Member

    Screwed - I think some peace of mind would be good for you, but ouch that seems like a heavy fee for them just to review your docs with the city. But if they do determine something legal could happen, I guess it would be good to have someone on retainer. Just beware, sometimes bigger law firms have less time for their "little" clients.

    One minor update - My credit monitoring just emailed me that the 30-day late for CalHFA posted 4/5
  7. Screwed11

    Screwed11 LoanSafe Member

    WOW... that was quick, wasn't it? Keeping fingers and toes crossed for you that this gets over ASAP for you :)
  8. stuckinsandiego

    stuckinsandiego LoanSafe Member

    Update: The certified letter was just a copy of the letter from last week, stating we had until May 4th to pay the balance due or else further action would be taken. It also had a loan mod application.
  9. knownick

    knownick LoanSafe Member

    Ever seen a letter with "Address Service Requested" on the envelope?

    Forwarding your mail via the post office is _not_ a private matter. In fact, the post office will send notification of your new address to anyone who requests it. This is almost certainly how they got it, although the credit report is a possible avenue as well.
  10. stuckinsandiego

    stuckinsandiego LoanSafe Member

    Ohhhhh I never knew that. Thanks for the info!
  11. Screwed11

    Screwed11 LoanSafe Member

    Think they are moving this fast because they know that you have moved out of the condo already. Do you plan to respond to this mailing at all? Or just ignore them completely?

    Also, did you hear anything at all from the City?

    I also have an update of sorts to post about. I just found out that my neighbor (who bought his house about 10 days before I did, also through CALHFA) had lost his job right around the time that we did. We were talking over the fence this morning, and he told me that he does not know how much longer he would be able to keep up with the mortgage ...

    I did not tell him our plans and he did not come out and say it outright, either, but just the way he kept turning back to look at his house gave me the eerie feeling that he may be going into foreclosure soon, too. We are a small sub-development of 10 homes, and if two of us are planning on defaulting, then I can only barely imagine what that would do to the values of our other neighbors' properties.

    Not that I care. Some of them are trash, and one of the main reasons that we're moving, in the first place. Good luck to them once the Section-8ers come crashing into their midst. Birds of a feather... and all that jazz, you know.
  12. stuckinsandiego

    stuckinsandiego LoanSafe Member

    Haha ya I wouldn't worry about the other neighbors. You are doing what is best for you, not them. If you do speak with your neighbor again, I'd encourage him to get help from calHFA. It seems like the government money they got is only going towards people who have been laid off. There is an unemployment payment program, he should check it out. Those are the only cases I have heard where they approved funds.

    Still haven't heard a peep from the city. They should have our cell #'s on file so if they wanted to call they could.

    I don't think they are moving "fast" yet, I am two payments late so sending that type of letter seems standard. I imagine a notice to accelerate would come next in May after I miss this deadline. I already sent my letter stating no further payments would be made so there is no need to respond.
  13. stuckinsandiego

    stuckinsandiego LoanSafe Member

    Still nothing from the city.

    Received another copy of the same letter and loan mod packet today, and a notice that a certified letter is waiting for me at the post office. I am sure it is just a copy of this same letter, so I am going to let it sit there.

    I got a call on our brand new phone number from a company wanting to help us "save our home," so I put our new number on the DNC list, and also went to Experian's website to opt-out of direct marketing mail, since we also have started receiving stuff from realtors.

    My "cease and desist" with CalHFA is still working, my Google Voice number hasn't received a call since the end of March.
  14. Screwed11

    Screwed11 LoanSafe Member

    LOL. My Google voice number is already on the DNC ... what can I say except that I can be *very* proactive when I need to be? :laugh: :laugh: :laugh:

    I have only one loan with CALHFA, but am wondering about your situation since you have a total of three loans with them. I've been reading this forum for months now but I'm just so confused these days. Do you know what would happen when they foreclose and wipe out their second and third loans? Don't want to scare you or anything, but I'd want to make doubly, triply sure that they can't pursue me for the delinquent second and third post-foreclosure. You're probably going to be fine... right?

    Please keep posting... really, really, really want to know what the City does once they FINALLY realize that you are determined to let the house go. TBH, the City is the one I'm concerned about... CALHFA is nowhere near my top-10 nightmare-inducers.
  15. TomEason

    TomEason LoanSafe Guide

    stuckinsandiego & Screwed11
    Please forgive me for intruding on your private thread. I can't help but offer this info. You both seem unclear on whether your city loans are non-recourse. Consulting with an attorney is OK, but the lawyer will cite Cal CCP Section 580(b) and charge you a bunch of $$ for doing so. No mortgage loan can be enforced that contravenes CA statute. You can have an expert pretend to examine the note and trust deed, but if those docs contain any clause which violates CA statutes, it's unenforceable. It's easy to download and read the statute for yourselves. If all your loans, as you indicate, are purchase money loans, then they are non-recourse. And since all foreclosures in CA for small residential loans are non-judicial trustee sales, the junior loans will be wiped out in a foreclosure by the 1st, and there is no recourse. The junior lender loses. Good luck to you both.
  16. stuckinsandiego

    stuckinsandiego LoanSafe Member

    Just a small update for Screwed's sake:

    Finally received a letter from the city stating our loan was in default and we needed to get current immediately or they would take further collection action. They also sent reminder bills with all the late fees tacked on.

    As tomeason stated, I am not worried about them coming "after me" since it was all purchase money loans. I could send them a letter similar to what we did with CalHFA stating we are moving and are no longer going to make payments, but then again I am sure they have figured this out by now.

    I am looking forward to a NOD coming later this month after CalHFA's 5/4 deadline to get current passes. Lets see what happens. I really don't want to keep paying the HOA.
  17. Screwed11

    Screwed11 LoanSafe Member

    Hey, thanks for updating, Stuck. Wow... the City threatens to take further collection action, huh? Probably means a lot of collections calls and / or threatening letters, but at this point of time, I'm sure that you really could not care less.

    Hope CALHFA moves fast on you guys and gets this show on the road. Good luck -- sending lots of positive vibes your way :):)
  18. stuckinsandiego

    stuckinsandiego LoanSafe Member

    60 day late was posted by CalHFA 5/5/11

    Haven't heard anything recently from CalHFA or the city.
  19. Screwed11

    Screwed11 LoanSafe Member

    Wow... they seem to have their eyes on the ball, huh? Good for you...maybe they'll move in ASAP.

    Not a peep from the City? You watch your back around them, girl. You never know. As a friend of mine put it, "Don't you try to screw around with the government because the one who'll end up getting screwed is you. The big, bad, government has long hands and good reach." Not trying to scare you or anything, but you never know.

    I'm trying to make discreet inquiries into whether the City has previously sold its housing loans to shady debt collectors for pennies on the dollar, and so far the answer seems to be a big, fat, NO. But the odds are, given my luck, that they'll start with me. I'm actually seriously considering the nuclear option. Funny how NOTHING seems to scare you after a while.
  20. 5284CA

    5284CA LoanSafe Member


    I'm not sure why you care at all about what the city or CalHFA think or want...they cannot do anything to you, nothing. I am familiar with your story as I am sure many others are, your loans are CA purchase money non-recourse, which means no one who stands to be paid by you can collect anything from you but the property, no matter if it is a bank, the government, the president, nobody and no matter how many people stand in line, there is nothing they will ever be able to get from you beyond repossessing the property.

    I hate to be cynical here, but you are a number to them, one of several numbers who are not paying on a loan, all they want to do is move you through the system, write you off their books, and be done with you just like you want to be done with them. You could have $100 million in your bank account and send them a statement everyday showing all the interest you made and how it probably equals more than your monthly payment due and they still cannot get anything form you but the house.

    There is no conspiracy, from the government or the bank, to get you...there is no debt collection agengy that would ever buy your junior loans from the city because they know they cannot get anything from you.

    I worry that your paranoia might scare someone who should walk for fear of what you are continuously speculating about. I understand that it is a personal decision that everyone should make, but please lets all try to be sure that information that is given on the board is fact based and correct and we stick to laws and facts or at least legitimate questioning when talking about banks going after individuals...you however, I know have been told on numerous occassions by numerous posters that you, are free and clear but yet you continue to bring up these conspiracy theories of how the city or the bank is going to target and hunt you down for what you are doing. I understand that could be a valid concern but, by know with all the laws presented to you, you should know you have nothing at all to worry about.

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