Home Loans and Support

Need modification with navy federal credit union - wa.

Discussion in 'Loan Modification' started by Jeff8729, Feb 24, 2009.

  1. Jeff8729

    Jeff8729 LoanSafe Member

    Hi everyone - I'm new on this board & have spent hours reading trying to find help. I'm hoping somebody has had a similiar situation that might be able to help. I took a second on my house to do remodeling with intent to sell about 18 months ago. During the remodel, I found a deal on a new home in the area I planned to move to and bought it, I live there now. When I finished the remodel on the other house, I knew the market was down so I decided I would just refi and combine the 1st and 2nd, which are both on a 15 year mortgage to a 30 year fixed, which would enable me to still make the payments in case it took a long time to sell. I went to Navy Federal Credit Union (who currently holds my second) and they said "no problem". However when they did the appraisal, the house had gone from $260K in value before the remodel, to $195K after the remodel. This seemed crazy to me because I put all new floors, countertops, appliances ect.. in the house. Navy Federal advised me they would be unable to do the refi. They said they did not do an actual appraisal when they gave me my second, just estimated the value off of Zillow or something. I explained that when I went to them for the 2nd, I was only looking for about $50K. They are the ones that told me my value was much higher then I had expected and encouraged me to borrow more which I did. (my fault here I know). They refused to modify me from a 15 year to a 30 year even though I was not looking for a rate reduction and was willing to pay any refi fees. I then contacted Well Fargo who basically told me the same thing. My value was too low to refi me & they would not modify the loan to a 30 yr Fixed. Since last April, I have had the house empty in fear of renting it out because I was afraid it would then be considered an investment property and I have not listed it. Several agents have told me I owe way more then what it's worth. I have been making the payments with my credit card since April and have never been late. My credit score is currently in the high 700's. I am now maxed, and have started the modification process with Well Fargo again trying to get a modification to a 30 year fixed. It's been a month and a half & still nothing. They said I'm not priority because my loan is not delinqent. I owe $100 K on both my 1st & 2nd, both on a 15yr fixed. All I need to be able to make the payments is a 30 year fixed on each or combine them both to one loan on a 30 year fixed. Navy Fed who holds my 2nd won't even talk to me because I'm not delinquent. I've considered hiring an attorney, but I'm afraid to spend the little cash I have because I will need it to make the payments. If one of these lenders does not help me quick, I will not be able to make the payment & the house will be forclosed. I'm out of money and out of room on my credit line. I can not carry both anymore. Does anybody have any advise? Has anybody taken this on before? I am trying to make good on this bad investment & I've shown Wells Fargo that if they will modify this to a 30 year, I could pay them. They won't work with me because I have not defaulted. Please help! Thanks so much - this board is fantastic! Thanks.
  2. Jeff8729

    Jeff8729 LoanSafe Member

    Re: 1st & 2nd no delinq. good credit ~ help please

    I guess I should add that I am now trying to rent the property, but not having much luck. All agents suggest a short sale, but I am really trying to save my credit. Is it too much for these banks to see I want to repay this debt and that I am able to make the payments if they modify me from a 15 to a 30 yr fixed? I will still need to rent it out, but could ask for a lot less rent in order to make it financially. I have enough for 1 more payment - that's it. Thanks again for any help.
  3. Moe

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

    Re: 1st & 2nd no delinq. good credit ~ help please

    Hi Jeff,


    Welcome to the forum and thank you for joining...............

    The modification is up to the investor on the loan and what they are willing to do....................

    Try calling the executive team and see if they are able to help.........and then make the decision from there..........
    1-800-853-8516
  4. Jeff8729

    Jeff8729 LoanSafe Member

    Re: 1st & 2nd no delinq. good credit ~ help please

    Thank you Cat. I was hoping to hear from you. I will try that. As I mentioned, I am out of credit to continue to make the payments. They seem to come across with the attitude that their 1st is secured, so it's the lender of the 2nd that is in trouble should I not be able to pay. Even worse is, I have not missed a payment yet. I was not able to find a posting regarding dealings with Navy Federal CU. Have you had any experience with them. They have the 2nd - same amount as the 1st 100K. I was hoping that maybe the new modifications coming about on (is it Mar 4th or April 4th?) might help somebody in my position but I'm afraid I'll enter into default by then. It was my hope if I kept my credit score good, they would be more willing to refi / modify into a 30yr fixed, but it has seemed to work against me. Are they encouraging default? Thanks again for your reply.
  5. Moe

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

    Re: 1st & 2nd no delinq. good credit ~ help please

    I recall that there was only one other member dealing with that credit union but I can not find the post at this time................so I am not sure if they were working with them for a modification..........
  6. Jeff8729

    Jeff8729 LoanSafe Member

    Re: 1st & 2nd no delinq. good credit ~ help please

    Ok thanks, thought I'd check. Am I out of line if I post a New Thread asking if anybody has dealt with them? It may be I end up having to hire an attorney to deal with them, but somebody might possibly have a contact that I could start with now. If you think that would be ok, where should I post it? Thanks!
  7. Moe

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

    Re: 1st & 2nd no delinq. good credit ~ help please

    Start it in this section and I will merge this thread into it so that you have your story in one thread.
  8. Jeff8729

    Jeff8729 LoanSafe Member

    Re: 1st & 2nd no delinq. good credit ~ help please

    Thanks - I'll get going on that.
  9. Jeff8729

    Jeff8729 LoanSafe Member

    Hello - First I really want to thank everybody on this forum for their advise and information. It's been a huge help. I'm trying to start a new thread to see if anybody has any experience in dealing with Navy Federal Credit Union in Washington state. I can't seem to get by the people that screen the calls, listen to my circumstance and then tell me there is nothing they can do. They've got my 2nd for 100k & I'm trying to get them to refi me out of a 15 year Fx into a 30 year Fx with no success due to my value dropping as well as not having gone delinquent yet. It seems to make no difference to them that without their help and cooporation, with not only them, but Well Fargo (the servicer on my 1st), I will not be able to continue to make may payments. I'm trying to resolve my financial crisis BEFORE default. Thanks in advance...
  10. Dan Bailey

    Dan Bailey Senior Member

    Jeff,
    Have you tried contacting NACA if you're not getting the credit unions attention? https://www.naca.com/refinance/refinanceSubmission.jsp
  11. Jeff8729

    Jeff8729 LoanSafe Member

    No I haven't. Unfortunately I just found this site so I did not know about NACA, and now I'm out of time. I will barely be able to make the March payment on the first and the second. I can't sell, it's worth $175K - $190K tops & I owe a little over 200K. I'm not sure now if I just skip the March payment in hopes that they will start working with me once I fall deliquent, or if I should struggle to make it in hopes that good credit might benefit me should the plan released on March 4th be suited to my circumstance. I hate to go into missed payment scenario's when I really think I could make it if they would both (the first and second) modify me to a 30 yr fixed. As it is, I'm sinking fast and have no idea how I will continue to make this payment. I still have not been able to find a renter that will pay enough to get me out of this. Had I any idea value's would drop this way, I sure would not have agreed to a 15yr term & no way in heck would I have bought what is now my primary residence. Just assumed I'd be able to sell it. Thanks for your reply and suggestion.
  12. Jeff8729

    Jeff8729 LoanSafe Member

    And I'd like to add this since I haven't heard this mentioned by many. Whats making me sink even faster is the credit card companie's. Even though I have not gone over my limit, every time I make a payment in the last few months, they send me a letter saying that they have lowered my credit limit and are now increasing my rate. This on top of my mortgage crisis is contributing to my downfall. True, I've been using my credit to make my housepayment (the 1st & 2nd) for quite some time, but I make the payments on time and my fico score is still high 700's. I've tried to call each one, but they just tell me they are tightening lending on credit cards. No help. Yes, I completely understand why people are walking away from their homes. I am paying on time, on a house I owe much more then what it's worth and I'm sinking because nobody realizes that a modification would not only allow me to rent it out for less in hopes of finding an actual renter to help offset the payment until I can sell, but I would not have to use my credit (now maxed) to make the payment. The house is taking me down, so why wouldn't I walk away and let Well Fargo ( servicing the 1st) have it back? I guess I know I'd be sued most likely for the 2nd, and for some UNKNOWN reason, I still feel the obligation to pay for the debt that I agreed to as well as for another UNKNOWN reason, my credit score is important to me. ( even though my good credit is working against me now). Bottom line is, the stress of it all is taking a huge toll on my family life, as well as work. When do you say enough & just give up & walk away?
  13. Dan Bailey

    Dan Bailey Senior Member

    Jeff, give NACA a chance....contact them.

    believe me, we all have these feeling s of frustration. Dont let that impede doing the footwork to save your home if that is what you want to do.
  14. hamletsdead

    hamletsdead LoanSafe Member

    I'm dealing with Navy Federal right now -- they hold my 3rd mortgage and are hanging out in the wind because of the drop in home equity. I submitted a modification package to them February 12, was contacted three weeks ago for my 2006 and 2007 tax returns, and have heard nothing at all since then. They haven't told me who the case is assigned to, and I don't have any email contact information for anyone, so I have to go through the entire process of getting to talk to a live person in mortgage collections (which is what they call the department) every time I call, and no one can tell me anything. I have not found them to be very helpful so far, especially since they told me they would not guarantee that they would halt any foreclosure proceedings just because I am discussing loan modification with them. (Apparently no one at NFCU has bothered to look into what they would realize by foreclosing -- $0)

    It's been trying, especially as PenFed agreed to modify my 1st in a helpful, friendly, and responsive fashion, and this morning Charter One agreed to accept half of what I'm delinquent on and then just let me make catch up payments over the next year. Took a month with PenFed with weekly contact, and Charter One took 5 minutes to approve my hardship request.
  15. chad916

    chad916 LoanSafe Member

    hamletsdead....So any updates with Navy Federal...I also have a 2nd with them. The money was used to update and remodel my house. So it is recourse, if I don't pay them I don't want them to seek a judgement against me.....My original loan is 314,000 and my house is valued at 230,000. The 2nd is 50,000 so the're not gonna get anything by foreclosing but they by getting a judgement....right?
  16. hamletsdead

    hamletsdead LoanSafe Member

    Hey chad916, I called Navy Federal a couple days ago and emailed them, and of course no one called me back. I finally got hold of someone in mortgage collections, who said the account notes said it had been sent out for review, but the notes don't say who is reviewing the file, so I apparently can't talk to my loan analyst. I have not yet pointed out to them that they have no equity, but am planning on doing so whenever I hear back from them. I'm considering trying to buy them out of the loan for 10 cents on the dollar. My loan is recourse too, so potentially Navy Federal could get a deficiency judgment against us, but they have to go through judicial foreclosure to do, which takes at least a year, since they have to file a lawsuit, etc. I'm in California, so if they choose to foreclose privately (which doesn't make sense since they will get nothing and likely have to actually pay money to the 1st and 2nd mortgagors) they lose the right to come after me for the deficiency. The only way they can get a judgment against me personally is by suing me, and that is rarely done. If they do, we'll just file Chapter 7 and get rid of any personal liability to Navy Fed, or Chapter 13 and move to strip off their lien as totally unsecured. [FYI, you could ALWAYS lien strip totally unsecured liens on your residence in Chapter 13, just couldn't do so for partially secured ones.]

    I don't know what state you are in, but if NFCU is not going to get any money by foreclosing, at some point someone is going to wake up to that fact, be it a lawyer or a higher-level executive, and at that point perhaps they will start becoming more communicative.
  17. chad916

    chad916 LoanSafe Member

    Excellent info and thanks. I'm also in California. Just curious how far are you behind. I heard no one talks to you if your current. Right now everything is current but I'm killing myself.
  18. hamletsdead

    hamletsdead LoanSafe Member

    I stopped paying in December, then contacted the lenders after my February payment became due, so technically after I had missed three payments, which is what all the programs said you had to be late by to qualify for modifications. I don't know if the credit unions are any different, but it certainly demonstrates your hardship if you've missed some payments and let your credit score take a whack. There are some good articles online on the foreclosure timeline in California -- most of them say you are looking at a year in your house before anything happens. One of my broker friends said in her experience it's more like 16 months these days, given the overwhelming number of people in default. I read an article recently that said 10% of the US is behind on their mortgages, and you know the "loss mitigation" departments do not have the staff to handle that many defaults.
  19. chad916

    chad916 LoanSafe Member

    @hamletsdead

    So I've been reading more and more and have come to the conclusion that bankruptcy is the right choice for me. I qualify for Chapter 7 and getting rid of the unsecured debt would be huge. I'd reaffirm the secured debt like home and car loans.

    I haven't decided if I'm going to reaffirm the 2nd mortgage with Navy Fed. The strategy is to force the 2nd Mortgage into settling or selling the loan to a collection agency and try to settle with them. From what I've read Navy Fed doesn't settle and doesn't usually sell their loans. Heard they even try to come after you several years later.

    My understanding is that if I bankrupt the 2nd would be discharged but the bank would keep their lien so selling could be difficult. But if I bankrupt it tells Navy Fed that I can just walk away. So maybe they'd be more willing to negotiate.

    My 1st is $314,000 and 2nd (Navy) is $46,000....my house according to zillow is $240,000. I think I got at least 10 years before my house gets any equity.

    Obviously its risky but at the same time the market sucks and Navy Fed won't foreclose if they have to payout the 1st lien holder. I know someone on the BK Forum is paying their 2nd every 3rd payment to prevent foreclosure, to reset the clock...does that really work?
  20. hamletsdead

    hamletsdead LoanSafe Member

    chad916-- You do not need to re-affirm any debts in Chapter 7, and you should not do so, as then you once again become personally liable for them. If you simply go through Chapter 7 and keep paying your 1st mortgage and car loans, then you keep the house and cars, but can walk away whenever you want without any personal liability ever. Same deal with the 2nd mortgage -- file Chapter 7, don't reaffirm, get a discharge, and NFCU can never go after you for anything related to the 2nd mortgage ever; they'll still have a lien, but if the house is that far underwater and they have no recourse against you, then one would think they would be willing to cut some sort of deal with you to remove the lien (e.g., 10% and they go away).

    Unless you have a huge amount of unsecured debt, you are well within the limits for filing Chapter 13, which would -- even under the current laws -- allow the bankruptcy court to simply strip off NFCU's 2nd mortgage lien as wholly unsecured and dump the $46,000 into the general unsecured pool. Depending on your income, you could wind up paying them less than 10 cents on the dollar. Perhaps nothing, even.

    Where are you in California? I know a great BK lawyer in San Francisco. (FYI, I'm a lawyer, but not a bankruptcy lawyer).

Share This Page

COMPANY LINKS

TESTIMONIALS

"Hello Moe, I just wanted to tell you, your website has saved my life (literally), I stumbled on your site in the middle of losing my home, I was able to network with people going through the same thing as I am. I didn't feel alone anymore, I have tried to give back and counsel those that haven't walked in my shoes yet. We hear so much about what is wrong with America, I just wanted you to know, you are whats "right" with America."

Nina Mitchell
Loansafe & MoeSeo Inc. © 2014 | LoanSafe.org is not a bank, lender, mortgage broker, law firm or affiliated with the US Government. Privacy Policy