This has been going on for over a year, so here are the basic facts to where I am now.
First applied for help with 30 day late when lost job. Turned in all paperwork and called LM rep ever week. Then about 2 months with nothing heard on modification and rep saying it was still "under review", unable to reach LM rep anymore. Get call from new LM rep who says there is no record of loan modification request being made and that my file was noted as "passed on" to another rep who called once and posted "unresponsive". What, no loan modification request and now I'm 90 days behind because WFF refused monthly payment due to asking for loan mod and being 30 days behind??
So, start with new LM rep and file new paperwork for loan modification. Monthly mortgage payment (which I can scrape out and pay) refused. I wasn't even asking for reduction in payment, just way to bring loan current. During process sent Notice of Default letter. LM rep told me not to worry about that since we were in the modification process. Get call back from LM rep after another month has gone by (I call him EVERY Wednesday) and told "Good News". WFF wants 1/2 of the delinquent amount up front and then 2 more payments that are $75 less than what the payments are now. After that they will modify my loan with same interest rate and terms, but $75 less a month for 12 months and then back to normal mortgage payment. So generous of them! I pay absolutely nothing - no electricity, no phone, no gas - and scrape together the $3400 that WFF wants and send a USPS Cashier Check. Guess what? WFF said they never received it. So I go back to USPS and put a trace on $$ and it actually is lost. Get another cashier check issued but by this time the loan modification agreement is no longer valid because I didn't meet the requirements.
So, I resubmit paperwork and ask the LM rep if I qualified for HAMP (never brought up by anyone I was working with that I did). He says I meet initial qualifications and so I do that paperwork and submit. Now we are to this week -- find out that I don't qualify for HAMP because we have too much income (even though I am now making over $40,000 less than I was making due to loss of job). Oh, did I mention that we pay our own property taxes and insurance? Again my LM rep says "good news" - WFF will do an in-house loan modification if I pay 1/2 of the default amount (now at $5400) and then two trial payments at the same monthly rate as the original loan. No change in interest and no change in terms.
How do I handle the following:
1. I can't pay the $5400, but LM rep wants an answer about how soon I can come up with the money.
2. WFF is forcing us even more behind by refusing payment of any kind
3. Denied HAMP but don't know what they based figures on
What is my next step? We have lived in this 1200 sq ft home for 20 years. Not going to leave without a fight.