Ok, here's the story. Spouse and I purchased a home in 2005 on an 80/20 loan, with the seller doing a private finacnce of the down payment. Standard story - we fell behind when on of us lost a job. In 2010 we asked for a modification after falling three months in arrears. We were then told ASC (America's Servicing Center - i.e. Wells Fargo) would not take our payments while we were in review. We faxed documents endlessly and repeatedly. We made sure they always had current information.
One of us is self employed, and the other has gone back to work and is making a reasonable salary. Finally, in late 2011, we received notice that HAMP had been denied and we were placed into foreclosure with sale scheduled in October. Then we were told we'd be reviewed for an in-house mod and the sale was postponed due to an 'error' in the paperwork (they claimed one investor couldn't be located to sign off on the sale). Finally, in March 2012, a new sale date was set for June. We got the paperwork and were shocked. So we called, and were told the sale would be postponed again if the modification process was still ongoing. We were told our case was going to be 'escalated' and we'd have a final decision 'soon'.
Cut to mid-April of 2012. We were told by a customer service rep that we had been approved, and were given the monthly payment. It wasn't a great deal, our principle remained intact and our payment was actually slightly higher than it had been. Still, we were thrilled. We just want to keep the house. The paperwork to verify what the CS agent told us never showed up.
We called our "home preservation specialist" repeatedly and got no response. Finally, today, the HPS called back and told us that our modification had been denied after all, supposedly at the 'second level' of review. Now we're awaiting a letter detailing the reasons for the denial and spelling out what options WF supposedly offers. We still do not want to lose our home, nor do we wish to do a short sale, nor do we have the 40K on hand it would take to catch up the arrears. All this time, we have faithfully paid our private lender the 2nd mortgage payment, which should demonstrate our commitment to keeping the home.
In our panicked state, is there anything we can do at this point? Do we have to wait for the letter? Can the mod be re-applied for? Is there some kind of 3rd review we can ask for? After nearly 2 full years of faxing and calling and calling and faxing, are we really going to lose our home in a late-June sale? Has anyone been through anything like this before? Any help/advice/encouragement would be greatly appreciated.