AHMSI Modification ERRORS...twice!

cmefly

LoanSafe Member
#1
So I did a modification back in July 2011. I signed the paperwork and needed to make my first payment by September 1, 2011. I didn't have to make any trial payments, they just started me off immediately. So I made the first payment early on August 20, 2011. I then was looking over the figures and noticed a line entitle "Foreclosure Attorney Fees" at $1,530.00 and "Foreclosure Costs" at $5,000. So I sent a letter to AHMSI asking for an explanation since I only recieved one attorney letter. I then received correspondence back from AHMSI stating they made a mistake and are fixing it. I would be receiving a new modification shortly. I received that in November with first payment due December 1, 2011. I noticed that the "Foreclosure Costs" had been reduced to $1,731.15 and they had "Foreclosure Attorney Fees" at the same as the first one, $1,530.00. I then noticed that they reversed my PITI payment of $1,357.04 I sent them in August and applied it to Modification Fees. This did not seem right. So I spent the next couple months writing letters and speaking with people there trying to get this right. I told them I would not be making a payment until they fixed this. I then received a letter on January 13, 2012 from them. They said since the first modification was wrong, they took off that PITI payment and applied $1,261.08 to the "Modification Fee", $92.46 to "Late Charges" and $3.50 to "Unknown". I then sent them another fax and letter stating that this is totally wrong. My revised modification only showed a "Modification Fee" of $650.00!! What they should have done was to leave my original payment alone and then correct their wrong figures and then send me out the revised agreement. So I am waiting to hear back and I have not made December or January payments and do not plan to unless they fix this.

I also came across an interesting article about AHMSI and their "Robo Signers".
Lenders Inability to “Produce the Note” Leads to Shady New Practice | The Consumer Warning Network

Sure enough mine was signed by these people. This Assignment of Mortgage is dated 1/20/2009 and is signed by Crystal Moore Vice President of Citi Residential Lending, Inc. as attorney in fact for Argent Mortgage Company, LLC. It is witnessed by a Vilma Castro and Notarized by a Bryan J. Bly. These people have no affiliation with Citi. They work for Nationwide Title Clearing in Florida.

So I guess if they do not fix my modification I will be sending them this information.

WHAT A PAIN!
 

cmefly

LoanSafe Member
#2
So far just a form letter from AHMSI stating they will get back to me in 30 days.
 

cmefly

LoanSafe Member
#3
Modification Success...But What Should I Do Now???

Well success at last! After numerous phone calls and letters AHMSI turned down my modification request. In a letter they told me I could appeal it and contact the NYS banking Department, which I did. Then I received a letter stating that Homeward Residential is the new servicer for AHMSI. That followed with an e-mail from their legal department indicating they received a letter from NYS and are going to review for a modification again. A week later I received a modification. Terms are:
Principal Balance $182K
2% 60 months
3% 12 months
3.660% 90 months


Now here is what I am up against. The value of the house is only $150,000. There is a 2nd on it for $35,000 and a 3rd on it for $25,000.
Both of these companies have not sent me a bill in over 5 years. It will be very tight with this new payment.

Could I try doing a short sale and if so, how do i handle the other two liens? Do I try to settle with them or does Homeward get involved in assisting with that? Also, what about just turning in the keys to Homeward? If those options are out I might have to consider a bankruptcy and turn the house in.

Any suggestions?

Thanks!
 
#4
cmefly,


Are you saying that even with the new modification and not paying the other two loans, things are tight? Is the modification a HAMP modification? What percentage of gross income is your payment on the first lien?
 

cmefly

LoanSafe Member
#5
Hi Cat -

They kept my term the same which is about 14 years. P&I is about $1,283 and escrow about $452. I am on the loan and deed myself and have owned for 14 years. My income is only about $1,000 gross and $800 net a month but my wife's gross is $6,000 and $4,000 net. They used household income even though she is not on the loan. It was an in-house modification I do believe.
 
#6
They are required to use the household income if you provide it initially, otherwise in this scenario, they would have not been able to get your payment down low enough to be 31 percent of your gross income alone.
 

cmefly

LoanSafe Member
#7
Yeah I figured that. So what do you think - Could I try doing a short sale and if so, how do I handle the other two liens? Do I try to settle with them or does Homeward get involved in assisting with that? Also, what about just turning in the keys to Homeward?
 
#8
Doing a short sale with multiple liens is going to be extremely difficult, and you wouldn't just hand back keys, that would involve a deed in lieu which isn't going to happen with multiple liens. Your first lien doesn't have anything to do with the other liens as they would most likely recoup most if not all of their lien by foreclosing.

You can join in the discussion in the following thread and also learn the difference of each here;

http://www.loansafe.org/forum/short-sale-outpost/43265-ss-vs-dil-vs-fc-comparison.html
 

cmefly

LoanSafe Member
#9
I figured as much. What I will probably do is keep the mod and contact the other two lien holders and see if they will settle. Awhile back they both offered settlements in the $2-$3K range. Since I only have 14 years left and the rate is so low, alot goes to principal each month. I will either ride it out for 14 years or rent it out to cover the mortgage. 14 years from now I will be sitting on some nice equity when I sell. Does that sound smart?
 
#10
Sounds like a good plan.
 

cmefly

LoanSafe Member
#11
Hi Cat! Just thought I would give you an update. We decided to move on from this house. I am not behind on my mortgage now and next payment is due September 1st. I have spoken to a bankruptcy attorney to file a chapter 7 individually and while doing a lien search he found that there is another small mortgage in first place, not AHMSI! When I refinanced 6 years ago I had a small $12,000 lien and then a $120,000 lien with Citibank. Apparently AHMSI only paid off the large one. So this small one moved to first place. No subordination agreement was done. So I have the $12K in 1st, $170K in 2nd with AHMSI, $35K 3rd and $25K 4th. When I did my modification with AHMSI they never caught the 1st mortgage of $12K. I stopped paying on it years ago and it was thru a private individual who filed bankruptcy a couple years ago.

So my question is, I don't think AHMSI could foreclose if they wanted to. I plan on filing the bankruptcy anyway because I need to get rid of the debt. The house is only valued at $150K at this time. I live in NYS and foreclosures are Judicial. If I stop making payments in September, how long do you think I could drag this out? I know if I file bankruptcy I probably would have about 4 months total. But if I don't file and stay here as long as I can to save up some money to move, how long do you think in your opinion I would have? Thanks!
 
#12
Hi Cat! Just thought I would give you an update. We decided to move on from this house. I am not behind on my mortgage now and next payment is due September 1st. I have spoken to a bankruptcy attorney to file a chapter 7 individually and while doing a lien search he found that there is another small mortgage in first place, not AHMSI! When I refinanced 6 years ago I had a small $12,000 lien and then a $120,000 lien with Citibank. Apparently AHMSI only paid off the large one. So this small one moved to first place. No subordination agreement was done. So I have the $12K in 1st, $170K in 2nd with AHMSI, $35K 3rd and $25K 4th. When I did my modification with AHMSI they never caught the 1st mortgage of $12K. I stopped paying on it years ago and it was thru a private individual who filed bankruptcy a couple years ago.

So my question is, I don't think AHMSI could foreclose if they wanted to. I plan on filing the bankruptcy anyway because I need to get rid of the debt. The house is only valued at $150K at this time. I live in NYS and foreclosures are Judicial. If I stop making payments in September, how long do you think I could drag this out? I know if I file bankruptcy I probably would have about 4 months total. But if I don't file and stay here as long as I can to save up some money to move, how long do you think in your opinion I would have? Thanks!
Foreclosures in NY are still moving at a snails pace, the New York statewide average to repossess a home was 1,056 days in the first quarter of 2012 according to an April 12 report by RealtyTrac.
 

cmefly

LoanSafe Member
#13
Wow, that is crazy! I remember before I did my modification I was at about 8 months behind and then I received a summons from the bank's attorney. I had 30 days to respond, but I ended up getting my modification completed within that time frame, so nothing happened. I find it hard to believe one could stay in a home almost 3 years before they get locks put on the doors. So you are saying that even after getting a summons like I did, the process could take another 2 years? I wonder if I should consider renting the place out for awhile. If I did receive a summons from an attorney, do you think I could delay the inevitable even longer if I had an attorney respond to them proving that they are indeed in 2nd place and that they cannot foreclose on me? Thanks as always for your input.
 
#14
Wow, that is crazy! I remember before I did my modification I was at about 8 months behind and then I received a summons from the bank's attorney. I had 30 days to respond, but I ended up getting my modification completed within that time frame, so nothing happened. I find it hard to believe one could stay in a home almost 3 years before they get locks put on the doors. So you are saying that even after getting a summons like I did, the process could take another 2 years? I wonder if I should consider renting the place out for awhile. If I did receive a summons from an attorney, do you think I could delay the inevitable even longer if I had an attorney respond to them proving that they are indeed in 2nd place and that they cannot foreclose on me? Thanks as always for your input.
That isn't information coming from me, that is the current information available on the internet. If you want o verify the timeline currently, if it were me, I would call around to a couple of real estate foreclosure attorneys in the area and ask them how long the process is taking currently.
 

cmefly

LoanSafe Member
#15
UPDATE -
I filed a Chapter 7 Bankruptcy on 12-13-13 and I received my Discharge 3-14-13. Homeward sold the loan to the dreaded Ocwen. So the Liens in order of apprearance on my house are a 1st for $14K with a small company that is in bankruptcy themselves, 2nd with Ocwen for $182K, 3rd with SLS for $54K and a 4th with HSBC for $25K. I know longer am personally liable for any of the debt. The liens are still attached to the house. So in order for Ocwen to foreclose they are going to have to offer the 1st lien holder, which is the bankruptcy trustee for that company, a settlement. Then I assume the other liens will just be released considering the value is only $150K.

So would Ocwen just have to go through the foreclosure process to eventually get me out? What are the time frames you are hearing? I assume they can't just come and change the locks.

Thanks for the help!