Denied a Loan or Loan Mod or Given information you don't understand

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Michael Naz

Michael Naz
Jan 9, 2011
2,965
38
48
Southern California
Please contact me if you have a denial of a loan mod or received a loan mod you cannot afford, or you have been denied the last 12 months for any kind of housing loan and feel you were mistreated in any way during the process.

If you have been denied for any reason you are not sure about on your application for a loan, then contact [email protected] for starting a preliminary questionnaire for your experience.

Based on the information you provide and can document the last 12 months, you may get a new loan you can afford to repay through the Fair Housing Act without having to sue your servicer or go through the application process all over again.

Any attorneys fees paid or third party fees paid in trying to keep your home through applying for a loan modification may be recovered through an Administrative review through HUD without involving the court nor the servicer.

You must have been denied the last 12 months, or told you cannot apply or shouldn't apply.

Additionally, some people may have been denied for the following reasons:

*Payment is affordable
*Ineligible Borrower
*Investor not participating
*Investor not allowing modification
*Excessive forbearance
*NPV (Net Present Value)

Lastly, if you received a loan or loan mod you cannot afford and are being threatened with foreclosure unless you accept the mod, then contact [email protected] or call 877-747-2969 to schedule a time to discuss how we can help.

The remedies include a new loan you can afford plus monetary "damages" for mistreatment, and the best part is, you don't need to sue your servicer or go through a loan modification process!

-michael
 

Gail Colon

LoanSafe Member
Mar 28, 2014
10
0
1
49
I had reached out to Wells Fargo for help as I knew I was going to fall behind due to a loss of income. They sent me loan mod packets for which I returned, they denied me then sent me another loan mod packet for which I returned as well to be denied again. After I complained they admitted that they never had any intent to assist me they basically strung us along and put us further in arrears for appx 18 months now. They are not following Mass Laws (chapter 244 &35A) They are lying, deceiving and stringing me along and need to be held accountable for their unfair practices. They need to start using the bailout money they got to assist the distressed Homeowners like the money was intended for. PLEASE HELP
 

Michael Naz

Michael Naz
Jan 9, 2011
2,965
38
48
Southern California
thank you gail, i got your inputs

here is what i wrote back:

"I need the taxes and insurance 5 and 6 or yearly amounts I can divide by 12.

Also when were you modified last what year?

Was it a HAMP mod or in house?

Did you make 12 payments on time on the mod or not?

What caused you to fall behind the mod?

Do you have any other debts such as 2nd mortgage, auto loan or student loans, and if so what are the monthly amounts minimum due on those per month?

With those I will be able to make a better determination.


Also, if you have your last submission package, the application and the supporting income documents and hardship, along with the denial letter that would be good to review as well. I only want the last submission and last denial the most recent one, if it falls from April 10th, 2013 until today."

inputs sent in:

1. Loan Balance Now= 239000
2. Past Due if any= 33000
3. Gross Monthly Income for Borrower and Co Borrower= 6400 (apppx)
4. Mortgage Payment without taxes and insurance (do not include taxes and insurance) = 1700 (all ins, flood taxes escrowed)
5. Real Estate Taxes per month=
6. Hazard Insurance and/or HOA per month=
7. Home Value (check zillow.com or chase home value estimator)= 225000
8. Mortgage servicer and Investor (check if fannie or freddie or MERS below links) Wells Farfo, Freddie Mac
9. Other monthly debt payment total for credit cards and collections = No credit cards
10. Current interest rate = 5
11. Fixed Rate or Adjustable Rate? = Fixed
12. Have you been modified before? Yes
13. When did you get this loan, what year? = appx 2000?
14. If you own any other properties, it is best to set an appointment to discuss = do not own other

I had reached out to Wells Fargo for help as I knew I was going to fall behind due to a loss of income. They sent me loan mod packets for which I returned, they denied me then sent me another loan mod packet for which I returned as well to be denied again. After I complained they admitted that they never had any intent to assist me they basically strung us along and put us further in arrears for appx 18 months now. They are not following Mass Laws (chapter 244 &35A) They are lying, deceiving and stringing me along and need to be held accountable for their unfair practices. They need to start using the bailout money they got to assist the distressed Homeowners like the money was intended for. PLEASE HELP
 

candle1

LoanSafe Member
Feb 8, 2011
45
1
6
Sorry, it has been a while since i have posted in Loansafe forums. Could you please tell me how to post my problem or question
 

candle1

LoanSafe Member
Feb 8, 2011
45
1
6
Thanks Michael. I think I'm semi in the right forum, since I just found out that the loan holder is Wells Fargo. I applied for Loan Mod with my servicer Ocwen, they just took over from Cenlar in Dec 2013. I applied for loan Mod on 5/29/14, and I got my denial 6/6/14 (1 week) The reason is : The owner of the loan does not participate in the government's HAMP program. On the next paragraph it says: Unfortunately the owner of your loan does not allow loan modifications. Accdg to our records, Wells Fargo NA successor merger with Wells Fargo Minnesota, national Assoc as trustee for First Franklin Mortgage Loan Trust 2002-FF Asset Backed Certificates, Series [email protected] is the owner of your loan.

At this point, i just want to walk away and not even deal with short sale. i had been fighting loan mod since 2009, at first with Cenlar and not knowing who the owner of the loan was. I file BK in Jan 2011 to postpone trustee sale, I did not reaffirm my mortgage. But we had change of heart and wanted to stay in the house in August 2011. WE went to a real estate law firm who is supposed to help us with loan mod, paid the $6000 fee, which is ok. In Jan 2012, Bk was discharged, Cenlar put us on trial pmts for 6 mos saying that we can have permanent mod after. In Aug 2012, they presented us with a "loan mod" giving us lowered pmts for 24 mos of only 3% of principal. Original loan was $464000. After delinquency and cost of legal actions, principal is now $581k. After the 24 mos, the loan will revert back to its original terms, and pick up where we left off with only the remaining number of years but with new principal.

My question is, by going into this pseudo loan mod, did I re affirm my loan, or did they manage to bait me into signing in to a new loan since the original loan was discharged. If I walk away now, can they come after me?
 

Michael Naz

Michael Naz
Jan 9, 2011
2,965
38
48
Southern California
candle1 - i am sorry you weren't happy with the offer from cenlar, but that investor may have been the reason why the term could only be for 2 years at the 3% rate, or the investor is mis-coded in the system at cenlar and now ocwen.

if you wanted to do some research on the real owner of the loan, it would take some time but it could be done, to verify that the owner is not participating in HAMP.

the offer they gave you could have been considered predatory as well if the highest rate was not properly evaluated for affordability in 2 years time.

you did not get a new loan, your loan was modified, and that process did not re-affirm the loan as that process takes place in bankruptcy.

you did not re-affirm the loan by signing the documents, you agreed to pay back the debt but are not personally liable for it since the bk was discharged.

if you walk away now, they cannot come after you personally for the debt.
 

candle1

LoanSafe Member
Feb 8, 2011
45
1
6
michael, the offer was good, it let me stay in the house for 24 mos, but i was expecting them to give me a more permanent one. if they could have just extended the years to 40, then i would have been able to afford. i wanted to jump for joy this morning when i read somewhere that i am not personally liable. but then i dug my "loan mod" and got worried that by signing it, i re-affirmed in some way because that was what my bk lawyer said when i told him we had a change of heart and that we will try to apply and pursue loan mod.

if this is true that i cannot be personally liable for this loan, i want to just make them (servicers) feel the pain they inflict on people like us by telling them that i will not go for short sale but go for deed in lieu. why suffer the in and out of prospective buyers in my home so that they can recoup an amount. and my previous servicer had us go through hoops of asking for documents and such even though they knew that the investor is not modifying. they were the ones who instructed us to go into default so that we will be qualified for a loan mod. my husband went into nervous breakdown because of all the events, 2 yrs of hanging to false hopes. they added all their legal costs to the loan, also, which really sucked.

my house is appraised by ocwen at $577k, my loan is $581k. the house is climbing in value, fast, i am even debating to stay as long as i can, be delinquent, it will not hurt me more anyway since my credit is shot, and see how high market will be then sell. what do you guys think about that?
 

Michael Naz

Michael Naz
Jan 9, 2011
2,965
38
48
Southern California
candle1, the offer of 24 months of help is not typical of the mods we see, we personally think the period was too short, but without verifying the investor and the guidelines we can't be certain if this offer was good or not.

you have to apply for short sale, and market it for 6 months without getting an offer the servicer accepts, before being allowed to do deed in lieu of foreclosure.

i am really sorry about your husband its not his fault or your fault, and know what happened is not right by any stretch of the imagination.

if you want to keep fighting for it, you have to find out who the investor is and how they became the investor through examining the loan sale and purchase agreements between the original lender and the current investor/owner as well as reviewing the pooling and servicing agreement.

its a fair amount of work and cost but don't take it for granted that ocwen has not made a mistake in applying the wrong guidelines to deny your loan mod.
 

candle1

LoanSafe Member
Feb 8, 2011
45
1
6
Michael, when we paid the lawyers $6000, that was the plan. They were going to research who the investor is and check through documents. Whether they did it or not, is a whole another story. I just know that they said I should accept the 24 mos lower pmts and basically said that's the best we can do. I guess it was worth the fee seeing that monthly rent would have been over $2000/month in our area. At this point, I just want to up and go if I find a place I can rent and just leave the house and let them deal with the short sale. But from your information, I will not have the Deed in lieu option until 6 mos. unsuccessful short sale. I had called the servicer yesterday and made an appt to call me back, that's their procedure. The appt came and went and no call. All I wrote in my message was "got denied for loan mod, got offered short sale option, but need to discuss deed in lieu".

Michael, if i may ask another question...if I only have 2 mos left for the lowered modified pmt, and in Sep my pmt is 2x which is why I asked for loan mod, and I am in short sale period, am I required to continue pmt? If not, would it be better for me to short sale towards the end of the 2 mos and drag it for as long as possible?
 

Gail Colon

LoanSafe Member
Mar 28, 2014
10
0
1
49
Can someone please furnish me with updated Email addresses for the Higher ups in Wells Fargo? Ive sent to the list Ive got and a lot got returned. PLEASE
 

Michael Naz

Michael Naz
Jan 9, 2011
2,965
38
48
Southern California
Michael, when we paid the lawyers $6000, that was the plan. They were going to research who the investor is and check through documents. Whether they did it or not, is a whole another story. I just know that they said I should accept the 24 mos lower pmts and basically said that's the best we can do. I guess it was worth the fee seeing that monthly rent would have been over $2000/month in our area. At this point, I just want to up and go if I find a place I can rent and just leave the house and let them deal with the short sale. But from your information, I will not have the Deed in lieu option until 6 mos. unsuccessful short sale. I had called the servicer yesterday and made an appt to call me back, that's their procedure. The appt came and went and no call. All I wrote in my message was "got denied for loan mod, got offered short sale option, but need to discuss deed in lieu".

Michael, if i may ask another question...if I only have 2 mos left for the lowered modified pmt, and in Sep my pmt is 2x which is why I asked for loan mod, and I am in short sale period, am I required to continue pmt? If not, would it be better for me to short sale towards the end of the 2 mos and drag it for as long as possible?
candle1 - you should make your modified payments and make sure there is written correspondence to them that you will fall behind becuase the payments are increasing 2x.

this is a payment shock to you and bad for the investor since the loan interest in the future far exceeds the principal recovered at foreclosure sale.

the $6K was well spent in your case when you compare it solely to the rent at 2K per month, that is more than breaking even on the fee spent. it would be helpful to use the documentation about the investor and loan docs if they don't do the common sense thing and modify it again since you have been making payments on time on the payments that were affordable.

make sure to exhaust all mod options before asking for short sale, and feel free to complain through the cfpb.gov about the predatory loan mod if they don't give you another mod at a longer term at your current rate, this is ridiculous to have to shock the payment 2x and fix it for 2 year at a lower rate.

I wrote this article about bad loan mods that are predatory and yours sounds like one of them.
 

Michael Naz

Michael Naz
Jan 9, 2011
2,965
38
48
Southern California
Can someone please furnish me with updated Email addresses for the Higher ups in Wells Fargo? Ive sent to the list Ive got and a lot got returned. PLEASE
Gail Colon - please log in to your wells fargo account and send a secured message listing the emails and the people you are trying to reach and their job titles, and let them know the ones that are getting returned.

use this as an opportunity to get your request for information fulfilled.
 

troubleinriverside

LoanSafe Member
Nov 30, 2008
773
18
18
What about non fannie/Freddie ? Mine is owned and serviced by Citi, and my 10 year int only term expires May 2015. so that means it turns into a 20 year fully amortized 20 year . if I could get Citi to modify that into a 40 year fixed or adjustable with a reasonable starting rate, it would be perfect
 

Michael Naz

Michael Naz
Jan 9, 2011
2,965
38
48
Southern California
you can write in to them and ask them if your loan investor/owner will allow term extension to 40 years or not.

otherwise you have to find out on your own or hire professionals to find out for you in the "pooling and servicing" agreement if you can't find the information by asking citi directly and/or verifying it independently by tracing the documents filed in public records (sec.gov) for your loan investor/owner.
 

troubleinriverside

LoanSafe Member
Nov 30, 2008
773
18
18
you can write in to them and ask them if your loan investor/owner will allow term extension to 40 years or not.

otherwise you have to find out on your own or hire professionals to find out for you in the "pooling and servicing" agreement if you can't find the information by asking citi directly and/or verifying it independently by tracing the documents filed in public records (sec.gov) for your loan investor/owner.
My Loan was originated by JM O'neil, sold, and then resold to Citi. Citi has told me they own the loan, and they are also the invester