Foreclosure/in over my head...
QUESTION: Hi Brian,
Thank you for your help! I am so lost right now. I bought my place in 2006; same song & dance as a lot of people- paid on time until I was laid off in 2010. I was able to get funding from the Hardest Hit Fund which kept me in my place and that ran out this year. i'm working again but make about 20k less than I used to. My mortgage was promptly sold by WF to a no-name company and then to another. I applied for a loan modification in February and they drug it out asking for extra things and taking months to look at them and finally sent me a denial at the end of May (which I expected since none of my phone calls with them had ever been helpful. My loan has a 7.25% interest rate and they told me that they do not modify below 7% and I'm not sure that's even true.)
The reason for the denial was the best- an extremely vague "we have no programs that match the terms you requested"- I didn't request anything specific because I didn't know I needed to. I did specifiy in my hardship letter that the interest rate was too high but I guess that wasn't enough. I called to find out what that meant and they told me that 1. it was denied bc I had enough savings to bring my mortgage current (I don't); the program specialist made the comment "I dont know why we don't have more recent bank statements for you..." They have 4 months of bank statements. 2. She asked what I wanted and I said "I dont know...lower interest rate? I want an affordable monthly payment" and at that she made it seem like it was all a big misunderstanding and that since I wasnt asking for a principal reduction that I should send another hardship letter for the investors.
Sorry for the long-winded background... so, I don't trust anything w them and have no idea what to do. If I'm going to lose my home, I'd rather get it over with than keep this up for another year. But I don't like getting screwed with and I know that's what's happening and I know I dont have the necessary knowledge or tools to fight back. I have a HUD counselor but I don't think he really knows what to do either. What's the best advice for someone like me? I can't afford to fight them in court but this is my home. I've paid about 65% of what it originally cost and am still underwater. It's not like they havent gotten a lot of money out of me.
Any info/advice etc would be awesome. Thank you!
ANSWER: Hey Kristen,
I need a bit more information to give you some options.
Who is your lender now?
How much do you owe?
How much is your home worth?
What is your current monthly income (Gross)
Do you know if your home is backed by Fannie Mae or Freddie Mac?
(google Fannie mae loan look up and Freddie mac loan look up, put in your info and it will tell you)
If I have this info I can put some numbers together.
---------- FOLLOW-UP ----------
QUESTION: Hi Brian, I'm sorry for the delay in responding. This process is taking me under.
I don't have a clue who my lender is but my servicer is Rushmore Loan Management (and they are terrible). Wells Fargo was my mortgage company for 6 years and then they sold it to a small servicer and then they promptly sold it to another (RLM). I was starting the loan modification application process w WF before it was sold and didnt run into any of the craziness I'm getting from this servicer.
I owe about 112000- almost the same damn amount i owed 7 years ago bc it's interest only for 10 years. (my broker told me this was a good idea and to just plan to refinance once I had a few raises behind me. Instead, I got laid off 5 years later.)
My current servicer just sent me something that said they appraised my house at 88k.
My gross is 2480. I make 15.50/hr. No, my loan is not F Mac or Mae. I have a "private investor" who has set his own rules...although, honestly, I don't believe anything that RLM is telling me.
I can *never* reach my "relationship manager"- she's always on vacation, at lunch, on the other line or away from her desk. She never returns my calls either. They've denied my mod app twice now with that vague reason but when I call to ask for clarity, I'll get a different reason. When I call again, I'll get something else. They do a great job of keeping me confused. Last week I received a letter dated July 16 that said my loan mod app was incomplete and to send in xyz. the next day, I received another letter, dated the same day, denying the "incomplete" application.
Thank you for helping me. I appreciate it so much.
I hear stories like yours everyday. Unfortunately 10% get approved. The best shot you have on getting it approved is to get help doing it. If you go to www.hud.gov and finding the housing agency that is in your area, they will help you with the loan modification for no cost or very little cost. That is your vest shot. If that doesn't work then you need to go to plan B and do a short sale or you can just walk away and let it foreclose. It sucks I agree but it is reality and I want you to put yourself in the best position for recovery. I hope that this helps.