Comments on: Gov. Schwarzenegger Works with Lenders to Help Homeowners Avoid Foreclosure http://loanworkout.org/2007/11/gov-schwarzenegger-works-with-lenders-to-help-homeowners-avoid-foreclosure/ Loan Modification & Home Loan News Fri, 20 Nov 2009 12:55:43 -0700 http://wordpress.org/?v=2.8.6 hourly 1 By: Lori http://loanworkout.org/2007/11/gov-schwarzenegger-works-with-lenders-to-help-homeowners-avoid-foreclosure/#comment-7884 Lori Tue, 27 May 2008 09:23:27 +0000 http://loanworkout.org/2007/11/20/gov-schwarzenegger-works-with-lenders-to-help-homeowners-avoid-foreclosure/#comment-7884 We are currently the initial stages of foreclosure because of the fact that Accredited Home Lenders which is based in CA is refusing to work with us. They modified our loan by looking at my husbands gross pay instead of his net pay. With the house payments at 1,065 a month and his net income of 1,255 bi-weekly, that only leaves us 185.00 to pay the rest of our bills and live on. My company downsized and I have been out of work since January of this year. I'm looking, but the only jobs that are currently avail start at 7.00 and hour. I have also tried all of the programs that are here to stop the foreclosure and nobody can help us. Are we to file a Chapter 7 or just leave our home because of the fact that there are no Federal programs out there to help any one who has been behind or made late payments for some time? We are currently the initial stages of foreclosure because of the fact that Accredited Home Lenders which is based in CA is refusing to work with us. They modified our loan by looking at my husbands gross pay instead of his net pay. With the house payments at 1,065 a month and his net income of 1,255 bi-weekly, that only leaves us 185.00 to pay the rest of our bills and live on. My company downsized and I have been out of work since January of this year. I’m looking, but the only jobs that are currently avail start at 7.00 and hour. I have also tried all of the programs that are here to stop the foreclosure and nobody can help us. Are we to file a Chapter 7 or just leave our home because of the fact that there are no Federal programs out there to help any one who has been behind or made late payments for some time?

]]> By: JacMac http://loanworkout.org/2007/11/gov-schwarzenegger-works-with-lenders-to-help-homeowners-avoid-foreclosure/#comment-7883 JacMac Thu, 13 Dec 2007 05:47:34 +0000 http://loanworkout.org/2007/11/20/gov-schwarzenegger-works-with-lenders-to-help-homeowners-avoid-foreclosure/#comment-7883 Some of the opinions here totally ignore the fact that many homeowners were defrauded and had no idea what games and tricks the LO/broker was playing on them. THey went into these loans like a lamb to the slaughter. Some of the opinions here totally ignore the fact that many homeowners were defrauded and had no idea what games and tricks the LO/broker was playing on them. THey went into these loans like a lamb to the slaughter.

]]> By: Home Loan Q Life Insurance Q Work From Home http://loanworkout.org/2007/11/gov-schwarzenegger-works-with-lenders-to-help-homeowners-avoid-foreclosure/#comment-7882 Home Loan Q Life Insurance Q Work From Home Thu, 13 Dec 2007 04:02:37 +0000 http://loanworkout.org/2007/11/20/gov-schwarzenegger-works-with-lenders-to-help-homeowners-avoid-foreclosure/#comment-7882 Hi - just wanted to say good design and blog - cu Frank Hi – just wanted to say good design and blog – cu Frank

]]> By: Barbara http://loanworkout.org/2007/11/gov-schwarzenegger-works-with-lenders-to-help-homeowners-avoid-foreclosure/#comment-7881 Barbara Wed, 05 Dec 2007 16:59:36 +0000 http://loanworkout.org/2007/11/20/gov-schwarzenegger-works-with-lenders-to-help-homeowners-avoid-foreclosure/#comment-7881 Hi All, I've read most of these post and as a Realtor I have seen my share of tricks used by consumers and brokers. But those are the "RARE" stories. My husband and I purchased a home 3 yrs. ago and were over and above honest. We have an ARM that will adjust in Sept.08. We have zero credit card debit but we still won't be able to afford the adjust. We paid 425,000 and when we tried to refi it appraised for 395,000. We have never taken any money out of it because as a Realtor I know that is a risky deal as it is assumed equity. All we want is for our lender/service agency to let us keep the loan we have as we can make that payment and have never been late or refi (even though it won't appraise now it will eventually go back up) what we owe at a fixed rate. We are just regular folks trying to stay ahead and in our American Dream. So I feel any help the Governer can get us by asking the lenders to have mercy basically is good. They get more money over time keeping people in the current loans than foreclosing on people who can't pay the reset. I know there are people who did lie, etc. and got themselves into a mess but for the most part that is not the case. Hi All,
I’ve read most of these post and as a Realtor I have seen my share of tricks used by consumers and brokers. But those are the “RARE” stories. My husband and I purchased a home 3 yrs. ago and were over and above honest. We have an ARM that will adjust in Sept.08. We have zero credit card debit but we still won’t be able to afford the adjust. We paid 425,000 and when we tried to refi it appraised for 395,000. We have never taken any money out of it because as a Realtor I know that is a risky deal as it is assumed equity. All we want is for our lender/service agency to let us keep the loan we have as we can make that payment and have never been late or refi (even though it won’t appraise now it will eventually go back up) what we owe at a fixed rate. We are just regular folks trying to stay ahead and in our American Dream. So I feel any help the Governer can get us by asking the lenders to have mercy basically is good. They get more money over time keeping people in the current loans than foreclosing on people who can’t pay the reset. I know there are people who did lie, etc. and got themselves into a mess but for the most part that is not the case.

]]> By: Jw http://loanworkout.org/2007/11/gov-schwarzenegger-works-with-lenders-to-help-homeowners-avoid-foreclosure/#comment-7880 Jw Sat, 24 Nov 2007 11:58:55 +0000 http://loanworkout.org/2007/11/20/gov-schwarzenegger-works-with-lenders-to-help-homeowners-avoid-foreclosure/#comment-7880 Hi Moe,<br />I am new to the site, and glad to find it. <br />Have you any advice for those of us affected by the storm, who were told we would not have to have the three months at the end of the deferral period, only to find out they expected it? I resumed my payments in 3 months, and contacted my servicer. I paid my note for a year, until they refused to take any more, as they applied my Decl payment to the Sept. one, making me delinquent since. They have treated me as if I stopped paying without their approval, and refuse to approve me for mod., saying I don't make enough...DUH. I lost most of my income after the storm for months. I knew I would not qualify for a loan, and was trying to avoid any situation which would require that. <br />I was duped into believing my president and my lender when they assured me I was allowed this assistance. Now I wish I had suffered through the 3 months, rather than have 2 years of being driven to the brink of 'postal ol' broad' They are stealing my home and I need to stop them. <br /><br />To the underwriters: Please don't look at all people in foreclosure as 'asking for it'. That's like saying pitt bulls are bad, so all dogs are bad. <br /><br />Greed is what seems to motivate a vast majority of these folks. It's not as if they aren't making enough as it is.<br />The loan I already had was current before the storm..I did everything I could to make sure this was something that would not destroy my life. I should not have to qualify for something I already qualified for, and be denied because I don't make as much after a disaster as I did before.<br />I have been told that in order to keep my house, the only thing he can do is<br />let me pay $5000 dwn, and almost 2 x more per month for a year, or they take my house!<br />Can someone explain how I don't qualify for a deferral-which would have been so simple..never mind what we were supposed to get- But, do qualify for some ridiculous 'ransom' plan, so high I am sure to kill myself trying to find a way to pay? Reminds me of the Carpetbaggers. Opportunistic feeders. <br /><br />I am just a few days from seeing my name in the Sheriff's sale, and didn't do anything but believe what they promised..It is insane to expect disaster victims to be able to pay the entire amount after just 12 weeks, when many of them didn't even have a home to go to. What kind of 'disaster assistance' is that?<br /><br />Keep up the good work, as I fear we haven't' begun to see the trouble it will cause across the board, if these foreclosures continue. <br /><br />Thanks,<br />Jw Hi Moe,
I am new to the site, and glad to find it.
Have you any advice for those of us affected by the storm, who were told we would not have to have the three months at the end of the deferral period, only to find out they expected it? I resumed my payments in 3 months, and contacted my servicer. I paid my note for a year, until they refused to take any more, as they applied my Decl payment to the Sept. one, making me delinquent since. They have treated me as if I stopped paying without their approval, and refuse to approve me for mod., saying I don’t make enough…DUH. I lost most of my income after the storm for months. I knew I would not qualify for a loan, and was trying to avoid any situation which would require that.
I was duped into believing my president and my lender when they assured me I was allowed this assistance. Now I wish I had suffered through the 3 months, rather than have 2 years of being driven to the brink of ‘postal ol’ broad’ They are stealing my home and I need to stop them.

To the underwriters: Please don’t look at all people in foreclosure as ‘asking for it’. That’s like saying pitt bulls are bad, so all dogs are bad.

Greed is what seems to motivate a vast majority of these folks. It’s not as if they aren’t making enough as it is.
The loan I already had was current before the storm..I did everything I could to make sure this was something that would not destroy my life. I should not have to qualify for something I already qualified for, and be denied because I don’t make as much after a disaster as I did before.
I have been told that in order to keep my house, the only thing he can do is
let me pay $5000 dwn, and almost 2 x more per month for a year, or they take my house!
Can someone explain how I don’t qualify for a deferral-which would have been so simple..never mind what we were supposed to get- But, do qualify for some ridiculous ‘ransom’ plan, so high I am sure to kill myself trying to find a way to pay? Reminds me of the Carpetbaggers. Opportunistic feeders.

I am just a few days from seeing my name in the Sheriff’s sale, and didn’t do anything but believe what they promised..It is insane to expect disaster victims to be able to pay the entire amount after just 12 weeks, when many of them didn’t even have a home to go to. What kind of ‘disaster assistance’ is that?

Keep up the good work, as I fear we haven’t’ begun to see the trouble it will cause across the board, if these foreclosures continue.

Thanks,
Jw

]]> By: Stephen F. http://loanworkout.org/2007/11/gov-schwarzenegger-works-with-lenders-to-help-homeowners-avoid-foreclosure/#comment-7879 Stephen F. Sat, 24 Nov 2007 02:19:14 +0000 http://loanworkout.org/2007/11/20/gov-schwarzenegger-works-with-lenders-to-help-homeowners-avoid-foreclosure/#comment-7879 Just Enough - My Q. is this...With a 690 Credit Score, why did you sign for a 2/28 Mortgage? Did you not "show" enough income on the books and have to do a "Stated" loan? There is something missing here. Just Enough – My Q. is this…With a 690 Credit Score, why did you sign for a 2/28 Mortgage? Did you not “show” enough income on the books and have to do a “Stated” loan? There is something missing here.

]]> By: NegAmLO http://loanworkout.org/2007/11/gov-schwarzenegger-works-with-lenders-to-help-homeowners-avoid-foreclosure/#comment-7878 NegAmLO Fri, 23 Nov 2007 09:53:44 +0000 http://loanworkout.org/2007/11/20/gov-schwarzenegger-works-with-lenders-to-help-homeowners-avoid-foreclosure/#comment-7878 Anne & Just Enough thanks for sharing your personal stories as it puts a face on the crisis & help us understand that not every one who bought real estate was a speculator, or looking for easy money. People had reasons to get these mortgages. I am an LO & works for a large bank. We had since Aug 9500 people default on thier loans, however we worked with 7500 of them to help them avoid foreclosures. We did not excused their debt or rates, we allowed them to defer the interest payment for a short period of time. This way we are not being unfair to our good customers. We only modified to help them pay a little now & defer rest for later. Most people who took the deal were the honest hard working people with situations like Anne or Just Enough. Majority of the ones who didnt took our solutions were the speculaotrs and non-owner occ properties. these investors don't want to hold on to a depreciating asset, and we as a bank have to eat up the loss for making a decision to lend to them. Which is cost of doing business. I donot favor a special treatment but a work out where we can ease the payments to pay some now and some later usualy helps the needy without rewarding or punishing anyone else. I hope other banks start doing the same and keep properties away from the market which will help stabilise the RE market & those who are paying their mortgages honestly & responsibly will not see their hard earned equity wipe off.<br />I think we have done a very responsible job. And would sure like to hear serious suggestions (no bantar please) on should other banks do this too. Anne & Just Enough thanks for sharing your personal stories as it puts a face on the crisis & help us understand that not every one who bought real estate was a speculator, or looking for easy money. People had reasons to get these mortgages. I am an LO & works for a large bank. We had since Aug 9500 people default on thier loans, however we worked with 7500 of them to help them avoid foreclosures. We did not excused their debt or rates, we allowed them to defer the interest payment for a short period of time. This way we are not being unfair to our good customers. We only modified to help them pay a little now & defer rest for later. Most people who took the deal were the honest hard working people with situations like Anne or Just Enough. Majority of the ones who didnt took our solutions were the speculaotrs and non-owner occ properties. these investors don’t want to hold on to a depreciating asset, and we as a bank have to eat up the loss for making a decision to lend to them. Which is cost of doing business. I donot favor a special treatment but a work out where we can ease the payments to pay some now and some later usualy helps the needy without rewarding or punishing anyone else. I hope other banks start doing the same and keep properties away from the market which will help stabilise the RE market & those who are paying their mortgages honestly & responsibly will not see their hard earned equity wipe off.
I think we have done a very responsible job. And would sure like to hear serious suggestions (no bantar please) on should other banks do this too.

]]> By: Anne http://loanworkout.org/2007/11/gov-schwarzenegger-works-with-lenders-to-help-homeowners-avoid-foreclosure/#comment-7877 Anne Thu, 22 Nov 2007 00:07:00 +0000 http://loanworkout.org/2007/11/20/gov-schwarzenegger-works-with-lenders-to-help-homeowners-avoid-foreclosure/#comment-7877 I don't know about anyone else, but I think the help should be on a case by case basis, but the onus should not be on the consumer, it should rest with the lender. They have made a ton of money off the stupidity of others or as in my case, because there were no other options. As a cancer patient, I had to refinance three times just to pay bills for chemo and loss of income while I was sick and not covered fully by insurance. The last time into a 2/28 from 6% that would increase 1 1/2 points every 6 mos until it hit 13% & had to get a 2nd mortgage at 13% to pay down the remaining debt. I didn't have a choice and thought I could refi into a fixed rate within the two years and you know the rest. My lender went belly up in the meantime. I recently found a bank offering to refi combining both loans into an FHA fixed rate loan. If I had not found a bank willing to work with me, I would have needed my lender to work with me and why shouldn't they? I have faithfully paid my mortgage on time every month for 8 years, I have a lot invested in my home and maintain it well and I am committed to staying in my home for an additional 15 years. Why should someone like me be punished? I don’t know about anyone else, but I think the help should be on a case by case basis, but the onus should not be on the consumer, it should rest with the lender. They have made a ton of money off the stupidity of others or as in my case, because there were no other options. As a cancer patient, I had to refinance three times just to pay bills for chemo and loss of income while I was sick and not covered fully by insurance. The last time into a 2/28 from 6% that would increase 1 1/2 points every 6 mos until it hit 13% & had to get a 2nd mortgage at 13% to pay down the remaining debt. I didn’t have a choice and thought I could refi into a fixed rate within the two years and you know the rest. My lender went belly up in the meantime. I recently found a bank offering to refi combining both loans into an FHA fixed rate loan. If I had not found a bank willing to work with me, I would have needed my lender to work with me and why shouldn’t they? I have faithfully paid my mortgage on time every month for 8 years, I have a lot invested in my home and maintain it well and I am committed to staying in my home for an additional 15 years. Why should someone like me be punished?

]]> By: Tom Lowe http://loanworkout.org/2007/11/gov-schwarzenegger-works-with-lenders-to-help-homeowners-avoid-foreclosure/#comment-7876 Tom Lowe Wed, 21 Nov 2007 22:31:22 +0000 http://loanworkout.org/2007/11/20/gov-schwarzenegger-works-with-lenders-to-help-homeowners-avoid-foreclosure/#comment-7876 I spent $15k in costs and prepayment penalty to get out of an ARM and into a fixed rate mortgage and now all the people too stupid to read their loan papers are not only going to save that but end up with a lower interest rate than I have?!?!?!? I spent $15k in costs and prepayment penalty to get out of an ARM and into a fixed rate mortgage and now all the people too stupid to read their loan papers are not only going to save that but end up with a lower interest rate than I have?!?!?!?

]]> By: Tuma http://loanworkout.org/2007/11/gov-schwarzenegger-works-with-lenders-to-help-homeowners-avoid-foreclosure/#comment-7875 Tuma Wed, 21 Nov 2007 22:01:19 +0000 http://loanworkout.org/2007/11/20/gov-schwarzenegger-works-with-lenders-to-help-homeowners-avoid-foreclosure/#comment-7875 Technically what the state is doing is not good economics. Foreclosures don't mean the population is all dead. It simply means properties are unaffordable. Meaning there has to be asset repricing. When those prices meet ability to pay, they would be snapped up again and the economy would be more sustainable. Attempting to keep people in these unaffordable homes simply means they would use way too much of their income for housing and this hurts the broader economy. Technically what the state is doing is not good economics. Foreclosures don’t mean the population is all dead. It simply means properties are unaffordable. Meaning there has to be asset repricing. When those prices meet ability to pay, they would be snapped up again and the economy would be more sustainable. Attempting to keep people in these unaffordable homes simply means they would use way too much of their income for housing and this hurts the broader economy.

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