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Reader response to – Foreclosure Warfare – “It is troubling that the plaintiff has filed this case before it had any interest in it”
Myshkin ~ In the mortgage and foreclosure world so much abuse has been tolerated for so long that it had become common practice to simply look away and ignore the facts. Now, things are changing. Those who file foreclosure procedures are now on the hot seat, and rightly so.
I applaud the recent decisions by the Ohio judges who have dismissed these cases due to lack of adequate documentation as to who truly owns the mortgage. I only hope that judges in every state of the Union follows the example of the Ohio judges. And I also hope that every foreclosure case is completely scrutinized before the court. It’s time for the abuses of the past to come to an end.
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Reader response to – Please do not call 888-995-HOPE for Hope Now, if you are not late on your mortgage
Jackie ~ Yes I called American Home Mortgage 3-4 times since August when I fully comprehended that in a falling market my neg-am loan was a time-bomb waiting to explode!
They said “we can’t do anything since you’re not late”. Called 995-HOPE 2-4x in the past month and emailed. They told me best thing to do sell, which I’m doing but haven’t received 1 offer. I’m looking at a possible short sale and have been researching my tail off. I will contact the lender in Jan.
I make good money but have ruined my future; when I think about it fully I just cry….the only time I’m not worrying about it is the first 4-5 hrs. of sleep…I put 15% down went full doc…had a bad personal situation and knew I needed to fix up my house and sell (so a HELOC) and I’m screwed…..I hope all the mortgage companies and Wall St. banks get f’d by this.
I’m reading about banks taking billion dollar write-downs on a daily basis. But the government is helping them out. I hope they go bankrupt just like I’m going to have to do.
- Reader Response to - Barney Frank – you not only don’t know your borrower, you have no idea who your borrower’s borrowers’ were or are
Jac Mac ~These were defective credit instruments and should have NEVER been offered to borrowers and should in theory be recalled due to their predatory nature.” ~ Moe
From Moe’s mouth to God’s ears.
Hey Moe, when are you going to write that book?
Amen!!!!!!
Quite common. They want to foreclose. They can then pile on trumped-up legal fees, service fees, documentation fees, late fees, cost of air fees and on and on and on. No lender wants a workout.
Don’t deposit at Countrywide banks and financial centers. Learn more about the national mortgage crisis and Countrywide’s role in it. Visit http://www.dontdepositatcountrywide.info
Hey, be persistent and keeping track of the good ones at the lenders for follow up. I got my sub prime arm modified from 9.99 arm to 5% fixed. Took 6 mos but well worth the hassle.
“We originally bought our home in 11/05 with a 2/28 5 yr. Interest Only loan. We thought that at the time of adjustment that we would be able to refinance no problem as I would be back to work after having my second son. Our rate was due to adjust 11/1/07.”
So you went into this loan knowing full well that you would not be able to make the payments once they adjusted and now you are upset at the lender? Bottom line you gambled and you lost. You gambled the value of the house would increase. You gambled you would be back to work. You gambled with someone elses money and now it is time to pay up. As you stated you knew it was a bad loan but you had to have the house you could not afford so you could impress your friends and your family. Are they impressed now? This is the overwhelming problem. Nobody can take responsability for their own decisions.
I agree totally with Jim. You bought your home in 11/05 on an interest only loan, which means you didn’t qualify for a conventional loan (or that you couldn’t afford to pay principal and interest) which means you really couldn’t afford the house in the first place. My question is, did you get a 1st mortgage and 2nd mortgage together for the purchase of the home, (which means, you got into this house with no down payment), or did you take out a 2nd mortgage later and pull out a bit of cash to live on while you were taking time off to have your second son? I have no problem with taking some time off to be with your family, family is very important, however, you are “Blaming the lender” because you did not plan for the future. You knew what the future held, that a rate increase was coming, but you figured, you would deal with it when the time comes. Well deal with it, take responsibility for it. I don’t mean to sound so callous, I know there are a lot of people struggling to keep their homes because they made poor decisions in the beginning. What about all of us who took the higher fixed rate mortgages, made principal and interest payments, because we wanted to make sure that for the next 30 years, we would know what our payments would be. We planned ahead. We bought what we could afford today, not what we hoped we could afford in a couple of years. We didn’t go out and acquire more debt (2nd mortgage or credit cards), because we didn’t have the extra income to do so because we were paying a higher payment (P&I). You said if they would lower your rate to 6% you could afford the principal and interest payment (does this include your 2nd mortgage as well?) Well I would like for my lender to lower my interest rate to 4%, then I could make double house payments and be mortgage free in about 8 1/2 years. It is time to take responsibility for the choices you have made, its called PERSONAL RESPONSIBILITY.
Hello, Andrea;
I’m upset with some of the bloggers that have left a comment about your situation. No solution from Jim or MJane. Just there ramblings about you taking a chance on your American Dream to be a homeowner.
I would like to suggest the following, in every bank and mortgage company there is a department called “Loss Mitigation”. It sounds like you have been talking with someone in the “Collection Center”, I could be wrong. The purpose for collection is to bring in the mortgage payment by any means necessary. They can and will stretch the truth. The Loss Mitigation department will work with the borrower even if they are in Forclosure. Recently (depending on the lender) some of my clients have had success with having there ARM or I/O frozen and rolled back to the benefit of the borrower. You can approach this on your own with your lender or you can hire a Third Party Negotiator to speak on your behalf. As a Mortgage Loan Consultant, my goal is to help as many homewoners who feel they don’t have a way out of there stressful situation. I can be reached at twaloans4u@gmail.com.
Hello Andrea, I agree with Terrance on some of these bloogers. I will go even further, as a Certified Mortgage Planner I advice people all the time on loan structures and the interest only loan is by far the best mortgage you could ever get. Never put money into principal of the loan rather set the money aside where it earns you a rate of return. Why would anyone put money in an asset that can depreciate. I too assist clients with loan modifications and am an ex-Countrywide employee as well. I specialize in wealth creation using mortgages as a tool. If you’d like to know more, you can reach me at info@dollardestination.com. I am currently negotiating with Countrywide on behalf of other clients.
Under your current situation, you should have never been a homeowner. If you have shaky credit you should have never been approved for this. I say give the house back and rent. You are not responsible to own a home. It is a hard pill to swallow but the truth! the American way of living off credit. It will doom us all.
First of all JANE!!! You are calous!!! If a product is availbale for people to purchase and that person is under the impression that there are yet more products out there to obtain to remedy the one they just purchase all in hopes that the person’s intenteions would be to come out with a reasonable outcome is not irresponsible. Isn’t the stock market nothing but a gamble as well? What do you have to say about our economy and how it is structured then? Before you go making JUDGEMENTS and self ritious accusations about people’s motives chasing the “American Dream”, check your facts first and then maybe you won’t look like such a dang fool!!!The Government and our financial system as it is ALLOWED all of this to happen because there was greed on both ends. One half of the problem simply wanted the “American Dream” and the other half wanted to take advantage of the people who wanted it. Get a CLUE!!!
I could use some some HELPFUL insight. The Loss Midigation Dept. is willing modify my loan. My ARM loan started at 6.0 and is now at 10.5 They are offering me a 7.8,and I hate to sound greedy but I need to have it closer to 6.0 in order to function. My question is, will they EXCEPT a COUNTER offer? And if so,were should I start? ANY POSITIVE insight or additional info.would be appreciated.
HELPFUL insight needed. The Loss Midigation Dept. is willing modify my loan. My ARM loan started at 6.0 and is now at 10.5 They are offering me a 7.8,and I hate to sound greedy but I need to have it closer to 6.0 in order to function. My question is, will they EXCEPT a COUNTER offer? And if so,were should I start? ANY POSITIVE insight or additional info.would be appreciated.
This will be my 3rd and last last try for some goodwill help on this forum,after this I will pursue other avenues. The I need some expertise on the following: The Loss Midigation Dept. is willing modify my loan. My ARM loan started at 6.0 and is now at 10.5.
They are offering me a 7.8,but I need to have it closer to 6.0 in order to function. My question is, will they EXCEPT a COUNTER offer? And if so,were should I start? ANY POSITIVE insight or additional info.would be appreciated.
Jackie,
my heart goes out to you. I have been dealing with AHM on issues since the end of May.
If you have a HELOC, you may want to call GMAC and see if they own your loan. They have been trying to get their HELOC’s out of that servicing unit since August. They were finally able to get the court to allow them to get their loans and files by mid January.
GMAC told AHM to send letters out to all of their borrowers telling them that the accounts were frozen. And they couldn’t get more advances against the LOC. AHM didn’t do it and allowed borrowers to continue to borrower. So they may be liable for these monies and GMAC will not.
AHM will not be servicing these HELOC’s much longer.
I hope your loan is one of the ones GMAC owns. You will have a much better chance dealing with them.
Good luck -
You are now a memeber of the sleepless crowd. AHM is like a cancer.
Myshkin,
I agree with you -
What may have happened is that these loans were never assigned properly. And may have even been securitized more than once, which is why they can’t provide the chain of title.
I have a friend that AHM tried to foreclose on. They lost her originial note.
Now I am wondering just how many they have lost.
They peititioned their bankruptcy court for permission to destroy 490,000- files containing the hard copies.
And of course, luckily, the banks that own those loans objected.
They are hiding a lot of fraud in those files. Employees have come out and stated that they cut and pasted documents. That they force underwriters to approve bad loans.
One of their MI companies, Triad, has refused to pay claims on 14 loans, so far, due to their faulty underwriting and irregularities in the loan files.
And I hope that this OHIO ruling sets a presidence -
The dirty little secret is that ALL of their loans have insurance on them. They took out the policies.
If they think they will profit on a foreclosure, they will. If not they will work with the borrower.
The break off is 30%.
This will be my very last last try for some goodwill help on this forum,after this I will pursue other avenues. The I need some expertise on the following: The Loss Midigation Dept. is willing modify my loan. My ARM loan started at 6.0 and is now at 10.5.
They are offering me a 7.8,but I need to have it closer to 6.0 in order to function. My question is, will they EXCEPT a COUNTER offer? And if so,were should I start? ANY POSITIVE insight or additional info.would be appreciated.
Jonas – This is blog is for information and for discussions. I always highlight the forum at http://www.loansafe.org for the place to get help for homeowners.
However, yes, they will consider a counter offer. You need to deal with your lender and prove to them that you cannot afford the 7.8%. Maybe they are missing something on your paperwork where they feel you can pay the 7.8.
Sorry it took so long to respond. I did not see this comment.
Good luck!
Andrea,
I am in the same situation. I have only gotten a hold of my negotiator once in close to 3 months. I’ve gotten a hold of numerous.. “assistants”….have gotten nothing. I was able to pay for my mortgage and still am willing to stay in my 9.375% ridiculous interest rate for a $484K interest only loan, if only I could prevent it from going up again in March. The company is asking me not to pay for my mortgage but yet am being assessed late fees at the same time and would still have to pay for them. Now I am being a assessed late fees of almost $200/month. I’ve gotten one nice person out of this and I too have called numerous times. It seems that Countrywide would rather have me go into foreclosure than have me stay in my home. Today I contacted their so-called platinum service..nothing platinum about it…they couldn’t do anything for me either. Now I’m stuck with a countrywide mortgage of nearly 5k a month (escrowed) and it seems have no way out. I’ve got a pretty modest income though my husband has come into rough times at work and this is why I contacted countrywide’s loan mod in the first place. At this point I don’t know where to go either!
Jonas,
Please contact me if you have any questions regarding your interest rate reduction. I have been actively closing loan modification agreements with distressed borrowers the last 6 months. My email is pdamiano@loanmodifications.net. Feel free to drop me a line. I am in contact with every lender that has not closed their doors. I work for a firm that has been endorsed by Mayors of South Florida. If I dont’ hear from you, good luck on the negotiating.
I just have a question, what is the difference between collection rewrite and loan modification?
i am in the same situation but with a 17,000 prepayment penalty fee owe 10,000 in back intrest, and loan to date is 530,000.00……..house appraises @ 560,000.00 ive spoke with countrywid hundreds of times since november no SUCCESS surrender ing “our”……house!!!
Jenny
I would try to find a real estate agent that specializes in Short Sales. A good short sale agent should be able to negotiate with the bank to get the pre-payment penalty waived and possibly some back interest…especially if you are delinquent. I know it is a frustrating process but persistence pay offs in the end. I would keep calling Countrywide and speak to as many people as it takes to get your point across without becoming hostile.
Denver Houses For Sale
Andrea,
I read your blog response from http://www.loanworkout.org. and I’m sincerely looking for your help and/or guidance. Please do not criticize my choice of home loans because I am fully aware of my poor choice in loan product and I accept full responsibility for not taking my loan papers to a legal expert for advice, prior to signing them in April 2005. My income was verified and I did make sufficient income at the time to afford the mortgage. Today, my loan is current and not in jeopardy of foreclosure at this time. However, it is the future that concerns me since the value of our home has dropped and I’m unable to get my loan refinanced.
I was approved for a 80/20 home loan which pays principal and interest. Until now, I was not aware of what “subprime” meant. I acknowledge having had some collection and other past due accounts in my past. Prior to the loan, I got everything paid off. I was debt free at the time I took out the loan, which was completely affordable at the time (6.75% @ $2,018 for the 1st and 10.75% @ $789 for the 2nd). I was told by my lender that I could refinance my home after the 2 year penalty clause ended, and I would be able to get a fixed rate mortgage. In May 2007, and November 2007 when my loan reset to higher rates (from 6.75% to 9.75% and now 10.75% – due to reset 1% every 6 months), I was unable to get a refinance because the home value going down and my credit score being too low. I continued to make the payments and have not been late on or missed any payments since I took out the loan. I skipped a few credit card payments so that I could keep up on the mortgage.
My loan is due to reset in May 2008. Currently, my payments are $3,115 for the 1st loan and $789 for the 2nd loan, both with Countrywide. The 1st has an adjustable ARM which resets 1% over the LIBOR every 6 months. The 2nd loan is fixed at 10.75%.
In January 2008 I contacted the Countrywide Home Retention Program and faxed the requested paperwork. I was told by the customer service representative that my income was sufficient to qualify me for the program and that I would not hear from them until late April because there are many people ahead of me. Since the time of my loan, my credit score has dropped due to delinquent credit card account, since I am trying to remain current on my mortgage. I have retirement income, and I now have taken a second job to keep up with the payments. I’m very concerned about my family’s future since this is our only family home. My husband, who is currently serving in Iraq, is due home in late April and soon due to get out of the military. He is planning to get another job so that we can hopefully keep up with our payments. We are able to comfortably afford the initial loan, which was $2,900 for the 1st and 2nd combined. With my second job, we are able to afford up to $4,000 in payments, but no more than that.
Today I called Countrywide for the second time. The lady I spoke with told me that she would be referring my account to a loan negotiator and that I should call back in 2 weeks. After reading the blogs on the website, I am concerned that little or no action will take place between now and when my loan is due to reset. I want to be as proactive as possible so that I do not find myself in a delinquent/foreclosure situation. In preparation for the road ahead, I have a few questions below that I hope you would be able to answer for me.
1) Is there anyone else that I can contact outside of the Countrywide system that might be able to help me negotiate a loan restructure?
2) I was told by the Countrywide representative that Wells Fargo Bank has my loan and that they would need to authorize a restructure. Would it be appropriate for me to contact Wells Fargo to initiate a restructure? Would I be at a disadvantage if I am with a professional negotiator?
3) I was told by Countrywide that my current credit score and the value of the house was not a factor in my ability to restructure, only that my ability to pay would be. Do you know if this is true?
4) Roughly, what is the percentage of people who are successfully at getting their homes refinanced or restructured under the Countrywide Home Retention Program.
5) Do you know if there is a list of negotiators anywhere that I can contact.
I thank you in advance for your response. I know your time is valuable and I appreciate your time in assisting me with this monumental issue.
Cheryl,
1) 888-995-HOPE is generally a good resource, the counselors there have a special partnership with certain lenders and I know from experience that if you really need to get in contact with a lender urgently they can help facilitate that.
2) That’s why servicers exist, investors generally aren’t equipped (or rather staffed) to speak to homeowners directly, except maybe for Freddie Mac or Fannie Mae that actually do have some Loss Mit capacity. Just bear in mind a negotiator does so much for you in the background, getting BPOs, various calculations they run through with the investor (Modifying your loan vs foreclosure).
3) Loan Modifications are solely dependent on your Cash Flow (theoretically)
4) In reality, getting an actual percentage doesn’t help, someone who can’t afford their mortgage at any fully amortized rate probably won’t get a Loan Mod and someone who can afford just a rate closer to prime only would probably get a Loan Mod. Homeowners I’ve talked to with success can afford their mortgage at the original amortized rate like yourself, but would find it difficult with a higher payment.
I’ve had a similar experience with Countrywide multiplied by 10 months and a fire which happened in the 5 month of my repay to loan modification payment.
Another interesting thing about CW is that their computers are not integrated. Calling the property claims division is different from any other department and none of them know what the other departments are saying or doing.
I find that everytime I call Countrywide Home Retention Dept I get different people and different answers.
I’ve come to surmise they are totally over-whelmed and unable to be efficient because of the crush of people having difficulty.
I’m just curious if you made any progress.
When I refinanced in July of 2005, I had a a very good credit score at 730. I have documentation in my title paperwork that states my payment will never be more than $1552 per month. All the questions I had were answered by my broker and title company and made sense to me! Does anyone read every single page in their title paperwork and if you have questions don’t you get answers that make sense or that you believe? I did!
My loan was sold to Countrywide shortly thereafter when I noticed my interest rate was changing. I went through my title paperwork and there are a few pages with conflicting information about my interest rate.
Since December of 2006 I have called Countrywide approximately 20 times. Since March 14, 2008, when I submitted all requested paperwork to their “Loan Modification Department” asking to freeze my interest rate or if could refinance my home, I have called to follow up with them 10 times. I am currently upside down in my home by about $100k and would need to bring this to the table to refinance now.
In a nutshell, I have been told because I have not fallen behind in payments and my home is not in foreclosure or on the way, I will not be getting a call back at all OR anytime soon. Foreclosures and homes on their way are being given priority. My credit score is now about 720.
At the time I refinanced I should have been given a fixed rate, as I thought I had been! I DO NOT have crappy credit and STILL have good credit! I obtain Masters Degree, do not have any children and do not live off my credit cards! I strongly believe that I got screwed and I am in the minority WHICH GOES BACK TO MY ORIGINAL STATEMENT………..how many people read every single word on every single page, ask questions and get the answers that make sense to them? I was one of those people! I believe in Karma and my broker, the folks at the title company and Countrywide will wake up one day and will not be smiling!
i was approve for loan mod i found out when i got the paper in the front door..that same day i called n ask whats gonna happen next n they told me that i have back taxes and they paid that alredy will modify it to.now they updated the info just found out that they didnt get chance to add the back taxes inted they will do repayment plan n they can only stretch it for 60 months now im insted of closeto 3500 with P&I and impound they have to add 460 to that amout im at 4000 now. i called them up n ask since its there mistake there’s anyway they can add itto themod they said sorry coz we close the loan already!!its means oh well to bad….
Hi everybody,
I am a reporter in New York, trying to help uncover the problems with mortgage modification programs. Forgive me if this is an annoyance, but I am looking for anyone who works or has worked in a call center in Phoenix handling mortgage mods. I promise not to use your name without permission. I am just looking for people who can help me figure out how the process works.
My email is above, and you can check out or Web site to see some of the other work we do. Again, I apologize for intruding on your discussion.
Thanks,
Olga