Need Help with Homeward!!!

Lynns

LoanSafe Member
Jan 14, 2013
13
0
1
Waiting on Homeward Residential...

Okay, I need some opinions. We had a HAMP with Homeward Residential (we had received it in late 2010) and defaulted on it in December. I was told I was eligible for the HAMP Tier 2 since our financial situation had changed. I sent all the paperwork in on December 17th and was told I would have an answer by January 17th. I have called every few days and was told that all the paperwork was received and the file was given to a negotiator back in December. I have spoken to her once and she introduced herself and stated that if I had any questions to keep calling.

I was told a week ago by a respresentative that the modification had gone to a department for "pro-modification". I asked what that meant and he told me that it looked good on their end for us to get a modification and it was just in the final stages of the paperwork. I called back three days later and was told by another customer representative that nothing is definite and the paperwork was still being "processed". I called Monday and was told there were no updates, but I need to remember that it is not guaranteed and I need to try to make a payment.

I have tried twice to make our payment ($1859) and was told I couldn't because we are four months past due. They will only take half of what I owe plus this months payment, which equals to around $4500. We do not have that much. So far, I have heard nothing regarding the modifcation and I cannot make the payment they are requesting because we don't have enough. I am really worried this is going to go another month and we are going to be denied and they will foreclose. What steps should I take?
 

Evan Bedard

Call 1-800-779-4547
Loan Safe Mortgage
Aug 26, 2007
18,837
48
48
San Diego, California
www.LoanSafe.org
I have tried twice to make our payment ($1859) and was told I couldn't because we are four months past due. They will only take half of what I owe plus this months payment, which equals to around $4500. We do not have that much. So far, I have heard nothing regarding the modifcation and I cannot make the payment they are requesting because we don't have enough. I am really worried this is going to go another month and we are going to be denied and they will foreclose. What steps should I take?
Welcome and thanks for joining the forum.

You will find that different reps may have different information to give you when you follow up for status on your modification. The most recent rep you spoke with sounds like she has no idea what she is talking about and is probably just a customer service rep who is trained to "collect a payment." Generally, once you are 90-120 days behind most servicers will no longer accept a partial payment (not the entire past due owed) or it will be held in a suspense account. I would just make sure you continue to follow up at least 1-2 times per week until a decision is made. Depending on the state you are located the foreclosure process can take quite some time to complete so you may have plenty of time to finish the modification. Which state are you located in?
 

Lynns

LoanSafe Member
Jan 14, 2013
13
0
1
I am in Michigan. My question is, if the HAMP is denied, will my mortgage company work with me or am i out of luck?
 

Evan Bedard

Call 1-800-779-4547
Loan Safe Mortgage
Aug 26, 2007
18,837
48
48
San Diego, California
www.LoanSafe.org
I am in Michigan. My question is, if the HAMP is denied, will my mortgage company work with me or am i out of luck?
Yes, they have their own in-house loan modifications they will review your account for if you are turned down for HAMP. If you continue to read around you will find many people who are not eligible for HAMP may be offered a regular in-house modification.
 

Lynns

LoanSafe Member
Jan 14, 2013
13
0
1
We were six months behind on our mortgage and applied for a HAMP and was denied, and was then denied for an inhouse moification due to the fact that out income had dropped and we did not make enough money. They would not do a repayment plan with us because of that so I borrowed $4,500 to catch up some of the payments. Our payments are $1859. So it paid two payments and they held the other $950 for the next payment.

I am now behind four months, including this month and owe around $7500. They said I need to make a payment of $3250. They said I cannot apply the entire $950 to this, yet I have to split it up. I told them it should be that I owe $2800 and they said no, they cannot do that nor can they help me since we are now four months due. As of March 1, the loan gets switched to Ocwen. I have a payment of $3250 set up for tommorrow, but I do not have all the funds to cover it and if I dont pay it, I am worried that Ocwen will not accept any payments from me either as it will be due for five months.

No one will help me, they told me to take my chances and wait to talk to Ocwen or just pay the loan. I dont know what I should do, I am very worried as we received a letter of intent (from Homeward) and need to either make the full amount by March 5th or face foreclosure proceedings. The woman told me over and over that she cannot help and either pay it or don't, it is so frustrating that they will not even work with me a little and I dont know what to do!
 

Evan Bedard

Call 1-800-779-4547
Loan Safe Mortgage
Aug 26, 2007
18,837
48
48
San Diego, California
www.LoanSafe.org
I am now behind four months, including this month and owe around $7500. They said I need to make a payment of $3250. They said I cannot apply the entire $950 to this, yet I have to split it up. I told them it should be that I owe $2800 and they said no, they cannot do that nor can they help me since we are now four months due. As of March 1, the loan gets switched to Ocwen. I have a payment of $3250 set up for tommorrow, but I do not have all the funds to cover it and if I dont pay it, I am worried that Ocwen will not accept any payments from me either as it will be due for five months.

No one will help me, they told me to take my chances and wait to talk to Ocwen or just pay the loan. I dont know what I should do, I am very worried as we received a letter of intent (from Homeward) and need to either make the full amount by March 5th or face foreclosure proceedings. The woman told me over and over that she cannot help and either pay it or don't, it is so frustrating that they will not even work with me a little and I dont know what to do!
Hello Lynns,

You are not going to accomplish a loan modification or get further ahead if you keep on paying some of the past due amount once you are 4 months or more behind. If you cannot afford your payments as is, it does not make any sense to keep borrowing money and falling into an even deeper hole. Even if you pay $3,250, they are not going to bring your account current until the entire past due amount ($7,500) is paid. As they did with the $950, any partial payments will be held in a suspense account. A repayment plan will only increase your monthly payments until you catch up on the arrears and does not sound like it will benefit you in anyway. Do not let these notices pressure you into borrowing money if you can not afford your normal mortgage payment as is. A notice of acceleration is sent to EVERYONE who has fallen behind on payments and it can easily be many more months before further actions proceed. What state are you located in? Also what is your current loan balance and gross monthly income?
 

Lynns

LoanSafe Member
Jan 14, 2013
13
0
1
Hello Lynns,

You are not going to accomplish a loan modification or get further ahead if you keep on paying some of the past due amount once you are 4 months or more behind. If you cannot afford your payments as is, it does not make any sense to keep borrowing money and falling into an even deeper hole. Even if you pay $3,250, they are not going to bring your account current until the entire past due amount ($7,500) is paid. As they did with the $950, any partial payments will be held in a suspense account. A repayment plan will only increase your monthly payments until you catch up on the arrears and does not sound like it will benefit you in anyway. Do not let these notices pressure you into borrowing money if you can not afford your normal mortgage payment as is. A notice of acceleration is sent to EVERYONE who has fallen behind on payments and it can easily be many more months before further actions proceed. What state are you located in? Also what is your current loan balance and gross monthly income?
I am in Michigan. Our current loan balance is 268,000 and Our gross monthly income is $7,500. The concern I have is that I do not want to fall even farther behind and be denied over and over again and not be able to pay at all. They told me before that once the letter of intent date passes, then they can start the proceedings at any time and I will be charged their fees immediately. We were denied in October for the modifcation because we were not three months past due. Then we were denied the HAMP and a second in house modification earlier this month because we do not make enough money even if the loan was lowered. If I reapply for a modification for Ocwen and do not make the payments and get denied, I am going to end up owing over $10,000 which i do not have to pay all at once. Homeward basically has told me there is nothing they can do so I am very concerned!
 

Evan Bedard

Call 1-800-779-4547
Loan Safe Mortgage
Aug 26, 2007
18,837
48
48
San Diego, California
www.LoanSafe.org
I am in Michigan. Our current loan balance is 268,000 and Our gross monthly income is $7,500. The concern I have is that I do not want to fall even farther behind and be denied over and over again and not be able to pay at all. They told me before that once the letter of intent date passes, then they can start the proceedings at any time and I will be charged their fees immediately. We were denied in October for the modifcation because we were not three months past due. Then we were denied the HAMP and a second in house modification earlier this month because we do not make enough money even if the loan was lowered. If I reapply for a modification for Ocwen and do not make the payments and get denied, I am going to end up owing over $10,000 which i do not have to pay all at once. Homeward basically has told me there is nothing they can do so I am very concerned!
I understand your concerns and I do not see why you would be denied for low income if you gross $7,500 a month. Actually, your payment is already at 25% of your gross monthly income which is considered an affordable amount. Lenders generally will not lower your monthly payments further than 28-31 percent of your gross income. Does your current payment of $1859 include principle, taxes, and insurance?
 

Lynns

LoanSafe Member
Jan 14, 2013
13
0
1
I understand your concerns and I do not see why you would be denied for low income if you gross $7,500 a month. Actually, your payment is already at 25% of your gross monthly income which is considered an affordable amount. Lenders generally will not lower your monthly payments further than 28-31 percent of your gross income. Does your current payment of $1859 include principle, taxes, and insurance?
It does include principle, taxes and insurance. They said they do not take gross, they take Net, which is around $4500 a month. Also, I have my own business and it shows I had a loss the last quarter. I am just very afraid that once March 1st comes I will be due for five months and while I have some money to pay towards the loan, Ocwen will not accept it. I am not sure on it, but I assuming if Homeward will not accept anything under $3250, Ocwen will do the same. Except starting March 1st the amount will go up considering I will now owe for that month also. If they will only take at least half, as of march 1st, I will have to pay $4700.00.
 

Evan Bedard

Call 1-800-779-4547
Loan Safe Mortgage
Aug 26, 2007
18,837
48
48
San Diego, California
www.LoanSafe.org
I am just very afraid that once March 1st comes I will be due for five months and while I have some money to pay towards the loan, Ocwen will not accept it. I am not sure on it, but I assuming if Homeward will not accept anything under $3250, Ocwen will do the same. Except starting March 1st the amount will go up considering I will now owe for that month also. If they will only take at least half, as of march 1st, I will have to pay $4700.00.
Generally, the rule is the lender will not accept a payment once your account is 90-120+ behind unless it is for the entire past due amount along with any late fees they have tacked on. Sometimes they will hold these funds in a suspense account until they receive the past due balance in full. Unfortunately, at this time there is not much you are going to be able to do until the loan is fully updated in Ocwen's system. When a mortgage is transferred to a new servicer this can take up to 30 days or more.