Question

jwa81

LoanSafe Member
Jun 23, 2014
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Hi again,

This forum has been very helpful as we are starting the process to try and get mortgage assistance through our new mortgage company, Carrington Mortgage. I was just thinking and something occurred to me. Back in July, Bank of America denied our request for mortgage assistance (after 3 months of dealing with their typical BS) and said that our USDA loan didn't qualify for any sort of a repayment plan, forbearance, or modification (we did receive a modification back in 2012).

We were frankly VERY surprised that we were denied for any sort of assistance at all as we had proven to them that our financial hardship had ended and that our income was now more than adequate to be able to afford our payments and get caught up, especially since we were only 2 or 3 payments behind at the time. Immediately after our request for assistance was denied, I was informed that our loan was being transferred/sold to Carrington, effective August 1st.

Is it possible that the reason they denied our request for assistance is because they knew our loan was going to be transferred to a new servicer and figured they'd just dump us on Carrington for them to have to deal with? Of course, BOA blamed it being denied on USDA since they are our investor, but is it possible that what they really did was blow smoke up my you-know-what the entire time because they knew all along that our loan was going to be sold and they just stalled us until we were given official notice of the transfer, and THEN denied it? I think there is a very good chance that this is exactly what happened because the denial for assistance and notice of transfer happened WAY too close together to be a coincidence, in my opinion, but wanted to get some opinions.
 
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Moe Bedard

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Aug 10, 2007
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Yes, this could be the very reason even though the USDA protocol says they must modify the loan if you qualify. Now Carrington must follow USDA terms for repayment plans, loan modifications etc since they do not own the loan. The guidelines I linked to in your hardship letter thread earlier.
 

jwa81

LoanSafe Member
Jun 23, 2014
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I really think that they (BOA) knew about our pending loan transfer well before we were notified of it and that's why they denied us any assistance. I wouldn't be at all surprised if they just had our file sitting on a desk somewhere and nothing was ever even done with it because they knew we would no longer be with them and were waiting for us to no longer be their problem. All the time they kept telling us that they were "still waiting for a decision," they were probably doing nothing at all and just waiting for us to be notified of the transfer so they could deny it. That situation seems to make the most sense to me.
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
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I agree, but unfortunately there is probably nothing you can do about it. So it is probably best to move on with Carrington.
 

jwa81

LoanSafe Member
Jun 23, 2014
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I did receive a phone call from the customer advocate office at Carrington tonight because of an email that I had sent to the CEO. She told me that she was going to see if it would be at all possible for us to be extended a new repayment plan and, if not, she would have our request for assistance expedited. Hopefully that is a good sign!
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,840
466
1,000
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Southern California
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Awesome news and yes, that is a great sign!

Now try and just get some rest tonight. :)
 

jwa81

LoanSafe Member
Jun 23, 2014
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Well, things seem to be moving along. I got an email today from the supervisor I am working with at Carrington and she said that they now have all of the documents required for the loan modification review. She said that we should have an answer by the end of next week at the latest. I really hope we have better luck than with did with Bank of America and are actually able to get a modification! I will admit that Carrington seems to be a lot more on top of things and definitely are a lot faster than BOA was. Even if they don't change our interest rate and just put the late payments at the end of the loan it would be a HUGE help to us. Now the hard part is to wait. Fingers crossed!!!
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,840
466
1,000
48
Southern California
www.loansafe.org
Great news and thanks for the update! I knew this would move forward for you much quicker than before. Hopefully this next week you will know. Best of luck!
 

jwa81

LoanSafe Member
Jun 23, 2014
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Thanks! My true feeling is that Bank of America just royally screwed us over before our loan was transferred to Carrington. I think they just sat on our file and waited to deny our request for assistance until we were notified of our loan being transferred. It was literally denied the exact same day that we were notified of the transfer, so I have much higher hopes for Carrington. When we got our modification back in 2012 with BOA, the whole process took about 6 months! I'm very relieved that Carrington is acting a much, much faster and I hope that we have some good news very, very soon. We can easily afford our payments now, but we just need some help with the past due ones. My fingers are crossed!
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,840
466
1,000
48
Southern California
www.loansafe.org
My pleasure and my fingers are crossed for you as well :)
 

jwa81

LoanSafe Member
Jun 23, 2014
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Just an update. We're still waiting for an answer, but I did just receive an email from Carrington saying that they needed 2 more things from me. Initially they asked me for a 3-month profit and loss statement since I am now working as an independent contractor (self-employed), but now they are saying that USDA requires a 12-month profit and loss. The woman at Carrington apologized and admitted she didn't realize that USDA would want a full year. The only problem with that is that I have only been self-employed since May of this year, so I was only able to give them a little under 6 months worth of income on my profit and loss statement, but the supervisor at Carrington told me to just write a letter explaining that I haven't been self-employed for a full year yet and am sending everything I have earned since I started my independent contractor job back in May. Hopefully they will be okay with that! The whole reason I took the independent contractor job was because it pays twice as much as my previous job did! I explained in the letter that prior to May, I was working in the same field, but as a regular W2 employee and was not self-employed at that time.

The second thing they asked me for kind of surprised me, and that is they want me to fill out a monthly expense worksheet for my husband. I already sent them an expense worksheet for myself and they had told me at that time not to include him, but now they want a separate one for him. My husband's name is not on the mortgage (only mine) and when I had tried to get assistance this summer when my loan was still with BofA, they told me that USDA wouldn't allow using my husband's income since his name isn't on the loan, which I found really strange since his paycheck goes into the same bank account as mine and we pay all of the household bills together using both of our incomes. Maybe this is a good sign that Carrington is asking for his income information? Maybe they are considering us for another type of in-house modification. Anyway, I'm still hoping for the best!