Throw in the towel 15 months later or keep on going?

dignan99

LoanSafe Member
May 12, 2011
26
0
1
Hey all...

Like many, I have been at it with B of A for 15 months. They are the servicer to my loan with the investor being Wells Fargo.

I ended up getting through to the Presidents office, and my contact eventually got a loan mod representative in touch with me. She also advised that I start missing payments, although she said to do so quite subtly.

Delay after delay...call after call..and today I get this solution proposed:

Investor said no. So you can either pay up on your own, or we can try to put you on a payment plan over 12 months, which would raise my payment by 1300.00. This is following a loss of income of 1500.00/mo.

So I mentioned they really weren't trying to help at all. I then asked if this repayment plan included a rate reduction, and the fellow kept blaming my investor. Always the investor.

He told me to contact the investor directly, but that I'd have to request who the investor was in writing. He then said I should try again for a loan mod in the future. I explained that it took 15 months to get to this point and that I didn't have the time or energy to do it again.

I asked specifics on why I was denied, and what guidelines I didn't meet, but he never got into specifics. I even asked what I needed to do to help my case, again no answer.

A manager is supposedly going to be calling me, but I'm not holding my breath. Do I go back to the person in the president's office?

I just want a rate lock, since my payments will be going to 7% in a year.

Any advice or encouragement is appreciated.

Thanks
 

Cat Damiano

Mortgage Wars
Sep 10, 2007
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Colorado
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SurfwhenUcan

LoanSafe Member
Apr 23, 2010
1,766
11
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Sunny San Diego
dignan, I would focus on constructing your case with a bit more hardship. When applying for a modification, you need to first have 1) a hardship and 2) be "living the hardship". Have a rate adjustment in the future doesn't qualify. Some people miss payments in order to convey hardship (whether real or imagined) so that the bank will take their file under review. This is a slippery slope and more than one bank rep has been responsible for a foreclosure for advising this.

I'll give you the tip: The investor has never heard of your case.

Here is the problem you face - when the bank knows you have started missing payments purposely, they assume you have been saving them (which is actually exactly what you should do but people seldom do). So when they tell you to pound sand on your mod app, they will offer you some preposterous repayment plan. This is called "sniffing out the cash", meaning they offer you a way out which is unrealistic but designed to get you to let on you have assets.

The bank doesn't think you have any hardship, that's why you're going nowhere, and I would tend to agree. Not that you can't submit without hardship, but if your goal is a mod, you need a more compelling element of hardship in your case than a rate adjustment in a year. Reduction of income is good, but if you're making payments on time, that's not really telling the bank you're in hardship, right?

Above all, realize that modification is not designed for you, the homeowner. It is meant to prevent losses for the investor and they need to see that you fit certain guidelines in order to even consider your case as one where they might lose something if they don't change the terms of your loan. Those who study the guidelines (many of them are outlined on this site) are the ones who have the best results (or at least understand why they're getting nowhere - and that sometimes is all you need in order to get somewhere).

Study up on this site and I wish you the best of luck!
 

fighton

LoanSafe Member
Dec 10, 2010
87
0
0
Above all, realize that modification is not designed for you, the homeowner. It is meant to prevent losses for the investor and they need to see that you fit certain guidelines in order to even consider your case as one where they might lose something if they don't change the terms of your loan. QUOTE]

This is spot on. Most loan modifcations do not make "financial" sense and prey on the fact that you deseparate to keep the home.
 

Jeffrey L. Shurtliff

LoanSafe Member
Dec 4, 2010
3,823
139
63
If Wells Fargo is your investor then you may want to plan your exit. Understand you are dealing with two of the most notorious banks in the country. Sorry not being negative here, just truthful.
 

moretrouble

LoanSafe Member
Nov 14, 2009
1,505
271
83
Hey all...

Like many, I have been at it with B of A for 15 months. They are the servicer to my loan with the investor being Wells Fargo.

I ended up getting through to the Presidents office, and my contact eventually got a loan mod representative in touch with me. She also advised that I start missing payments, although she said to do so quite subtly.

Delay after delay...call after call..and today I get this solution proposed:

Investor said no. So you can either pay up on your own, or we can try to put you on a payment plan over 12 months, which would raise my payment by 1300.00. This is following a loss of income of 1500.00/mo.

So I mentioned they really weren't trying to help at all. I then asked if this repayment plan included a rate reduction, and the fellow kept blaming my investor. Always the investor.

He told me to contact the investor directly, but that I'd have to request who the investor was in writing. He then said I should try again for a loan mod in the future. I explained that it took 15 months to get to this point and that I didn't have the time or energy to do it again.

I asked specifics on why I was denied, and what guidelines I didn't meet, but he never got into specifics. I even asked what I needed to do to help my case, again no answer.

A manager is supposedly going to be calling me, but I'm not holding my breath. Do I go back to the person in the president's office?

I just want a rate lock, since my payments will be going to 7% in a year.

Any advice or encouragement is appreciated.

Thanks
I am tired of hearing investor this investor that. The first issue is whether the investor is the real lender and has the right to foreclose. Get a chain of title and securitization audit. This may reveal the investor may not have the properly indorsed note to foreclose. I wrote BAC and QWR asking to inspect the original note asking who my investor is. They told me it was Bank of New York. When I trace the addres is was BOfA in Plano. They could not show me a properly-indorsed note. Stop foreclosure by filing chapter 13, still waiting for a new sale date. And if it's does not make economic sense to keep the house more of a reason to fight on. They are relying on homeowners' ignorance and lack of knowledge to make big money for their investors (hedge funds, rich individulas).
 

moretrouble

LoanSafe Member
Nov 14, 2009
1,505
271
83
I basically told them : if you can show me a properly-indorsed original note, I 'll give you the house. So far no taker. They kept saying they need to retain the original note since it documents my obligation. The key is my obligation was to my originator, not BOfA. Now they're telling me my investor is GMAC-RFC. If that's is true, I already own my mortgage. We as taxpayers bail-out GMAC to the tune of 17B dollars. I am sure my mortgage is included in that amount.
A bunch of greedy SOBs, got bond investors' money, mortgage insurance money (AMBAC), bailout money (taxpayers) and now want my house too. Put them in a celled-house, that's where they belong.
 

Jeffrey L. Shurtliff

LoanSafe Member
Dec 4, 2010
3,823
139
63
In order to get them to show the note you must have a cause for action. If you are in a non judicial state forget it.