Zib

Income will have to be proven to continue for at least the next 3 years and has to be consistent. You will need to show consistent deposits into your bank account and a document that spells out the longevity of the income.

I was sent a lock in agreement packet. It states the branch is out of AZ. When I got it, I called the LO as it was not what we talked about (it stated points, etc) and it said to sign and fax the information back. The LO told me not to worry about faxing anything back and that the actual loan amt and points can be changed once the loan is approved. They have to redisclose if any change is not in your favor (i.e. rate is higher, points are higher). Your LO basically BS'd you so he could submit a loan. CW LO's are only able to use their own products and you may still be able to get a loan through a reputable broker or correspondent. You need a detailed explanation as to what the problem with your income was. It is only fair as you have now just spent money on an appraisal and CW gets to keep a large portion of it. If they refuse to treat you with the respect you deserve I would use the information below and see if they can assist you. Countrywide Financial Corp. 4500 Park Granada Calabasas, CA 91302 Phone: 818-225-3000 Fax: 818-304-5979 Mr. David Sambol Pres, Chief Operating Officer

Your LO would be able to fax you a copy of the denial.

The realtor has a vested interest in the transaction. If he/she is reccomending the appraiser and inspector you should be careful. That is not to say your realtor is a crook or anything. I have a friend who bought a home 5 years ago. The realtor and LO said the home had been "converted" to a detached and that all markings relating to the MH had been removed. It was a mobile home that had been added on to. The appraiser catagorized it as detached and the inspector said he had no issues. I tried to do an FHA loan for him a month ago. The problem is that they were are in kahutz to sell the house as adetached. He is now stuch with an ARM @ over 9% because the house is in fact a MH that was built before 1976 and is not eligible for fha financing. I am just suggesting you be very careful when everything is being coordinated by the realtor.

They are required by law to send you a STATEMENT OF DENIAL. I would contact the compliance officer if you do not receive it within 3 business days of the denial.

Once you receive an FHA approval the rate is pretty much the same. It's one big "bucket". A BIT OF ADVICE: If the realtor has recommended this particular "lender", I would strongly suggest you shop a bit. If they have recommended and appraiser and inspector, BE EXTREMELY CAREFUL.

You look pretty solid for an FHA loan, assuming no mortgage lates in the last 12 months and no delinquency on cbr in the last 12 months. Rates are around 6.0% for 30YF.

What was the statutory reason for denial? Did you get a denial form yet? The problem with dealing with retail divisions is that the LO's are usually salaried and are pushed to submit a minimum number of deals per week. So, they will sometimes try to fit round pegs into square holes just to meet submission quotas. The appraisal should not have been ordered unless he/she was confident in the deal. If the loan was a "no go" from the start I would make a HUGE stink about getting your appraisal fee back. CW owns Landsafe so it would be a minimal hit to them if they returned your fee. The other thing you can do is get CW to assign the appraisal to whoever you finally end up working with. If they won't do that for you, I would call every regulator you can think of and make complaint filing your new hobby. Good luck.

That rate is high for FHA.

If more of the taxes that Californians paid went to California rather than to other states which can't support themselves, then California wouldn't need a federal bailout. Actually, if CA did away with some of their insane entitlements and statutes (i.e.: the lack of enforcement on deficiency), they wouldn't need a bailout. Their economy is HUGE! They lemonade all the money away.

The problem is that I am noticing many that HAD a $100K+ software engineering job and lost it without being able to find another one. These people aren't walking away from their house by choice. And I know of LOTS of senior executives telling me "It's over. Within 5 to 10 years most of these well paying software jobs are going to be out of the U.S. It is going to be one big meltdown in a very short period of time" I think the executives have it right. Once you lose the $100K+ job then you are not (at best for a LONG time) another one. These people are not losing their home by walking away. They are losing them for the obvious reason i.e. Loss of Income. One has to make some reasonable assumptions and one is that you won't be LONG TERM unemployed. As one exec told me "We say what happened in Detroit and that could happen in the SF Bay Area or at least parts of it" If I lost my $100K software job and could only get a $50K replacement job...... and COULDNT make my payments as a result. Then mailing in my keys would be an option. But if I am able to make my payments..... then I stay. Upside down on the loan or not. I don't want to walk away from my home. I am willing to stay until the market and values come back in a few years. However, why don't the insane mortgage companies helps us (those with resetting ARMs)? They appear a little willing to help if you are 90 days behind but if you are current, they won't. I would far rather get help from them now BEFORE I become one of those 90 days past due clients. They are ridiculous! I am not mortgage company nor do I represent one but to say the "insane mortgage companies" puts the fault on them? They assumed that you knew what you were getting into when you signed for your mortgage? They have their hands full with people that are behind and truthfully they do not have to do anything, but many have agreed to. There is an old saying that goes "Lack of planning on your part does not constitute an emergency on my part" While I do not know your circumstances and do not doubt your need for the help... I have to wonder what you were doing getting into an ARM if : A: You planned on being in the home longer than the term of the loan? B: You could not afford to make the payment if the loan adjusted? As an adviser (yours should have given the same advise) you should not have taken an ARM unless you were prepared for the adjustment. I hope things work out for you but no one thing is to blame here there are a lot of things. Loose guidelines Overextended borrowers speculation I am sure there are more - loss of jobs (right Hoapres) 100% financing declining market My point simply is.... you cant bame the lender who helped you to buy a home for the issue you find yourself in........ Well you can but only in America I am not blaming them BUT what sense does it make to offer help to people who are 90 days behind already when they could have offered it BEFORE they got to the 90 days late point! Thankfully, I am not in that position (yet)! It's a matter of prioritizing. If they started modifying loans for people who are current, what message would that send? Where would the line be drawn?

Susan- Hopefully everything will work out for you and your family. We are all pulling for you.

The answer to your question depends on if you believe she has a responsibility to her family first, or to society. To me she has a responsibility to her family. Uprooting them from their home because she DOESN'T WANT TO PAY, doesn't help her family. It also teaches them irresponsibility.

The thread started out with my theory that the real mortgage crisis is lack of jobs. I have to admit that it might have went IF (which is a BIG IF the theory turns out to be accurate) then mortgage financing is definitely going to be affected. The general theory appears to be that mortgage problems are mostly CYCLICAL i.e. ARM adjustments which can be solved by the current "government bailout" program. If my theory turns out to be right that it is more STRUCTURAL i.e. long term loss in good jobs then that is not going to be the case. The bankers that I have run the theory with told me that if it turns out to be correct then look for more stringent financing criteria. i.e. 20% down payments may almost be mandatory in certain markets. I don't think it is so much "bad" jobs as opposed to "bad" lending and "bad" borrowing. I for one hope we get back to the days of down payments and credit worthiness. This was a train wreck from the beginning. Couple that with the inflated housing market and wa-lah!!! The will be a very, very deep cycle. I think it will make the S&L debacle of '89 pale in comparison. The big culprit (IMO) are the credit card companies.

The problem is that I am noticing many that HAD a $100K+ software engineering job and lost it without being able to find another one. These people aren't walking away from their house by choice. And I know of LOTS of senior executives telling me "It's over. Within 5 to 10 years most of these well paying software jobs are going to be out of the U.S. It is going to be one big meltdown in a very short period of time" I think the executives have it right. Once you lose the $100K+ job then you are not (at best for a LONG time) another one. These people are not losing their home by walking away. They are losing them for the obvious reason i.e. Loss of Income. One has to make some reasonable assumptions and one is that you won't be LONG TERM unemployed. As one exec told me "We say what happened in Detroit and that could happen in the SF Bay Area or at least parts of it" If I lost my $100K software job and could only get a $50K replacement job...... and COULDNT make my payments as a result. Then mailing in my keys would be an option. Kind of worse than that. If you lose your $100K software job then you might be lucky to only find a low paying job at Walmart or Home Depot. And people don't always mail in the keys. Some will actually stay to the last day and be packed up ready to go. Banks will likely offer you "Cash for Keys" to spare the cost of the eviction lawsuit. But if I am able to make my payments..... then I stay. Upside down on the loan or not. O.K. The problem is that in a nondeficency lawsuit state then you can simply walk away even though you can pay the mortgage without any consequences. HOAPres- A breach of a legally binding contract IS NOT A LEGAL remedy. The fact that CA let's you walk on a deficiency does not make the breach a legal remedy. Word semantics. The simple matter is that the lender doesn't have a legal remedy for a payment default on a deed of trust. Those are the rules of the game. It is still not legal to breach a contract. Definitions are in a sense "semantics". You say you don't want to get into underlying ethics, but when you say you can "walk away" from your responsibility that turns it into an ethical discussion because of the absence of the legal discussion (your position). In other posts you blame the banks for not foreclosing quickly enough. Yet, in this thread you don't assess any blame on the individual who just "doesn't want" to honor their obligation. It is simple. If you borrow money, you pay it back. It is an ethical and legal issue. I don't get into the ethics. With regards to bank not timely foreclosing then that is a big BUSINESS problem. Sweeping problems under the rug doesn't help solve them. You don't solve a problem by knowing less about it. With regards to banks not timely foreclosing then it is definitely affecting the business of my HOA as it leads to greater losses in HOA dues. So, CA will have a lot to do with bank failures by virtue of its non-deficiency policy. This discussion was about an individual who CAN, but WON'T pay their LEGAL debt. If you had a building full of condo owners like this individual, what would the impact on your HOA be? As far as I'm concerned, I don't want FDIC to foot the bill for the situation in CA. Couple the ridiculously inflated housing prices along with the non-deficiency "clause" and who is sweeping what under the rug?? It's insane.