Living Modifications

I'll start off by writing, that I do not recommend not making your mortgage payments, but if your financial situation already put you in the spot, where your credit rating is affected by a mortgage late... the longer you wait, the better the terms will be. If you are couple days behind and don't qualify for the affordable home program setup by president Obama, then the bank program will seem more and more effective the longer you give it. Don't let yourself receive a judgment, but you can negotiate in the meantime month by month until you get an actual letter from their attorney with the intent. 2nd: When modifying your loan, you are making active adjustments to the current loan, this is not a refinance, so if you see a similar package that you signed when you purchased or refinanced the house... don't sign it! send a letter to your lender and require them to prove your debt (have them send you a copy of all closing documentation)... then compare it and make a decision if you're actually saving money... or just saving/buying time... when you are modifying your loan, make sure its worth it... otherwise you might have an issue in the future...

Without even considering mortgage fraud on your file, I will tell you right now... Rate freeze you can get yourself without an attorney and without any type of legal knowledge. Any adjustable rate can be extended on the term now-a-days. You can do it yourself by grabing the phone and calling your bank with that request. You can actually do a modification yourself in the same matter and not only get a rate freeze but also rate reduction. If that is all that he is offering you, and furthermore he suggests doing this through a legal process... ask him for itemization of work performed and get your money back (whatever is left of the retainer). What you need is representation that knows and understands your rights as a disstressed homeowner, who found himself in a financial hardship due to inconsistencies in your mortgage documentation. If you are capable (funds wise), you should always make your mortgage payments, but if your financial situation doesn't permit then a letter of harship is enough to get some leverage.

I agree with this statement. I might be writing too late, but consider protection under Chapter 13. It will overturn foreclosure... but you might have had more time pass then normally would be allowed. Another thing I recommend is reviewing all your closing documents from your bank. I would look for mortgage fraud, predatory lending or other violations. Did your rate skyrocket? did the appraised value at purchase or refinance seem impossible? do you have different payment terms then what it says on your Truth in Lending documents? Hidden fees? This is your best bet to overturn foreclosure and file a lawsuit against the lender. I understand money is an issue. I can review the documents for you pro bono and make recommendations.

They are not, but he is protected by his corporation rights. If it's a legally registered business and the loan is specifically under that business, they cannot collect from the individual (guarantor) unless they have a judgement obtained on the business, they cannot harass the individual behind the loan. Did it in the past, had creditors calling my clients on their business loans. All collection proccedings stopped when a request for proof was sent. It is still a business loan and they are to contact the business to try to collect. If its a corporation, you're personal information and/or input is protected by the corporation laws. Your personal guarantee does not entitle them to harass you. The minimum I would do is send out a request for them to prove their right to collect. Is it the creditor directly or a collection agency that's calling on the creditors behalf?

These violations are significant enough to get a principal and rate reduction. Based on what you have it seems that you were not making a clear knowledgable decision when you were signing the closing documents. It is predatory and you have every right to try to get that adjusted/removed. Furthermore, you have the right to fight for every penny that you overpaid on your mortgage over the years. I suggest you stay a little bit more on your attorney. If he collected a ratainer from you for the service, he pretty much is obligated to present you with options available to you and follow the ones that you tell him to proceed on. If there is no ratainer at stake, find different representation... Things to do: Find out who your attorney has been talking with at the bank. If he is still negotiating with loss mitigation, tell him to stop wasting time and contact the legal department of the bank; Present your intentions with the legal department and give them a clear deadline to make a settlement offer or proceed with the lawsuit; PICK YOUR JURY!! PICK YOUR JURY!!! PICK YOUR JURY!!!! Ignore the banks request to proceed with the case through arbitration. Request a JURY and interview the jury carefully. You want someone who did not themselves go through the foreclosure process (banks attorney will disqualify the jury) but someone who has immidiate family or friends who are struggling with that process or have lost their house to the foreclosure process. When you file a lawsuit against the bank, try to get the loan rescinded. That way at a worst case scenario, you will at least leave with principal reduction and payment/rate reduction.

cease and desist would apply, because they specifically called your employer, father and neighbor looking for you not your business... they are in violation. You don't have too much of a case yet, but neither do they since there was no court and judgment filed (I hope). Is this the actual creditor calling or was the loan sold already? if sold, ask for proof. Based on cease and desist I would also send requests to Gen Attorneys office (of the state where their business is located) with an official complaint and to FTC. Usally when the creditor receives the letters from both (and they will) you will be left alone and they will pursue any contact through representation (what ever that means, it will give you piece of mind of not being chased down like a criminal).

Based on certain signed documents by the goverment early this month, the bank should be able to offer her a modification process without the need of destroying her credit. I hate to say this, but what she needs is representation. You need to go to the loss mitigation department and try 1 more time. If she doesn't get the response she's looking for i recommend writing a certified letter reminding her lender who's covering the loss from her modification. Banks will get a lot of money for agreeing to modify existing mortgages that are not yet in the RED. The reason she received the answer with lack of interest is because her loan is a performing portfolio piece for the bank and believe me... they sure don't have too many of those now-a-days. There's a way to get everything done. You just have to be consistant with it. My recommendation is keep trying with loss mitigation and maybe if they still show no interest, mention that you do have representation and the next call will be from them... If you need help with wording a proper speach for that department, let me know. I would also recommend performing a Mortgage Fraud Examination on your file. It seems that if your friends score is in the 700... getting a rate of 7.5 is rather high. You might find certain RESPA/HUD violations that could help with switching straight from the loss mitigation department to the legal department of your lender... and believe me... it's a whole different type of conversation there. If you're holding strong documentation, you usally get what you want within that certain weeks end. I can help with closing package review.

Double check with your state but you're looking at about 9 to 15 months overall foreclosure process. IT IS VERY IMPORTANT that you understand the difference between the foreclosure and SALE DATE. Once you go into the foreclosure you will have a redemption period assigned. This is the time that the court will give you to try and recoup from your financial situation. It is until the sale date that you loose the ownership of the property. Then you're looking at about another 3 months before you will be served with an eviction and 30 days after for the actual eviction. Don't file Chapter 7 until you reach the last step of this process (3 days before scheduled sale) that way you will be protected by the bankruptcy laws and will be entitled to stay in the house during the bk hearings. If you're planning to add the house to the bankruptcy then keep in mind you would need to file Chapter 13 not 7. Another thing I recommend in your situation is doing a detailed mortgage fraud examination. Aurora Home Loans (wholesaler) bought a bunch of loans in the past few years that had RESPA and HUD violations (on the brokers side). Such violations as appraisal inconsistencies, Settlement Statement hidden fees and Mortgage Note acceleration in multiple cases can lead to getting your loan completely thrown out from your title giving you the ownership to a title-clear paid off property. It might be worth taking a look at that. If you need any assistance in that let me know i think i could help.

She has just fallen behind, it will be a while before any foreclosure process begins. On average it can take between 8 to 15 months between the foreclosure process, redemption period and actual sale of property. This is also the amount of time she has to find stable income and get her self out of this situation. IT IS VERY IMPORTANT TO KNOW (and read between the lines) that during a loan modification process homeowners income can be supported by HOUSEHOLD income. For instance, if your mom rents you one of the bedroom, then rents the second one to your uncle/brother/friend and finally has a renter for her basement/attic... she's also generating stable income through those sources. As long as you have lease agreements and the property can support your statement... she has the necessary income to proof that she is willing to stay and pay for the property at a reduced rate, thus this will make her hardship letter more acceptable to the bank. It is important to also consider the DEBT-TO-INCOME ratio when filling out the financial statement to the bank. If you need more information on this whole process let me know I'll get into more details on all of this.

just4aki, It's pointless to walk away... as long as you can afford an average a third of your current payment you might be able to get a good deal on a modification... couple other things i would pay attention to other then your hardship letter and proof of income... there's a specific DTI (DEBT-TO-INCOME) that will qualify you for your modification... make sure that when you write out your financial statement (the bank will want that, or they might have even asked you to provide all your expenses over the phone) you are between 31 to 38 (depending on bank... homeq is 38%) complete debt to income. Another thing I would keep in mind, I'm assuming HomEq bought your loan... What got you into the current financial situation? did the rate go up? is it Fixed or an ARM? do you remember any inconsistencies with the loan process when you applied (over valued appraisal, hidden closing costs, rate changed between day when you applied and actual closing date)... if there are any signs of predatory lending or mortgage fraud in general on your loan you might be able to actually have the loan forgiven by CA court system. I highly recommend before faxing the documentation to your bank to have it reviewed to make sure there are no mistakes that could disqualify from your shot at modification. On the other hand, if you think you have grounds to pursue for loan rescission, consider it... With todays market and all mortgage inconsistencies that happened, you might actually have a good shot of becoming mortgage free. Let me know if you're interested, I can review your documents for free and make that recommendation.