We trusted a particular lender when we purchased our home in CT. All kinds of assurances were made and they almost never made the deal happen. Still, we made it. Because we are not professionals in lending or real estate we had to rely on their expertise to guide us through the mass of paperwork and the lending process. We have no idea whether or not our paperwork is correct or compliant or whether or not we were had. Of course there were promises made about interest rates starting at 5 3/4 then ending up at 7. All kinds of excuses were offerred to explain that but we'll never know what really happened. There were several delays in closing causing huge problems for attorney's and people set up to do closings.

The part that really had us interested initially was the "promise" of a streamline refi after 6 months of making payments on time (with no credit check, no appraisal and no fees) It was to be an automatic approval and process. We were thrilled to think that we finally made it into a home and then would be offerred a refi down to a lower interest rate which would help with the payments. What could be better, right?

As time goes on, about 7 months in, we decided to take them up on their offer. We called and got the ball rolling. From there it was nothing short of a night-mare. We provided all documents immediately and basically never heard from them again. We made several calls to check status and nobody seemed to know where anything was held up. Eventually it all became underwriting and we weren't allowed to talk to them! AFter complete runaround, we gave up. A few months later we received denial letters from the credit bureaus from this lender (when according to the lender credit checks were NOT going to happen) that of course, we were turned down for our refi.

Long story short, at the tail end of all of this my husband's job starting with cutbacks and no more overtime. A refi would have definitely helped our situation. With no hope in that department with small children we couldn't risk not having a place to live so we had to move. Our house is sitting right now up for sale with no prospects or offers because the lender isn't working with the realtor and the short-sale process.

We never wanted to move or be faced with losing our home. It has been so overwhelming. We know we are not alone.

Is there an real estate attorney that you could recommend we can contact about all of this and get some resolve? Maybe our original loan was done incorrectly, or we might have some recourse. Ideas? or thougts?

By the way, the internet shows pages of complaints about this lender. I wish we had done some homework prior to.

thanks again....

My post won't be of any help, sorry

Same thing happened to my lady when she bought her house a couple years ago.

She was told. "Just take this loan for now, because after 6 months of solid payments it will show how responsible you are, and we can move you into a nice fixed yada yada"
Then we got all kinds of excuses why they couldn't do it.

If you find out any information on what could be done, let me know please

Thanks for writing.....
Sorry to hear this happened to you too. I'm hoping that somebody will know something and will write soon. Take care...

Is this an FHA loan? Depending on if it is, you may be able to take it to a mortgage broker and get them to streamline it.

Judes,

I can't comment on what happened with your loan starting out, but what is currently going on is very typical around the country.

One person said to do a streamline which I think you already tried and may not work at this point, and yes they will pull a credit report because they have a " score" requirement.

Lender's will take their sweet time on a short sale and many homeowners have lost potential buyers because of the wait. You should try and negotiate with your lender on what they are will to accept, then list the property for that price. If you get an offer that is somewhat lower it will be reviewed much sooner because all the "up-front" work is done.

Don't know if you tried a loan modification but you have the basics, loss of income causing your financial situation to worsen. The lender won't like the fact you moved out of the property, so that would be something to overcome, but not impossible.

Hope that helps

To get HAMP you need to be owner occupied. If your not your not going to be able to qualify. Short sales tend to take a long time mostly because lenders are being flooded with requests so it takes time.

There are other programs that most if not all lenders have, HAMP is not the only one.

The fact that you are not currently living in the home doesn't mean you don't qualify for a rental/investment property. You could rent the property on a month to month basis to someone and apply for a loan modification to get the payments lowered. There are lots of different avenues to consider, one may need to look outside the box, HAMP box.

Keep in mind lender's were making loan modifications long before Obama took office, they've been doing mods since the mortgages were first invented, it's called "loss mitigation" and the larger lenders have complete departments to handle it.

Here at IndyMac the only ones we offer are HAMP mods. It may tend to be different per lender -- I'm always speaking on the basis of what IndyMac may offer to you. If your a borrower calling me I would only offer full reinstatement or a repayment plan. He wouldn't qualify for anything else we offer.