Super Survivor June 2009 mortgage default still living in house! FICO avg 830.

[mizliz1011]

I had a $375 Countrywide (7/1/07 closing) go to a Bk of A, then BoNY-Mellon CWab loan portfolio bond serviced by SLS. And due to unending hours of analysis and a good attorney we are finally going for a referee hearing. I owe about $371k but I have found a published bond stmt that states $352k with my loan number. The insurance $ in the escrow is wrong ( they are claiming payment under my policy but I have the check copies I wrote as well as bills addressed to me and copies of notices to them of same). Taxes are wrong, what transferred from Bk of A to BONY Mellon but to my favor. Interest is wrong for a six month period based on wrong LIBOR rate at SLS, etc etc. This is the second referee hearing and she corrected ONE insurance payment. I have papers prepared for a loan mitigation which will work to their formulas if I get a 2%| 40 yr loan with a balloon at the end with the correct escrow and a principal reduction of about $50k based on new property tax assessment which dinged the value by nearly 25%, along with taxes. Also got a. Ew Ins policy at HALF their rate for what they actually paid over the last two years. Here is the catch. My FICOS are about 825-35. I know that I will take a ding with foreclosure, short sale, or loan mod but how much of a ding? I do have a significant other who would buy at a short sale but I would rather do a loan mod. And here is the kicker- I requested the loan mod papers and klutzes that they are they send an acknowledgment of receipt of a complete loan mod package that they have not yet received, down to a contact name and number point person. When I called the person said that I had been approved for a short sale. I am LOATHE to abandon my hard fought for credit rating. Can anyone advise me what the respective dings will be for a loan mod vs a Short Sale and if the old loan can still report as 99 months past due? It has been off my reports for nearly two years already. Would it be resurrected by a three month trial of payments after the seven years? BTW, my lawyer believes that a deficiency judgment will not be rendered by this judge as she has advised them in court papers that she is not inclined to award them one as they have jackassed this foreclosure since Aug of 2011. Advise? Legal knowledge? This is an unreal situation that Dems to finally be coming to a head. I want it over but what is the least damaging to me $$$ and FICO wise? Open to any advise or experience and I thank you!

 

 

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[mizliz1011]

Obviously I missed a few edits but questions welcomed ! I could also make it simple: does SLS do loan mods with principle reduction? And also, how big a swing downward would a short sale vs a loan mod be? And can with one resurrect a loan default in June of 2009?

 

 

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[Kuuner]

Obviously I missed a few edits but questions welcomed ! I could also make it simple: does SLS do loan mods with principle reduction? And also, how big a swing downward would a short sale vs a loan mod be? And can with one resurrect a loan default in June of 2009?

 

 

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They more than likely don't own the loan and more than likely do not have delegated authority to make that decision. They are usually a subservicer only. They do own a small portfolio but usually service for others. So, to your question, they will defer to the investor and only they know if they will do a principle reduction. My guess is no.

 

An update SHOULDN'T impact your credit as it is the date of first delinquency that starts the clock, not the date of last payment. The kicker is, they usually coincide with each other but in your case, you should (Key would SHOULD) be "grandfathered" in (For lack of a better word) for any default reporting. That said, there is a lot of missing information so, only you and the servicer know the details so, take my opinion with a grain of salt (As is always the case!).

 

Also, short sale in 2017? You haven't made a payment since 09'? Are you sure it's still underwater? In my business, there are very few loans left that are still under water. By the way, I used to work at SLS so...I'm pretty familiar with their practices.

[mizliz1011]

Oh my goodness, so happy to hear from you! They sent an unsolicited mod offer before my pkg was received at existing principal at 5.5% and I assume forgiving the past due interest and bulletins the past due escrow. This is a "back into the rate" by subtracting the escrow payment from the three trial payments and assuming principal staying the same for 40 yr term. I was within 9 cents! They claim that this is the investor (BoNY-Mellon) criteria for the trial and that it can't be changed. That said, they have modified other July 07 loans in this portfolio since 1/1/17 (no HAMP) at 2%/40. I have a friend who is a mortgage savant who has a list of every loan in the CWABS junk bond portfolio. Also, my loan number is listed at $252k vs $371k. Do you think that this is worth arguing on? I have an excel listing of every payment and charge and they have numerous errors, some to my favor and some not (force paid insurance double paid on top of my payments, none of which were late, a CFPB violation). Even the interest rate is the wrong LIBOR rate. Is any of this worth arguing or do I just get the offered trial in place and try to argue the numbers later. My contact there is not responding to my calls (another CFPB violation). May I assume that when I ask questions I will be getting a script vs a thought out response? I am fighting this in court as well re foreclosure so my lawyer said I should send the loan balance discrepancy with evidence along with the records from Bank of America re my payments to Travelers). If you could DM me I could give you a contact number if you are willing to chat. I am playing poker with heavy sunglasses in a dim room. Mods are less common now and there is little info out there. I am thrilled to hear from you. Btw, I am getting the BPO and investor mod guidelines from SLS- I am amazed. Thank you so much.

 

 

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[Kuuner]

Oh my goodness, so happy to hear from you! They sent an unsolicited mod offer before my pkg was received at existing principal at 5.5% and I assume forgiving the past due interest and bulletins the past due escrow. This is a "back into the rate" by subtracting the escrow payment from the three trial payments and assuming principal staying the same for 40 yr term. I was within 9 cents! They claim that this is the investor (BoNY-Mellon) criteria for the trial and that it can't be changed. That said, they have modified other July 07 loans in this portfolio since 1/1/17 (no HAMP) at 2%/40. I have a friend who is a mortgage savant who has a list of every loan in the CWABS junk bond portfolio. Also, my loan number is listed at $252k vs $371k. Do you think that this is worth arguing on? I have an excel listing of every payment and charge and they have numerous errors, some to my favor and some not (force paid insurance double paid on top of my payments, none of which were late, a CFPB violation). Even the interest rate is the wrong LIBOR rate. Is any of this worth arguing or do I just get the offered trial in place and try to argue the numbers later. My contact there is not responding to my calls (another CFPB violation). May I assume that when I ask questions I will be getting a script vs a thought out response? I am fighting this in court as well re foreclosure so my lawyer said I should send the loan balance discrepancy with evidence along with the records from Bank of America re my payments to Travelers). If you could DM me I could give you a contact number if you are willing to chat. I am playing poker with heavy sunglasses in a dim room. Mods are less common now and there is little info out there. I am thrilled to hear from you. Btw, I am getting the BPO and investor mod guidelines from SLS- I am amazed. Thank you so much.

 

 

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I don't want to opine on what a good offer is or what's worth arguing. You can always get an offer from them and say no if it's not what you want. To your points though, unless you are going to lawyer up and spend the money to call them on the violations, my two cents is that its not worth it. You have a lawyer for the foreclosure so, maybe it's worth it? You are going to file a CFPB complaint and you'll point out al of their errors. They will respond within 30 days. You will get the response and you will agree with their response or not and then what? If there is no next step from you refuting their response, again, unless you are going to lawyer up, I'd spend my energy looking for a good mod. At the end of the day, you got to stay for years without payment. If they can put you into an affordable payment, take it?

 

I have no stake in this so my pain buttons are different than yours. SLS battles daily in court throughout the country. They make mistakes of course but usually the mistakes are from the prior servicer. That might be a good thing for you as they can't attest to the accuracy of the entries from the prior servicer however, they do have any and all entries and any and all notes from the prior servicer in their servicing file. If you are claiming "Predatory loan I shouldn't have to pay it at all"...their going put a lot of resources into it. If you are claiming, "I think there are some payment discrepancies and they should be corrected but once they are corrected I'll do a mod"? Maybe it will be a win win for everyone.

 

Also...while your loan number was listed at $252 instead of $371...could that be accrued interest? If so, it would be hard to argue that the interest isn't due. you didn't pay, interest continues to accumulate on the unpaid principle balance. The parts about not crediting promptly and force placed insurance and stuff are small potatoes compared to accrued interest. On the force placed, you'll say you had insurance. Prove it and they have to credit that back to you. Don't prove it and it stays.

 

The junk bond portfolio and all of that stuff doesn't mean anything to a judge.

 

Hope that helps. Good luck!

[mizliz1011]

Ok, four hours on with SLS finally speaking to a nice and knowledgeable woman in high risk loans. The payment is 40 yrs at 3.875% using same loan number so no new reporting if they use DOFD (very curious how that will shake out). The payment after I back out the new escrow = old principal AND A payment towards the past due escrow which looks to represent prob amortizing the past due escrow by adding it to the past due principle. But the huge issue is getting this monkey off my back affordable which 3 7/8% is given no closing costs.

 

 

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[mizliz1011]

And no need to refinance in a few years at that interest rate.

 

 

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[mizliz1011]

And btw, I must have done a typo as it is $352k at BoNY-Mellon vs $372k at SLS. God knows but the $372k is correct but they don't seem to have all of Bk of America records, they end at 2011. So we shall see if I can get info from BoNY-Mellon so assist as they are the agent trustee on the bond portfolio. The insurance was def a double pay. Don't know how Travelers did not pick it up but there was no notice of defaulted insurance payments nor notice of forced placed ins and my billing was to me directly with notice to SLS. So again, we shall see. It amounts to about $10k in total double payments. If I win on principle balance and double paid insurance then that is about $30k, not small potatoes. Thank you again, you have been very helpful, along with the loquacious woman in high risk loans.

 

 

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[Kuuner]

And btw, I must have done a typo as it is $352k at BoNY-Mellon vs $372k at SLS. God knows but the $372k is correct but they don't seem to have all of Bk of America records, they end at 2011. So we shall see if I can get info from BoNY-Mellon so assist as they are the agent trustee on the bond portfolio. The insurance was def a double pay. Don't know how Travelers did not pick it up but there was no notice of defaulted insurance payments nor notice of forced placed ins and my billing was to me directly with notice to SLS. So again, we shall see. It amounts to about $10k in total double payments. If I win on principle balance and double paid insurance then that is about $30k, not small potatoes. Thank you again, you have been very helpful, along with the loquacious woman in high risk loans.

 

 

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BNY Mellon will give you no assistance. That's a deep rabbit hole that will not lead you to any epiphany. Sounds like you got what you want for the most part though... I'd take it and run.

[mizliz1011]

I have a bond dealer friend who can get the loan tape that outlines the transactions that credits various payments. So I am very lucky, he was the one who found the discrepancy.

 

 

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