With evictions on the rise, deputies make the rounds to clear residents of homes

I appreciate both of the links you provided today. I'll sit down and spend some time reading them in the next day or two. How much more likely are we to get a good result in all this if we hire a lawyer to deal with the loan agency and what should I expect to spend?

 

I just read your post again. Am I understanding that you are saying that because they took bailout funding that they are expected to refi loans for folks like us that have fallen into the situation I described based on the houses current market value?

 

If the bank owned the mortgage then that could be the case (stepping into help), banks that own the mortgages with assistance from TARP and or even Hope 4 Homeowners can help save their houses. Unfortunately, most mortgage companies don't own the mortgage, they cut them up into nice little tranches, (pieces) CMO's etc and have sold them off. So your mortgage is now not owned by a bank or company able to make a decision on it but several thousand individuals, institutions etc as fully traded securities. In this case it is impossible to negotiate and the servicing company can do nothing to help.

Then you lose your job or your income goes down 45% and now you are ****ed and soon to be evicted. Hope 4 Homeowners is about the only programme that might help.

That is my issue with the whole mortgage bailout and the tax credit for homebuyers. If they want to help keep people in their house then negotiate with the homeowner directly. Giving Joe Bloggs a tax credit for buying a house doesn't help when he cannot get credit to buy a house or cannot sell it unless it is massively under what he paid for it.

If the government wants to help, then give him a low interest rate loan at the value of the mortgage, and extend the period to 40 years or 50 years so he can afford it and stay in it. File a lien on the house, not allow HELOC to be placed, so that if Joe sells or dies, the government gets back the balance of the mortgage from Joe or the Estate.

Now is that practical, probably not, but probably cheaper for this country than all the bad crap that they (gov) are being forced to buy and the billions of dollars that are going nowhere close to helping the average joe and will keep us in this spiraling mess.

 

So there is a law in Cali to nudge/ force servicing companies with CMO's or similar object to negotiate with the borrower so that they do not go through foreclosure and thus cause more losses to the servicing group?

Interesting indeed, as that is the main issue with most mortgages nowadays, they are not held by one company and I know from clients that most servicing companies claim that their hands are tied and cannot renegotiate. One client did tell me that they were told to look up Hope 4 Homeowners, http://portal.hud.gov/portal/page?_pageid=73,7601299&_dad=portal&_schema=PORTAL

 

No guarantees, but attorneys can exert more pressure on these banks. Especially if they do a forensic audit to find violations of laws. This is huge leverage if they find even the smallest mistakes. They do charge $2,000-3,000. However, go with a reputable attorney who practices Real Estate law, and possibly offers a money back guarantee, so you won't lose out completely

Not bailout money. These loans are twisted and sold and repackaged into so many different things. They're talking about a serviced and pooled accounts.

yeah I don't know of the actual results of the laws, just anecdotal evidence. I'll post when I find more. But I do know it creates a duty on the part of the lenders

 

This is one of the best threads I've read on this site, from both an informational and humanitarian standpoint. My job is constant, no raise this year for the first time, and none expected in the future. My husband is still working, though his salary is affected by loss of bonuses and contracts. His boss stopped taking a salary and eliminated contractual work so no one is laid off, but who knows how long that will last.
We have a fixed, low mortgage that either of our salaries can support, yet I am wise enough to know that anyone can find himself or herself in a precarious situation by a few bad breaks, at no fault of their own.

 

I was told by ASC (before they supposedly sold our account to Wells fargo) that they had no control over the loan as they do not provide mortgages. They told me they were just a group of investors.

 

Therein lies the issue, so many investors were raising money to sell mortgages, so they could either flip them to make a buck, or create CMOs etc. Ultimately a lot of these were cut up into thousands of small loan pieces and packaged with other mortgages that had been cut up and sold off as tradeable securities/ bond instruments. This has made it a nightmare for homeowners who are being hit by the adjustable loans, or even have had their income cut in half. Then you have those that have lost their income and also had an adjustable loan for a complete double whammy.

 

Thats us! So unless we agree to pay the over-priced amount they are demanding we'll be looking for a new home. I suppose if that in fact happens it isnt the end of the world, as our finances are not bad and when the wife goes back to work as well we'll actually be doing quite good. I guess the key will be to get out of it without having any moneys attached to us in the process. Hopfully we can achieve that without having to go through a bankruptcy process. Seems kind of crazy given that this time next year we'll be back on track to a large degree income wise.

 

They're just playing hardball with you. You might have told them too much about the income coming back, but maybe that's the ethical thing to do. Banks are very flexible with the loan mods. It's better than foreclosing.

You can negotiate a really low introductory interest rate that adjusts higher to a fixed rate (none of that truly adjustable crap). I mean, you do have to show real hardship, and depending on your circumstances (income reverting back to prior levels later in the year).

I would suggest talking to a local attorney that will give you a free consultation. Why not, you have nothing to lose. If you PM me your area, I can try to find some names if I can (with no guarantee to their effectiveness).

I'm a part of a listserve as well, so I can shoot an email there for loan mod referrals in your area.

 

Thanks, I appreciate it. Because we have negotiated with so many people and sent in all our information and Doctor's notes, etc its been a blurr of activity. To further complicate matters my wife had infections delay her in her recovery because they wont let her rehab the knee with swelling so the Doctor continues to back up her return to work date. Because she already has another surgery planned in October, I won't be surprised if she works at all in 2009. I suspect we are looking at this time next year before she's back to normal.

 

Mike, my old Edina buddy! Look into the federal programme Hope for Homeowners.

http://www.hud.gov/hopeforhomeowners/consumerfactsheet.cfm am not sure if you qualify but it might help you keep your home and it sounds like a greatly reduced mortgage payment.

 

Hi there mnfinfan!

We did try Hope in the begining of this process. They said we did not meet the criteria at that time. I think I'll try again though, since we're now making a couple thousand less per month than we were back them.

 

I hope she's feeling better Mike. I don't know why it's dated from June, but I got this in the mail yesterday - touches on what we were discussing here before - was published in the local paper.

 

I appreciate all of the help, support, and insight that has been offered here on this thread. Since the time of my last post, we've taken the advice to see a Real Estate attorney and the experience was very rewarding. I'll go into the full details of it once we get things settled, but some highlights I'll throw out there that stand out to me so far:

- Our situation is really not even close to being as severe as many people in similar situations. The attorney that we have hired on retainer has mentioned that while many people in our situation don't even get a loan modification offer, we've had an offer put out there and they are still talking, so it's just a negotiation process. We're fortunate in that while we have lost some income, it's only temporary and we still make a good living.

- The Company we are dealing with is high balling us based on my income last year, and after hearing some of the interaction between the attorney we hired and the loan agency they are taking an entirely different tone with him than they have with us over the past year. They took the highest possible angle on every part of the offer they have been offering us this past year with no urgency to settle the situation.


As I said earlier in the post, when this is all settled I will go into detail on how it all comes down, but the main purpose of this post is to tell anyone in a loan modification process or foreclosure process to absolutely go for a free consultation to a few reputable attorney's. Even if you don't choose to hire them, they will offer you a plan and insight that will be invaluable to you in this process. These loan companies are running on a script, and there are specific terms and actions that need to be done in a particluar order. Moreover, many of the people you are talking to when you call in to the standard numbers are young, minimum wage earners in or right out of college with no power to change or make any offer. They are simply logging information and paper pushing. It's a complete waste of time even dialoging with them for the most part. You have to get to the next level.

I didn't understand that process until after meeting with the Real Estate attorney.

More coming soon...

D-Mike

 

She just met with her doctor again yesterday and he put her on another 3 months disability (maximum allowed before reevaluating). Given she has her last surgery scheduled for October to removed the mtetal brace in her leg, I expect it to be after Xmas before she is back in action teaching her 1st graders.

 

I hope she gets some type of disability income, for you guys' sake.

 

Yes, she gets less of course than she makes when she's working, but it's enough to get by. We're fortunate that she should recover completely at some point in the next year.

 

Thank you so much Marty, I was about to say something for I couldn't read any more of that dribble. Before anyone thinks they are above what is about to happen or has already happened to some are in for a big dose of crow pie.

I guess it will take people starving to death for some to "GET IT." I'm sorry I've said to much already, I'm outa here!

Sorry Marty.

 

If this continues San Diego county will end up a ghost town. Think of the tax revenue being lost..................and the poor families being up rooted............this needs to stop and now!!!!!!!

 

This is why I am so down on Obama and his plan.........where is the plan to fix the root of the problem.

Better yet here's an idea......lets let all these banks foreclose on millions and millions of homes, displace millions of families, leave these homes to deteriorate (ever see what happens to a house when it's not lived in for 8 or 9 months), and further drive down the value of everyone's homes and in turn everyones retirement savings because the dollar is tanking

Hey ya know what though with the $400 tax cut I'm getting at least I can buy an extra sturdy cardboard box and some blankets to sleep under the bridge!!!!!!

Obama I'm calling on you help these people!!!!!!

 

I am part owner of a lawyer based modification firm. If anyone here feels they want to modify their mortgage PM me. Its better to have a professional represent you but if you can't afford it don't worry I'll give you advice on how to work with the bank free of charge

 

I agree 100%

They don't do anything unless you are represented by a legal representative. Even then its a stick in the mud, but at least you are covered if you have a good legal rep on your behalf. We hired someone in February and accomplished more with them in 2-3 months than we had for the previous year.

I thought just being honest and organized would be enough, but most the lenders are a mess right now. Everytime you speak with them it's like the first time they've ever heard from you.