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Posts posted by oompaloompa

  1. OK- this relates to an account with a County Government as the creditor. A person at the County informed me that she posted a "universal delete" into the E-Oscar system on their end. I've done some research, and apparently this is not an instantaneous process...more like 3-5 days. Does anybody know what I am talking about here and can advise realistically when it will hit the credit report? Does it matter this is a government agency? Bear in mind this is not a dispute or rapid-rescore we are talking about here. Is there any way to accelerate the update on the Bureau end? Money is not an object (within reason).

  2. If 9K is really what it will take to pay off the balance of the 2nd mortgage, after the new loan at 80% goes through...then it should be a simple matter of your father bringing the funds into close. Paying down the balance like he wants could delay or screw things up. Better to bring certified funds into the title company when closing.

  3. You may as well apply and see if you can get by with a refinance. There is something called DU Refi Plus that you may want to look into. And automatic values from the likes of Yahoo and Zillow lag market value 6-12 months and even then suffer from 5-20% inaccuracy.

    FYI, loan modification is not the same as a refinance. A refi is a new loan, a modification is improving your rate/terms with existing lender. Your declining income would actually help you greatly in obtaining a loan modification, as some sort of hardship is required to qualify.

  4. OK few points here.

    1. You currently have an FHA loan, so you wouldn't be able to obtain another. You'd need to go conventional financing. Even if this wasn't the case, the rule you are asking about applies, AKA the "buy and bail" rule. HUD wrote a mortgagee letter detailing the equity requirements etc download here. Note that there are some exceptions, see point #3.

    2. With respect to conventional financing, here is a guideline from August 2008, I can't find an update but this is still in effect. Here is an excerpt from page 6: Conversion of Principal Residence to Second Home or Investment


    "Fannie Mae will continue to permit up to 75 percent of

    the rental income to be used to offset the mortgage

    payment in qualifying if there is documented equity of at

    least 30 percent in the existing property (derived from an

    appraisal, AVM, or BPO, minus outstanding liens).

    The rental income must be documented with:

    • a copy of the fully executed lease agreement; and

    • the receipt of a security deposit from the tenant and

    deposit into the borrower’s account.

    If the 30 percent equity in the property cannot be

    documented, rental income may not be used to offset the

    mortgage payment.

    Both the current and the proposed mortgage

    payments must be used to qualify the borrower for

    the new transaction; and

    6 months of PITI for both properties is required to be

    in reserves."

    3. In other words the key similarity (on Fannie/Freddie/FHA) is whether or not you get to count the rental income in your debt to income ratio. This is determined by whether you have the equity requirement or not.

    4. If you can A) qualify for both mortgage payments without offsetting with the rent, or B) have enough cash reserves; you can skate by this one. I have successfully funded more than a few loans in this manner.

  5. .

    How are things with you? Glad to hear you're busy!

    Seems like you are treading water at the very least. I would look into Tbills, word has it that they will be doing some price gains here shortly....as of now we are into 8.1% unemployment :shock: official numbers anyway :shock::shock:

    I am doing quite well now thanks to the lower interest rates...everyone and their brother wants to do the FHA/VA Streamline refinance, we are literally getting 2-3 leads daily on our website for it(thanks to some extensive Search Engine Optimization - SEO- I did). Business was thin, so I diversified into this SEO stuff which has paid in spades.

    As far as Charles, I hate to say it but that's textbook out-of-biz behavior...lord knows I've seen it with countless numbers of my peers/competition. It is a very ruthless market out there now.

  6. I have an FHA loan and recently asked about a

    streamline loan modification and was told it wasnt offered on FHA loans?

    You would actually be able to obtain a FHA streamline refinance even if you had missed payments, so long as you were current at the time of refinance. A FHA Streamline is not the same as a loan modification FYI. A loan mod would be extremely difficult to get done in your situation as it is FHA paper.

    all that bail-out money should have been given out to the people , thats the only way this country would turn around , seems to me the ones getting the bail-out now are the ones that did this in the first place

    Regrettably, you are not misinformed on this one. We have high hopes though for Obama's new plans.

  7. A loan modification is NOT the same thing as a forbearance agreement. Wells Fargo is NOT helping you. They are tacking fees onto the loan, screwing your credit and not providing any real relief.

    A true loan modification reduces your principal balance, reduces rate as low as 3% fixed for the life of the loan, or both. Loan mods are permanent, lasting relief. Forbearance is a horrible option.

  8. Mortgages are bundled into several different types of very complicated securities. Any given loan could be one of thousands in a "pool", and this pool can have thousands of owners. Normally though, paperwork for prepayments and foreclosure would be fast.

    The problem is the system was never set up for this type of volume. Asking to Produce the note works if the system is overwhelmed, because the people in charge of foreclosure may target easier loans first.

    This advantage as noted doesn't work with everyone and is something every bank is working to fix(not in their best interests). There was that story of a woman who fought foreclosure successfully for 5 years with this tactic.

  9. post history indicates Charles last appearance on the site was January 8th. his website still works(the one in his profile). I was actually curious to see how he had weathered the current storm in the mortgage biz.

    I don't know if you remember me, I've been on a 6 month "sabbatical" from the site lol. I am still in the biz, busier than ever before. Unfortunately my deepest fears about the economy have been realized and then some. I know that you were pretty exposed to equities, how is your portfolio holding up?

  10. Yeah, I knew that Phillip Cohen etc was debt collectors; the frustrating part is whenever we get ahold of someone in US Bank who can actually reference the account, they say "we cannot speak about this account, all commuinication must go through our attorney blah blah blah". Yet, oddly enough the attorney isn't reporting anything to my clien'ts credit. Since they(attorney) doesn't have my client's social attached to the file, I can only assume US Bank is to blame for this. MY client gave US bank her social when she applied for the checking account; when the credit line went delinquent they must of figured it would be a sweet idea to slap it on her credit too.

    Such an irritating catch 22. "Hi I need information on this account, it's being reported to my credit" "are you on the account" "no, thats the whole problem" "well then sorry we can't release any information" xhitwallx

    The other issue is that there [apparently] 8 different divisions/telephone numbers at US Bank that handles these types of accounts. Each claims it's another's responsability. Some can or cannot access the account. All are equally surly and unwilling to help. I will try your suggestion loanshark and escalate it as high as we can; this is also a violation under FCRA, FDCPA etc.

  11. Hi all- I am a loan officer and I am working on a client's file that has an extremely critical situation.

    Background: Client had a joint US bank checking account in 1999 with her boyfriend at the time. Later, boyfriend applys for and opens a credit line in his name with US bank. They break up, Client closes the account, and is never told about the credit line, which of course the BF walks on.

    Fast forward to present.

    They are tyring to buy a house and the FHA underwriter wants a creditor letter to explain the chargeoff, now about $5,000.

    The client and I have probably spent about 10 hours on the phone with US Bank and their designated Attorney Phillip COhen and Associates. US Bank refuses to speak with anyone regarding the account, stating that "it is in chargeoff/recovery status". Recovery department will not release any info related to the debt and refers to Phillip Cohen.

    Everyone with access privledges to view the account states that my client's name does not appear on the account as a cosignor or gaurantor, just as a reference. She even offered to pay the collection to the attorney who said they could not accept payment, due to her not being on the acount!

    What we cannot wait for: Disputes. The client already disputed the account, but the rate lock we have for him expires soon and cannot be extended due to the volatile market (was already extended once). We don't have 30 days.

    We've tried calling 8 different numbers at US Bank, 3 for Phillip Cohen, faxing, emailing, going to the US bank branch it was opened with...came up with nothing.


  12. I am dealing with this right now for a $92.00 debt. I sent a DV letter for which Calvary did not respond. I sent a PFD offering to pay for a debt that I am not even sure belongs to me and one that could not be verified. I never received a response. What is wrong with these people. Do they want the money or not?

    I will not pay for a debt that I am not even sure is mine without a written promise for a PFD.

    Out of frustration, I filed a complaint with the BBB. I am waiting for a response.

    hey, I dont know if this will help or not, but I too had a delinquent account with sprint some time ago and a following encounter with Cavalry portfolio. This was prior to me finding this site, of course so I didn't validate, etc it. The collectors called and I settled for about 60% of what was owed. COme to find out that paid collections are worse than unpaid to delete...supposedly. I put in a written dispute about 30 days after I paid it, and all the bureaus removed it. tl;dr Cavalry didnt confirm when i disputed. It has never came back since. Oh and they refused to negotiate a PFD, even at face collection amount. The chick told me though that they most likely would not verify though after I paid.

  13. Hi- this is for a client of mine.

    Underwriter's kicked the loan for a US bank collection




    COLL 03-08




    My client had a joint checking account with her ex bf in 1999. Unknown to her, ex bf opens a credit line at US bank, but only in his name.

    US Bank has her social due to the checking account application and puts a collection on her report.

    I just conference called them(US Bank Credit Line department) and they found the old credit line account, and verbally confirmed her name or social isn't on it. However, they declined to give us a letter confirming as such or a printout, stating that the account is in "recovery" and apparently locked from their end. :roll:

    Well, recovery was closed and I will be trying them tomorrow but what I am looking for is someone who has had experience with getting this type of thing from US Bank or similar situation. How did you do it and how long did it take?


  14. Hi i have a relatively new car note (bout 4 payments made) with Capitol 1. finances are very tight this month, I am commission only. My payment is due on the 13th and it will not be in by then. I will probably have the cash in about a week, two at most. I've paid early and over every month until now.

    My question is, what is the best way to work this out with my lender? I assume of course there is a late fee, but how long do I have (about) before the late payment is reported to my credit, 30 days?

  15. Quicken has been collecting upfront for a while now. Yes, this is legal. No, it isnt typical.

    Most new loans will require that you pay both mortgages off with the new financing, its risk issues for the bank. The exception? FHA will allow you to refinance your first mortgage, providing that your second will release itself, and then attach again behind the new loan (a long and technical process called "resubordination")

    But, why would you do that anyway? Your second mortgage is at a high rate and a new FHA loan (with todays market rates being 6-6.25%) would be much cheaper overall. A complete refinance could even lower your monthly payments.

    I don't know what loan type you were offered, but my experience as a competitor of Quicken Loans has given me many return clients that were unhappy with service or were bait and switched. By all means try your credit union but make sure you get an FHA quote from someone. Your credit union should be able to give you a local referral if they can't help.

  16. What is most certainly true is that 90% of most lenders will not even return your calls for a loan workout unless you are at least 60-90 days down. i don't know if it makes much difference whether verbalize you're going to walk, missed payments say that pretty loud, you know? Honestly, the lender simply doesn't care. It's brutual, but they are only willing to make arrangements for what you can qualify for, and if it's clear you need it. However, this is not always the case. Countrywide was fixing peoples ARM's unsolicited a few months ago, but they are in some dire fiscal straights.

    if you are contracting the services of a "loan mod specialist" who is assisting you in this beware. This new industry is unregulated and full of crooked rejects from shut down brokers. It is common for about 1% of your outstanding loan balance to be charged, up front, regardless of whether the loan modification is sucessful or not.

  17. Pretty interesting recovery today, dont you think jq26?

    Treasuries Rebound as ECB's Stark Downplays Rate Speculation

    By Sandra Hernandez and Ye Xie

    June 11 (Bloomberg) -- Treasury two-year notes rebounded from their biggest back-to-back decline in at least 20 years after a European Central Bank official damped speculation the central bank is about to raise interest rates multiple times.

    ECB board member Juergen Stark's comments that the bank isn't ``talking about a series of rate increases'' sparked a rally in bonds in Europe and the U.S. The Federal Reserve said economic growth was ``generally weak'' in April and May as consumer spending slowed, while manufacturers in ``several'' regions passed on higher raw materials costs to their customers.

    ``The market is finding a footing here,'' said David Ader, head of U.S. government bond strategy in Greenwich, Connecticut, at RBS Greenwich Capital, one of the 22 primary dealers that trade with the Fed. ``Yields will be headed lower. The Fed won't hike. The economy will weaken a lot more. Inflation will follow the weak economy.''

    The yield on the two-year note, the most sensitive to interest-rate expectations, fell 12 basis points, or 0.12 percentage point, to 2.81 percent at 5:35 p.m. in New York, according to BGCantor Market Data. The 2.625 percent security due May 2010 rose 7/32, or $2.19 per $1,000 face amount, to 99 21/32. Ten-year yields fell 3 basis points to 4.07 percent.

    The two-year yield advanced by 51 basis points from June 6 through yesterday, the biggest back-to-back gain in at least two decades.

    `Flight to Quality'

    Bonds also gained as shares of financial stocks dropped to their lowest in four years on concern that writedowns and losses may increase at firms including Lehman Brothers Holdings Inc.

    `` There continues to be concern about financials,'' said Michael Pond, an interest-rate strategist in New York at Barclays Capital Inc., a primary dealer. ``There's a flight to quality.''

    Speculation surged in the past week that global central banks were about to switch from rate cuts to boosts amid signs that policy makers are more concerned about keeping inflation under control than heading off a slowdown in the economy.

    ``The market very quickly and abruptly priced in aggressive moves by the Fed, which was perhaps unwarranted and overdone,'' said John Spinello, chief fixed-income technical strategist in New York at Jefferies & Co. ``We have room to rally.''

    German two-year government notes rose, pushing the yield down 3 basis points to 4.63 percent.

    ``It's the bullishness in the European bond market that's underpinning a firmer tone in the Treasuries,'' said Richard McGuire, a fixed-income strategist in London at Royal Bank of Canada, the nation's biggest lender. ``Stark appeared to be indicating that any rate hike will be to fine-tune inflation expectations rather than a significant shift higher.''

    McGuire said his strategy is to sell Treasuries, as inflation concerns will continue to dominate the market.

    Beige Book

    Seven of 12 regional Fed banks reported a softer, slower or ``modest'' expansion. Five districts reported that business was ``stable or little changed,'' the central bank said in its regional economic survey, known as the Beige Book for the color of its cover.

    ``The economy remains fragile,'' said John Canavan, a fixed-income analyst in Princeton, New Jersey, at Stone & McCarthy Research Associates. ``It's premature for the Fed to do anything that will worsen that situation. The market may have to reverse the rate hikes that have been priced in.''

    Traders see an 82 percent chance the Fed will raise its 2 percent target rate for overnight lending between banks at least a quarter-percentage point in September, down from 87 percent yesterday, futures on the Chicago Board of Trade showed. The likelihood of a half-percentage point increase fell to 32 percent, from 36 percent yesterday.

    Yield Spread

    A survey of Bloomberg users forecast government bonds will fall in the Americas, Asia and Europe over the next six months as global inflation accelerates. Treasuries, German bunds, Brazilian notes and Hong Kong bonds may depreciate as yields increase, according to the monthly Bloomberg Professional Global Confidence Index, which questioned 4,533 users from Rio de Janeiro to Frankfurt to New York.

    The yield spread between two- and 10-year notes was 127 basis points, compared with 118 basis points yesterday, after Fed Chairman Ben S. Bernanke pledged to ``strongly resist'' deterioration of public confidence in stable prices. The gap has narrowed from this year's peak of 207 basis points in March. The so-called flatter yield curve indicates investors have reduced bets the Fed will cut rates.

    Demand for protection against rising costs has grown as the prices of oil and other commodities have surged. The difference between yields on 10-year Treasury Inflation Protected Securities, or TIPS, and conventional notes widened to 2.52 percentage points from 2.28 points at the end of April.

    Fink on TIPS

    Laurence Fink, chief executive officer of BlackRock Inc., said investors should consider putting money into TIPS, which protect against rising inflation by paying interest at lower rates than regular Treasuries on a principal amount that grows with increases in consumer prices. BlackRock, the largest publicly traded U.S. money manager, was given $1 billion to invest on behalf of a client this week, said Fink. He didn't name the investor.

    ``Inflation is a real problem,'' Fink said at a Dow Jones deal conference in New York. ``I am very worried.''

    Conventional Treasuries, whose fixed payments are eroded by inflation, had their first two-month decline in April and May in almost a year, according to Merrill Lynch & Co.'s Treasury master index.

    U.S. consumer prices rose 3.9 percent in May from a year earlier, matching April's pace, a Bloomberg News survey of economists showed before the Labor Department reports the figure on June 13.

    After subtracting the inflation rate from 10-year yields, investors are getting about 20 basis points. The average difference over the past decade was about 2 percentage points.

    To contact the reporters on this story: Sandra Hernandez in New York at shernandez4@bloomberg.net; Ye Xie in New York at yxie6@bloomberg.net

    Last Updated: June 11, 2008 17:42 EDT

    Even with an oversupply of T-bills, the world markets still reguard them as "safe" vs the stock market. As the financial filings of banks and other industries continue to stutter in the face of this recession, money will drive itself into bonds. At least, until the market discovers exactly what the government is writing t-bills from, diseased MBS and CDO paper from such highlights as Bear Sterns. And even then it will take a near apocalyptic disaster in the US financial situation before bonds are seen as unsafe and money flees into precious metals and commodities. You have to remember the rates on savings accounts isnt helping anything either.

    I would bet that yields will remain low until the Fed starts reacting to inflation. Then, there will be hell to pay.

  18. Just a bit of a different perspective than oompa here. The forgiveness of COD income is only for primary residence recourse debt (not for investment properties).

    Sorry OP, Jq26 is on the money here, I apologize

    And just an additional note about the COD income: it does not matter if its "cash out" or not. It is the discharge of liability that gives rise to the "income" that the IRS is taxing.

    Correct again, to be clear, about the cash out part I wasn't referring to IRS liability. If your loan is "non-recourse" your lender is not allowed to sue you for the remainder of your debt if the home is foreclosed. If its a 'recourse' loan they can do whatever they want. In CA pretty much only owner/occupied purchase loans are non-recourse.

    The insolvency argument is an excellent point also, I have heard of that but didnt know enough of the details to point it out. A BK attorney would certainly be able to cook that up for you.

    And bankruptcy will not be a walk in the park here. BK judges cannot force a "cram down" on the portion of the loan that is an allowed secured claim on a primary residence.

    Spot on again. I was suggesting BK as a means to avoid collection activity after foreclosure. IE, you get foreclosed on then file BK to shield yourself from getting sued or judgment slapped on you for the balance.

    Adding mortgage intervention to a BK judge's plate I am certain would be a nightmare with no good end guaranteed.

    Way i see it OP, these are your choices:

    1 Attempt renegotiation, and/or try to obtain say a FHA bailout refinance and save your residence

    2. Short sale and get out that way and go rent (the 2 year lease, you'd want to sign it prior to your credit getting destroyed)

    3. Let it foreclose and let things shake out.

    Unfortunately, short sales are appearing the same generally on credit reports and foreclosures. The banks are marking them the same, and for lending they are considered the same. But, banks are jumping on whatever they can to keep people in houses. They would rather loose a little than ALL of their investment. Please believe they will take a short sale seriously.

  19. Charles, thank you for your research. Though I don't have anything to prove to you, I assure you that I am familiar with the pertinent parts of the law, and any present or future referral agreement through my company is of course done in full disclosure and in 100% compliance with all governing bodies.

    We have unfortunately had to delve very deep into the particular legal points here, due to our affiliation with Lending Tree and other 3rd party lead providers. It is also a cause for concern when paying independent contractor telemarketers or originators. Respa violations generally lead to investigations and hearings which nobody needs right now. My main point is that we are a FHA correspondent, something of a halo in this present market. We protect this at all costs and it would be foolhardy to jeopardize this for a kickback. Every week, me and my broker go through all the people soliciting us to co-broker and illegally piggyback on our FHA designation and report them to HUD

    Champion- Check your private messages

  20. I hate to say it, but Countrywide is not doing this out of a change of heart. Countrywide was the largest funder of all mortgage loans 2004-2007. They have so many billions of dollars of rotten loans on the books its inconceivable. It is amazing that they are not even requiring an application to make loan modification happens.

    I am most certainly happy for the OP. Some folks fight with their bank for months and dont get it. This is an encouraging sign these banking juggernauts are finally beginning to face reality. My, how the mighty have fallen.

  21. Charles and amortgageman i commend you for stepping in here, but i confess, i have no idea what situation OP is in.

    dogtra11, it does not appear (to me) your question was answered. you have not provided much information. if this is the case, please tell us the following and I will try to help you-

    is this a purchase, or refinance?

    are you approved? do you have a preapproval, or an underwriter's signature?

    was the rate locked before this happened?

    I have not heard of franklin first, i have heard of First Franklin they were a big bad credit lender (subprime mortgages) who were bought out by Merril Lynch.

    please also know this:

    if the terms of your loan change (like loan amount) by law you are supposed to get a new Good Faith Estimate showing the changes

    and, you are never obligated to a loan until you sign final paperwork with a notary. If a purchase, the loan becomes binding at signature. If a refinance an additional grace period of 3 days is given to reconsider.

  22. Doubtful your lender will allow you to mod to stay in your house. Highly doubtful. In fact, you may not get a response either way unless you are down several mortgage payments already.

    You might look into the possibility of a short sale. You should call some of your past Realtor contacts and get the name of someone specialized in this. They will already be familiar with the process and what is required to gain an approval for a short sale. See, to have any hope, you need to put a package together documenting your lack of ability to repay the mortgage and submit it to the Heloc lender. if approved, you will be able to sell the house for whatever market value is, and the second mtg holder will take a short payoff and forgive the rest.

    The good news is if you go this route, you wont have any tax liability. Technically, since your second mortgage was "cash out", the IRS would have considered the difference between money owed and and money paid off by sale to be income...Bush has removed this, so even your investment properties are safe from tax liability. There is really no need to file BK unless the creditors involved will pursue you in court for the balance. For that decision, please contact an actual bankruptcy attorney.

    If you cant swing the payments, you cant swing the payments. Perhaps consider a signing a 2 year lease and letting them all go. i dont know you valuation scenarios but it sounds like you would have sold if you could have.

    You have repeat problems with credit cards, and quite frankly, you have used your house like an ATM and now it is time to pay. Luckily for you, there is a full scale bailout for people in your exact hole, and the price for your admission is trashed credit.

    Conscience yourself and make a decision.

  23. We have it set up to where we can pay a Realtor or affiliate (they need not be on the books as an employee) a referral fee. However, in order to be RESPA-compliant, the following need to happen: the affiliate must take the 1003 loan application and then submit it to us, and their fee is paid through escrow. If those two things happen, a payment is legal and compliant.

    As the market has changed, and we are no longer chasing after refinances, on every purchase I close there is the opportunity for an insurance agent to write a policy, and sometimes not just for the house only. I do have a few folks I feed here and there but I have to say it is rare I receive a deal from my insurance contacts. My bread and butter is Realtor referrals, but I digress.

    We are a CA only broker (northern California though, Sacramento) and would be interested pursuing a synergistic relationship, which of course would have to be aboveboard as we are a licensed FHA correspondent (for 19 years) and would prefer to stay that way. PM me if you'd like to take things a bit further.


    A loan officer writing his own file is extremely suspect in the current lending environment. I am fairly sure Fannie/Freddie prohibits it, unsure about government, know some sub primes did/do allow it.

    That aside, as lending is considered to be a unstable industry, someone applying for a mortgage with a job as a loan officer would garner intense scrutiny of their income documentation. An underwriter would take a conservative stance.

    All that aside, OP, it is very legal for you to be an employee of the company and be paid 1099 for bringing business into the door. There are just rules that must be followed. That position can be a telemarketer or whatever, basically, "originator" and is what I was brought into the business years ago as.

  24. Programs of this type (seller sponsored assistance) are cash substitutes. By using them you can get the lender to make 100% financing with no extra cost other than an increased amount They are indeed somewhat of a negotiating deadweight, as the seller is sometimes ignorant or unwilling to make it happen, even at an increased sales price as compensation. So if you have the downpayment, by all means put it down for this will give you a sharper bargaining edge and ultimately a lower overall cost.

    There is a whole slew of county, city state and private downpayment assistance that is either made as a true gift or as a deferred grant with a very low rate. Most of these however have strict income limits, and most loan programs require a down payment. Most first time home buyers have a small down payment saved or none at all, and thus these programs still serve a purpose.

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