charmgoodcredit Posted November 14, 2008 Report Share Posted November 14, 2008 Hello all,Well my Chapter 7 was going smoothly until my husband and I received a notice from our mortgage loan servicer. Here's a brief story:Prior to our filing chapter 7 we entered into a forebearance agreement with our mortgage company for modified payment for a period of three months. Prior to filing I contacted our servicer to ask them would filing affect our forbearance agreement and was told it would not to just continue making the payments and go along as planned. Well, just made the third payment last week and made the call to get the loan modified. Upon doing that we were notified that we now had to obtain a consent from our attoney for them to speak with us and to review our loan for any modifications and to submit all income and expenses for the re-modification. Well today I get home and my husband hands me a letter from *** which stated that they want to modify the loan. Here's the issue, the payment amount is no problem but call me stupid on the letter they have a section that says "Contribution Required" are we to assume that that is the amount of money they require before they will accept the modification? And can they do that after they told us just continue to pay? Also, if we decide at this point to let the house go how long before we have to get out. Our discharge isn't until December sometime after Christmas. Would they have to go through the foreclosure process and approxiamately how long is that? So many questions any help is appreciated. Link to comment Share on other sites More sharing options...
charmgoodcredit Posted November 16, 2008 Author Report Share Posted November 16, 2008 This is what they are talking about:A proposed modification agreement is being sent to your office today. The proposed terms include: ESCROW = $0.00 INT = $2,650.36 1ST PMT EFF DATE = 02/01/2009 NEW P&I = $720.03 MTGR CONTRIBUTION AMT = $4,167.81 - Does this mean that before they do the modification they need this amount of money?DEFAULT REASON = 007 EXCESSIVE OBLIGATION PREV UPB = $69,900.00 EST NEW PMT = $1,042.43 AMT CAP = $2,650.36 TTL MREC = $4,167.81 MOD UPB = $72,550.36 NEW TERM = 329 OLD INT RATE = 11.375% NEW INT RATE = 11.375% Also, have you heard of a mortgage company breaking that contribution amount up into smaller piece? I haven't I have experd that they want it all at once. Any assistance would be appreciated. Link to comment Share on other sites More sharing options...
Denita Posted November 16, 2008 Report Share Posted November 16, 2008 Am I reading this correctly? Your current interest is 11.375% and they want to modify your loan payment amount for short term, but keep the rate at 11.375%???This looks like a modification that is good for them and no so much for you. It is not unusual for the loss mitigation depts to request lump sum fees up front and then after all the paperwork 'has been reviewed' to either turn down the modification or to ask for more fees. (Personally, from what I have seen, the loss mit depts seem to be another collection arm of the servicer) After all, if you give them $4167.81 and they have not given you anything what is the point of pouring good money after bad? You are in a BK 7. You can talk directly to the BK dept to get all the loan details you need. If the modification does not work for you, you can surrender the property in the CH 7 and that is your leverage. You can negotiate interest rate, length of the note repayment periods, balance amounts etc. The mortgage servicer and the lender have different goals - the lender wants you to perform (pay the loan) and the servicer makes more money if you default (thru fees). You are negotiating with the servicer. The loan servicer is probably the one benefiting from the $4k. If you have mortgage insurance, you might try an 'end run' around the servicer by contacting the MI co directly. They can then put pressure on the servicer to actually work with you toward a real modification. It is hard to tell from your post what is a reasonable amount, but 11.375% is not reasonable by anyone's standards. What is the amount you borrowed originally (the $69,900 ?)? What is the actual market value of your home? If you do not have a current value, call a good real estate agent and get them to give you the quick sale value (for free). If you do have equity, then it is worth it to try to modify the loan to something that makes since to YOU in the long run. Link to comment Share on other sites More sharing options...
Denita Posted November 18, 2008 Report Share Posted November 18, 2008 Bump...looking to get one of the mortgage people in or the loss mitigators to answer Link to comment Share on other sites More sharing options...
charmgoodcredit Posted November 22, 2008 Author Report Share Posted November 22, 2008 I've went right to the source the orginal lender I've asked the lender how they came up with the fees and need to see something in writing before we pay another dime. I want to write the house off but oft times when you are dealing with a man's ego and pride the smart thing does not get done. My husband only want to keep the house because this is the last thing "he" has. I really don't give two s**ts about it I figure we can rent and get another later. But, know he's talking about doing a 13 how is that going to change things. We only have 2 pieces of secured debt the house and a car, my concern is the unsecured debt and how it will creep back in once he gets a job (prayerfully soon) or could they take it from his unemployment check. We met with our attorney again next month to work out another means test and to see how some things would work. Link to comment Share on other sites More sharing options...
charmgoodcredit Posted November 22, 2008 Author Report Share Posted November 22, 2008 Our orginal loan amount was $70,000 and just as I had begun to knock the principal down (because we allowed ourselves to be suckered into one of the ARM loans) my husband gets laid off. So we have been dealing with the serving company and getting further screwed in the process. This has been the loan from hell. How does it work when we surrender the propery in the bankruptcy? When would be have to get out how does that work? I would love to do that to perhaps see if it could provide us with other options. Thanks DenitaAm I reading this correctly? Your current interest is 11.375% and they want to modify your loan payment amount for short term, but keep the rate at 11.375%???This looks like a modification that is good for them and no so much for you. It is not unusual for the loss mitigation depts to request lump sum fees up front and then after all the paperwork 'has been reviewed' to either turn down the modification or to ask for more fees. (Personally, from what I have seen, the loss mit depts seem to be another collection arm of the servicer) After all, if you give them $4167.81 and they have not given you anything what is the point of pouring good money after bad? You are in a BK 7. You can talk directly to the BK dept to get all the loan details you need. If the modification does not work for you, you can surrender the property in the CH 7 and that is your leverage. You can negotiate interest rate, length of the note repayment periods, balance amounts etc. The mortgage servicer and the lender have different goals - the lender wants you to perform (pay the loan) and the servicer makes more money if you default (thru fees). You are negotiating with the servicer. The loan servicer is probably the one benefiting from the $4k. If you have mortgage insurance, you might try an 'end run' around the servicer by contacting the MI co directly. They can then put pressure on the servicer to actually work with you toward a real modification. It is hard to tell from your post what is a reasonable amount, but 11.375% is not reasonable by anyone's standards. What is the amount you borrowed originally (the $69,900 ?)? What is the actual market value of your home? If you do not have a current value, call a good real estate agent and get them to give you the quick sale value (for free). If you do have equity, then it is worth it to try to modify the loan to something that makes since to YOU in the long run. Link to comment Share on other sites More sharing options...
Denita Posted November 23, 2008 Report Share Posted November 23, 2008 Well, Charm, I can tell you only from my experience about surrendering the house. I am in that process right now because my home is $200k underwater and the rental prop I have is about $70k underwater. The surrendering part is easy, on the CH 7 schedules there is a place to checkmark if you are keeping or surrendering the collerateral (house). If you originally selected to reaffirm (keep) then you contact your attorney and he will send in a motion to surrender. That has to be done within a certain time period of the filing (I believe 60 days - but check with your attorney). As to leaving you have lots of time. According to my attorney the creditor will have to provide a notice to lift the stay to continue the FC process. According to my lender they schedule sale/auction dates (schedule the date), but then for one reason or another the date is postponed. My attorney says it is typical for the entire process to take a year from the date of first missed payment in our area (S. Fl). At any event, the lender has to notify you of the date.As to feeling bad about surrendering the property, I understand that, but you are (as I am) in the process of truly starting over again. We have to look hard at our budgets and start from zero to rebuild our financial life in a sound way so we won't find ourselves in the red anymore. As a matter of fact, Mathuss has an excellent budgeting tool that does just that. You might want to PM Mathuss. I don't know where your house sits in the way of market value. IF you owe less than it is worth and can negotiate a reasonable payment, then try that first. If you are underwater substantially (for example I now owe 44% more than what my house is worth), then this is the time to give it back. Link to comment Share on other sites More sharing options...
1time2many Posted November 26, 2008 Report Share Posted November 26, 2008 charmgoodcredit You realy need to look at Loansafe.org. Over 11% on a 69k and a mod of the same.........thats total BS, there are peeps getting mods of 4-5%, even on rental property. Link to comment Share on other sites More sharing options...
charmgoodcredit Posted December 26, 2008 Author Report Share Posted December 26, 2008 When going through bankruptcy and just received a notice today that stated that the court has terminated the automatice stay on our property. How much longer do we have to occupy the property? Does anyone know the timeline for MI? Thanks Link to comment Share on other sites More sharing options...
1time2many Posted December 30, 2008 Report Share Posted December 30, 2008 Loansafe.org, you will get all the info you need there. Link to comment Share on other sites More sharing options...
charmgoodcredit Posted January 1, 2009 Author Report Share Posted January 1, 2009 Thanks 1time loansafe.org is a great website! Link to comment Share on other sites More sharing options...
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