All the people out there wanting modifications to their loans  and upset t get one I have one piece of advice.  And I know its too late, but get a fixed rate loan.  Instead of crying the blues now, you would have been OK.   You enjoyed the low "teaser" rate for 2 years and now have to pay the price for your greed.  Sorry but I have no sympathy for you.  Maybe you should have done your homework before signing for this type of loan.  An I will be damned if my tax dollars have to go to bail you out for your stupidity.  Grow up and accept responsibilty for your actions.  Sorry, but I will not accept your excuses.

Hey, Common Sense, an ARM does not excuse the fraud that is going on by the mortgage servicers including the fale credit reports that have caused us not to be able to refinance.

My BK lawyer told us to ask for a loan mod. He told me to do this in writing and to ask for a loan that would include our second mortgage so that it is all through one. He told me to mention that we know that interest rates are low right now. Does anyone know what else I need to include in the letter that might be of some help? I know the chances may be slim, but it is the last chance we have to save our home before it resets in September. I know that I need to ask for a fixed rate.

I applied for a loan modification with Wilshire Credit (0wned by Merrill Lynch) the week after Christmas 2007.  They confirmed receipt of my package on 1/6 and assigned a loan officer on 1/12.  I spoke to the loan officer once - on 3/11, went over the figures, my app, etc. and she told me she would have an answer for me on 3/14.  I am still waiting for that phone call.  I have called twice a week, every week, since I got the loan officer's name (In January), left voice mails every time.  No return phone calls.  Found out who her supervisor was - called her - voicemail - no return calls.  Called her supervisor's supervisor - voicemail - no return calls.  I stopped calling on 4/29 - figured it was just a waste of time.

Our loan is with Option One, now will be called American Home Mortgage Services. We have bought our home in 2002, had some financial problems in 2004, filed bankruptcy in 2005 (back arrears on the house payment in the bankruptcy payment) Our bankruptcy payment was 1055.00 per month, our home payment was 1326.00 per month, I was the only one working, due to my husband illness (prostate cancer), so money was tight, we fell behind in on the house payment in 2007. Option One keep telling us that we can apply modify our loan, or do a short sell of the house. We did both, we had a buyer for the house in August, Option One deny their offer, so we went for the mod of our loan. From August thru April, we called Option One and want to know what was going on with our mod, the loan officer at that time Jocelyn Beck, said she still working on it. While she is still working on our loan mod, we see that  Option One Mortgage Company was up for sale, (all the other montage company are now in problems and foreclosures are on the rise). Option One had a buyer, they back out, now Option One, are laying off workers, and no longer writing new loans, Please keep in mind we are calling Option One every week or every two weeks, asking about our Mod, same answer "We are working on it"  In October, we now have a new loan officer (Ms.Beck no longer working with Option One) Alisha Brown, she request all the same information to be sent to her, we do and for the next 5 months we are told "we are still working on it". March comes around and Option One has a buyer deal has gone thru and it becomes official on May 31st,  Now Alisha has stated that we have HOA Liens on the House, need to get them cleared so we can receive the mod papers. We find out how much we need to pay and we get the liens release and all the paper work sent to Alisha Brown, June is here and they need current pay stubs and financial page and bank statements before she takes all of this to her SUPERVISOR, please bear in mind she never tells us that it is up to her SUPERVISOR for the final decision, she has been telling us that everything looks good and ready to go, all she has to do is get the release and send us the paper work for the mod.  June 12, she has all the paper work on hand, June 16, we call to verify that she has received all the paper work, Yes, she does and she will call us in about two hours or so to let us know about the mod and the terms. I no sooner get in my office I have a Mr. Kelly on the line and our Mod has been denied and they can start the foreclosure process.  They have kept us waiting for over Year and Half, on the outcome of our house.  Option One will no longer work us, no other options have been suggested. Mr Kelly was very rude to me and I was not nice to him, So they no longer will take to me, but will talk to my husband. We are 62 and 53 yrs of age and this was going to be our last home the ever owned, but dealing with Option One, I never want to own another home thru them again!!  We have lost over 50,000.00, due Option One, Both my husband and I have been so depressed about this, we don't know what to do and don't know who we can get to help us thru this nightmare!

There are definately a laundry list of predatory lenders which include...Saxon Mortgage/Fremont Investment/Home EQ/ and Litton Loan just to mention a few. I wonder when the Government is going to start holding these lowlifes accountable for destroying the economy??

LIers relieved, skeptical of bailout -- Newsday.com

1. Has anyone actually had their loan modified? NO!!!!
     a. If so, has it been in favorable terms?

2. Has anyone even been approached by their lender to
     modify their loan? NO!!!!!
     a. If so, which lender?
 
3. Have you asked your lender for help? YES!!!!
     a. What lender? AURORA LOAN SERVICES
     b. What was the response. I sent in a financial package in Feb. 08. I called to follow up several times, they kept saying they recieved it and it was being reviewed. But, noday ever looked at it. I actually just called them again, and they asked me to send in another financial package. If you are current on your home mortgage, they simply are not going to help you. By the way, the only way you can be elgible for a modification, at least with Aurora, is to be current on your payments which I am. However, if you are current, they have too many loans that are in foreclosure they aren't looking at the modificaitons fast enough before the financial package becomes too old and outdated...so it's catch 22 and I don't see any help in sight.

Rescued from foreclosure: one family's story

YOU COULD STILL FACE FORECLOSURE AFTER A LOAN MODIFICATION

Since beginning MFI-Miami, I’ve seen a lot of mortgage servicers attempting to foreclose on homeowners without being able to prove they are the proper custodian of the note or mortgage.   I have one client right now who is beginning litigation against American Home Mortgage Servicing, Inc. partially because they can’t provide proof of the transferring from Option One Mortgage Corporation or from the original lender.   I have another client whose foreclosure was cancelled (with MFI’s help) by Bear Stearns because they could not prove the transfer even happened.   I could go on and on by listing other clients I’ve had. However, the point is that because Wall Street firms trade mortgage portfolios like Baseball cards, no one can identify the legal custodian of your note and mortgage is. 

Here is basically how it works.  You closed your loan with a lender. They sell it to an undisclosed mortgage aggregator for an undisclosed amount (usually around 1% of the face value of the mortgage), a 2.5% fee plus the points and fees from closing.  The manager of this pool of loans then sells your loan to other aggregators, who also buy, sell, or trade these securitization pools like baseball cards.  The managers of these pools then hire a servicing company to collect your payments.  In some cases, a large lender or a bank like Countrywide or Bank of America may buy it and service it themselves.  With all this trading, the servicing company you make your payment to may not necessarily be the legal custodian of your mortgage. 

This gives you, as the homeowner, the upper hand in a foreclosure because only the legal custodian of the note or their authorized agent can foreclose on a homeowner.   Through this maze of trades and counter trades, the mortgage and the note are moved upstream but in no case are all of the transfers of ownership recorded in the local property records.  Although a fund manager could offer a plethora of reasons as to why, the real reason is, fund managers want to save a few dollars by avoiding taxes and filing fees that would apply to each recording.  The people who buy and sell these pools also neglect an essential and basic element of property law. You can’t sell, transfer, or modify what you don’t own.   Both the deed and the mortgage are considered an interest in real property and those interests must be recorded to be valid and legitimate.   The real owner of the note is the only one who has the power to enforce the terms of the note and mortgage but the question is who is it?

One way you can protect yourself in a modification or short sale is to deal with the entity that actually holds the interest. Unfortunately, this information is almost impossible to find because of all the trading between funds.   This is the problem with the securitization process because the legitimate holder of your note can try to make a claim against you after you sign the modification agreement or short sale with your current servicer. 

The other way you can protect yourself is to demand indemnification from the servicing agent you are negotiating the short sale or modification with.  This option is not only the best and easiest way to protect yourself but it is also the only fair way to do it.  In most modification agreements, the servicer offering the loan modification has an indemnification agreement that holds them harmless for any fraud, deception and misrepresentation that may have occurred when executing the original loan. They also have a clause that forces you to acknowledge they are now the legal custodian of the note and mortgage.  Mortgage Servicers are shielding themselves from liability.  You should too!

So, how do you get indemnification from the servicer offering to accept the short sale or loan modification?  You demand that a new title policy be issued that does not state exceptions to the securitization process.  In order to be sure that the title insurance company doesn’t deny you coverage because for lacking full coverage, you must disclose to the title agent in writing that the possibility exists that others may have an interest in the property or the mortgage.

If the agent refuses to issue the policy without an exception, it probably means they were the ones who did the closing and were fully aware of the securitization process and failed to disclose this information to you.  Depriving you of the knowledge of who the real lender is and to whom a rescission letter or Qualified Written Request should be sent could arguably extend your three day right of rescission indefinitely. 

You can learn more at http://www.mfi-miami.com

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