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Post by bumblebee23 on Dec 28, 2011 9:44:43 GMT -6
Ok so many of you know things haven't been the greatest for us in the past year. We attempted to do a loan modification with our mortgage company but we have an FHA loan and where told they aren't set up to do loan modifications yet. So we were told to do a loan forbarance and so we went through weeks and weeks of paperwork and waiting and get a letter back saying if we only made more money then we would get approved. Really!? We are coming to you to LOWER our mortgage bills but can't do that because we don't make more money....well if we did make more money we wouldn't need to do this!
Anyway, I have been thinking about it and the housing market has sucked for awhile so why wouldn't FHA have a plan in place? Right? So I went online and I found some info on it and I beleive I have the right phone number and stuff to contact them which I am going to try to do when I get home from work. They mentioned the Obama plan alot and my question is....is it better to do a loan modification through FHA or try this Obama plan? And what exactly does the Obama plan do? I heard once that it really wasn't good for people and they wind up owing more in the end or something.
Any advice you can give me would be appreciated. Thanks!
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Post by laurac on Dec 28, 2011 11:34:38 GMT -6
We tried the loan modification thing too but it never worked out for us. After 2 years they finally gave us a number that we still couldn't afford and when we didn't start making that payment we never heard back from them about it. I think if we hadn't moved out, we still could be living there. We ended up doing a Deed in Lieu of Foreclosure. Which means we gave the house back. In the long run it doesn't hurt our credit as much as a full foreclosure would. This probably doesn't help much, but that's just what we did.
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Post by merrr on Dec 28, 2011 12:38:07 GMT -6
That's what I'm doing NOW!!!! And have been since March :/ I don't know how the FHA plays into it but I can share with you what I do know. 1) Document EVERYTHING. Every phone call, every piece of mail. EVERYTHING. Dates, Times, length of call, who you spoke with, subject of the conversation. I keep this in a three ring binder - One of those huge 3" ring ones. 2) Keep calling when you don't hear from them every week to two weeks. Don't be rude (calls can be recorded) but be on top of them. 3) We live in a state where it is illegal to record the conversation on your end without informing the other party that you are recording the call. I spoke with a lawyer at one point and he advised me to stop recording the calls and just write really good notes afterwards. 4) President Obama's Affordability and Stability Act. I don't remember all the fine details but it goes along the way of stating that lenders must work with you to decrease your mortgage payment to be __% of your gross income (aka making it affordable). ASK YOUR LENDER what they are doing to be in accordance with this Act. 5) Visit www.MakingHomeAffordable.govAt some point your mortgage company will require a "Request For Modification and Affidavit (RMA)" be submitted as well as a "Dodd-Frank Certification" RMA form is here: www.makinghomeaffordable.gov/get-assistance/request-modification/Documents/RMA%20Interactive%20-%20Updated%2011.10.09.pdfDodd-Frank is here: www.makinghomeaffordable.gov/get-assistance/request-modification/Documents/Dodd-Frank%20Certification%20Form.pdfBE WARNED all forms you submit to your mortgage company will "expire" after 90 days. This means that you submit all your paperwork and then it gets forwarded to the underwriter. It then sits in the pile until it reaches the top. This process can take 4 to 6 weeks. This can also cause your forms to "expire" while they wait to be reviewed. If that happens your loan company should call and tell you they need them updated and resubmitted. I am more than happy to bring my binders to your place and go through all of this with you in person. I know how you feel. I'm there too. Hopefully my experience in this process will help you get it worked out!
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Post by laurac on Dec 28, 2011 12:45:17 GMT -6
Merrr knows of what she speaks. She talked me through it early on. Stick with her, Mo and you'll learn a LOT!
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Post by merrr on Dec 28, 2011 12:52:54 GMT -6
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Post by merrr on Dec 28, 2011 12:55:08 GMT -6
OOHHHH!!! This is a good one too!!! There are also two other requirements to be aware of when applying for loan modification under Making Home Affordable: 1. Your mortgage payment must be more than 31% of your current gross monthly income. 2. You must be able to show a major change in your income or your expenses that has affected your ability to pay your current FHA home loan or conventional mortgage. www.fha.com/fha_article.cfm?id=39
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Post by laurac on Dec 28, 2011 13:18:26 GMT -6
Could be, Mo, that the person you talked to didn't know, or didn't want to find out. I kept thinking, why do they want my house back? don't they have enough??
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Post by bumblebee23 on Dec 28, 2011 14:30:52 GMT -6
Thanks Merr! I did find a phone number for the FHA people and asked DH to call them since I haven't been adding minutes to my cell and really don't want to make that call in the middle of the office. I will see what he has to say when I get home and then if I have to I will start calling my mortgage company again to find out what the heck is going on!
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Post by laurac on Dec 28, 2011 14:36:05 GMT -6
When we refinanced some years ago, I was the only one with 'stable' job, so my name was the only one on the mortgage, with DH being the co-borrower. When it came time to call the mortgage company DH had the time, but I had to fax over an authorization that he could talk about the loan and talk to the bank. I had to fax it several times, actually, because BofA sucks.
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Post by bumblebee23 on Dec 28, 2011 15:05:02 GMT -6
Both of our names are on the mortgage but I did have issues like that when having to call the bank or DH's credit cards before we got married.
Merr thanks a lot really....looks like I have to start over with this whole process and hopefully this time I can get the help that I need to complete it!
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Post by laurac on Dec 28, 2011 15:48:59 GMT -6
Good luck, Mo!
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Post by merrr on Dec 28, 2011 15:58:49 GMT -6
Absolutely! And I'm serious - I am happy to come to your place (or meet you somewhere) to go over all my notes and share what I've learned. The good news is that even if you are facing foreclosure you still have time in your home because it will have to go through a Sheriff Sale. I found this information which talks about the process in depth: The sale process in Minnesota begins with the recording of the notice of sale with the county clerk. The notice must contain the borrower and lender information, as well as the original amount of the mortgage, amount that is delinquent, and the time, date, and place the sale is to be held at. For six (6) consecutive weeks before the sale, the notice must be published in a newspaper of general circulation in the county in which the property is located. The notice must be served to the borrower at least four (4) weeks prior to the sale. The county sheriff conducts the sale as a public auction. The sheriff or a deputy must read aloud a statement filed by the lender which includes an itemization of the amounts due. The high bidder for the property receives a certificate of sale at the auction. The redemption period in Minnesota is up to one year after the sale. The borrower must pay the delinquent amount plus costs in order to redeem the property. A deficiency judgment may be pursued by the lender. The lender can sue the borrower for the difference between the fair market value of the home or the sale price and the balance of the loan. So until your sheriff sale date is set you're not necessarily in active foreclosure. Even once the sheriff sale is set it has to be run publicly for 6 weeks before the sale. Then, once the house is sold to the highest bidder you have a redemption period. Typically it's six months but can last up to a year. If you are able to bring the mortgage current within that time you can still keep your house. So look at the calendar. 6 weeks + 6 months means you don't actually lose your house until the summer if push comes to shove. I'm sure your head is spinning by now. I know my was! Beware. There's a LOT of scam artists out there. Anything that sounds too good to be true probably is! Take some very basic precautions before you make any decisions: -Don’t sign anything that confuses you. -Get all “promises” in writing -Check with your lender, mortgage company or attorney before entering into any deal. -Do not pay anyone anything until the service has been performed to your satisfaction; be sure the fees requested are not excessive. These are tips for talking with your lender: www.co.ramsey.mn.us/NR/rdonlyres/2ED61069-F076-45F9-AA8C-D3AC59DF374A/12319/Talking_With_Your_Lender_I_R_version.pdfThese are all your options: www.co.ramsey.mn.us/NR/rdonlyres/2ED61069-F076-45F9-AA8C-D3AC59DF374A/12335/UnderstandingWorkoutOptions1.pdf
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Post by bumblebee23 on Dec 28, 2011 16:33:35 GMT -6
No not to that point yet....we did spend most of this year a month behind on our mortgage finally got that caught up a few months ago and now we are a month behind again! I know a lot of it is because DH wasn't getting a paycheck for several weeks and mine don't stretch that far. It's just that our mortgage payments have gotten really high...especially after the stop signs and new road that they added into our mortgage because we couldn't afford to pay for it right away. If our payments where a little lower each month, even by a couple hundred, it would help emensly!
I will talk to DH when he gets home. We are paying our bankruptcy lawyer right now too and if DH got any good info I want to talk to them and see if doing a loan modification will affect that at all.
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