Since I've been denied by my servicer when I tried applying for a modification on my own, I have now enlisted the aid of the Neighborhood Assistance Corporation of America (or NACA for short.)
NACA's CEO is Bruce Marks, and he is known for taking the fight directly to the bank CEO's and their families...to make them realize how personal losing your home is and the costs to neighborhoods all across America that rampant foreclosures cause. He styles himself the "banking terrorist" because he will resort to rather interesting tactics to make his point. He will organize a group of homeowners and NACA representatives and dump a truckload of furniture on a bank CEO's lawn. He will organize protests outside the school where the CEO's kids attend. He is ruthless, and as far as I am concerned, the banks have it coming.
NACA has contracts with the major servicers, including IndyMac. I have a running appointment with one of the NACA counselors as I get my documentation together. I am hopeful that something can be done, even if the only thing that can be done right now is a forebearance to allow my husband and I to get back on our feet, and then do the restructure.
NACA works a little differently than HAMP or other modification programs. They start with figuring out how much of a house payment you can afford. There is no set interest rate that it has to be, or loan amount that it has to be. The only question is how much you can afford, after deducting all of your living expenses. Then NACA takes that number and says to the bank, find a way to get the payment down to that number. Whatever is done is a permanent change. No re-sets, no adjustments. The restructure is permanent.
If you're facing foreclosure, contact NACA as soon as possible. The sooner you start the process, the easier it will be for you. Go to www.naca.com
Thursday, October 15, 2009
Saturday, October 3, 2009
Modification Denied: Can't Find Out Exact Reasons Why
I'm angry and this is going to be an angry post. I have reason to be angry and frustrated since it seems that there is nowhere I can turn to for help.
Well, IndyMac/OneWest, being the complete jerks that they are, denied my HAMP modification, and in their denial, the reasons were in so many words "you don't qualify" but no particulars as to why exactly I don't qualify. I've emailed Brandon Latman, the jerk who sent me the denial letter, to find out why, and no surprise, he hasn't emailed me back.
I also have tried to get an answer from loan resolutions as to why, but they can't or won't tell me. I am so sick of this bank. I am sick of all banks. They're nothing but leeches who loaned out money to folks they probably shouldn't have lent to in the first place, and now they're crying foul to the government who runs to give them help, no questions asked. But when a lowly homeowner needs help, there's all sorts of requirements and documentation you must provide before even being considered for help.
The answer to this crisis is a do over for homeowners. A nationwide loan modification program, regardless of bank or investor, where the investors and banks are forced to take the losses as we have had to eat our equity. Everyone's loan get's dropped to the value of their house, interest rate dropped to 2%, and extended out to a 40 year term. Everyone. I don't even care if the rich get to take part, too.
None of this stupid, "voluntary" crap. Of course the lenders and servicers are not willing to modify. Why should they, when they make a ton of money off foreclosure? Why should they take a loss on their balance sheet when if foreclosed on, they can show an asset valued at whatever the loan amount is? There's no incentive for them to do the right thing. The only way is to FORCE them.
Well, I am done ranting. I don't feel much better, but at least I got that off my chest!
Well, IndyMac/OneWest, being the complete jerks that they are, denied my HAMP modification, and in their denial, the reasons were in so many words "you don't qualify" but no particulars as to why exactly I don't qualify. I've emailed Brandon Latman, the jerk who sent me the denial letter, to find out why, and no surprise, he hasn't emailed me back.
I also have tried to get an answer from loan resolutions as to why, but they can't or won't tell me. I am so sick of this bank. I am sick of all banks. They're nothing but leeches who loaned out money to folks they probably shouldn't have lent to in the first place, and now they're crying foul to the government who runs to give them help, no questions asked. But when a lowly homeowner needs help, there's all sorts of requirements and documentation you must provide before even being considered for help.
The answer to this crisis is a do over for homeowners. A nationwide loan modification program, regardless of bank or investor, where the investors and banks are forced to take the losses as we have had to eat our equity. Everyone's loan get's dropped to the value of their house, interest rate dropped to 2%, and extended out to a 40 year term. Everyone. I don't even care if the rich get to take part, too.
None of this stupid, "voluntary" crap. Of course the lenders and servicers are not willing to modify. Why should they, when they make a ton of money off foreclosure? Why should they take a loss on their balance sheet when if foreclosed on, they can show an asset valued at whatever the loan amount is? There's no incentive for them to do the right thing. The only way is to FORCE them.
Well, I am done ranting. I don't feel much better, but at least I got that off my chest!
Wednesday, September 16, 2009
Introduction: This Is going To Be Long
Well, I suppose I should start from the beginning. Back in December of 2008, IndyMac added an escrow account to pay for my property taxes. Yes, I had not paid them for the year, but that was because my husband had lost his job and we had been struggling to make our mortgage payments on top of all our other bills.
We were current, and would have stayed current, but for the addition of the escrow account, and I explained this to IndyMac even before the payments were increased. I told them I could not afford the new payment under any circumstances, and was there anything available to help...would they be willing to forebear the escrow amount for at least 6 months, etc. They refused to do a thing.
I'm not going to say that the property taxes should not have been paid, but when you have to choose between paying for the mortgage, utilities, and food, or paying the property taxes, well, which would you choose? In California, the property taxes would not have been an issue anyway, unless they'd gone unpaid for five years, so it's not like the investors' interests were in jeopardy.
Anyway, we fell behind, because while I had the money for my old payment, I could not afford the additional $350 tacked on by the escrow account. I've been able to keep my house out of foreclosure by scraping together payments, one or two at a time, but at a huge cost. There are some months when I don't know how we manage to find the money to buy groceries, and all the while my husband and I are looking for work. (I operate a tiny home business that has also suffered due to the recession.)
In the meantime, we have also been trying to get a loan modification worked out with them. Unfortunately, they don't want to cooperate. My first application took them well over 90 days and a complaint to the OTS to learn was denied based upon a lack of income. It seems they did not even bother to take into account my year to date profit and loss statement because even though I submitted bank statements to back up the numbers, it wasn't verified enough for them, according to some new requirements of which they never bothered to inform me.
I have just applied for a loan modification for a second time, and this time I'd like them to try and tell me they don't have enough documentation. I submitted every last bank statement for this year, two years tax returns, verification letters, and contribution letters from my retired mother who lives in the house with me and my husband, and a contribution letter from my husband as well. I submitted to them a modification proposal that is in line with the Obama plan.
I know they're going to end up denying this one again, for one trumped up reason or another, because that's the way they work. They are profiting hugely on keeping people just on the brink of foreclosure for as long as possible because once the foreclosure happens, they get huge fees.
IndyMac, now owned by OneWest got a a sweetheart deal when they purchased it from the FDIC in March, and are now reaping a 182 million dollar profit. Meanwhile, struggling homeowners are losing sleep and eventually their homes because this evil cesspool of a bank is playing a shell game with modifications.
Laws in California, where I live, and one of the hardest hit states for foreclosures, impose tough sanctions on banks who foreclose without having a "modification program" in place. The law does not specify what the modification program needs to consist of, just that a modification program is in place. So, IndyMac, in order to be able to do business as usual, is going through the motions of evaluating loans for modifications when they never actually intend to offer any.
We were current, and would have stayed current, but for the addition of the escrow account, and I explained this to IndyMac even before the payments were increased. I told them I could not afford the new payment under any circumstances, and was there anything available to help...would they be willing to forebear the escrow amount for at least 6 months, etc. They refused to do a thing.
I'm not going to say that the property taxes should not have been paid, but when you have to choose between paying for the mortgage, utilities, and food, or paying the property taxes, well, which would you choose? In California, the property taxes would not have been an issue anyway, unless they'd gone unpaid for five years, so it's not like the investors' interests were in jeopardy.
Anyway, we fell behind, because while I had the money for my old payment, I could not afford the additional $350 tacked on by the escrow account. I've been able to keep my house out of foreclosure by scraping together payments, one or two at a time, but at a huge cost. There are some months when I don't know how we manage to find the money to buy groceries, and all the while my husband and I are looking for work. (I operate a tiny home business that has also suffered due to the recession.)
In the meantime, we have also been trying to get a loan modification worked out with them. Unfortunately, they don't want to cooperate. My first application took them well over 90 days and a complaint to the OTS to learn was denied based upon a lack of income. It seems they did not even bother to take into account my year to date profit and loss statement because even though I submitted bank statements to back up the numbers, it wasn't verified enough for them, according to some new requirements of which they never bothered to inform me.
I have just applied for a loan modification for a second time, and this time I'd like them to try and tell me they don't have enough documentation. I submitted every last bank statement for this year, two years tax returns, verification letters, and contribution letters from my retired mother who lives in the house with me and my husband, and a contribution letter from my husband as well. I submitted to them a modification proposal that is in line with the Obama plan.
I know they're going to end up denying this one again, for one trumped up reason or another, because that's the way they work. They are profiting hugely on keeping people just on the brink of foreclosure for as long as possible because once the foreclosure happens, they get huge fees.
IndyMac, now owned by OneWest got a a sweetheart deal when they purchased it from the FDIC in March, and are now reaping a 182 million dollar profit. Meanwhile, struggling homeowners are losing sleep and eventually their homes because this evil cesspool of a bank is playing a shell game with modifications.
Laws in California, where I live, and one of the hardest hit states for foreclosures, impose tough sanctions on banks who foreclose without having a "modification program" in place. The law does not specify what the modification program needs to consist of, just that a modification program is in place. So, IndyMac, in order to be able to do business as usual, is going through the motions of evaluating loans for modifications when they never actually intend to offer any.
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