A Homeowner trying to stop foreclosure with Countrywide – Patie Ann

Ten yrs. ago, I purchased my 2nd house through Countrywide, because they were the “new home” lender and this was my 2nd new home. After 10 yrs. of on time payments, no lates and no bounced payments, we decided to re-finance. Well, Countrywide sent us to their “lesser” known affiliate (which they own), which was called Freedom Financial. Not knowing we were being sent to the slaughter house, we completed our refinance.

From the date of closure on this refi, we received a phone call (literally harassment) each and every month, before our payment was even due, reminding us that our payment was coming due (this was after we’d already received the monthly statement)…WAS THIS NECESSARY???? We had always been SOLID customers and bill payers – never anything late and we’re being harassed on a monthly basis for our house payment….this was infuriating!!!! As soon as was feasible, we again refinanced, just to RID OURSELVES OF FREEDOM FINANCE AND THEIR AFFILIATE COUNTRYWIDE! We were never so glad to be rid of such bad “company policy” in our lives….

NEVER, EVER AGAIN WOULD WE SUBJECT OURSELVES TO SUCH HYPROCRISY!

NOW, one of my children is with Countrywide and got caught in Countrywide’s “Catch 22″ scheme! Their house payment went from $3,000 per mo. to $5,000 per mo. They’ve never been late and are making these payments in order to keep their home. They live in the San Diego area of Calififornia.

Oh yes, my son-in-law is also in the military and THIS IS THE WAY COUNTRYWIDE TREATS OUR MILITARY PERSONNEL!

They’ve been told that due to the “readjustment of their loan” they will need to make an additional $570 per month in order to KEEP THEIR HOME – Countrywide won’t even do a refinance for them and hung them out to dry – they also have small children and both of them have jobs – military and otherwise!

AM I MAD, YOU BET I AM!!! THE PRESIDENT OF COUNTRYWIDE SHOULD BE HUNG FROM THE HIGHEST TREE BY HIS NAUGLES (balls) until he makes things right for all those many families who placed their life savings and trust in his company.

 You bet some people are thinking suicide and anything else that will relieve them of the nightmare Countrywide has created for these families!

Do you need to vent? Visit our forum for homeowners at www.LoanSafe.org and tell us your story and vent all you want.

 Please join our one of a kind homeowner’s forum where you can ask questions and get answers in this unique and interactive community that was created to assist people in an anonymous, yet open question format.

I am facing foreclosure – Homeowner Story

After 33 years working for the same company, I ended up on permanent disability due to 4 heart attacks and a stroke. Refinanced my house in August 2004 in order to be able to handle payments and pay off some bills.

Thought I was taking out a 30 yr fixed with Ameriquest, but realized when it was too late that it was a 30 yr fixed with an adjustable down the road.. In any case, my mortgage has reset 3x since October, 2006 and is scheduled to reset in April, 2008.

I am currently behind one payment in my mortgage which was recently switched from AMC Mortgage Company to CitiResidential Lending Services. The reason I am behind a payment is because I was suppose to get refinanced in November to an FHA Secure loan, however, when they ran my credit report, they said it was too low. I ran my report and it was in the 500′s but they use their own process of reporting.

In any case, we were rejected for the FHA secure loan because of credit. As a result, I had spent my intended Nov. Mortgage payment on other bills that we had fallen behind on.. This was a result of my husband out of work for 2 months because of double hernia surgery and when he returned to work, they laid him off..that was March through August, when he got another job at the end of August and we had to play catchup…

Anyway, we are paying our mortgage which, however, December won’t be paid until Jan 26th..and then come Jan.. 31st we’ll be late with January..We don’t have the $2500. to pay the month behind. I did do the right thing..when I found out we couldn’t make the November payment, I contacted CitiResidential Lending right away and explained the situation to them..at that point in time my mortgage was in good standing and there was nothing they could do until I was late and fell behind..they told me to wait. I asked if I could contact the actual holder of the Mortgage to discuss possible modifications or repayment options..they told me the mortgage holder is Washington Mutual, but they are an investor and I cannot talk to them…

so what now… I went on on-line to HOPE.com and completed a credit counseling session..there is a company that is trying to help me, but they got the same answers I got from CitiResidential. I filled out a financial analysis and faxed it to CitiResidential in December and they said it would take 4-6 weeks to review and see if I qualify for any modification.

Today, they told me and the credit counselor that it’s still being reviewed..and that based on my current financial status I can not enter into a repayment plan of the late month because we don’t make enough money monthly. They have issued a letter of intent to foreclose which will expire on 1/8/08…we are between a rock and hard place..what do we do if there is no mortgage holder to talk to, only the mortgage servicing company?

They don’t seem to want to help..

Right now I”m at 9.45% paying $2509.00 for my first mortgage and an equity mortgage at 5.5% for $497.00 per month for a total of $3,000.00 a month…If they could just modify my first mortgage to a fix rate..or if I could get an FHA secure loan at a lower rate we would be okay. I’ve owned my home for a little over 19 years and was late for the first time with my mortgage payment in 2006..then got it back on track until this happened in November 2007…

Any suggestions on what to do….I can afford my house if someone would just give me a lower, locked in rate…Please help…

Read the rest of the story here and see what happens to this homeowner in the forum.

Do you need free foreclosure help or assistance in obtaining a loan modification? Please join our one of a kind homeowner’s forum where you can ask questions and get answers in this unique and interactive community that was created to assist people in an anonymous, yet open question format. Meet other homeowners that are trying to stop foreclosure and get the help you need from industry experts and foreclosure defense and mortgage law attorneys.

Click on the banner to enter the forum

Countrywide Foreclosure Assistance – Homeowner story submitted by Jennifer  

I have been dealing with Countrywide Home Loans since 10/07. I spend more time stressing than anything else these days. We are 3 months behind in the foreclosure process because of increased escrow. I get the run around from countrywide and never talk to the same department no less the same person. I went to HUD the helped with this repayment agreement of 4x the original payment. I felt like even in the HUD office the Countrywide rep (California Office) controlled everything and heard nothing. Now we have a huge payment. We can make a larger payment but not 4x times larger.

They finally agreed on a repayment for the negative escrow, but like I said it is 4x larger. My husband works at a hospital, I do home health mostly hospice patients. My income varies. I have not gotten the paper work yet, and am frightened by what it might say.

I need help I am not internet smart and landed here by the grace of God. Many of the terms and words I read here I do not understand. I think I even posted this wrong to start. I have no idea where to go or what to do. It is easy to tend to a person in the last part of their life, give love and care you get it back 10 x 10 … but this ……… I am loosing the family home fast.

There is nothing to make you feel more like a looser than to loose your home. This battle takes the life right out of a person no less the will to fight.

I just need someone at Countrywide to give me assistance before I go into foreclosure to listen someone who wants to keep us in our home.I do not know how to get there from here.

Please help with any info #’s advice a step by step guide………….

Jennifer

Here is some advice from Moe -

Jennifer,

Never agree to take terms that you cannot afford. You would be just setting yourself up for failure and once you sign this plan, I am sure you are signing your rights away to ever bring suit against Countrywide.

Remember, this can be like a game of cards and their job is to make you jump through hoops and to protect themselves, NOT you. Your job is to protect you. Just because they offer you something does not mean you have to comply and take it. I have seen this happen many times. They may be bluffing. Cal the bluff and tell them no. This will not work and they can just take the house if they are not going to give you a long term plan for which you can afford.

As I say in almost every reply, you need a Qualified Written Request to be sent to them and you want a life of loan history of every penny you have ever paid Countrywide and a detailed description of where every darn penny went and while you write that letter you might as well ask for every darn paper you have ever signed with them that pertains to your loan.

Make them work. They don’t like to work when they have a million other people to work with. So, most likely you will win the hand, your bluff worked and you get a plan you can afford.

Do you have questions about Countrywide or any other lender or servicer, need free foreclosure help  or assistance in obtaining a loan modification, then please visit or forum at LoanSafe.org for live support and expert guides to help you through the foreclosure process. 

Please click on the banner to enter the forum

By Moe Bedard

The foreclosure process varies in every state and it’s imperative that homeowners understand this process. Learn everything you can because this will affect you in every which way and it is something that should not be taken lightly. One thing is for sure, time is NOT on your side. But, an educated consumer is always an informed consumer who can make a “good” decision based on facts. Not fear!

Day 1 – Borrower misses first payment by a day. No penalties assessed at this time

Day 16-30 – A late charge is assessed to the borrower’s payment.
The lender or mortgage servicer will attempt to make contact with the borrower for an explanation.

Source Mortgage News Daily:

Mortgage notes usually carry a grace period, 15 days is typical but some are as short as 10 days. Many people “play the float” that is, delay through most of the grace period before making payment, and no one, including the lender thinks very much about it.

On day 16, however, a late fee is assessed. At this point there are no ramifications beyond that late fee and maybe a “friendly reminder” call from the lender’s customer service department. The late payment probably won’t even show up on the borrower’s credit report. On Day 30 that changes. At that point the borrower is in default and things quickly turn serious and the foreclosure process speeds up.

Day 45-60- The servicer sends “demand” or “breach” letter to the borrower stating the mortgage terms that have been. The borrower is given only 30 days to resolve the delinquent amount.

By day 45 the phone calls from the mortgage collectors will be coming pretty regularly. Most states have rules regarding collection activities and telephone calls including their frequency, content (no threats are permitted), and timing (early morning and late night calls are generally off limits,) but the calls, within legal boundaries, will be unremitting and the tone can vary from “gee, we just want to help” to aggressively demanding.

About 60 to 90 days after the initial missed payment the lender will send a notice of default, usually by Certified Mail, giving the borrower a finite period in which to cure the situation by paying all past due amounts, and by now collection costs are probably being added to the late fees. Once that remedial period passes, the collection department will refer the loan to the lender’s legal department which will, after another period of time, send the documents to a local attorney to begin foreclosure proceedings. By this time serious legal fees are accruing.

Day 90-105-The servicer refers the loan to its loss mitigation department / foreclosure department and retains an attorney or other firm to handle the foreclosure proceedings. Depending on the state where the home is located, the servicer’s representative may record a notice of default at the local courthouse and it will be published in the local newspaper

During this time your lender or servicer may offer you alternative ways to bring your account current:

Loan Workout- A loan workout is when you negotiate with your lender any kind of plan that will benefit both you and the lender when you are delinquent or in default. This is a broad term used in the industry to cover the different options you may have such as a loan modification, repayment plan, short sale, forbearance plan etc.

Loan Modification- This is when the lender modifies your current mortgage in order to work with you and make your mortgage more affordable. In the past this was only used when a borrower was delinquent but now it is being used before someone is delinquent. This will be the hottest term and way to help people avoid foreclosure.

Forbearance- This is used most of the time, when a Notice of Default has been filed. You are allowed to delay or reduce payments for a short period, with the understanding that another option will be used at the close of that time to bring your account to a current status. Your lender, if in agreement, will then temporarily cease legal actions.

Short Sale- This is used when all negotiations for a loan workout have failed and you are upside down on your mortgage meaning you owe more than it’s worth. The lender basically agrees to cooperate in the sale and take a loss. You place the home for sale and any offers are presented to the bank. Unlike a traditional sale when the homeowner decides what offer to take. The bank controls the negotiations and the homeowner has no say in the process. It’s a last ditch effort to save someones credit from a foreclosure filing.

Foreclosure Bail Out Loan – Is a new loan where the defaulted mortgage is paid off. This is usually a hard money mortgage and it is common for interest rates to approach 10-15%. Points can be as high as 5 and terms are usually short. In the 5 year range where a balloon payment will be due for the remaining balance. In order to qualify you must have sufficient equity. Hard money lenders are looking for 65-75% max loan to value and a decent equity cushion. You also have to have ability to repay as in a traditional mortgage.

Day 150-415– A notice of trustee Sale is filed and the home is scheduled to be sold at foreclosure sale or auction. This time range varies due to individual state laws and requirements.

In states with judicial foreclosures / where foreclosures are done via the court system, can sometimes extend this period to a year or more.

Nonjudicial foreclosure states can foreclose in as little as two months

A foreclosure is a legal event and there are benchmarks that must be met. Once the case is turned over to attorneys, the impending foreclosure must be advertised, usually in both the local papers and in the largest and closest metropolitan daily. The entire process can take a very long time from initial default to the actual public auction of the property. If a member of the military is an owner of the property, there are additional safeguards required by federal and in some cases state laws From the beginning of the process, however, the meter is running. The longer the foreclosure takes, the greater the debt that accrues and the larger the liability the homeowner has, something that will become critical down the road.

The law in most states gives the homeowner every opportunity to stop the process leading to foreclosure, right up to the minute that the auctioneer’s gavel comes down and sometimes even beyond. In some states there is a period after the foreclosure during which the homeowner can redeem the property (right of redemption.).

Redemption Rights: The rights of redemption, as specified in Internal Revenue Code Section 6337, are quoted as follows:

Sec. 6337. Redemption of Property. (a) Before Sale. – Any person whose property has been levied upon shall have the right to pay the amount due, together with the expenses of the proceeding, if any, to the Secretary at any time prior to the sale thereof, and upon such payment the Secretary shall restore such property to him, and all further proceedings in connection with the levy on such property shall cease from the time of such payment.

(b) Redemption of Real Estate After Sale.

(1) Period. – The owners of any real property sold as provided in Section 6335, their heirs, executors, or administrators, or any person having any interest therein, or a lien thereon, or any person in their behalf, shall be permitted to redeem the property sold, or any particular tract of such property at any time within 180 days after the sale thereof. (2) Price. – Such property or tract of property shall be permitted to be redeemed upon payment to the purchaser, or in case he cannot be found in the county in which the property to be redeemed is situated, then to the Secretary, for the use of the purchaser, his heirs, or assigns, the amount paid by such purchaser and interest thereon at the rate of 20 percent per annum

The best way for homeowners to to stop the foreclosure process without racking up extensive legal bills and ruining their credit histories is to start working on a solution with their lender or servicer before their problems get out of hand. The last thing you want to do is what many people choose to do when facing foreclosure, “Stick your head in the sand!”
 

LoanSafe.org is a support community that is built around the premise of paying it forward. These homeowners were able to stop foreclosure with the assistance of this great website and the community. We hope to have more success stories in the future and please consider joining our fight to save our homes from foreclosure.

Success Letter of the Year – See a real Countrywide loan modification letter from the office of Angelo Mozilo

All testimonials are 100% voluntary and not solicited in any way, shape or form.

Bob – Homeowner from San Diego - I have finally got my loan fixed for 5 years @ 5.99%. Fully amortized loan..principal and interest. After almost 6 months of doing battle with Countrywide I am done. I have to make two more payments (Jan. and Feb.) at 7.45% but then in March 08 it goes back down to 5.99% saving me $610.00 a month! Great news!! I do not even have to sign any paperwork. They said it is a done deal and I will probably receive a letter in the mail today.Here is a link to my original thread: http://www.loansafe.org/forum/showthread.php?t=162

Hopefully 5 years will buy me enough time to pay down my second mortgage and put me in a good position to refi. I want to thank Moe, Brian and all the forum members for all your help and encouragement. I never would have been able to keep my home if it wasn’t for the knowledge I gained from www.loansafe.org.

Thank you all so much!! 

Do not give up!! Keep up the fight!! If anyone needs any help or advice in dealing with CW from someone who has been through it, just drop me an email at bob@slaytonmechanical.com and I will do whatever I can to help.Paying it back and forward is the way to go!

JacMac – Homeowner From New York – I want to wholeheartedly recommend this forum to those who just popped up here or may have been lurking and are scared, unsure — perhaps you’ve just realized you’ve been taken for a roller coaster ride, and the price of the trip is more than they said, more than you can afford — the point is, the forum is a wonderful place, and it is SAFE!

If anyone understands just how difficult it is to obtain a loan modification, they will tell you that getting one is almost like winning the lottery. The odds are severely stacked against you and your chances getting one are close to nil. In fact, you are lucky to even apply for one.

I am fortunate enough to run an online community where I assist people with information about the loan modification process and foreclosure prevention. It’s a place where homeowners can come, share their stories and ask questions without being criticized. Many members have been fighting their lenders tooth and nail for 3 and 4 months. 

Sometimes it takes call after call and then your placed on hold for hours at a time, only to be disconnected and you have to start all over again. They tell you to fax in a hardship letter along with your financials, income and expense sheet, bank statements. You fax it, they lose it. You fax it again, they lose it again. You mail it in. Don’t matter because they lost it again. 

Weeks go by with no returned calls and  a month later you are no further along then when you started. Many people get frustrated and just give up. Many people don’t even make it a month. 1,2 or 3 calls and their done. Foreclosure statistic #1,234,764.

Some people keep calling and keep faxing. They don’t give up and they keep fighting to stop foreclosure because they are determined to save their homes and they are not going to stop until the sheriff comes to kick them out.

Meet Bob, Andrea and Paul. 

Bob

I have finally got my loan fixed for 5 years @ 5.99%. Fully amortized loan..principal and interest. After almost 6 months of doing battle with Countrywide I am done. I have to make two more payments (Jan. and Feb.) at 7.45% but then in March 08 it goes back down to 5.99% saving me $610.00 a month! Great news!! I do not even have to sign any paperwork. They said it is a done deal and I will probably receive a letter in the mail today.

Here is a link to my original thread: http://www.loansafe.org/forum/showthread.php?t=162

Hopefully 5 years will buy me enough time to pay down my second mortgage and put me in a good position to refi. I want to thank Moe, Brian and all the forum members for all your help and encouragement. I never would have been able to keep my home if it wasn’t for the knowledge I gained from www.loansafe.org. Thank you all so much!!

Do not give up!! Keep up the fight!!

If anyone needs any help or advice in dealing with CW from someone who has been through it, just drop me an email at (removed) and I will do whatever I can to help.

Paying it back and forward is the way to go!

Paul 

If you go back an read some of posts I have been worried about my mortgage for a while now. I had originally called in August and asked about it but was told since im not late they couldn’t do anything. Then in October when I called again I was told that I could apply.

After months and who knows how many hours on the phone (I luckily had the time to make all the phone calls or I would have probably used Brians Loan Mod service otherwise) I was finally approved for a 5 yr freeze on mortgage. This site along with the Help of Brian reviewing my docs helped me tremendously. I even had to go as far as threaten to rescind my loan and send respa letters with the violations Brian had found.

I really am very grateful of Moe for this site and Brian for his wisdom and guidance. I feel very stress free right now. I will be staying on this board to help others who were in my predicament too.

 THANKS AGAIN MOE AND BRIAN!!!!

Andrea 

After a long exhausting 4 month battle with Countrywide, I am getting a modification! My interest rate was fixed at 6% for 5 years! I’ll be receving paperwork tomorrow. Please see my story in the modifcation section under “My 16 week workout with Countrywide”. It will drop my payment from $2542.77 to $1818.XX a savings of close to $600.00!! I’ll get to keep my home!

How I did it? I went to the top BUT only after dealing with the Home Retention Team for 4 months and making over 35 phone calls. Within 1 day of sending out emails to everyone under the sun I got a phone call from the office of the president and the modification was a done deal.

My advice: don’t give up, call daily and when you can’t get things done go to the top.

Please email me if you would like to talk more. Thanks to everyone here! Especially MOE and SWIZZ.

Andrea

See more real life success stories by clicking the Loan Safe logo below.

First let me thank Moe for this site, it is great! Where do I begin?

In June of 05 we bought our second home. We did a 2/28 with a starting rate of 8.5. Not a great rate but it worked. Our payment was $2400 which quickly went up to $2650 because of taxes. All of this was fine but over the last year my husbands income has gone down. Same job just down in sales commissions. He is down apx $30,000 for the year. (15k last year) Knowing his income was down we tried to refi in October 06. It didn’t make sense at the time we had a $15000 prepay. Knowing the arm would reset in June we started the refi process again in May allowing plenty of time to get it done and close after the prepay penalty.

To get into a better loan we were advised to pay down our debt which we did. This took some time but the ficos went over 700 and now we could get out of our evil loan…Until….the bottom dropped out of the market and our house would no longer appraise with enough equity!

Currently we are about $100,000 in negative equity. AND I put 15% down on the house!

We are working with chase. The first mod they sent was ridiculous and full of errors. Same story as what I see from others… they tell me I can’t pay during the mod process. December 1 will be 3 months of no payment and no mod yet from Chase. They are still working it…

So to sum it up IF they give me a mod I am looking at

8.5 % interest apx $2700 a month on a house that is $100000 upside down. They have destroyed my credit now at 540 fico so even if the market does turn around in the next few years, I won’t be able to refi into a good loan and interest rate. and what are the chances it will recover in value? Honestly the payment is too high with my husbands drop in commission!

Here is the bright side… I have a rental lined up for $1100 less than the current mortgage payment. Beautiful house brand new never lived in. It is better than I could buy for myself. AND the owner owns the house outright so I know there is very little risk of them losing the house and kicking us out!

I have 2 boys that I need to look out for. the emotional drain this has gotten to the point that I needed to take control and not let the debt collector bank control me. Did I make the right decision? Suze Orman said your house is not a hole. That is where I am at, I am paying into a hole if I stay.

As of today Chase has yet to give me their mod. They did call and leave a msg. but did not return our call back to them. Would a debt collector really call with good news? Probably not. I am ready to be done just having doubts. I have put hours and hours into this… I have learned so much about the evil mortgage industry and brokers. Amazing they are getting away with this!

Story from the Nevada Appeal;

“Unfortunately, home foreclosures are on the rise in Nevada and that has given scam artists fertile ground for cheating those desperate to keep their homes,” said Masto. “If you are facing foreclosure, I encourage you to talk with your mortgage lender before accepting help from an outside party.”

Nevada Attorney General Catherine Cortez Masto and Secretary of State Ross Miller are warning all Nevadans to beware of fraudulent foreclosure rescue schemes. Recent reports place Nevada first in the nation for its number of foreclosures. This has led to an increase in the number of foreclosure scams reported to law enforcement authorities.

We at IamFacingForeclosure.com agree with the attorney general, but the facts are that when people do reach out to their lender for help, that is far from what they receive. These third party companies are appealing to homeowners because in most cases they were unsuccessful in negotiating a loan workout with their lender. So, out of desperation, they look for another company to save their home as a last ditch effort.

While there are definitely a lot of fraudulent companies out there, there is also legitimate services that assist homeowners that are facing foreclosure. Our goal is to expose the scammers and highlight the legitimate companies that offer foreclosure prevention services in the coming months on this blog. So, please stay tuned.

More from the Nevada Appeal;

Some companies which appear to offer foreclosure relief will require consumers to sign contracts which involve turning ownership of a home over to the foreclosure relief company and leasing the home back to the consumer with a buy back option at some future date. Many companies prey on consumers’ fears of losing their homes. Many of these schemes are designed to fail so that consumers will lose their homes to the foreclosure rescue company.

An example of one scam known to be operating in Nevada: The perpetrator solicits victims directly through the mail with promises to help a homeowner from foreclosure by saving their credit and negotiating directly with their lender. The perpetrator will offer to buy the house for the total amount owing on the house, plus some small amount of cash.

The perpetrator will require the victim to sign a deed, a transfer tax form, and a contract of sale. The deed provides that the seller (the victim) is selling the house to a corporation. The perpetrator pays the cash to the victim and assures him he will take care of paying off any mortgages on the home. After the victim moves out of the house, the perpetrator rents the house, does not pay the mortgages, and the house goes into foreclosure. The perpetrator can continue to collect rent until the foreclosure process is completed. The victim collects none of the rent, and, once foreclosure is completed, the renters are evicted.

“Anyone who has information about a scam with these characteristics should contact the Secretary of State’s office in Las Vegas at (702) 486-2440,” said Secretary of State Miller. “In the current market there are a lot of people who, for various reasons, may want or need to sell their homes. When that need to sell becomes desperation, homeowners become lucrative targets for scammers. If it’s not something that’s within the jurisdiction of my office, we’ll find the appropriate agency to deal with it.”

Please let us know of any scams or a legitimate company that has helped homeowners stop foreclosure.

Kelly Hansen

WELLS FARGO, dba,
AMERICAS SERVICING COMPANY

TURNING THE AMERICAN DREAM INTO A NATIONWIDE NIGHTMARE

My lovely home of seventeen years is up for a Sheriff’s sale on October 3, 2007. My home. I pray Disaster Relief is made available immediately for families in crisis. For a record number of home owners, the American dream is currently a nightmare.

Wells Fargo dba American Servicing Company (ASC) hopes to take my home. The balance on my loan is very small, less than half of the home’s appraised value. My mortgage payments are low, I can afford them, and I have always made them on time. My mind spins as I try to understand how something like this can happen. But the truth is nothing is for certain.

Last February, I received a letter from ASC. Effective immediately, my mortgage payment increased 200%! I called Customer Service and was told my payment increased due to a negative balance in my escrow account. I told them they didn’t escrow on the account, had never escrowed on the account, and I confirmed with them my monthly mortgage payment would not change. They told me I would receive a letter confirming the details we had discussed within 7 to 10 days.

I was to learn letters with good news never came. Somehow the letters threatening foreclosure were relentless. At first I tried to talk with the same employee who had promised me he had “noted everything in the record” and “he had discussed my account in detail with his supervisor to make sure all the problems on my loan had been fixed.” agent who just promised you all was taken care of arrived confirming assured me over and over and over, that yes, definitely this time, they had truly made the corrections I thought had already been made. And they definitely would be reinstating my loan, the one I thought had already been reinstated. I was always told I would receive a letter confirming all was well with my loan. But the promised confirmation letters never came. And I always ended up calling Customer Service again,

November, ASC suddenly, without reason, began to escrow on my loan. They had never escrowed before. I didn’t receive any notification or indication that they planned to begin to escrow. But their error, and they do readily admit it was their error, was not But ASC paid two additional property tax property tax two more times, and paid the annual premium for home owners insurance. I always paid them monthly. .

On August 14, I was told, again, my loan had been reinstated. While waiting again for another confirmation letter that never comes, I call them again. I I didn’t contact anyone else for help because I didn’t think I needed to. ASC was always so sorry after they didn’t follow through on one of their promises. Then they reassured me all was well. I was very stupid.

But ASC made an error, and that’s OK. But their error, and their inability to quickly correct their error, I might lose my home. My home!

HUD announces incentives for using reliable, government-backed mortgages to find a homeDETROIT – More Michigan families can obtain financial relief from their exotic subprime home loans, thanks to a new government-backed refinancing resource offered by the U.S. Department of Housing and Urban Development’s Federal Housing Administration (FHA). HUD Secretary Alphonso Jackson highlighted the new FHASecure product and other reliable homebuying incentives at a HUD-sponsored foreclosure prevention workshop for homeowners who want to stay in their homes and prospective borrowers who want to make an educated choice when they buy.

“Homeownership has been an anchor of stability in uncertain times. And it will be once again. The steps we take today to educate and encourage potential homebuyers will help put that anchor back into place,” Jackson told the audience.

The Bush Administration’s new FHASecure plan is helping troubled homeowners who have good credit, but have found themselves in default after their adjustable interest rates reset – typically doubling or tripling from the original rate that was teased to them. An affordable alternative to high-cost, high-risk mortgages, FHASecure will enable many families who have a history of on-time mortgage payments under the original interest rates to refinance into FHA’s mortgage insurance program. Families with high cost mortgages and mortgages that are due to reset, but are still current on their loan, are also eligible to refinance through FHASecure, which is backed by the full faith and credit of the government.

HUD estimates FHA’s current and new products will bring the total number of families it can help refinance to approximately 240,000 next year. In fact, FHA’s mortgage insurance business in Michigan has increased 34 percent in 2007. FHA refinancing in Michigan has also increased 140 percent since 2005, and is expected to increase further next year thanks to FHASecure. FHASecure will save the average subprime homeowner about $400 a month, or $30,000 over the expected life of the loan, Jackson noted.

Even more families could avoid the subprime market’s risky home loans if Congress passes legislation to modernize the FHA, Jackson said. The Administration’s bipartisan FHA modernization proposal, which was first sent to Congress 17 months ago, would lower downpayment requirements, allow FHA to insure bigger loans in high cost areas, and give FHA more pricing flexibility. These reforms would empower FHA to reach an additional 200,000 families that need help – first-time homebuyers, minorities, and those with low-to-moderate incomes – and offer more options to homeowners looking to refinance their existing mortgage.

“We need to give qualified homeowners who find themselves behind on payments a second chance. At this workshop, consumers will learn about FHASecure. For the first time, it allows homeowners who have fallen into default because of a resets the ability to obtain a safe, affordable, government-backed loan. Families still current on their loan can also qualify,” Jackson added.

Beginning today, prospective homebuyers in Michigan and Ohio will also be offered unique incentives to purchase HUD-owned properties using financing insured by the FHA. The Department estimates 2,000 people in Michigan and Ohio will benefit from these options over the next 10 months.

First, individuals will be able to purchase a HUD Home with a $100 downpayment when they utilize an FHA-insured mortgage. Second, homebuyers can obtain a $2,500 sales allowance at closing when they use FHA financing, or a $1,000 sales allowance using other financing types. This incentive can be put towards closing costs, to make home repairs, or to pay down the mortgage. The $1,000 allowance for non-FHA financing must be used to pay closing costs. Finally, real estate brokers can obtain a $500 bonus when borrowers utilize FHA financing and a $250 bonus if borrowers use other financing options. The incentives are available through September 30, 2008.

HUD expects these incentives will be widely used with its Purchase and Repair Program, which allows homebuyers to finance needed repairs and desired updates from the same loan used to purchase the home. By selling homes to families who then repair their home using FHA financing, HUD is helping to stabilize neighborhoods in Michigan and Ohio that have been hard hit by defaults and foreclosures. A state-by-state list of HUD Homes is available at: www.hud.gov/homes/

Jackson also discussed several other ways homeowners can avoid foreclosure, including contacting local HUD-approved housing counselors and calling their lenders for help before their adjustable rate mortgages reset. HUD has reached out to a wide variety of groups that offer foreclosure prevention, counseling, and refinancing for American homeowners. The goal of this initiative is to expand mortgage financing options, identify homeowners before they face hardships, help them understand their financing options, and allow them to find a mortgage product that works for them.

“It is vital that we prevent foreclosure. Foreclosure doesn’t just hurt families, it devastates neighborhoods. We must help these communities recover,” concluded Jackson.

Following Jackson’s remarks, attendees were able to attend several seminars aimed at addressing their current financial situation, including one-on-one assistance. Homeowners currently delinquent on their mortgages could participate in a seminar on options for keeping their homes. A second seminar focused on refinancing options for those not yet delinquent, but concerned about increased mortgage payments when their loans reset. The third seminar is targeted to prospective homebuyers — those thinking about homeownership for the first time.

More than 75 HUD-sponsored workshops and seminars for first-time homeowners, current homeowners and industry representatives have been held in over 50 cities throughout 25 states since late July and will continue through the remainder of the year. Interested parties should call 1-800-CALL-FHA to learn more and sign up for these events.

###

HUD is the nation’s housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development, and enforces the nation’s fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.