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.

As home prices drop and mortgage payments rise, an increasing number of borrowers are handing in the keys to lenders and walking away from their mortgage.

A new term has been coined for the envelopes that lenders all over the country are receiving from struggling homeowners: jingle mail.

The phrase is used to describe desperate borrowers who are sending their keys back to lenders and walking away from their mortgage obligations. New reports show that this is happening much more frequently as an increasing number of homeowners find they are underwater in their mortgage.

Fitch Rating is claiming that borrowers’ apparent willingness to simply give up on their mortgage has contributed heavily to the high default numbers we are seeing now. On February 1, the company announced they would slash ratings on mortgage debt for this reason.

Does Walking Away Make Sense?

Foreclosure used to be a rare thing, typically resulting from job loss, illness, or a death in the family. But changes in the mortgage industry in recent years have altered the how and why of foreclosure.

Most of the borrowers who are walking away now are doing so because of increasing payments and depreciating assets. There is also the fact that the majority of the borrowers now have nothing to lose–they didn’t put anything down and therefore have very little invested.

Walking away can make sense for them because it can be less costly than going bankrupt in an attempt to save a single asset that is losing value by the day. Of course, this depends heavily upon where the borrower lives.

Different states have different rules for borrowers and lenders. For example, the state laws in California make it difficult for lenders to collect additional money after foreclosing and selling a property. In other states, like Michigan, lenders are allowed to go after the borrower for the difference.

Troublesome for Lenders

Not surprisingly, lenders are disturbed by the jingle mail trend. Wachovia and Bank of America have both discussed the issue in recent conference calls and say there is a definite change in the mindset of borrowers. Wachovia CEO Ken Thompson noted that some of the borrowers had the ability to pay, but weren’t willing to so since they have lost so much equity.

Most of the banks have no real desire to take the homes back as it will be very difficult to recoup all of the money that it is owed. A large number of borrowers overpaid for the home, didn’t put anything down, and didn’t make enough in payments to dent the balance. The chance that banks will break even on these sorts of properties, let alone make a profit, is slim to none.

What Is Happening to the Abandoned Homes?

For the most part, nothing is happening. Vacant homes can be found in nearly every city in America. In the better neighborhoods, the houses sit empty and neighbors take care of the lawn so that their own homes look better. In bad neighborhoods, the houses are sometimes burned out and used for illegal purposes.

There have also been reports of homeless who are taking refuge in abandoned properties. The homeless are outnumbered by vacant houses in many different cities. In Cleveland, for example, there are at least three abandoned houses for every one homeless person.

Brian Davis, the director of the Northeast Ohio Coalition for the Homeless, said the foreclosure crisis is a low-cost (i.e. free) housing option for people who don’t want to sleep outside or take refuge in a shelter. Since many of the abandoned homes still have lights, heat, and running water, they are convenient overnight stops for someone who needs a place to stay.

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. 

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Home equity loans and lines of credit are putting lenders in an even bigger pinch as the number of home equity defaults rises to record levels.

Countrywide Financial Corp, the lender with the nation’s biggest home equity loan book, announced last week its $32.4 billion portfolio of prime home equity lines of credit is deteriorating rapidly. The company took a $704 million charge as a direct result of home equity loan defaults.

And Countrywide isn’t alone. The loss rates are climbing for all lenders, according to Frederick Cannon, an analyst at Keefe, Bruyette & Woods.

Home equity lenders extended $504 billion in new home equity loans and lines of credit in 2006 and $456 billion in 2007. Estimating the extent of any one lender’s exposure to home equity loans is difficult because the risk is generally carried off the balance sheet. In other words, trouble isn’t always obvious until loans have deteriorated past a certain threshold.

What is clear is that defaults are rising. Home equity loan defaults have increased by nearly 50 percent in a year’s time and delinquencies on lines of credit have doubled in the same time period.

Not All Lenders Are Foreclosing

Although equity borrowers are defaulting in high numbers, some banks have been hesitant to foreclose on homes, choosing instead to walk away from the loans altogether.

“More often now than ever before we are writing off the loan,” says Bob Caruso, Bank of America Corp.’s national servicing executive. “The customer still owes the money, but it is no longer an asset on our books.”

This strategy may seem like a step away from the norm, but it is rapidly becoming the most prudent route for a home equity lender. Foreclosing can leave the lender deeper in the red because the owner of the first mortgage must be bought out.

Since falling home prices have insured the property’s value will not be enough to cover the costs of foreclosure in many cases, it’s generally better to just write off the loan.

Lenders Tightening Credit

Sixty percent of the U.S. banks responding to a recent Federal Reserve survey say they have instituted tougher criteria for home equity lines of credit. Lenders have also tightened guidelines considerably on home equity loans.  

Countrywide sent letters to 122,000 customers recently to announce that Countrywide was freezing the ability to draw from existing lines of credit.  The letters were sent to areas where home prices have dropped considerably, according to a Countrywide spokesperson.

Washington Mutual, Citigroup and the USAA Federal Savings Bank have all made similar moves, citing the right to do so under the borrowers’ creditor agreements.

Lenders have also begun to alter their definitions of good credit and ample equity. A score of at least 680 or 700 is now required to get a home equity loan in most cases, according Bob Walters, chief economist for Quicken Loans.

The state of the local housing market is considered by many lenders as well. For example, Bank of America allows borrowers to tap up to 90 percent of their equity throughout much of the nation. But the same lender limits the amount to 80 percent in areas like Miami and Las Vegas, where home prices have fallen.

The Los Angeles Times reported last week that Chase will take follow suit by limiting the maximum amount of equity that can be borrowed to 70 percent in Florida, California and other housing depressed areas.

Although exact details are lacking on the mortgage relief provisions of the economic stimulus package, we do know policymakers plan to use the FHA, Freddie Mac and Fannie Mae to pump life into the housing market.

Congressional leaders and the Bush administration shared parts of a mortgage relief plan Thursday that will increase loan limits for the Federal Housing Administration (FHA), as well as government-sponsored entities Freddie Mac and Fannie Mae.

Policymakers want the FHA, which was originally started to help first-time and low-income homebuyers, to be allowed to help struggling borrowers who are facing default. The plan will also allow the FHA to insure loans up to $730,000, according to House Speaker Nancy Pelosi. This is nearly double the current limit of $367,000.

The current loan limit for Freddie Mac and Fannie Mae is $417,000. There are conflicting reports in regards to how much these limits will change. Pelosi reported the companies will be able to buy or guarantee mortgages up to $729,750 (up to 125 percent of the area’s median home price) in cities with high-cost homes. A news release from House Leader John Boehner says the cap is $625,000.

The change to the FHA is expected to be made permanent, but the increase on Freddie Mac and Fannie Mae’s conforming loan limits would expire after December 31 of 2008. The only way it would continue is if Congress makes the choice to extend it.

What is still up in the air is how high-cost areas will be defined. The current assumption is that data will be used from the National Association of Realtors (NAR) or the Federal Housing Finance Board.

Details aside, there is still a chance the provisions will face opposition from senators, some of whom are against expanding the role of the FHA and the two mortgage companies. All three of the organizations have a huge role already and have had problems in the past because of it.

By its own estimates, FHA will be operating in the red this year. Freddie Mac and Fannie Mae were both deeply in the red during the third quarter of last year and are expected to announce more write downs in the coming weeks.

Lawmakers who are for the changes are suggesting more regulation for the FHA, Freddie and Fannie as a way of compromise. The outcome of this regulation will most likely be dependent on how fast the long-stalled legislation can move.

Select Metro Areas That Will Benefit From Higher Conforming Loan Limits

The Stanford Group Company, a financial services company, estimates the proposed changes to conforming loan limits would have a significant impact on 19 major metropolitan areas.

• Anaheim-Santa Ana, Calif. (proposed limit $729,750)
• Barnstable Town, Mass. (proposed limit $500,750)  
• Boston-Cambridge-Quincy, Mass. (proposed limit $518,375) 
• Boulder Colo. (proposed limit $459,375) 
• Bridgeport-Stamford-Norwalk, Conn. (proposed limit $613,875)  
• Los Angeles-Long Beach-Santa Ana, Calif. (proposed limit $729,750) 
• Miami-Fort Lauderdale-Miami Beach, Fla. (proposed limit $433,500)
• New York-Northern N.J.-Long Island, N.Y./N.J. (proposed limit $595,125)
• New York-Wayne-White Plains, N.Y. (proposed limit $688,625) 
• Edison, N.J. (proposed limit $489,750) 
• Nassau-Suffolk, N.Y. (proposed limit $587,500) 
• Newark-Union, N.J./Pa. (proposed limit $574,625)
• Riverside-San Bernardino-Ontario, Calif. (proposed limit $471,250) 
• Sacramento-Arden-Arcade-Roseville, Calif. (proposed limit $419,625) 
• San Diego-Carlsbad-San Marcos, Calif. (proposed limit $729,750)  
• San Francisco-Oakland-Fremont, Calif. (proposed limit $729,750) 
• San Jose-Sunnyvale-Santa Clara, Calif. (proposed limit $729,750)  
• Seattle-Tacoma-Bellevue, Wash.  $394,700 (proposed limit $76,375) 
• Washington-Arlington-Alexandria Va./Md. (proposed limit $547,500)   

(Note: Stanford’s estimates are based on median home price data from the National Association of Realtors.)
 

Loose lending practices extended beyond subprime during the housing boom. Option ARMs accounted for up to 90 percent of the profits some lenders made in the hottest housing markets.

Although option ARMs were originally created in 1981 as a financial tool for the wealthy, lenders began using the risky loans to solve home affordability problems for the masses as early as 2003.

Analysts estimate lenders issued nearly $400 billion in option ARMs to as many as 1.3 million borrowers in 2004 and 2005 alone. Banks continued to hand out just as many option ARMs in 2006 even though it was clear housing was starting to slump.

Many of these loans were issued to borrowers with top-tier credit ratings and stated incomes. It is unknown how many of the borrowers understood how option ARMs work or how many borrowers exaggerated their income to qualify for the loans.

The Mortgage Asset Research Institute, which investigates lending fraud, suggests the number of borrowers who exaggerated income could be as high as nine out of ten. In a study of 100 stated income loans, 90 percent of borrowers exaggerated income by five percent or more; nearly 60 percent exaggerated income by 50 percent or more.

Option ARMs became popular because they are very flexible. Borrowers can choose to leave the loan balance untouched, pay interest only, or pay some or all of the interest and principal. The catch is that when a borrower makes only the minimum payment, the loan balance rises.

Three to five years later, all of the options disappear. It is not unusual for a borrower owe more than when they started and to see payments double or even triple.

Since 80 percent of option ARM borrowers make only the minimum payment every month (according to Fitch Ratings), there are a lot of loan balances rising even as house values are falling.

Not surprisingly, delinquencies are mounting. Delinquencies are in the double digits in many areas of California and nearly ten percent of the option ARMs made in 2005 were at least 60 days past due, according to mortgage researcher First American Loan Performance’s latest study.

How Bad Will the Crisis Get?

It’s hard to say exactly how many option ARMs were made over the last few years or when the delayed default waves will hit. Banks are not required to report the number of option ARMs they underwrite, which means few choose to do so.

Those who have made reports show significant increases in the use of option ARMs as well as a significant gain in profits. The gains are questionable because of the way banks handle their accounting.

It is standard practice for banks to count the highest possible amount of an option ARM payment versus the actual amount as revenue. This is true even when borrowers make the minimum payment and nothing more. In short, banks are claiming future revenue now without knowing whether or not they will ever see that revenue.

It sounds like a scam, but it is completely legal under Generally Accepted Accounting Principles (GAAP). The problem is that banks will probably never see the phantom revenue they have already claimed. When borrowers run out of pay options and maximum amortization levels are reached, the game will be up.

Exposure of Select Companies

• Countrywide Financial Corp made about a quarter of all option ARMs last year, according to S & P analysts. Bank of America, if it does indeed acquire Countrywide, will inherit a $30 billion remaining option ARM portfolio.
• Wachovia is in a similar predicament. The company acquired an option ARM portfolio of about $80 billion when it acquired Golden West. Many of the loans in the portfolio are the stated income sort and were made to borrowers with lower credit scores.   
• WaMu has more than $57 billion in option ARMs on its books. Add that to WaMu’s $59.1 billion in regular home-equity loans, $17.3 billion in subprime mortgages and $2.7 billion in subprime home-equity loans, and it is clear to see that half of the thrift’s portfolio consists of loans in high-risk categories.
• Downey Financial Corp. is now being referred to as “the canary in the coal mine.” About three-quarters of Downey’s loan portfolio is made up of option ARMs. The rest consists mainly of loans that offer similar interest only payments.
• Other lenders, like BankUnited Financial Corp, IndyMac Bancorp and Wells Fargo, are also expected to be hit hard. All three lenders got into the option ARM game and issued more loans than they should have.

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!

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!

Submitted By Juan – in response to a post on LoanWorkout.org in regards to “the pending loan modification campaign” spearheaded by US Secretary Treasurer Henry Paulson.

If all these homes were on fire, with flames and smoke, reaching into the air, across the country, — you would see more of an immediate reaction to the immense disaster that is underway in the US economy.

A helicopter shot would show miles upon miles upon miles of burning homes across California, Colorado, Florida and other states with citizens screaming for help and assistance in the streets below as communities are destroyed.

At the same time, news comments would issue that nameless, faceless, “investors” were the true victims of such a disaster and that they are having endless conversations among themselves, and the Feds, as to whether or not this is a moral issue of making a blanket decision to stop the “fires” from erupting any further down the line.

As everyone as commented above, — it is an example of endless talk. A loan modification is a simple 1 page form that states the new rates, or the same rate, and the payment amount. A homeowner would then do everything possible to stay in the home with the same payment . They will do it — every single article and conversations leaves out the conviction of the homeowner to stay int the home if they can.

The lender, on the other hand, hold the kerosene and the light.

For some reason — everyone has forgotten the immense power of homeweownership when you know you can own it. If I cant anymore — and the flames are burning off the roof — then I’m walking away from it. If not — then I’m staying put and working to keep the home. That is a compelling force that outweighs the “moral ” discussions the lenders and the FEDS are having among themselves. They have left our the homeowner in the equation. In fact, I think they have painted the image that the hard working family is the villain in this financial mess.

I see flames and smoke across the state of California and nobody – I MEAN NO ONE — is looking to put the fire out before a portion of the state is destroyed. And 49 others states.

Did anyone see the San Diego fires?? Yes — that is exactly what is happening every day across the country. Yes. it is.