Supporting, Informing & Connecting People in Foreclosure
We went to pre-suit mediation with our servicer last Wednesday. As you may already know, it was totally one sided. It started very messy as our attorney did not show up and claimed the attorney that was supposed to be there had a scheduling conflict. Anyway, he "appeared" by phone, so did the representative for the servicer, the servicer's attorney was present and the Mediator.
The mediation was under a lot of pressure! They wanted us to make a decision right then and there. However, we managed to get 24 extra hours. With such short period of time, we feel we did not have enough time to make an informed decision. Even our attorney put some pressure, saying we had a great deal! Since the beginning we thought he was working for the bank... but we gave him the benefit of the doubt.
Even with our Attorney's advise, after three days, we still feel really bad about the deal. We already have the cashier's check ready to be mailed and comply with the first payment for the modification trial period. However, we are having buyer's remorse.
Why do we feel so bad? First of, the servicer has never cooperated with all the requests our attorney has made, including the initial QWR. Also, they did not provide any documents required on the Request for Plaintiff's Disclosure for Mediation.
We did provide everything they requested from us.
We did sign the Trial Period Plan Notice and faxed it to our Attorney, and the Mediator.
We know, if we do not mail that initial payment, the foreclosure process will continue, and to be totally honest, we are fine with that.
However, we need your advise to help us during this convoluted time.
To give you some background info. We purchase the property in early 2006 for $417,000. We put down $170,000. However we refinanced in October 2006 because the interest we got on the initial loan was very high. During that refinancing we got $60,000 cash out to build a pool (all went back to the house) and a reduced interest rate.
The original mortgage and the refinance, both were registered with MERS.
Fun Fact! The satisfaction of the first mortgage was robo-signed by Linda Green and other questionable characters.
Today our house is worth $189,900. The servicer offered us a 40 year mortgage after the trial period. 480 payments of $1400 and a balloon payment of $89,000. Of course, we are not happy. Since it is a Fannie Mae loan, principal reduction is not an option. Between what we put down, minus what we took out and what we have already paid, we are about $150,000 in the hole, maybe more.
We already know we have to retain another lawyer!
At this time we are very confused and would like your suggestions and/or opinions. We love the house and the neighborhood, but it is not fair that all similar homes in the area are being sold between $150,000 and $190,000.
Until now, we have not paid mortgage for 9 months, the servicer nor Fannie Mae, have not filed foreclosure yet.
What would you do in this situation? We are willing to fight! We are in Central Florida, how much time do we have?
Thanks in advance!
We are not in foreclosure and also live in FL. We were turned down for HAMP after 10 trial period payments. About 7 months after our last payment the bank put us in a trial period for 3 months with the payment $700 more than the HAMP payment. We made those trial period payments and when they sent us the paperwork to make the mod permanent, we refused. That was last Sept and we haven't paid anything since and we are still in our home with no foreclosure action but attempting a short sale. Everyone's situation is different. We put $99K down on a $495K house (20%). House is worth $195K. They offered us 40 years fixed at 5%, payments of $2002. per month with a balloon payment of 129K at the end of 40 years. I am 56, my husband is 62. We would owe a balloon payment of 129K at the ages of 96 and 102. The reasons we turned down the mod are many. Mainly, our ages and declining income. The permanent mod paperwork indicated that a new promissory note would be required. Their letter also stated that if the home were to be sold, the full amount would be due including the balloon payment. So, we interpreted that as no opportunity for short sale when in 7 years we would both be on social security and unable to afford the monthly payments. Our lawyer is Matt Weidner. Our strategy was to stall their action against us so we made those trial payments, but refused the final mod. If you can afford it, that's a good stall tactic. Then, in October we listed our home for short sale and have an offer under bank review. It may or may not go through, but if we can eliminate our giant debt with no deficiency, we'll be happy. We'll also be happy staying in the home as long as possible rent free and then fight the foreclosure if they ever get around to filing against us. Our loan balance has grown to about 440K because of the arrears and I repeat, house only worth 195K. We also have a Fannie Mae backed loan, so I feel your pain. There will never be a principal reduction for any of these loans. Our lawyer Matt wrote us about the mod "Not the worst mod I've ever seen, but certainly not the best."
Thank you for your reply!
It's unbelievable what is going on in this country. We need to hire a new lawyer and we are very seriously considering Weidner. I wish you luck with the short sale. We are looking into staying in the home for as long as we can and purchase something smaller for cash and not have a mortgage nor a rent payment as my husband is 56 and planning to retire in 10 years. As for my self, I am 46 and already on Social Security disability. But still, if we can get out without deficiency, we'll be happy as well. Is time to start recovering from this mess!
We also have a Fannie Mae loan and the lack of principal write down was another reason for us not to do the mod.
Short sale is a good stall tactic. We didn't think we'd get any offers but have had three. First one declined the bank's counter offer, second one is the one the bank has now but is borderline. Price still a little low and buyer want's closing costs which our lender would pay. We have a third offer, a back up, someone from Finland who hasn't even seen the property. We're on the water with Gulf access. That's why we're getting offers. Would have rather stayed and fight foreclosure, but lawyer advised to continue talking with them and working with them and by doing so, they would not be filing against us.
Same here, Fannie Mae & Freddie Mac are the most vicious scam against the tax payers... We'll be doing a Forensic Audit as we have robo-signers in our paperwork. We'll see what happens!
I say, pick your battles , know what your are willing to settle for or know what you are willing to fight for.
Have been in foreclosure since 1/2010, but have not made a payment since 3/2009. I'm fighting the foreclosure and have a summary judgement hearing 4/4/2012 that FDLG set for 5 minutes, I just filed a opposition to the SJ showing that both Freddie Mac and Wells Fargo say they both own the note and mortgage., impossible but none the less. Also have SEC docs that show loan was investor and FDLG says no its not, fraud on the court, robo signed docs and multiple copies of the same note but variations on each one filed in the circuit court as well as BK court. I just recently started the short sale process with a offer that we turned down, the list could go on , but we are willing to stand our ground and continue to fight no matter what it takes. Oh, by the way did I mention both my wife and I each had heart attacks, her's in 2008 and mine 2010., since that time I have been disabled, but I'm not going to cave in. You just have to pick the proper battle for yourself and family. Good luck no matter which direction you chose.
Unbelievable... Sometimes we feel like we are the only ones going through this mess. First of, I hope you and your wife have recover from your health ordeal.
Thank you so much for sharing, we wish well and we and keep up the good fight! Keep us posted.
Thanks for the hope, my wife was just laid off yesterday, so back to square 1 all over again, this crap will never end or at least not in my life time , my only concern now is of my daughters life and my grandaughters life...
I'm so sorry to hear! It seems like a never ending nightmare. I will keep you and your family in my thoughts and prayers...