Bankruptcy

MORE BAD FAITH AND CRAP FROM AURORA LOAN SERVICING

By R. Grace Rodriguez, Esq.

Today, my client got a letter that her loan payment on her home was going to double.  Her rate is 8% for the first five years, which then drops to 2.25% over the H.15 Constant maturity 1-Year Rate established by the US Treasury which is currently .2733 so technically her rate at the five year rate will be 2.675  more or less.  With insurance and taxes her payment should be only about $3,700.00 per month to keep her house.  But Aurora wants $4,883.00 until July 12, 2012, then they will drop it to $3,700.00 per month or whatever index is at that time.

But here is the kicker.  She filed a chapter 13 Bankruptcy.  I sent in an authorization for her to speak directly with the lender regarding loan modification.  She asked for one, and was told she doesn't qualify.  After calling repeatedly, they finally agreed to interview her for a loan modification.  But here is what we learned. . . .  UNLESS BOTH the LAWYER AND THE BORROWER send a letter in WRITING requesting loan modification, it WILL NOT BE OFFERED.  How is that for complying with the spirit of HAMP.  What a dismal failure that program turned out to be.

Anywyer Readers, the squeaky wheel gets the grease.  At this point I would recommend that each of you call your lender WEEKLY and SEND FAXES weekly of your attempts to get loan modification from your lenders.  When finally the Government wakes up and decides its going to help you, IF and ONLY IF that day ever comes, then you will have adequate documentation of your legitimate attempts at loan modification.

Additionally, I cannot impress upon you enough that if you have stopped making payments on your mortgage to at the least use a mortgage calculator online.  Figure out what you owe to your lender.  Calculate a mortgage payment based on 4% and at least mail in that amount to your lender.  Show them you can succeed with a reasonable loan modification.  Furthermore, if your lender won't take your money then open a savings account and deposit that amount into your bank account each month.  You will have documented proof for your lender that you can make a reasonable mortgage payment.  At the end of the day, if you cannot save your house, you will likely have saved up quite a bit of money if you have to move, or cure your default.

I can tell you that it is painful to go from not making payments for 2 years to paying rent or a mortgage again.  We as humans get use to having that money around and we spend it.  Please don't make that mistake!

Good luck out there, until the next time I have more news to report.

God bless each of you for the coming year!

Full post as published by The Law of Second Chances on January 03, 2011 (boomark / email).