Foreclosure in 90670>Question Details

Dith, Home Seller in Sta. Fe springs

Need help before going into foreclosure. I called countrywide today and I was transferred to their hope

Asked by Dith, Sta. Fe springs Wed Oct 8, 2008

dept. A lady asked questions about my finances like gross salary, net salary, credit card and other payments. Then she said there is no assistance they can give because I don't qualify for any assistance. my Debt to income ratio is to high at this time as based on my info I have a negative $1000 from our combined income. she said look for a part time job. my son who just started college needs to look for a job. Don't support my mother even even my father just passed away. The daily allowance I'm giving to son w/c is $7 a day is too excessive and just let him bring sandwich or left over from dinner. I was not expecting this answer from them. I told them we had a death in the family recently, lost my part-time job in sales and my son went to college. He was admitted to UC but instead we decided to put him to community college just to save the house. What should we do? Can we not complain this kind of customer service. I am not calling a debt counselor, they are creditors.

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Michelle Gonzalez’s answer
Hello,
Don't feel like you are alone. There are many people in your same situation right now. It's kind of hard to get information over the internet. The best thing to do would be to sit down with a Realtor and discuss all of your options. We deal with these situations on a daily basis and can give you a better idea of what is going on in the marketplace and how others are dealing with the lenders. Please feel free to give me a call so we can discuss your options.

Michelle Gonzalez DRE# 01427179
Michelle@selectremax.net
RE/MAX Select
562-572-5224
0 votes Thank Flag Link Wed Aug 19, 2009
Sorry to hear about your unfortunate circumstances. It sounds like you can afford the house, you just need to cut back on other wasteful expenses. Maybe your mom can move in with you. Good Luck.
0 votes Thank Flag Link Thu Oct 9, 2008
Dith:

You have received a lot of input on your situation, both positive and negative. Wouldn't it be great to just sit down with someone and go through all the options you have to save your home? Contact me through my profile. I have been helping people in financial distress for many, many years; am a Certified Home Retention Consultant; live close by and am dedicated to helping people save their homes, their dignity and their credit. Sometimes it is not possible to do all three simultaneously, but wouldn't it be great to know your options. Looking forward to hearing from you. Dare to Dream.

Shel-lee Davis
Real Estate Consultant
RE/MAX Palos Verdes Realty
0 votes Thank Flag Link Thu Oct 9, 2008
I disagree Jon. But I respect your opinion.

I've seen too much happen to derail honest people from their good intentions. Obviously, not everyone is being fair in these times -- but many home buyers had no idea that people who received loans to pay those high prices (from which appraisals were based) were lying on their loan applications. What about those home buyers? They were defrauded. Do you have a moral obligation to pay for a home that you were induced to buy based on fraudulent representations? You may argue that morailty says yes, but the law says something different.

Point of fact, many of these defrauded home buyers are still paying their mortgages -- they are not defaulting. The fraud that occurred was systematic and unprecedented, and we are past the point where just the irresponsible deadbeats have been affected. In addition, the timing of some events cannot be controlled; an unexpected pregnancy, a job loss, or a major illness for example. Some people are simply caught in a financial perfect storm.
0 votes Thank Flag Link Thu Oct 9, 2008
Jon,

I just read your answer that $1000 is not enough to cause a short sale, and I must disagree again.

I did take Dith's description to mean a $1000 per month deficit as this is how lenders analyze "negatives." This would amount to a $12,000 increase in income. I do believe that for many people $1000 a month is a lot to try to earn part time -- although it may not be a lot in Scottsdale. In addition, many people incur additional costs from part time work such as child care and gas which may increase the amount they must earn from a position to make it worthwhile financially. Pizza delivery jobs do not pay that well last time I checked -- and jobs are becoming harder to get -- we are in a recession. Dith already mentioned losing her part time job.

A short sale is a viable option for people in distress financially instead of trying to hold onto a home they cannot afford.

My opinion,

Tni LeBlanc, JD, MA, e-PRO
0 votes Thank Flag Link Thu Oct 9, 2008
Dith, I'm sorry to hear that you are in a financial bind right now. It appears that you had a subprime mortgage when you got the loan. It was very easy to get a loan several years back as the lending guidelines were loose. However, there are options for you. Try calling back to Countrywide and ask to speak with another person to see if you get a different result. Not all customer service rep. are alike. I know this for a fact since I have experiences with many banks including Countrywide when I have successfully negotiated to modify the loan or negotiated a Shortsale. Give them another call and see if that helps. If you have any further questions, feel free to contact me. My specialties is in Loan Modifications and Shortsales.
0 votes Thank Flag Link Thu Oct 9, 2008
We are not in control of our circumstances, but we are 100% responsible for how we react to our circumstances.

There are a lot of foreclosures happening these days that don't have to be foreclosures because people with little or no integrity are walking away just because they can.

Until each and every person comes to the realization that they have complete control over their behavior financially, these problems will continue for generations.

Break the cycle and start living a healthy financial life with a proper balance of saving and giving.
0 votes Thank Flag Link Thu Oct 9, 2008
You can always write a letter to someone if you feel you did not receive good customer service.

Tni, a short sale is not the answer for someone who has only a $1000 deficit. People in this position need to do things they may not be comfortable doing. Do not compromise your integrity and honor, but go get yourself a part time job delivering pizza to make up the difference.

Dith, what else are you spending money on that is preventing you from paying your mortgage? The government bail out is not designed to help the home owner. Government has done nothing more than cause problems for us and thinking that a new president, congress, the senate, or any other "leading authority" is going to solve your financial problems is a complete and total lie. You are the only one who can write your financial future, through hard work and education....and I'm not talking about the kind of education you think you can't afford...it's the school of hard knocks. Any of us can put our minds to something to make our lives better and completely avoid the tendency to blame our troubles on others. Take charge of your own life, eat some humble pie and find a part time job that will bring some money in while you weather this storm.

Mary, foreclosures don't just affect the bank. They affect surrounding home values, which means if they are your neighbor, your home will decline in value when they sell short or when they are foreclosed upon. Stocks are purchased in full unless you're dumb enough to borrow to invest by using margin (not too bright even if it does work...sometimes.)

I hear this a lot... "I paid X amount for my home, and now I can't afford it." The truth of the matter is, no you didn't. You didn't pay. When something is paid, it's paid. You borrowed.

Dith, if you say that you don't spend more than you make, how are you faced with a $1000.00 deficit every month? If you have one debt and that debt is your home, and you cannot afford it due to adverse conditions, and you are unable to make ends meet while working as hard as you can as much as you can, then you're in a bad position and no matter of determination will help you in the short run. But there's plenty that you can do in the long run to make your life much better than it is now.

Get out of debt. Get rid of your expensive car(s), sell everything you can possibly think of, and start making some money any way you can that doesn't sacrifice your integrity and honor, and that is not unsafe for you and your family.
0 votes Thank Flag Link Thu Oct 9, 2008
Mary Scott,

You are out of line. Life and finances get complicated and even though we would like to believe differently because it makes us believe we are safe and in control, we are not in total control of our circumstances.

Do you have a moral opinion on banks being bailed out by taxpayers or declaring bankruptcy and having their contracts modified?

Tni
0 votes Thank Flag Link Thu Oct 9, 2008
Yes, but with stock if the prices fall and they sell, the investor is out the money. Here if the price falls and you walk away the bank is out the money BIG DIFFERENCE!! Actually totally different. And we wonder how we got here!
0 votes Thank Flag Link Thu Oct 9, 2008
To Mary Scott: Everyone's situation is different in this market. Many homeowners & investors are making wise business decisions, especially on properties that have fallen greatly in value. Just like an investor who buys stock in a company, when the price falls, they sell. Then they pick up the pieces & buy again at the lower prices.
0 votes Thank Flag Link Thu Oct 9, 2008
Emily-
" It didnt make sense for him to keep it since it had fallen in value 50%"? How would he like it if the bank came to him when property values were up and said it doesnt make sense for us to have only loaned you $200,000 on the house, it is now worth $300,000 so we will take it back now, or we will renegotiate but you will repay a loan of $300,000 now. A contract is a contract that is why it makes sense to pay it back because you agreed to and if you dont you are a person without moral character!
0 votes Thank Flag Link Wed Oct 8, 2008
I eat left overs every single week day for lunch. So does my husband. Many people do not get a lunch, people are making due with much less for food everyday. You are raising your son to end up exactly where you are, too good to make the "tough" decisions and eat leftovers for lunch. That is why people are in these positions, they think they need better then they can afford. You signed the contract, no one made you now follow through on your part.
0 votes Thank Flag Link Wed Oct 8, 2008
I'm sorry to hear about your home problems. I have a lot of experience working with Countrywide Bank. I currently have quite a few Short Sale transactions with them. One of the current sellers I'm working with had tried to contact them as well, but didn't get anywhere. He started to miss payments & then he called me to negotiate on his behalf.

Unfortunately it didn't make sense for him to hang on to the property, as the value had declined by 50% from when he bought it.

I am a Certified Short Sale Expert. Countrywide as well as many other banks ARE allowing short sales to take place even if your debt to income ratio is good. They want to avoid going through the foreclosure process as it costs them a lot more money in legal & administrative fees.

I am close by to Santa Fe Springs. If you would like me to look at your situation in a little more detail, I'd be glad to. I also offer owners in your situation a unique after care program.

You can email me if you like at : emilyknell1@yahoo.com or call me at 562-430-3053

I'm working on my new blog site, for now, you can at least learn a little more about me at
0 votes Thank Flag Link Wed Oct 8, 2008
Mary, we don't spend more that what we earned. We used to have second job when we both the house. We had a death in the family recently due to cancer and was struggling for 6 months and sametime my son went to college last June. We want to retain the house and now we are paying for the monthly amortization more than 35% of our income. The gov't is doing all possible help by bailing out companies and lenders so they can also help the homeowners retain their house. How can they say that don't support your parent and just let your son eat the dinner left over and let him eat just sandwich at lunch. I was not expecting them to answer that way. When we applied this loan and paid them for more that 2 years without any delay, they earned from us. Now that we are asking assistance and w/c actually also coming from the taxpayers pocket, they customer service personnel answers differently.
0 votes Thank Flag Link Wed Oct 8, 2008
Wow, I'm sorry for your loss. And now with your son going to college and losing your part-time job, things are going to be difficult, aren't they. Does your mother live with you? If not, is there any chance of combining households?
Yeah, increase income and cut back expenses is hard, sometimes impossible. If it is impossible for you to make your mortgage payments, they will foreclose. The one thing you can try is to a short sale. This would mean the house would sell for less than you owe on it. Countrywide would have to agree to release the deed and accept whatever you get as payment in full, essentially forgiving a portion of your debt. A realtor could help you with this. It is not easy. I hope you can find another way.
0 votes Thank Flag Link Wed Oct 8, 2008
Dith,

Unfortunately, this type of decision is left up to their discretion in this situation. This is part of the problem in the current environment -- IMO. Keep talking to your lender though. You may also want to consider a short sale to save your credit. It may not be the answer you want to hear -- but it may be the most realistic.

Regretfully,

Tni LeBlanc, JD, MA, e-PRO
http://www.SantaMariaRealEstateBlog.com
0 votes Thank Flag Link Wed Oct 8, 2008
No, you spend more than you make. They are giving you real choices that most people make everyday without complaining. Get over you, you can not spend so much money. I think they gave great customer service!!
0 votes Thank Flag Link Wed Oct 8, 2008
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