US Bank Home Mortgage denied me twice for a loan modification. What are some other options?

Asked by Lolarose, Orlando, FL Sat Apr 16, 2011

My husband and I split but I have paid the mortgage faithfully. It is with US Bank and in both our names. We have never been late. I called US Bank back in July to ask for a loan modification. They said that I didn't qualify for the Making Homes Affordable or any kind of in house plan. According to their numbers, I had an extra $400 left over at the end of the month. I called the Hope hotline and they called US bank with me on the line, butI was still denied. I called FHA and they assigned me a housing counselor. According to her numbers, I didn't qualify for the HAMP program because I had an extra $200 left over. I tried to explain to them both that I don’t have an excess of anything left over. I have to pay all the expenses my husband and I once shared. My emergency reserve is dwindling and June will probably be the last payment I make. I’m under water and the housing prices have dropped tremendously. I'd rather keep my sanity and just walking away. Any advice?

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30
Alysia Dewar…, , Bullhead City, AZ
Sun Apr 17, 2011
BEST ANSWER
First of all, let us say how sorry we are that you find yourself in the situation you are in. We have helped many, many people in our area face the prospect of losing their home and it is never easy. There might be a bright spot in all of this though.
Because you have been denied for a loan modification, you are now eligible to be considered for the Home Affordable Foreclosure Alternative (HAFA) Program.
We know the last thing you want to hear right now is that there is another program with more paperwork, but the good news is that your lender can transfer most of the paperwork from HAMP over to HAFA with little work on your part.
The HAFA program gives qualified homeowners a standard set of rules the bank must follow in handling your case. Some of the best provisions are that it stops foreclosure actions, gives you a price upfront the bank is willing to accept (makes the short sale process go much easier), gives you a written guarantee that the lender will not seek a deficiency judgment and can give you $3,000 relocation assistance to help you find a new home.
You can read more about the HAFA program at our website http://timd.yourkwagent.com
Once you have contacted your lender to tell them of your desire to be consider for HAFA, find a HAFA-EXPERIENCED REALTOR to help you with the rest of the process.
Tim and I wish you much luck in the future and hope that this answer helps make life a little easier for you.
Web Reference:  http://timd.yourkwagent.com
2 votes
Lanamee, Agent, New York, NY
Thu Aug 20, 2015
The foreclosure process followed by any bank depends on the state's foreclosure laws. Depending on where you are located, find the stat's foreclosure laws and that should help you with the process. For more info about US bank foreclosed homes, check out: http://ForeclosureIQ.com
2 votes
Kevin and Ju…, Agent, Wildomar, CA
Thu Mar 15, 2012
You mentioned you have an FHA loan - Have you tried an FHA Streamline refinance? Might be an option ...
1 vote
Scott Garris…, Agent, Winter Springs, FL
Mon Aug 17, 2015
Lolarose,
So sorry to hear about all your run-arounds with no results when you have been do diligent in being proactive! In the Central Florida area, I've gone from seeing lenders like yours being helpful to being difficult as the market has become so hot for sales here and prices have begun to rise. Though they'll never admit it, the easiest thing for your LENDER is for you to either pay in full every month, or not pay at all and never call them and let the foreclosure process get the house back for them with what is, for them, a minimum of effort.
I've done a Loan Modification on my home, and know many others who also have completed one; almost universally the "modification" to the payment was much smaller than they expected. It's easy to think that a, say $1500/month payment, would be modified to an affordable $1000/month, when about the best you can hope for is for a loan mod to help youto catch up on any back payments missed (not applicable in your case as you say you are current) and then to drop your payment a SMALL amount, maybe $100/month. My payment was "modified" after a year of paperwork submissions about...$60/month. So many people wouldn't be able to afford the home or want it even IF they did a Loan Modification. Would you, if your payment was adjusted just a small bit?
Your best option is to consider a SHORT SALE on your property, which mean you'd have to move out in the end and rent, yet could result in a total forgiveness of your underwater Mortgage. Short sales are done everyday, yet are very complicated to actually complete. I recommend you contact me or another Central Florida Realtor with a LOT of experience doing Short sales and have a conversation about it in detail.
0 votes
Johnleonard1…, Home Buyer, Orlando, FL
Sun Aug 16, 2015
I was wondering why my mortgage co is offering me a home modification even though I purchase the home in june 2010
0 votes
Diasoliveira…, Home Buyer, Orlando, FL
Mon Mar 3, 2014
My mortgage was 5/2013 950.00 month and 6/2013 my mortgage go up to 1537.00 month. I apply for modification 5/2013 to 3/2014 now I received letter denied. My situation very difficult to pay my mortgage. I need help.
0 votes
Shane, , Los Angeles, CA
Tue Jul 24, 2012
If you will be current in your payments, it shows that you can afford your payments and thus, you will not get a loan modification. You need to be late for more than 60 days first of all.

Then apply for a loan modification at the beginning of the third month and I am sure you will get approved.

Contact me at the email below if you have any questions.

swloans2@yahoo.com
0 votes
Alma Kee, Agent, Tampa, FL
Thu Mar 15, 2012
You now may be able to get a loan modification to reduce your Principal Balance and keep your home. Go here:

http://www.makinghomeaffordable.gov/programs/lower-payments/…
0 votes
Laura Wrede…, , Los Altos Hills, CA
Thu Mar 15, 2012
I am going to tell you about someone I know who went through this scenario for 2 years with another lender. They played this round robin game until finally, they just decided it was do or die time. They stopped paying their mortgage. Finally the bank got serious. They received a modification 5 months later. They learned that if they kept paying, the bank had little incentive to modify. Hope was also a waste of time for them.

This has happened to several people I know.

I am not advising you to do this, just telling you a story.

Having said that, if your loan is backed by Fannie or Freddie, you may qualify for the new program coming out so make sure and check with a qualified mortgage person who might be able to help.

I wish you the best in your situation. There is sunshine beyond the darkness.
0 votes
HI....I am with Well Fargo and have been declined for 2 loan modifications. I have missed the last 6 payments and now they are saying I have to pay a foreclosure attorney that has my case to discuss keeping my home. They denied due to equity in the property and the inability to drop my payments more than 10% per Freddies guidelines. I am scared to death of not being able to keep my home.
Thank you.
Flag Sat Dec 22, 2012
Bsinger, , Florida
Thu Mar 15, 2012
Have you Tried the HARP program? If not contact me so we can discus.

brad@leadermortgageservices.com
954-317-3330

http://www.leadermortgageservices.com
0 votes
Eric Jones, Home Seller, New York, NY
Thu Mar 15, 2012
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0 votes
Alma Kee, Agent, Tampa, FL
Sun Apr 24, 2011
$42,000 divided by 12 months equals $3500 per month. 31% of $3,500 is $1,085. If your principal + Interest + Property Taxes + Insurance + montly HOA or condo fees is higher than $1,085 then you should qualify for a modification. If your total housing payment is less than $1,085 then you do not have a hardship, regardless of your other debt you have to pay on.

If you are paying less than $1,085 per month then it probably would only hurt you to pay late because you may not be deemed to be in a true hardship position.

You still may be able to do a short sale based on your divorce hardship. If you are able to continue paying on time and close the short sale, you will be able to immediately buy a new home within your price range. If you are late in paying you may have to wait 2 years before you can buy again.

Most importantly, do not just walk away because in Florida the lender can go after you for 100% of their loss after they sell your house for a low amount at foreclosure. They can attach your wages and sell certain assets, ie cars, boats, etc. You need legal advice before doing something drastic like walking away. Every state is different but here in Florida the lenders are able to get a deficiency judgment so you do not want to increase the loss by just walking away.
0 votes
Carol Bauza, Agent, Orlando, FL
Sun Apr 24, 2011
Lolarose,

I hear the frustration in your post. I'm sorry you feel that way.
You can list short sale, I'm not sure why they said no.....

Let me know if I can help.....

Carol Bauza
Keller Williams Advantage II Realty
carol@carolshome.com
0 votes
Lolarose, Home Owner, Orlando, FL
Sat Apr 23, 2011
I spoke to a counselor at Hud and she stated that I didn't have any options.
No making homes affordable
No in house
No HAMP
NO evern Hafa - said it's for conventional loans only.

My salary is $42,000 ....where in the heck are they coming up with these numbers. According to HUD I have an excess of $200 a month...really , $200 I'm bening denied over $200.....
0 votes
Lolarose, Home Owner, Orlando, FL
Sat Apr 23, 2011
Last week I called my bank about a Short Sale or Deed in Lieu of Foreclosure. Today I received a letter stating that I've been denied for a Short Sale because I can still afford the mortgage.... It's sad that I must be deliquent on my mortgage in order to receive assistance.
0 votes
Carol Bauza, Agent, Orlando, FL
Tue Apr 19, 2011
Lolarose,
I noticed your response to all of us.....
I think at this time you should look into a short sale. That's just my opinion as I am not an advocate of foreclosure.

If you'd like my help.......let me know!

Carol Bauza
Keller Williams Advantage Realty
carol@carolshome.com
0 votes
Ron Rovtar, Agent, Boulder, CO
Tue Apr 19, 2011
Hi Lolarose:

Talking to a lawyer will help, but if you are running out of money you might try this: HUD supports foreclosure counseling throughout the US. Go to the web page below and find a service in your area. This will be a free service. These people are trained to help you find solutions and can probably spend more time with you than the people you talked to on the phone.

Best,.
Ron
0 votes
Dallas Texas, Agent, Dallas, TN
Tue Apr 19, 2011
Have you consider to approach for a short sale lender has a package of info. for you to complete

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes
Lolarose, Home Owner, Orlando, FL
Tue Apr 19, 2011
Hi everyone, thanks for the helpful information.

I called my lender about the HAFA program. I do not qualify for that as well. The rep stated that HAFA is only for conventional loans, not FHA backed loans.
0 votes
Alma Kee, Agent, Tampa, FL
Mon Apr 18, 2011
Hi Lolarose,

Contact your lender directly to see if you can qualify for a HAFA short sale. If they say "no" because your income is too high then you may still be able to do a short sale but I've often seen sellers with sufficient income to pay their monthly housing be required to sign a promissory note to pay part of their lender's or Private Mortgage insurance company (if you put less than 20% down when you purchased you likely have PMI) loss. PMI companies are being very difficult lately and will prevent a short sale unless the borrower (you) signs an agreement to repay them part of their loss.

So before you sign a listing agreement with anyone, contact your lender first and then fully evaluate your circumstances along with the risk of being a tenant.

After a short sale you will not be able to get another mortgage for at least 2 years so you would have to be a tenant with the risks and inconveniences involved with that. If you decide to become a renter you have to be very careful to do a lot of homework on the owner or they may be in pre-foreclosure status and you will be required to allow Realtors and their buyers to trapse through your home for showings, with minimal notice.

All the best,
Alma
0 votes
Eli Givoni-S…, , Boca Raton, FL
Mon Apr 18, 2011
You can do a short sale and keep foreclosure off your credit. We are a professional short sale service and would be happy to explain the process to you. Please call us directly to discuss your specific situation. Our services are FREE to homeowners. We look forward to hearing from you.

Eli Givoni, Director
Short Sale Department, LLC
561-361-1909
info@shortsaledept.com
http://www.shortsaledepartment.com
Serving all 50 states

MARS Disclosure for General Commercial Communications
IMPORTANT NOTICE:
Short Sale Department, LLC is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit.
0 votes
Wendy Golding, Agent, Orlando, FL
Sun Apr 17, 2011
Lolarose,
I have heard this story too many times, where is the help.
I'll be happy to discuss your options with you. Below is my contact information.

Wendy Golding
Asset One Realty, Inc
Broker/Owner
Cell 407-470-3894
goldingrealtor@aol.com
0 votes
Alma Kee, Agent, Tampa, FL
Sun Apr 17, 2011
Hi Again,

Sounds like your income is higher than 31% of your Principal, Interest, Homeowners Insurance, Taxes and HOA fees. Make sure they included the monthly HOA fee in the calculation.

You may have a "hardship" because you indicated you are divorced or in the process. Do not just "walk away" because here in Florida our laws (other states are different) will allow the lender to get a judgement against you for 100% of their loss, including legal fees! They can attach your wages and take any assets (cars, etc) if they get a judgement.

Also you have to weigh how much it will cost to rent (rents are high nowadays) and the risks with renting. You see you may have to move every year or sooner if you don't check out your owner carefully and they are in foreclosure! Also if the landlord decides to sell you are required to allow showings, how uncomfortable is that...

So, bottom line is you need figure out what the best option is for you and also verify they included the HOA fees when calculation the 31% to see if you qualify for a modification.

You're welcome to sign up for a "free" listingbook account on my website and it will allow you to search "like a Realtor":

http://www.SoldOnTampa.com

Hope this helps.

All the best,
Alma
0 votes
Shane Willis, Agent, Pensacola, FL
Sat Apr 16, 2011
Sounds like stories I hear all the time. My suggestion would be to talk to a licenses realtor who is CDPE qualified. I also would highly recommend talking to an attorney. If you just walk away Florida is a state that allows the bank to file for a deficancy judgment. Again talk to an attorney and a CDPE agent.
0 votes
Camille Ruiz, Agent, Clermont, FL
Sat Apr 16, 2011
Lorarose,

I am very sorry to hear that you are going thorugh this. If the bank has already denied the modification; you do have multiple options available. Before partaking in ANY of these options, I would like to suggest that you speak to an attorney so they can advise you on the legal aspects. A good attorney will give you a consultation free of charge.

Your options are as follows.

1. Short sale- This is where you ask the bank to accept less of what you owe on your mortgage. In order to qualify to begin with is a hardship and divorce is definitely one. You need to contact a Realtor that is not only knowleadgeable but experienced in dealing with the banks on this. They will ask you to write a hardship letter and spell out exactly where your income goes each month and forward a copy of your divorce decree that states you are responsible for both of your former shared expenses solely.
2. Deed In lieu of foreclosure-This you would need an attorney in order to do. You basically give the title of your property over to the bank.
3. (last resort) Let the bank take it.
4. Bankrupcy (again make sure you get an attorney to assit you with this option)

With any of these; your credit will take a hit but depending on which option you take (I have listed them in order) will mean the less of a hit you will take. With a short sale, you can generally pourchase another Goverment backed loan (FHA,VA) in about 2-3 years. If you let the bank take it over then it can be 5-7 years.

If you need any additional assistance; please do not hesitate to contact me. I am a realtor in Central FL and I have knowledge and education in short sales. I will be very glad to talk with you and go over your options. No pressure.

Good luck in whatever decision you take and do not despair; you are not the only one that has had difficulties dealing with the banks and it will get better.

Camille Ruiz, SFR
Watson Realty Corp
407-929-4632-cell
camille@propertiesbycamille.com email
http://www.Propertiesbycamille.com Web
0 votes
Shakirah Joh…, , Orlando, FL
Sat Apr 16, 2011
Try NACA.com. They restructure with the lender based on a % of your income if all other terms are met. Call me at 407 325 5434 and I can give details. It doesn't seem to me that you want to sell if you don't have to
Shakirah Johnson
Z House Realty Group
0 votes
Carol Bauza, Agent, Orlando, FL
Sat Apr 16, 2011
Lolarose,
Sorry to hear that the banks won't help.

In reading your whole story I would suggest selling....in a short sale situation and getting out before it escalates to a foreclosure. It's a much better situation than the later.

If you'd like we can set up an appointment and we can walk you thru the steps, the process and the outcome.

Let me know if we can help....send me an email!

Carol Bauza
The Bauza Group
Keller Williams Advantage II Realty
carol@thebauzagroup.com
carol@carolshome.com
0 votes
Michael Cioc…, Agent, Lake Mary, FL
Sat Apr 16, 2011
No money = no mortgage payments now. Then call your bank and ask them if they would do a short sale then list it with a broker that does short sales and is equipped to handle them. Bank says no to short sale then hire yourself an Atty with any cash you have left and they'll fight for you I gave seen up to 2-3 years
0 votes
Lolarose, Home Owner, Orlando, FL
Sat Apr 16, 2011
MARIE - We bought it for $215 and still owe $124 - Homes in my neighborhood are going for $60,000-$90,000. There's even a foreclosure for $50,000.
0 votes
Marie Souza…, Agent, Centerville, MA
Sat Apr 16, 2011
You sound like a good candidate for a Short Sale. Contact your local Realtor & they can walk you through the process. I know it is frustrating, but you are not alone... so many people have tried to go for the loan modification & been denied.
Hang in there.
The Marie Souza Team - Top Selling on Cape Cod
Phone: 508-790-2000 Fax: 508-790-4005
info@mariesouzateam.com
0 votes
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Flag Thu Mar 15, 2012
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A Sincere and certified private money lender approved
by the GOVERNMENT. I give out international and local loans to all countries
in the world. Amount given out $2,500 to $100,000,000 Dollars, Euro and
Pounds, available now are Business, Personal, House, Travel and Student
Loans. Apply for a loan today with your loan amount and duration.Its Easy
and fast to get. 4% interest rates and monthly installment
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Flag Thu Mar 15, 2012
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