Obama Refinance & Loan Modification Programs

I think this program does not help us. We are paying high interest rate, because of decreasing home value we can not refinance.I tried to refinance but my lender offered me for down payment of marginal money of current home value. But I can not do that.So how can I get current low interest rate for my home. Now I am paying average 6.33 percent of interest, which is about $300 over payment monthly.That means we are cheated by lender also. So If government really want to help us or really want to control forecloser, all of the loan must be adjusted in new low rate interest.Otherwise we can not afford it.
This situation is created by lender.How did they aprove the loan to a single person to buy more than one home? I know there were 7 homes in single person's name.These business men has damaged the home market. How did they get loan for that if his income was same.
if somebody has bought a home for their primary resident,government or lender must consider them. They are real sufferer of this time because of because of home black brokers.

Countrywide morgage re-financed me from an ARM loan years ago and did not get a subordination letter from my second mortgage co Chase. My FHA loan is now in second place (which I think is illegal) and I cannot refinace now. They expect me to pay upward to 500.00 to Chase to get them to go to second w/no guarentee they will. How is the econmy supposed to get better when working with big bank Corps that dont do thier job. This is the fault of the Adjuster that refinaced me originally. Not mine ! They should be bending over backwards to be sure they get me back in first per FHA guidelines. Please help or advise !

This program might help many home owners. What about home owners who have a 1st and 2nd, paying on time but due to the decrease in property value are unable to refinance and take adavantage of the lower interest rates and their loans are not controlled by Freddie Mac or Fannie Mae?

So in order to get help, you have to have a loan with one or two certain companies. You also have to be so far in debt that there is no hope for you otherwise. You also are supposed to get legal representation when applying for all thise mess. If I could afford legal representation, I would be able to pay my mortgage in the first place. Also, what good does this do for the guy thats struggling to keep his head above water? It doesnt help keep anyone from getting in over there heads. It just helps those who are already drowning.

I've been a home owner for 5 years and have a mortgage through EMC which is an ARM. We were making payments on time before the ARM Adjustments. We since had been late our payments that was $900 jumped to almost 1600. we went on foeberance and since have caught up now payments are 1300 a month. We are still struggling to make payments so when this Obama plan came out we were excited to see if we quailfied to get the payment dropped. I called the lender to find put that we do not quailfy for the Obama loan. I was told by EMC that the only way I can modify the loan is if we were to max out the total amortized payments of the laon to quaily so that means my payments would need to exceed 3500. a month to quailify. by that time it would be too late. how is this obama loan going to help me?

Haha, I bought my house with a ninja loan and never made a single payment, stayed there for THREE YEARS before it went into foreclosure, then a week before the eviction day I filed Chapter 13. Here it is one year later still in my house made NOT ONE PAYMENT meanwhile my savings account has GROWN to where I can buy a house CASH (which I did in May when the market bottomed out. I got a foreclosure (LOL) in a great neighborhood and I don't need credit since my house is paid for now. WOO HOO!

EMC is now participating in the Home Affordability Program, as outlined by HUD. If your income is sufficient, you would be eligible to apply for a HAM (home affordability modification) mod under this program, and your payment could be reduced to 31% of your gross income, and that would include Pricipal, interes, taxes and insurance.
Go to http://makinghomeaffordable.gov/
Use a Good Loan mod company to get your mod. There are good companies out there doing good things for homeowners.

In response to the NINJA loan comment. Before anyone else gets any ideas, US bankcruptcy laws changed back in the beginning of the 21st century. Alot of people were using a loophole to purchase a primary residence using credit cards and then declaring bankruptcy. You see, the old law stated that you could not lose your primary residency to "last of line" credit issuers (credit card companies). This (amoung other forms of fraud) were fixed so that you can now lose your primary residence based on the discretion of the court.

[snip]

Can or will you lose your house in filing bankruptcy?

Maybe. A number of factors are involved in whether or not you will lose your house in a bankruptcy filing. Frequently, but not always, the house is different. If the mortgage payment is up to date, it is usually not a part of bankruptcy. However, state laws differ. Federal rules differ. If it looks like fraud was involved, you can lose your house.

Some States have specific exemptions that the FEDERAL Bankruptcy court (all BK are there) will allow you to use.

In C-13, you probably can get a reasonable amount of back payments included in the plan...and if you complete it, still have the house and remaining mortgage. Of course, once again, if you can't afford the house, it ain't going to matter for long...and in fact, because the C-13 plan essentially increases your payment....you need to know you can afford it well.

Now back to that State exemption thing: Many have an exemption for the amount of EQUITY, that is amount of value above the mortgage debt, that you have in the home. These amounts are frequently surprisingly small.....like $20,000. In essence, if you go BK living in a place that is actually got equity...that is value above the loan (or no loan)...you ain't going to be allowed to keep it and not pay those others you rightfully owe...whose real contention would be..you used the money intended to pay them to buy yourself a house.

I have excellent credit but due to job changes, my house payment was too high. We thought the only way out was to sale the house, so we put it on the market. We decided to look into refinancing to see if we could keep our house and everything was rolling along nicely and we were excited until the bank called to tell us they learned of a new government stipulation that was never there before. To refinance, you can not have your house on the market for at least months prior to refinancing. Sounds to me like more people are getting burned by the new plan than are getting help. I suppose I should trust them with my health care too. :)

This program is a farce....I went thru it, it took a year and multiple times had to submit the same paperwork.....and it turned out that my payment was reduced, but, it is almost 50% of our 2 Social Security checks.

I am very happy that this program has been offered as so many of us need it. However, I am one of the homeowners that own a home that is not under the freddie mac/fannie mae umbrella. I am under a very suspicious bank called Household FInance (Beneficial) and am not at 11.2% HELP!!! Please, please can I get any help at all from President Obama or the banks. I am about to lose my home of 10 years.

I am paying my mortgate for each month is about $700 but the property tax for my escorw account is more than$700; my house value is only $130,000.even I pay with interest 4.625% but the property tax is killing us.

To whom it may concern,
I am writing to you today, to bring t light what I feel is possible fraudulent practices by my mortgage company; EMC Mortgage Corporation and the government Making Home Affordable loan modification program.
Approximately one year ago this month (July 2009), I started the process of a loan modification that the government had made available. Along with faxing the proper documents over to my Mortgage Company; I physically discussed the paperwork over the phone on two or three occasions to make sure that all paperwork was in to complete the modification package. I was then told the following information:
1. The new amount of my monthly mortgage payment would now be $XXXX.00. Dropping my monthly payment by almost $500 per month.
2.This is a trial period that last 60-90 days until completed and that it would also be my new rate after the trial period is over.
3.On the first of every month I have to go to a Western Union and pay additional money to send the total amount do. Then I must come home and call in a transfer control number proving I sent it in. Was also told not to be late during the trial period or the program would be canceled.
4.At the beginning of November 2009, I called after I made my monthly mortgage and was told that it is almost complete, not to worry about anything just keep making the monthly payment. “This is a government program”, Mr. Schmidt, “your package is good and complete, they just take awhile; no need to worry”. This is what I was told!
Then around the end of December beginning or January, EMC Mortgage called me and said that they needed new documents to update the file. I gathered the files on the same day and went directly to Staples and faxed the document s over to them. This cost almost $45 for the faxes. I went home and received verbal conformation that they received all documents.
From November 2009, including this month July 1, 2010; I continued to make my monthly payment on time as requested. I then continued to place phone call to EMC Mortgage Company about my modification and was every time I called, “everything is fine Mr. Schmidt, this is a government program and it just takes time.” “Just continue doing what you are doing.”
I continued my calls 2-3 times a month to make sure that this modification goes through and we don’t lose our house and have a place to raise our 3 children. Starting in February 2010 until June 2010, I was told “that everything is fine, all docs are in, and we are just waiting for an underwriter to be assigned.” 5 Months for an underwriter to be assigned? WHY? Makes no sense!
Sometime around the middle of May, EMC Mortgage Company called the house and talked to my wife while I was at work. They confused her enough on the phone that she called me upset stating, “We are not going to get the modification. “ I called the next day and the person I talked to on the phone told me, “that my wife misunderstood what was being said and that everything is fine” and; “what paystubs as proof of income was.” I was then told what they were going to use was the deposits going into my bank account and that will be fine as proof; and that the modification should be complete any time now. GREAT!
I made the payment in June 2010, and made my usual 2-3 phone calls over the month to see when it would be done. The same answer that was given every month over the past year was given again.
Now, July 1, 2010; I went to the bank, pulled out the money, sent it by Western Union, and called in the transfer control number. Then I placed a phone call, again, to see when I should be getting the completed package. The customer rep on the phone told me that the final approval for the modification was completed and the package was being sent via UPS/Fed Ex on the 2nd or 3rd. It was about time, something that was supposed to take 60-90 days took almost a year start to finish; but we stuck with it and FINALLY it was done! HAPPINESS and RELIEF that our home was secure.
Around 1 pm every day we get our mail delivered. In our mailbox this day, July 1, 2010, we received an envelope from EMC Mortgage Company. When I opened it was a notification letter. But, not a notification letter just discussed on the phone.
This letter stated the following:
EMC Mortgage Corporation is writing to notify you that the Trial Period Plan offer through the Making Home Affordable (“MHA”) modification program for the above-referenced account has expired for the following reason:
(X) We are unable to offer you a Home Affordable Modification because you did not provide us with the documents requested. A notice, which listed the specific documents we needed and the time frame required to provide them, was sent out previously.
If you were previously on a trial period plan making reduced payments, please be advised that the actual payment status under the original terms of your loan will begin to be reported to the credit bureaus, which may result in negative credit reporting if you do not cure any delinquency. In addition, if your loan was in foreclosure at the time of the trial period plan offer, the foreclosure process may resume without further notice.
Now you can imagine how irate I got, considering I just got off the phone 20 mins. Before this letter came in the mail and was told, “The modification was complete and paperwork was being sent out.” I called up and was being bounced around from person to person for over 1 hour. Finally, the person Tim I talked to explained to me that I didn’t qualify for the government program, but I did qualify and was approved for the in-house modification program. “The in-house modification program? I screamed?” “I never filled out paperwork or discussed an in-house modification program!” “What is this and what are the payment changes?” I qualified for a program that I did not file for and it is saving me almost $200 per month off my payment. I was then told that the paperwork is already being sent out. I have to sign it and send it back as soon as I get it. I asked what would happen if I don’t because this is not the program I filed for and as of today was told that my modification went through. I was told that the original terms of the mortgage apply, because of the difference of the payment between the original and government program that I would be a total of 5 months behind now, everything would be reported to the credit companies, and foreclosure proceedings would start immediately. ****Yes! I flipped out.***** I was then told the other option was that we could do a short sale of the property; and I screamed that “I am not interested in selling my house I have a family wants to live here, that is why I have been doing this program for the past year, following all procedures, and calling 2-3 times per month making sure everything was good.” And EVERY month including last month (June 2010) I was told by EMC Mortgage Company that everything is good, the package is complete, we are waiting for an underwriter to be assigned, and you have to understand Mr. Schmidt that this is a government program and things take awhile.” “But, don’t worry everything is good!” If I wasn’t worried and concerned about not having a stable home for my children to grow up in then I would not have been calling 2-3 times a month for almost the last year.
I feel that my mortgage company is practicing fraudulent, shady, misleading, and unethical mortgage practices towards the people who hold mortgages with them; and I want to do everything I can to expose them of the practices.
I followed all rules of the modification program and here is the breakdown of the letter above.
1.Any and all documents were submitted within a 24 period of the mortgage companies request and as per programs guidelines.
2.Payments were made on the 1st of every month by Western Union and the transfer control number was called in, as per programs guidelines.
3.The government program was to be completed in 60-90 days. Which was to be completed by October 31, 2009, as per EMC Mortgage Corporation.
4.Starting November 2009 thru July 1, 2010, I was in constant contact with the mortgage company, calling 2-3 times per month making sure everything was good, so I can provide a safe and secure home for my family. Each time being told that everything was good, and it is a government program and it takes time. Just continue to make the payments and everything will be fine.
5.I was going to save almost $500 per month on the government program, but because of some unknown bogus reason, after 1 year, I mysteriously do not qualify for anymore because of said reason of not providing documents. Although, every call monthly, I was told by employees, for who represent EMC Mortgage Company that everything was good, including up to said month of June 2010.
6.I then qualified for an in-house modification program(that I was never informed about ever) that would save me almost $200 per month off my original payment; but would still give EMC mortgage $300 + per month more than if they completed the government program I was participating in for the last year. So now my mortgage payment increases more than $300 per month over what I have been paying the last year, which puts another financial strain on my family, and was why I was doing the program. To provide a safe and secure place from my family to live.
7.Was told that if I don’t sign and agree to the in-house modification program, that my house would go into instant foreclosure proceedings. So, at the time of this letter I have no choice but to sign it so I can provide a safe and secure home for my family.
I was watching a short story on CNN Headline News about 1 month ago, how millions of people have applied for this program but a very small percentage of them have been completed yet. And there was really no answer as to why.
The following link: http://www.ftc.gov/opa/2008/09/emc.shtm is an article from where EMC Mortgage Company paid a fine of $28 million dollars for unlawful practices. Well I think they are at it again.
I want to do everything possible to expose this and do what I can to make sure hard working families are not being taking advantage of like I have.

I would like to hear from 1 person that has completed a modification with this program. The feds talk a good game but in reality have done nothing. I tried it and all that happend was I got the run around from B of A. For over 1 1/2 years they could not give me an answer. I paid a reduced ($1,500) monthly payment but could never get an answer. They just said we're working on it. Finally they sent a letter saying we did not qualify and I had 30 days to pay $16,000 which included fees and penalties or my home would be forclosed. The Banks get $$ from the feds for the bad dept, then acution your house off to pay the loan. Add 1 and 1 together, they make more money by kicking you out than if they actually lowered your interest and keep you in your home. The whole sysem is a scam to benifit the banks that also got a bail out that you and I pay for with our taxes. I am self employed, or businees has sffered from the down economy and my wife is unemployed after 12 years with the same company. All we wanted was the interest rate to go down from 8.5% to around 3% bUt B of A and courty wide would NOT DO IT. who qualifies anyway? No one that I know of. 1 operson just 1 person is all I wopuld like to know? it's a total scam backed by the federal govt.

More income redistribution, taking money from those who produce and handing it to those who bit off more than they could chew. Bad behaviour gets rewarded. Meanwhile, those of us who have been paying our mortgages without any handouts from others see our taxes go to those who don't deserve them.