Mortgage Forum

Mike

When my husband lost his job in Jan. I knew we wouldn't be able to make our next mortgage payment without his income...so I called Aurora Loan Services right away - went thru the hardship letter processed and was denied. My husband found another job but making about 25K less than before. Went thru another hardship letter process explaining we are asking for time to catch-up on our loan...this time they are considering a modification. It's been 2 months and I haven't heard a word back from them, except letter after letter that we are late on our mortgage and have accrued almost $1,000 in late fees and threatening foreclosure. This is very scary to me. I have 3 children and love my home and do not want to lose it. I have called the co. every week since beginning of March and each time have gotten a different person on the phone and different conflicting information, and each time I've been in tears when I got off the phone. Person #1-started rattling off all this "mortage lingo" that I didn't understand about how I went thru a private investor (?) and chances are my loan won't be modified to help me, my payments will only go up since it's an interest only loan Person #2 -told me that the first person didn't know what she was talking about, and that's what these "modification" programs are for, to help you afford your payments. Person #3 - Set me up on a repayment plan to try and catch me up while my loan is going thru modification process and said if I didn't pay this back (same amount as original loan $3300./mo, then I wouldn't be considered for modification) Person #4 - Told me that my modification underwriter had been "out sick" and that is why it was taking so long to complete my modification, but that she would be calling me the next day. (no calls) Person #5 -Treated me like I was a criminal and said she wasn't going to let me talk to my loan underwriter because she was "extremely busy" and made fun of me when I told her I was checking on my "loan retention process" (instead of saying "Loan Modification process") She yells at me that it takes 30 days for the process (it's been 45!) Person #6 (today 4/23)- After going thru the usual screening process, proceeded to ask me why we hadn't made our payments, what had changed in our situation, what my husband did for a living, when do we both get our paychecks, etc...(all while eating his lunch in my ear) Then told me that the loan modification probably will not make that much of a difference in my situation and that I should probably consider foreclosing the house. OMG, I am freaking out right now.. I feel like I have no hope of working this out now and I don't know what to do. Is he right? Should we just give up and sell this house we love? Or foreclose? He really scared me by saying this modification may be too little too late to help us and soon we will have to start paying the same $3300/mo. plus late fees (which we definitely cannot afford right now). I need help on what to do, should I try to stay and keep fighting them? Should I try the short sale (and if we do that is our credit doomed if we try to buy another house?) or should we just let it go to foreclosure? I don't know what to do and need advice...please.