Mortgage Forum

Mike

I bought my home in March of 2005, I knew that my loan would adjust in 2years, but had high hopes to refinance. Unfortunately, the market took a turn for the worst. I live in the Bay Area in California. There was no way I could refinance because my house is worth a lot less than what I owe! So now my payment has gone up almost $1000.00.

I stopped paying the mortgage to both my first mortgage (SPS) and my second mortgage (Ocwen) in August 2007. I started calling SPS at the beginning of the year to look into a loan modification. I finally got a forbearance agreement from them for their "Fresh Start Program".

They want me to pay a certain amount for 3 months before they will do anything! I can tell you it's almost $10,000.00 total over those 3 months. They wont commit to any modification until I show them that I can pay those 3 months! All I want is for them to commit to a fixed interest rate and tell me what my payment will be after those 3 months.

This servicer wont budge! They said the underwriters wont even look at starting the modification until I pay. They have all my financial documentation and they know what I can afford, but they still wont work with me to make me feel comfortable about signing this agreement and starting this so called program. I have done my research on this company and have seen a lot of bad complaints. I even heard that this company doesn't want my money they want my home! Can this be right? Should I trust by their word that they will modify my loan after I pay them $10,000.00?? What do I do? I really want to keep my home! Also to let you know, Ocwen is willing to do wonders for us.

They are dropping my interest rate from 10.99% to 6% fixed and dropping my principal balance from $110,000 to $59,000, just to get my payment down. I feel great about that, but I can't do it unless my first mortgage would just modify my loan without trying to get money out of me first!! Sorry so long, thank you for taking the time to read this.