It is my understanding that Fannie Mae is committed to providing loan resolution options to help borrowers avoid foreclosure. But, I question to what extent Fannie Mae servicers are adhering to that commitment.
You see, I am one of those borrowers who tried to and is still trying to (AFTER CLOSE TO A YEAR AND A HALF) utilizing one of PHH Mortgage/Fannie Mae loan resolution options (Deed-in-Lieu).
We fell on hard times because of job transfers due to plant closings. We had put all our savings into buying a house upon the first transfer and ran up all our credit cards finishing the basement of the home. (We knew we had to sell - due to a SECOND job transfer due to plant closing and thought it would help sell the house faster if we finished the basement) We paid the mortgage payments till we had absolutely no resources left and the house had been on the market for 6 months and had no prospects for sale. We applied for the Deed-in-Lieu in October (yes 2007 is the correct year and today is January 27th) and we were approved 6 month later, April. (After jumping though all the application hoops, supplying the same documents more than once because they lost them, and the house had been on the market for a year with no prospects).
We received documents from the Lender, PHH Mortgage Corporation to deed the property over to Fannie Mae. (The loan is a Fannie Mae pooled loan) The new problem: The Deed-in-Lieu documents required us to pay thousands of dollars of costs - money that we did not have. The lender knows we don't have any money &they had a financial statement and months worth of bank statements we live paycheck to paycheck and have no savings, only debt. They may as well have denied us the DIL by asking us the asking of us to pay thousand of dollars of cost, when we had and have no money.
So to make a long story short, a revised set of documents were e-mailed to PHH Mortgage's attorney's office, that deleted us paying costs, to forward to PHH Mortgage for approval. (Their attorney's office did not indicate that this would be a problem). These revised documents were sent to PHH Mortgage's attorney APRIL 17th - TEN MONTHS AGO and WE HAVE RECEIVED NO RESPONSE. (And by the way, PHH Mortgage loss mitigation dept. Does not answer the phone and many calls are transferred to India)
Points that you should note: The last payment on our loan was made September 1st (YES, ALMOST A YEAR AND A HALF AGO). The Lender, PHH Mortgage continues to inflate the losses on this loan that include but are not limited to Hazard Insurance at 3 X the normal cost, monthly PMI and property taxes. (The escrow account has a negative balance). There was someone interested in the house 2 months ago, but the lender did not return the Realtors phone call. (I have no clue what concession they would make to help sell the property, they have never told me and at this point the concessions would be very large). This is a Fannie Mae loan.
I don't know what to do. My credit continues to be destroyed monthly for over a year and I can not get a job (my husband works). With all the unemployment why would anyone hire someone who is almost 50, with bad credit? I don't know if this is normal, but I have been told by others who are familiar with the process, they have never seen anything like this before. I feel as if I have been maliciously attacked by this lender for the destruction of the remainder of my life. Why they would do this I don't know, but they were nasty with me from day one.
I thought I was doing the right thing applying for the Deed-in-Lieu, when I could no longer make payments, so that an expense foreclosure would not be necessary. I did not strip or destroy my home like some people do but now I wish I had just let them foreclose this has been a health suffering, stressful nightmare.
I told them two months ago through their attorney - either accept the revised Deed-in-Lieu documents or Foreclose now and end this - but still NOTHING - When will it end?
Who can help?
I tried my State Senator's office - no help there.
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