In I was told by Chris at World Savings that I should take advantage of my homes equity. I had purchased my home for $320,000.00.in 2002 and put $195,000 down. Now, He told me that my home was now worth $560,000. I was in great need of a dependable vehicle and this extra money could really help me out. Chris told me if I refinanced, from my present pick-a-payment loan, (which the minimum payment was interest only), that my payment would be the same. He lied. It wasn't the same.
He failed to tell me that it was a NEG ARM and that paying the minimum payment, (which was what I could afford) would only increase the principal amount owed to the bank, and never decrease the amount owed. When I stated that my monthly income had decreased, I was told if I paid $200.00, I wouldnt have to show proof of income. When I said I was currently behind 1 month on my mortgage payments, Chris told me not to worry, they could take it out of the money I would be getting.
He said my payment could not increase more than $50 in a yr. He said if I couldnt afford the payment (when it was to increase) I could freeze the affordable payment for a year. I could always change to a fixed loan in the future.in My principal was $200,000.00. Now, four years later, my principal owed to the bank was $208,000.00.
Beware of the Loan Modification Scammers out there. I feel so sorry for all the desperate people out there, (like I was) trying to get out of their NEG ARM loan before its too late, and unsure of where to go to get the real answers, and unsure of who they can really trust. I recieved a flyer in the mail leading me to believe they were the HOPE NOW Alliance backed by President Obama. Free Counsling and help to get my loan affordable. After giving these people my financial info and loan info, and faxing the proof to them, I was told I qualified for a loan modification. I was thrilled! Relieved!
I was then told that to begin the process, I would need to send then 2 post dated checks totaling $1700.00, that would be held onto until I could afford to pay them. Right then, the red flags went up. They said they werent allowed by law, to advise if I should pay Washovia for my 3 behind mortgage payments, but then asked, "Why would you want to waste your money to make those high payments, when you could pay the lower modified payments instead?
I finally got the real HOPE NOW phone number (888-995-HOPE) and they took all my financial info, helped me with my hardship letter, and helped me with a budget. They told me that they would send all my info to Washovia and that I was to call the special Washovia Loss Mitigation number (888-565-1422) and ask them if they recieved my info and hardship letter, and to ask them what my options were concerning my mortgage loan.
After the 10 business days, I called the number. They said they had not recieved anything. They said if I wanted to see if I qualified for a modification, I would need to give them my info directly, like right now. I did, and then was told that I had to fax proof of income, proof of living there (a bill with name on it) and said they would get back to me. For sure? Either way? I asked. Yes, he replied. I never faxed the info unsure of what to really do.
I tried calling HOPE NOW again to ask if they had proof of mailing Washovia my info and hardship letter, and once again, got a mortgage modifying business, using HOPE in their business name or phone number. After I told him I was so sick of wasting time with companies who arent HOPE NOW but use their name, then try to get $1700.00 out of you. I told him I didnt know who I could trust anymore.
He was a real estate broker who gave me alot of info about why their are so many fraudulent companies and how to check a company out. He told me that in some states you can be certified to modify home loans in only a day. He said alot of them really dont know what they are doing, and the demand is so high, they get behind and end up being to late to get them modified. Hetold me, never tell your lender your info, But I already had.
Finally I called my original real estate broker who got me my original home loan and he told me that Washovia has a few good loan mods they are doing for their customers, and he advised me that Washovia was offering different modification programs. He said ofcourse I should give them my info to see what they can do for me. He said to give him a call back if they could not help me. He gave me loss mitigation number that I had already called, and I finally faxed the info proof to them.
The next day I recieved a letter from Washovia/Wells Fargo informing me that I did not qualify for Obamas refinance program, but would recieve a UPS tracked, modification package, that must be returned by July 31st.
Considering that Washovia wasn't originally responsible for giving me this loan from h*ll, they offered to take $38,000.00 off of my $208,000.00 principal,
as a loss, leaving me with the new principal balance of $170,000.00.
My minimum Neg ARM monthly payment was $1232.00 and was reduced to a 6 yr.interest only loan payment of $837.37 that increases about $55 per year for 6 years. After that the payment is a fixed principal and interest payment for the remainder of the loan.
I hope these phone numbers Ive listed, can help others to modify their Washovia / Wells Fargo NEG ARM loans.
Tammy
Antioch, California
U.S.A.
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