Mortgage Epilogue, Part I

On it's face my mortgage situation has been worked out---at least temporarily.

When I didn't know what would happen, I contacted the press about my situation to see if a little well needed publicity would help the matter.

While I spoke with various members of the press, this is the only story to emerge so far.

Much thanks to Ashley Gross and the lovely folks over at Chicago Public Radio.

How Facebook Saved My Ass, Part 2 or How The Collegiate Mafia Came Through Once Again

My recent mortgage foolishness has been a thorn in my side.

And that's putting it mildly.

For those of you who have been reading for quite some time, you know the past few years haven't been paradise.

Jesus take the wheel.

But as we all know, bad things happen to good people everyday. And in some cases, really, really bad things happen to really, really good people.

So in the grand scheme of things, my issues were (are?) a cake walk.

No one was bleeding, I could stil feed myself and I had a roof over my head.

Now my mortgage servicer was trying to affect the later.

Obviously, I was upset.

One of my dear friends who is a regular reader of this blog suggested that I contact a mutual friend of ours who might be in a position to offer some advice.

She also mentioned that she recently reconnected with her on Facebook.

At this point, the situation was (is?) dire----what did I have to lose?

So I reached out to our friend after many years.

I felt a little awkward as we haven't spoken in for some time but have many friends in common from our college days.

So I took a chance.

After a round of phone tag, we spoke and I explained my situation.

It's not that I want to antagonize Select Portfolio Servicing but I failed to understand why there was such a glaring hole in the Obama plan.

But don't get me on that soap box right now.

Let's just suffice it to say, I pray you all don't lose your jobs, run through your severance and savings.

Unless you're the auto industry or banking, let's just say your bailout options are severely limited.

But I digress...

Within hours, my friend received my information via e-mail and said that she would see what she could do.

Two days later, I received a much more sympathetic phone call from my mortgage servicer.

Now they wanted to give me "options."

To quote the late great Dinah Washington, "What a difference a day makes."

I wouldn't have been given "options" without the suggestion of my friend who in turn found our other friend on Facebook.

That's when I started to think, there actually might be something to this little thing.

So I had to check it out.

While my college network may not have as much prestige at The Northwestern Mafia, I may be able to argue that they aren't any less influential.

The Blueprint

When I got the news that I was rejected from the Home Affordable Mortgage Program I was really, really upset.

To the point of tears.

And, might I add, a little hysterical.

For those of you who are long time readers of this blog, you'll remember that it took me 11 long months to find another job after my layoff from my previous employer of 9 years.

Usually foreclosures start at or around the 90 day mark.

We've had five in our association over the years so I've been at ground zero and am somewhat familiar with the process.

While it can take over a year, once it starts you either have to have a pile of money fall out the sky to stop it or sell your home.

Right now, neither is not a viable option. Who in the good Lord's name is going to rent to someone who dosen't have a job? Even the best do gooder liberal has bills to pay in these uncertain economic times.

I know very few people who can subsidize others right now.

So I knew that I'd have to help myself.

When I calmed down, dried my tears and had a few glasses of wine, I crafted this letter:

I just received a letter from my mortgage servicer letting me know that I DIDN'T qualify for the Home Affordable Modification Program AND due to my unemployment the the principal and interest that I can pay is unacceptable to the mortgage servicer.

What does this mean?

It means that as of the end of October, my mortgage goes back up to it's original payment (I was on a modification plan for $XXX) of $X,XXX.

I bring in whopping $X,XXX a month on unemployment and whatever I make at my waitressing job (usually under $XXX a month).

My lender said that they can't work with me on another loan modification program until I get a job to provide sufficient income.

I have never heard something so ass backwards in my life. At this point, I stand a very real chance of being foreclosed on.

When you hear about the program, you're under the impression that it's set up to help.

You lose your job through no fault of your own and you want to do right and keep your house, so you report your change in situation to your lender.

Huge mistake.

At this point honesty---for me at least---has not been the best policy.

It seems that the Treasury Department didn't plan for people having problems with their mortgage due to unemployment rather than being "upside down" in their mortgages. A part of the letter reads:

"The reason you do not qualify is that you did not pass the U.S. Treasury Department's Net Present Value (NPV) Test. The NPV test determined that the amount realized by sale of your property following foreclosure exceeds the amount that would be obtained through a modification of your mortgage."

I thought the point of the program was to keep people in their homes?

Call me at (XXX) XXX-XXXX if you'd like to discuss the situation further.

I seriously don't know what I'm going to do.

Sincerely,

The Woodlawn Wonder

I sent the letter to President Obama, Senator Richard Durbin, Congressman Bobby Rush, State Senator Kwame Raoul and State Representative Barbara Flynn Currie last Monday, October 12th.

Oh yeah, and a few members of the press.

Since it was a legal holiday I knew I wouldn't hear from anyone for a couple of days. Nonetheless, on Wednesday I went ahead and did some follow up.

I was pleasantly surprised at the progress I made and also received a game changing suggestion.

Well Shut The Front Door

You are not gonna believe the phone call I just got from Select Portfolio Servicing.

Un-flipping-believeable.

More later.

Fight The Power

Battling the system can be exhausting.

My hair is a hot ass mess.

But fear not people, I think I've made some positive progress. I will update the blog in the next few days with details just in case you need to mount your own defense to save your home.

Nothing is guaranteed but at least my story may start to resonate with people who can actually help.

We'll see what happens, but rest assured I'll keep you all updated every step of the way.

Not Backing Down

You know do know that I'm not going to let this Select Portfolio foolishness happen without a fight?

I have a pretty good idea of what's going to happen next but I'm in the process of getting my ducks in a row.

Let's see what one determined woman can do.



Game on.

Rejected

I just received this in the mail from my lender:

Dear Borrower:

Select Portfolio Servicing, Inc. (SPS), as a servicer for your loan, has reviewed your account for the Obama Administration's Home Affordable Modification Program (HAMP). We regret that we are unable to qualify you for HAMP based on the information you provided to us. The reason you do not qualify is that you did not pass the U.S. Treasury Department's Net Present Value (NPV) test. The NPV test determined that the amount realized by sale of your property following foreclosure exceeds the amount that would be obtained through a modification of your mortgage.

Words absolutely fail me at this time.

I very well could be looking at foreclosure in the next few months.

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