Please disregard the hardship letter that was faxed to your company on 04/03/09. As there were mistakes made in the writing pertaining to the years that this financial hardship took place. Please consider the following as the correction Hardship letter. Thank you.
This letter is the Hardship letter I was instructed to send to request a review of my home loans for possible restructure or refinance, along with my financial information. I became unemployed in November of 2007. I was unable to obtain employment until 5 months later.
I was hired for 40 hrs. per week. But due to the economy and company adjustments, my hours are not always 40 hrs. a week, they vary. When cutting back, the company tries not to cut back further than 32 hrs. weekly. So usually I will get 35 to 40 hrs. weekly. I have been trying to find a part time job, but again due to the economy and never knowing when my hrs. will be cut, this is very difficult.
The account arrangements that were in place before my short period of unemployment was that I was always in good standing with the payments. The 2nd mortgage loan varied due to the interest rate. and again I was in good standing. I was responsible for paying my taxes and homeowner's insurance and was in good standing. But, due to being out of work and not able to secure another job right away, the money that was to be used for the taxes, I had to use to survive on and pay my house payment as well as utilities and the payment for my vehicle.
The present situation of my accounts are as follows: My 1st & 2nd mortgage loans are 1 payment behind with late fees.
Due to the period of unemployment.
With the increasing rise in fuel costs at that time, this placed an ever increasing burden in fuel costs to get to and from work and to heat my home. And we know the volatility of the present fuel prices.
I had kept in contact with Countrywide at that time and continue to do so. Then in February and July of 2008, my property taxes for 2007 became due. I could not pay the amount due in whole. I was going to make arrangements with the county to pay this myself. I received notification from Countrywide that they had paid the taxes, and wanted the whole amount refunded to them. On several occasions I contacted Countrywide and tried to work something out, so my house payment did not increase.
Oct./Nov. 08 A representative from Countrywide then took the time and explained the TARP program to me. I agreed to the program, because I felt Countrywide was not giving me the choice, due to threatening that they could foreclose and giving me no other viable options. The payments began in December 2008. This raised my house payment to approximately $250.00.00 a month. This was my Principal & Interest and repayment of taxes they paid out and escrow. I knew at that time it was going to be a struggle for me to pay this and tried to explain this, but Countrywide was only concerned with getting the funds. I managed with difficulty. This is exactly what I did not want to happen. I called Countrywide again, I explained that I knew my taxes would again be due in February as well as June of 2009, and I was afraid of another house payment increase. I was told to deal with it then, that maybe by then some programs would become available. According to the guidelines of Countrywide, I was not eligible at this time for any other programs they offered and could not refinance due to the accounts being behind by 1 month.
I have been trying to work things out to get everything caught up, but as it is, I cannot get caught up. I am at a standstill.
It is now April 3, 2009 and I received a letter from Countrywide expecting over $5,000.00. This is the past months payment, the February taxes they paid out in Feb. 09 and late fees, or they will accelerate my loan and foreclose. I will have another tax payment
due in June/July 09. And my house payment is now $15.00 more a month. Already an increase for the 2nd time.
If, I TARP the taxes paid out in February 2009 and then again in June/July of 09. the new amount attached to the prior TARP amount: my payments will increase beyond what I can afford. So this is not an option.
At this juncture in time, I am out of options. I do not have a 401K to borrow against, or anyone who can loan me money as, Countrywide employees has asked me to do numerous times. I have told them that unless relief is offered in some way, I will have to walk away from a property that I have lived in for some 20 yrs. and spent an enormous amount of money remodeling. Several Countrywide employees, during our many conversations brought up the topic and advised me to sell the house. I have thought about this myself. But there are properties in my neighborhood that have been on the market for the last 1-1/2 to 2 yrs., which have not sold. If this is happening, then how can I sell my home? I have tried to entertain every possibility to resolve this issue. If these loans can be restructured or refinanced, it would be a big relief, If it cannot, then I have no choice but to walk away from the property which is a home, my home. As much as I do not want this to happen. This is a last resort. Please review my accounts and PLEASE HELP!!!!!
Update of Hardship letter of 4/09 that Countrywide did receive. Since the last hardship letter was written Countrywide is now known as Bank of America (BAC)
As of June 2009, I continued to attempt to resolve this mortgage issue and could get no cooperation/resolution from BAC. It seemed that no one at BAC knew what any other dept. or employee had spoken to me about. One employee would tell me that my loan was up for modification and to be patient and 2-3 months later I would call back and be told that my loan was never considered for modification. I was offered a forbearance for 6 months. After speaking to several counselors at BAC, they all agreed that a forbearance would not do my situation any good because I was current on my loan, my situation was caused by Countrywide paying the property taxes and tarping my loan so the payments became astronomical. The last agreed amount of my payment was $904.00 a month. But BAC was tarping the mortgage again to raise the payment another $296.00 a month. Which I did not sign an agreement for.
So, I turned to NACA-Neighborhood Assistance Corporation of America. They had promised that they would help and I spoke to several BAC reps at the NACA event. (Over 20-30 reps were there). BAC reps then informed me that my mortgage was backed by Fannie Mae and BAC had to have FM's approval. And FM could not at that time give their approval because they had 1 representative who showed up, and this representative did not have the authorization or knowledge to approve anything..But Naca assured me they would get it done. So I went through NACA's process only to be mislead and ignored by BAC, FM, and later NACA themselves.
Then in August of 09, I had made my house payments by phone pay. Several weeks later, I realized that my bank statements were stating that my primary loan and HELOC loan payments were never withdrawn from my account. When I contacted BAC immediately about this, I was told by BAC that they would no longer accept payments from me until all issues from my loans were resolved. That in order for me to be helped by one of their programs I had to be in default by 3 months. I stated to them that this was wrong because that would cause a foreclosure action. And they stated they knew this, but if I wanted to straighten out my mortgage, this is what had to be done. I objected but this did not matter. It was the only way to modify my loan. I then attempted to call NACA and could not get any answers from them, I attempted to access my e-mail account with them but could not. I contacted Fannie Mae and left messages with no return calls. When I attempted to make my payments again in September of 2009, I was told they would not be accepted. After feeling helpless and dismayed I asked BAC what to do, I was told to "sit tight and let the process happen". I then contacted an Agency called HOPE, on September 30th 2009. They referred me to a company called Money Management for counseling. I spoke with a Mr. Barrows, he took all my history and financials and stated he thought I qualified for a loan modificationn and would recommend this to BAC, and send them his documentation. Then in October of 2009, I finally was able to make contact with a NACA representative and tried to go over what was happening. The NACA representative stated a forbearance was offered from BAC but did not give much in details due to an automatic phone system cut off that NACA utilized. FM did finally call me back on 10/08/09. In messages left with FM, I advised the best times to call me, due to being at work during the day. I gave them early A.M. hrs and P.M. hrs. The call came during the day. Attempts to return their call was to say the least impossible, but again I left messages. I Called BAC on 11/10/09 in an attempt again to get resolution. I spoke with a representative and she stated she could not speak with me because I was flagged as a NACA client, but the representative did inform me that BAC offered a forbearance of less than $500.00 monthly, I explained the paperwork I received was for a little more than $300.00 a month and would not sign until I spoke with someone. The BAC representative again stated that if I removed NACA then she would be willing to work with me to resolve this. NACA would not respond to any of my messages since I attended their home-saving event. I could not access my e-mail account, because I had not been placed in their system. I phoned NACA and removed them verbally. Later to find that BAC would not cooperate with them. I then phoned BAC, and informed them I removed NACA and discussed the forbearance. We agreed on the less than $500.00 payment, and the representative stated the other forbearance would be null and void. But I received a letter from BAC dated 11/03/09 stating that I was late with my October forbearance payment of the over $300.00 amount. I did not sign for this forbearance. She stated the less than $500.00 forbearance started in October 2009, so I owed 2 payments and arrangements were made to pay it current, The BAC representative stated the late payment would not count against me. I asked about my HELOC loan payment, I was told to not make any payments on that loan either. I then asked what I should do after the Forbearance ended in Feb. 2010. The BAC representative explained that in January 2010, I should call BAC and explain to them that I had the last payment of my forbearance in Feb. 2010, and I could not resume my old former payment. Then BAC would place my loan for modification consideration. I did as instructed and contacted BAC in Jan 2010,, that in Feb. 2010, I could not resume the former payment.
The counselor stated that my loan would be considered and sent to work out. I again asked, what I should do after the forbearance agreement ended, concerning a payment. I was told to continue making the forbearance agreement payment.
The forbearance agreement ended and I called BAC again and was told by a counselor that my loan was never considered for a modification. That I was required to make the 1st tarped amount payment. A Payment was not made in March due to all the confusion, of what payment was to be made. After many phone calls spanning several weeks and speaking to many depts. It seemed no one at BAC knew what to do, so I again called BAC and told them I was resuming the forbearance payment until they could figure out what to do, and the representative agreed with this. And I am still making these payments.
I have received documents requesting $10,000.00 + to right this situation. I do not have that amount of funds to offer. I have continually requested a modification of my loans. I have now received the modification application/request.
My expenses have all remained the same as stated in this letter earlier. I am employed at 40 Hrs. per week, but this can vary from 35/40 hrs. per week. .
Please assist in getting this situation straightened out. I have tried unsuccessfully since this began to end the insanity.
Update of hardship letter of 04/2009
I received the application for modification in July 2010, I sent in all the proper documentation requested from BAC, that was listed on their forms. I, Fed/Ex'd the docs to them in their return fed/ex envelope with their pre addressed form. After a week, I phoned them and they did confirm that they did receive the docs. and they would review them. I did not hear from BAC for several weeks.
I again phoned them, they stated that I did not send all the requested documents for review, to determine if I was eligible for modification. During this call, I requested that they review all the documents while I remained on the phone and suddenly they discovered that they did receive all the documents, but needed updated info sent to to them, so I did this. After 1 week I phoned them again and they confirmed that they did receive the updated info. I was continuing to pay the forbearance amount, and they were telling me on the phone that I was only making partial payments. I explained again to them, why, this was happening. The BAC representative stated: I was told wrong. they may refuse to take these payments because they were not full payments. When I inquired of what payment amount that I should be making, the representative could not tell me. So, after much discussion with this representative and many transfers to other depts. and reps, I was told to just continue to make the forbearance amount payments. At this same time I continued to receive demands for all Tarp payments which amounted to more than $1,200.00 a month. I did not sign a Tarp agreement for that amount.
I did hear from BAC via U.S. mail, a few weeks later, concerning the forbearance payment amount, and BAC stated that I was in default with partial payments, and they would begin foreclosure proceedings if I did not make arrangements to catch up the past due amounts. Due to frustration, I did not contact them for 2 months. After I waited 2 months and did not hear from BAC about the modification, I did contact them. The representative again told me I was not being considered. I explained to the representative that I had already completed the application and was waiting for the modification paperwork. The representative then asked, if I had received any paperwork? I stated NO. Now, it is the end of September and beginning of October 2010. The BAC representative stated, they would get right on it. But first, I had to send in all updated info that I had sent in the application. I did this, and finally they sent the premodification package dated October 2, 2010. My mailbox was flooded with 4 of the same premod. packages. After reading through the premodification, I had so many questions, so I again called BAC, requesting that I speak with the loan counselor responsible for my case. I was given a name, but told I could not speak with her. No customer could speak with the counselors. As they are overloaded with work. I explained to the representative that I would not sign the premod, without some answers for my questions. The representative then asked if I was refusing the premod.? I stated, that I had questions and would not commit to this without answers. the representative then stated that I would have to get info from the counselor, as the representative could not answer my questions. When I asked the representative How do you propose that the counselor answer my questions if I cannot speak with her/him. I was told the reps could e-mail the counselors with my request to speak with them, and then, wait till they call. I then asked if I could e-mail the counselor with my questions? And I was told no, only the reps can e-mail. So, I waited and waited with no call. The premodification was to begin in Nov. 2010, for a 3 month trial period with the paperwork due by the end of Nov. 2010. With no calls from the representative and after reading cases of other premodifications, that the lending institutions did not honor them and continued to foreclose, I decided to contact a lawyer for advice. I made an appointment with an attorney. He stated my best option was to wait it out for the foreclosure papers to be served and force BAC to a mediation in front of the courts. I explained to him, that I was trying to prevent foreclosure papers being served. He stated, he would assist me in writing a letter, to the Judge, requesting a mediation session. When the papers were served. And then I could handle it from there, as I really did not need an attorney at that point.
I received a termination notice of the premodification offer dated 01/29/11. It states that I notified them in Sept. of 09 that I did not want to accept the premod offer, when I received the premod paperwork and payment schedule in Oct. 2010. I called BAC about this and they did not have an anwer, they stated that I was not eligible for any other programs. They stated it was my responsibility to contact them frequently to request the counselor to call me. When I told the representative the counselors name she stated: " that is not your counselor...we have no one in this dept. by that name, nor has anyone worked in this dept. by that name. She gave me a different name as my counselor. Again I asked if I could speak with her and she stated no, giving the same reasons as cited previously.
After reading through the premodification documents, I realized my assumptions all along with BAC were true. This is all a money game. It is very doubtful to me that they were intending to give my home loan any type of modification, due to the wording of their documents and their actions. It would be a temporary fix that was misleading. And according to the documents, would place me again in a bad situation and the interest rate would not be fixed as it was truly a modification for 5 yrs. And then to have to go through this all over again. So the insanity continues. hopefully there will not be another update to this insanity, and I will be able to keep my home within my financial means.
update: of hardship letter of 04/2009
March 29th, 2011
I contracted with another agency. to perform a Forensic Audit on my primary home loan and HELOC loan 3/29/11. As part of their audit process they send Qualified Written Requests (QWR's) to the lenders/servicers. This Agency has sent 5, since the above hire date, to BAC.
BAC has not responded to these QWR's. BAC filed with the County Common Pleas for foreclosure on 06/06/11.
I received by mail a statement dated 6/27/11 that BAC was informing me of a request regarding a credit reporting adjustment. This was requested by the agency on my behalf. Since BAC has not complied with the QWR's the agency has performed an audit based on the home loan documents in my possession and have determined 18 violations, and a letter was sent to BAC notifying them of this. Total Potential TILA Violations: (5)......Total Potential Respa Violations: (4).........Total Predatory Lending Violations: (9).
I have lived in this home for 24 yrs., and would like to continue living in it as the homeowner. This letter is a synopsis of what has taken place for the last 4 yrs. beginning in 07, this letter primarily deals with the issues since 2009.
Update of hardship letter 4/2009
BAC sold my Heloc loan to Bank of New York Trust Company, and I received notice of this dated: July 20, 2011.
A Stay of foreclosure was placed by the courts And a Mediation date was set for October 27th at 3:00pm by telephone conference. I initiated a 3rd party authorization for to speak at the mediation and it was notarized and copies sent to lawyer/reps of BAC and the County Courts (CC) mediation dept. I complied with all required documentation for the mediation with BAC lawyers and Mediation dept. that the Mediation dept. required. In a CC letter to inform both parties involved in mediation of requirements of mediation, it stated both parties were to give copies to each other before the mediation. BAC lawyers did not make available to me any copies of any type of paperwork, When this was brought to Mediators attention he seemed surprised and then seemed to not be concerned. We informed mediator that BAC has not complied with any of our requests. We sent BAC rescind notices for both mortgages based on what was discovered in the audit. In which it was ignored. We also advised the Mediator that
(5) QWR's were sent to BAC in which they were ignored. And all that we have done, is within our rights, legally give notice of rescinding mortgages, and notice of QWR's. And with BAC ignoring our requests and our notices, they are breaking the law. We then agreed with BAC to send again new financial info to see if I qualify for a modification. No mention was made of the 2nd mortgage, so again I will have to deal with another foreclosure. Since BAC continually told me they will not take payments on the HELOC loan until the 1st mortgage was straightened out. We did present to BAC reps/lawyers what solution we found reasonable: Rescind mortgages, institute new mortgage with 1&2 combined. Loan to present value of home, we will maintain taxes and insurance. Lawyer stated their client BAC will not accept that solution. The homes former value was $130,000.00 rough estimates of both loans total $118,000.00. Presently last known market valuation was based at $80,000. A rough loss of $30,000.00. At least this is what the bank would resell the house at upon foreclosure. And this does not include the amount they would get from the federal gov't for foreclosing. I feel this is all a ruse and BAC intends to take this home no matter what. We have a right to the QWR's. and to Rescind these mortgages. BAC has copies of all the Violations found. Why is it that I have to QUALIFY for a mod. or Hamp or any program, when I was only 1 payment behind on my mortgages and close to paying that current when CW/BAC refused to take my payments to purposely place me in default? I should not have to qualify for anything. I do want to stay in my home as the homeowner. I have contacted the Federal Comptroller's website and filed a complaint. and with the consumer finance site. I am attempting to file a complaint with the Ohio Attorney General. I have contacted him on 2 different occasions without much assistance. The AG's office informed me that they do not have any jurisdiction over BAC because it is a federal bank. I replied that it does business in the State of OHIO. Can anyone help???? The insanity continues.........
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