In June my husband and I were two months behind on our mortgage and HELOC (HELOC was another really bad mistake) as well as car payments and utilities. Desperate and panicked, we tried to go to sites such as lending tree and got bombarded with calls.
We wanted to refinance and have one payment rather than the two. We went with AAMES Home Loan, we were told that because our credit was horrible that we would have a high interest, but were reassured numerous times "This is temporary, in 6 months time you will refinance again and be on your way with low interest" Naive and desperate for the $5000 cash we were going get (we needed to catch up on the car payments and credit cards, plus some utilities and HOA was threatening to lien house), we did it.
It is a 2-year ARM loan with the balloon payment, interest is like 10.8%, payments are $xxx a month (twice what my first mortgage with Wells Fargo was. We make $xxx together, We have two car loans, insurance, HOA, elect., water, 5 credit cards, our daily commute is 100 miles round trip so GAS, food, my husband is diabetic and co pays are $xx for the insulins (3 types) and syringes, cable, phone, school lunches. In all reality we can not afford the loan and should have never even been approved for it!
AAMES sold the loan within the first month to Ocwen, this was in October. I have not made any payments to date and I am 4 months behind. I have tried to call Ocwen to see what alternatives we have (Short Sell, Lower payments, deed in lieu, etc.)
I completed the financial stuff online, sent faxes and mailed letters. I would get the " we are receipt of your request" letters, and no one would ever call me! When I call them I get put on hold for over 30 minutes, the people there are really hard to understand, one CSR entered my account number in wrong and instead of trying to reenter he just threw my call back to the main menu! All they tell me is to rent my house or sell it. We got a demand letter, stating we have 30 days to come up with the 4 months of payments.
I called and the CSR was really rude and asked what I expected her to do more or less, I said lower my payment, let me pay principal only and her exact words were "we are not a bank" she said I would need to refinance with a lender and again was told someone would call me back! Someone did call several days later and when I called I went to the main call center and could not get this person directly, the CSR that did answer said she could help me and I was relived that I called and finally got someone who I could understand, she entered my financial info and the computer said we can afford up to $xxxa month for mortgage, that is more than half of what we make!
According to my calculations we have a $xxshortfall. She asked what I can afford and then said if I can make one contractual payment then they can do a forbearance agreement and let me pay $xx a month for up to a year. I had a meeting with a CCRC (agency) that same day and asked her if I could call her back, she said I would not get her directly and that she would call me. Well she never did and they are on east coast time so by time I get home they are always closed. I did recieve another " We are in receipt" blah blah blah letter saying the have 60 days to respond!
Me in Arizona
Queen Creek, Arizona