Taking Control of the Home Loan Modification Saga

http://mrsloanaudits.com/images/attorney.jpgI finally got involved in my mother’s home mortgage saga after ignoring it for months.  She pretended like she had everything under control by filing and refiling papers and hiring a scamming law firm (eModify). I don’t know why I fell for that one again, considering she used to constantly lie to me that my immigration status was also “nothing to worry about” well into my 20s.

We know how that turned out and how I took control of that situation. I can’t blame her given her lack of education but I do have a problem with how she handled the situation in the most cowardly manner. And if I fix this mess, my parents better put me through law school without whining about how much it costs.

Looking over the house documents, it looks like the foreclosure sale date is on January 19.  Within 1-2 days, I have been able to talk to the corporate office, get in touch with the CEO of OneWest, figure out the great IndyMac-FDIC scam, and get her an escalation specialist. We dumped the home files at HUD, I called the Housing and Economic Rights Advocates and arranged for her to attend a NACA workshop on Feb 5. I don’t know if that is enough time to do anything but I am trying to read up on foreclosures and loan modification laws now. Did I mention that my useless father lives like a retired Governor who is worth more dead than alive? And my useless older U.S. citizen sibling is just that, useless. If those two people could get their act together, we wouldn’t be in this mess.

Mom cannot file for a Chapter 7 because it would ruin her excellent credit for as long as I need student loans to get through law school. I am sick of people putting my future on the line for their short-term fulfillment (come to the USA, buy a home) and feel so betrayed by the entire situation. I am seriously not responsible for anything that happens as a consequence of my parents moving to this country. I didn’t ask them to give up their privileged lives and well-paying jobs to come be indentured servants in America all over again; I was forcefully extracted from my home and placed in this hell. Sometimes I feel like a human trafficking victim that has to run around trying to make sense of a life I didn’t chose. Correction, I feel that way all the time.

When do I stop fixing the mess and failures in the lives of people around me and start having a life of my own? I would NEVER allow myself or my kids to be in a situation like this. Don’t say it — I know I sound like a ‘personal responsibility’ nativist hack but I really don’t see myself doing stupid things like my parents. I’ll make my share of mistakes but not in these departments.

I am also pretty ill in this New Year. Mom says that is because I am not wearing my ‘pearl ring’ for good luck. Did I mention that I caught the flu from her? Never mind.

The Home Mortgage Saga Continues

The infamous Indymac Bank (One West) has once again refused to modify our house mortgage. What is the excuse this time?

“Your expense/income ratio does not fit into our system.”


When asked for clarification, the service representative explained that our expenses are much more than our income, hence the loan could not be modified.

Yes, well of course our expenses are more than our income. That is precisely why we are seeking a loan modification!! If our income was more than expense, why would we seek and receive modification?!

This is a common problem facing home owners wanting to modify their loans–the banks are refusing to budge and forcing people out of their homes. I remember a small article by Northpoint Mortgage mentioning this a long time ago, but of course, back then nobody listened.
A reader comments:

Indymac is doing the same thing to us. We are on our third attempt to modify our loan. Twice they’ve told us to pay a certain amount for three months only to deny the modification at the end of the third month stating paperwork missing or that offer is no longer available. I don’t know what to do. I can’t afford a lawyer and to pay the doubled loan amount they conjured up because we were late on a property tax payment. We reimbursed indymac for their property tax payment, but they misappropriated the funds and state that they can’t take such a payment eventhough they told us to do so. Now they are just screwing with us trying to steal our home.

It is a concerted effort to steal our homes and it starts with the home appraisal. This is the narrative: When we call the lenders for help with our mortgage, they tell us there is nothing they can do till we miss a payment. So we go ahead and miss payments and then the warning letters arrive. We file and refile income/expense reports, negotiate for a good package but keep getting rejected. The process drags on for months, costing us time, money, energy and sleep. They keep losing files, misappropriating funds, crashing their systems, changing their numbers, and rolling out ‘new packages’ that they later reject when you apply for them. A year later, they tell us there is nothing they can do but ‘foreclose’ the house. How many stories fit into this narrative? The sky blue credit repair information can testify to this, I can assure you.

Indymac, here’s a counter-narrative for you to comprehend: modify our home mortgage because you are surely not getting our house. If you do get around to foreclosing our house, you face a loss of over half a million dollars. Why don’t you grow a brain and do what is best for you?

Morons of the Week: 'Indymac' (OneWest Bank)

Indymac and the people who work on the mortgage modification programs at the bank have to go down as the morons of the month. Apparently, even under the services of One West Bank, it is still an utter failure as a financial institution.

Background: There was a time when we had equity on our home but with the real estate bubble burst, the property has gone from $710K to $250.

In the past year, due to the recession, we have lost more than 50% of our gross household income. It is no longer possible to pay $3.5K per month as mortgage, especially with a similar property tax figure per 6 months. And there is nothing to gain from foreclosing. But Indymac and Citibank–our two house mortgage loan owners–have been relentless in their pursuit of God-Only-Knows-What.

(Citibank actually wrote a letter this past June saying that they would send someone to our property to inspect whether we are still staying here, and we would have to pay for it. Our attorney took care of that ridiculous proposition).

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