Just thought I'd share a funny story with you all....
A few basics on our situation first. We filed 12/20, mostly due to being upside down in our house over $40,000 with an ARM (cap of 11.5%). We owe approx. 168,000 on our 1st and an additional 42,000 on our 2nd (with HSBC). To date, we are current on all secured debt (house and 2 cars). We have also accumulated about 50,000 in unsecured debt.
We soon found out (upon trying to refi in August) that we were victims of appraisal fraud in 2005 during a refi at that time (our house was appraised for than 30,000 more than it should of been using improper comparisons). So with a mortgage that we had no hope of getting out from under, and bills mounting, we have filed 13. We're doing a lien strip, so we will be back to even (hopefully) when we're all done. We're really excited for the new start.
Anyhow, on to the funny story. We were in contact with Countrywide (the 1st mortgage holder) for a loan modification to try to get a rate reduction or conversion to a fixed rate. All this was before we filed. I get a letter today stating we had been approved (yay!). Having been burned on not reading fine print
I read on, and saw that they were adding 2500 in interest and upping our payment $30 a month. Well, I thought, that might be worth it to get out from under the ARM. Kept reading, says right there in black in white, "payment remains subject to change with escrow adjustments, step, or adjustable rate mortgages". WHAT????
They must really think we are all stupid. I have certainly made bad decisions in my past (or I wouldn't be in this situation), but give me SOME credit for learning from my mistakes, Countrywide.... LOL.
A few basics on our situation first. We filed 12/20, mostly due to being upside down in our house over $40,000 with an ARM (cap of 11.5%). We owe approx. 168,000 on our 1st and an additional 42,000 on our 2nd (with HSBC). To date, we are current on all secured debt (house and 2 cars). We have also accumulated about 50,000 in unsecured debt.
We soon found out (upon trying to refi in August) that we were victims of appraisal fraud in 2005 during a refi at that time (our house was appraised for than 30,000 more than it should of been using improper comparisons). So with a mortgage that we had no hope of getting out from under, and bills mounting, we have filed 13. We're doing a lien strip, so we will be back to even (hopefully) when we're all done. We're really excited for the new start.
Anyhow, on to the funny story. We were in contact with Countrywide (the 1st mortgage holder) for a loan modification to try to get a rate reduction or conversion to a fixed rate. All this was before we filed. I get a letter today stating we had been approved (yay!). Having been burned on not reading fine print
I read on, and saw that they were adding 2500 in interest and upping our payment $30 a month. Well, I thought, that might be worth it to get out from under the ARM. Kept reading, says right there in black in white, "payment remains subject to change with escrow adjustments, step, or adjustable rate mortgages". WHAT????They must really think we are all stupid. I have certainly made bad decisions in my past (or I wouldn't be in this situation), but give me SOME credit for learning from my mistakes, Countrywide.... LOL.
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