Anyone in Michigan done the "guaranteed lender meeting"?

[Tom_Mi]

Hi,
I'm not referring to just any meeting, but rather the newly-legislated one we're guaranteed after the NOD, during the 90-day stay.

I called the lender's lawyer, got my 90-day stay, and they sent hardship paperwork to fill out.

I'm just wondering what peoples' experiences are, if any. I have a suspicion I'm one of the first to actually do this.

[NoMoreCards]

I just got the paperwork to call the lenders lawyer yesterday, I suspect this is the same thing you are talking about Tom. I am in Michigan as well.

I wonder what will come of all this??

[Tom_Mi]

Let me know how you do. I'm trying to sort thru a lot of things.

-If they mod my discharged note I assume that constitutes reaffirmation. Is reaffirmation (and the resulting liability) a carrot I can dangle that might get them to drop the principal?

My wife got a job last November, but if I give them '08 taxes it won't show (so I won't overqualify)...trying to decide if I should include her income or not. My salary should justify a reduced-principal mod, but her income would make them demand I pay the whole thing (not gonna happen).

I'm also mulling over what my demands ought to be. Among them:

-Ask for a principal reduction (hamp says something like 90% of appraisal I think), while reminding them what they'll get for the place after foreclosure. I'm not going to play any of the 2% 3% 5% crap with the same principal. The place is too far underwater to waste my life paying on it.

-If the above won't happen, I'll offer them a DIL -- but only if the lender guarantees me 10% down financing on my next house. They'll laugh but hey, a guy can dream.

-Let them know I plan to demand Judicial foreclosure. I'm looking for an attorney now who's done this, but it's rare in Michigan. I don't expect some "produce the note" free house to happen, but I'd like to muck the waters enough that it delays the process significantly. (so I can save more)

I fully expect it to go to Judicial foreclosure though...I'd like to find someone competent to examine my mortgage and plan the strategy ahead.

[NoMoreCards]

Hey Tom, I will keep you posted on my progress as well. As of right now, I am owing for Jan 1st payments to today, so 4 months behind.
I received the NOD about 30 days ago, and it was just transferred to their attorneys (Trott & Trott). In the past 2 days I have received a couple letters regarding modifications. I called them this morning and they will call me back.

My plan was to do a hardship withdrawal for the past due amount, as once I am caught up I can continue to make payments. Not my first choice, however it is the only way I could catch up and keep my home. My mortgage payment,taxes and insurance are about 30% of my income, so the HAMP will not work for me. On the phone this morning they did mention possible internal modification, so I want to try for that first.

1st mortgage = 168K, 2nd = 12K
I have no idea what it's "current value" is. I expect about 140k-160k

Principal reduction is my number 1 goal. After that, interest reduction as I am at 6.25 currently.

I don't know what to expect or try for however you have given me a general idea! (Thanks)

[drjustian]

Trail of Foreclosure Hell

my tails of mortification with the modification process are documented on my blog: www.ChaseBankDeceit.blogspot.com
I wonder if anyone knows whether a bankruptcy judge can order a new mortgage with the homes actual market value and lower monthly payments. My home, purchased 6 years ago for $245,000.00 is now worth, according to my lender Chase Bank, only $154,000.00.
Can a bankruptcy judge force that figure onto Chase? Maybe that was just a proposal but it would be nice.

[sofarsogood2]

Tom Mi & NoMore- keep us posted. We are discharged and want to try for a mod- but not that hamp crap. Hoping for principle reduction too- otherwise, just not worth it to keep it. I also wonder if the fact that the debt is discharged, and them knowing your not adverse to using an attorney to delay foreclosure, would make them more willing to negotiate.
Dr.Justian- we wish! Judges cannot force a mod on your lender unless you have a 2nd that can be stripped- see threads throughout forum for more info on that.

[NoMoreCards]

Use a brief update. I contacted GMAC's attorneys (Trott & Trott) to discuss modification. They said they would mail the paperwork. After not receiving the paperwork, I called back and asked for a $$ to bring the house out of foreclosure. Finally that paper arrived yesterday. The attorneys added 1K to the bill for "their fees", and they have done nothing but mail me 3 pieces of paper. *sigh* They also are charging me $95 for a apprasial. Since I have to pay that, I'd like to know what it appraised for, but I doubt that would happen.

So at this point, I think we have decided to bring the house out of foreclosure and work directly with GMAC for the modification. Their attorneys, I can't afford to have in the process.

1st Mtg. 168K balance - GMAC- at 6.25%
2nd Mtg. 12K balance - SLS at ARM
Home value - not sure, but probably around 165K

I have considered doing a 13 to strip the 2nd, but it is only 43 a month, so I don't know that it is worth the second BK on my record. Plus I wouldn't get the discharge until the plan aged 4 years. I have no other debt due to the ch7. I just don't think it is worth being under the Trustee's thumb for the next 4+ years.

My hope is to get a interest reduction, as I have heard principle reduction is a pipe dream. We will see. First step is to get it out of foreclosure and away from their expensive attorneys.

[drjustian]

I am in Middle of Mich Process, not HAMP

I filed for the Michigan process. Trott tries to get me into HAMP though. They screwed up, they sent me a "notice of meeting" on March 25, and told me, wrongly, that we had to wrap up our modification by May 31. Wrong, the law prohibits any start of the foreclosure process until after 90 days have run. Their trying to screw me around means that the 'notice of meeting' is invalid and they have to start all over again. I told them, and they reschedulted the 'meeting' from April 16 to May 10. But...they screwed up once again. So far, the date has been pushed back to July 25. At the last April 16 meeting my housing counselor was not there and they didn't even have my file with them. I told them that all things considered, we didn't have the statutory required meeting. After arguing a little, they agreed and reset it. I'll string them along for awhile them, after the 90 days have run and they try to foreclose I'll get the court to inform them that the law says what it says; they can't start the foreclosure process until 90 days after they send out a proper 'notice of hearing' which must state that I have those 90 days to negotiate. They still haven't done that. So far, Chase Bank's last offer was 56% of my monthly income: $1,620.00. I countered with 38%, $1,240.00. I won't go any higher. Once the 90 days are over and I still don't have an agreement I will delay further by applying under HAMP. They can't start foreclosure until we go through that process. That means that they can't even begin the judicial foreclosure process for a long time. Then, if necessary, bankruptcy. Also, I'm sending notice under UCC section 501 to demand a copy of my promissory note with every demand for a payment Chase Bank makes. If they don't send it, they can't demand payments. lol

[Tom_Mi]

I've been slow, but I'm filling out the paperwork and looking for an attorney today.
If any of you know a Lansing area lawyer who has a clue regarding Foreclosure in Michigan, send me a PM.

I've already discharged my home in a bk7, discharged Apr '09. My plan was to ride thru and save $$ for my next house. But my payment went way up and hosed my plan. From the start the servicer said the investor won't do any reworks because they're foreign and not Fannie/Freddie. Hopefully this process will get me a little more consideration.

My plan is:
-Get a rework with ( pmt + tax + ins < 1100). I'll take a forbearance, balloon payment, whatever. I really don't care because I'm just trying to avoid renting while saving $$$.

-Ensure the rework does NOT constitute reaffirmation. I think the law ensures that, but I'm not sure. I have a lender who will do a 20% loan as long as my current house is listed for sale. But I gotta get the 20% -- and I want to save the $ here, not in a rental.

-Principal reduction would be nice, but if they can get the payment I want, I'm happy.


-Get a *judicial* foreclosure in the event they won't budge above. I think 1,000/mo ought to get me a lawyer who can dump motions on them and buy me several more months.