Aurora gave me a "Traditional" Modification

[drowning123]

Holy smokes! About 2 months ago I called Aurora to see if I could work something out, since I got to realize that it's hard as heck to rent in my neighborhood. I filled out the necessary paperwork and faxed it in. Lo and behold, today they came back with a 3-month trial, a "traditional" modification, as opposed to a HAMP. The good thing is NOW they finally wrapped up my insurance and taxes in this payment. I used to pay $1927, excluding taxes and insurance. My tax and insurance were probably an extra $400, so that was a total of $2327. Now they offered me $1,570, including taxes and insurance. Go figure! They also realized that no one is buying in my 'hood. My neighbor's house has been on the market for at least a year and a half, and nothing. She's reduced it from $191,000 to $158,000, and still nothing. I don't even have to start paying until August 1. I can't rent anywhere in my 'hood for $1,570. I'm takin' the offer.

[Pandora]

hi drowning

Congrats on getting the trial mod - but.. I must caution you...before you agree to anything make sure you read every single thing that is proposed. Make sure every detail is spelled out crystal clear - from interest rate (fixed, not interest only) to terms (are they extending the note to 40 years?)

To drop your payment (all inclusive) almost $800 means you will have to make that up somewhere, which usually means either a forbearance for XX amount of months, a balloon payment at the end of a certain timeframe (including fees) or they increase the payment after XX year. Dont be surprised if in the end, you end up owing more on your mortgage than what you did prior to the mod. Remember that the trial is just that... a trial - and your perm. mod payment can increase significantly over what the trial offer was.

[drowning123]

Got it. Thanks, Pandora. I'll read everything and report back here.

[Stilltheone]

Congrats on the mod. We applied with Aurora and they increased our payment! Our original payment was $1118.54 and our trial payment was supposed to be 1412.67. EEK! Needless to say, we turned it down and are now battling, trying to get the escrow account that they opened, closed. Hard to do since we were transferred to Nationstar.

[IamIrene]

All of Aurora loans were transferred to either Nationstar or Selene...neither of these places is reputable. I have read so many complaints online...most especially about Nationstar (since that's the one we were transferred to) that I'm a little bit sick to my stomach.

I don't mean to rain on anyone's parade...but I don't want anyone to be deceived by this wolf of a company.

Here's what seems to be the (new) deal in regards to Nationstar: If you bk'd...they seem to have a policy in place (possibly as recent as January 2012) to not deliver any loan information to BK clients unless they have a reaffirmation. How can we make sure we are paying accurately if they won't send us statements or allow online access? Well, that's part of the game.

The other part is "dirty tricks". Things I've seen complaints about:

-"Double-dipping". You set up auto-payment directly through your bank and they take out unauthorized amounts from your account.

-In regards to your modification: be extremely careful. I've heard Nationstar often completely disregards modifications or changes the terms suddenly.

-Not applying your payment correctly, sometimes not at all. It can just disappear into a hole somewhere that no one at Nationstar can seem to explain. You mail in a check? Well...(they'll say) we got an empty envelope! We didn't cash your check! You made a principle only payment? Well...it was all applied to interest only, or slatted for escrow, or again, disappears into vapor.

-Messing with your escrow account. Miscalculating your projected taxes and then taking extra out of your monthly payment to cover the difference (without notifying you, of course). This sets you up for short-paying your monthly payment and causes you to default.

-Late fees, even when you pay early or on time. Even though RESPA forbids ANY late fee for 60 days during a transfer of servicing rights, late fees that they don't tell you about so your payment comes up short...putting you into default. (RESPA: 12 U.S.C. Section 2605)

Do not trust Nationstar. They are a foreclosure shop and have no interest in helping the homeowner (I don't care what their website says, they are notorious liars!). If you actually do receive a statement from them, CHECK IT THOROUGHLY and question EVERYTHING. It is our right as homeowners to demand a "qualified written request" to make them prove they actually have the right to collect payments on behalf of the note holder. Send in the QWR they are required to acknowledge it within 20 business days of receipt and answer it no later than 60 business days from receipt. (RESPA: 12 U.S.C. Section 2605)

If you find that you want to make a payment to them, I urge you to NOT send a personal check (that has all of your bank account details on it) and NOT send an auto-draft. I know it's inconvenient, but the best was is to get a cashier's check, make sure the payment month is clearly marked (July 2012 *loan #*), photocopy it and send certified return-receipt.

I am in this mess too and already have lawyered up. Our QWR is being drafted right now. Keep your eyes open, the game is stacked against all of us.

[Stilltheone]

Irene--

I have a feeling Nationstar is going to force me into a foreclosure.

When we applied for a mod with Aurora, they automatically opened up an escrow account and started sending checks out to my insurance company, even though we were current. I have been battling with Aurora for the last month to get my escrow account closed, with no success. First, it was that I had to fax in paperwork to prove our property taxes were current. Once that was faxed, I was told that we were still put into a "mod" and that our escrow account couldn't be closed until we were taken out of the mod. So, they took us out and I had to fax paperwork again. Next, they didn't receive the paperwork but that didn't matter because our escrow account was now negative, since they sent out checks. By the time I paid off my escrow account balance, it was too late and I was transferred to Nationstar.

I have been on the phone with Nationstar for the past 2 days, getting different answers about whether or not I can close this escrow account. First person told me yes, he'd "mail me" out a packet. Yay, this will take 2+ weeks to get. Next person (when I called back with a different question) said that since my mortgage came to them that way, they couldn't change the original terms. Sorry, but we've never had an escrow account and we've been here 7+ years. FINALLY, I requested a supervisor who put the request through for the escrow account to be closed. I have to call back in a week to see if it was "approved".

The kicker? I received an escrow "statement" from Aurora today, dated June 26th, that our escrow account is going to be short by $2,000, so, starting Sept 1, they're adding on ANOTHER $170 to our payment, bringing it up to $1700+, when it was originally $1118.54. Nice, hey?

I'm also wondering what Nationstar is going to do with the $1118.54 that they're "holding". I sent my May 1st payment to Aurora, but because it didn't include my escrow amount, they refused to post it to my account and it's in "holding".

We pay our prooperty taxes with our tax return and can't afford a month to month escrow, so I've pretty much made up my mind that if they don't approve our escrow account closing, we can't afford to live here. Sucks, but they're basically forcing me into a foreclosure, all over an escrow account.

I also called Nationstar to see WHY I couldn't log in and make a payment. "Well, ma'am, let me just send you out a reaffirmation agreement to sign and you'll be able to see your info online." Um...no thanks. Shove it.

[drowning123]

Update. My account was transferred to NationStar. I sent them my Aurora modification letter with all the terms of my payments. My first payment was due on August 1. NationStar claimed that they never got my modification application from Aurora so I needed to re-send so that they can approve. I put my foot down and refused. By e-mail, I cussed out this one guy in the Loss Mitigation Department. I told him this was aggravating and I am not re-sending anything. They should honor Aurora's terms. Anyway, a few days later he called and told me that my first payment is now due on September 1, and it's $40 less! Unbelievable! After I make 3 payments, I'll see what happens. I think it should all be good. I'll keep you posted.

[drowning123]

P.S. I haven't heard anything about a re-affirmation agreement. I'm sure I will after I make my 3 payments. I actually don't mind a re-affirmation, since I think this house is it for me. At least for the next 10 years. I can manage the payment completely now without any problems. Filing for bankruptcy was the best thing I ever did financially. I know that sounds weird. I truly learned my lesson.

[NoMoreCards]

Your bankruptcy case has been discharged and closed. You can not Reaffirm a discharged debt.

[pcn]

Your bankruptcy case has been discharged and closed. You can not Reaffirm a discharged debt.

So what are their options then?

[drowning123]

Refinance is an option, which would make me liable again, but I'm not thinking about that right now. Stay and pay will work for now, with the hope that the bank gives me a permanent modification after the three months of payment.

[Stilltheone]

OP, I wish you all the best in dealing with Nationstar.

I'm STILL battling getting my escrow account closed. They sent me a letter, that was supposed to contain the escrow waiver and it didn't. Finally, they emailed it to me and now, when I call to check to see the progress, their policy changed and they can only speak with my husband, who is never home to call them during the day. I'm hoping he'll be home early today, so I can finally get an answer. I need to make a payment soon and don't know if I can. (If my escrow account is still there, I'm not going to)

I hope others have success with Nationstar. I feel like I'm banging my head against the wall. If I didn't have 3 kids with one on the way, I'd walk away because I'm so frustrated.

[emmaj]

We also had Aurora and after attempting a modification this spring, Aurora kept stating they did not receive documents we finally stopped hearing from Aurora in April. I made phone calls, left voice mails, then the letter stating they were transferrring our loan to Nationstar. We were discharged in 2010 and having been continuing to make our payments on time, until July 1. No statement from Nationstar and I could not get through on the phone. I e-mailed them and was told that we could not have online access since our account showed a bankrupcty. If our mortgage had been reaffirmed (we would have to send the paperwork), then they would give us access. We finally got through on the phone 2 weeks ago and still have not received a statement. I have not place to send the payment. Our loan is/was adjustable and set to adjust but we don't know what the payment is. This company does not give me a good feeling

[drowning123]

Sorry to hear about your plight. Next time you call, ask for Justin Smith in Loss Mitigation. He was very helpful. Good luck. They actually said they're giving former Aurora customers a 2-month grace period, so don't sweat. Good luck!

[Stilltheone]

Not sure where you heard they're giving customers a 2 month grace period, but I tend to think not. I just received a letter from them, both regular mail AND a certified letter, that we are in default for our May 1st payment....which they have in holding until they fix our escrow. This letter was sent out in the middle of July and we just received it a few days ago.....They sure seem to be quick to send out a flipping certified letter for a payment they already have and refuse to apply.