We actually got a loan mod from ALS!!!

[sealpup]

We applied for a loan mod w/our loan servicer- Aurora Loan Services back in mid-October. We were behind due to my husband's unemployment and right about the time we applied he went back to work. It's been run around after run around since then- every other week it was some new paperwork they needed. The last time they asked for additional paperwork we sent them everything under the sun we could think they would ever want. I figured there was no way this was going to happen- especially from what I have heard and read regarding others experiences w/this and other mortgage companies and loan mods. Our existing terms were terrible- we had an ARM attached to LIBOR and if I remember right it had the potential to go up to 18%!!
Out of the blue we got a call today that we got approved for a mod- not only that- I think it's a pretty good one. They rolled nearly 9K in arrears into our principle and it includes our taxes and insurance. We start at 2.875% for 5 years, then it goes up by 1% for a year, then it goes up to 4.75% for the remainder of the loan- fixed and conventional for 26 years! I am so happy and relieved. This needed to happen for so we could file (hoping for a ch. 7) and we intend to "stay and pay" which our lawyer says is legal in our state.
Just wanted to share some good news and let people who are hoping for a loan mod out there know that there is some hope!

[IamIrene]

That is actually encouraging.

Our loan flipped a couple of times and wound up with Aurora Loan Services (about which I have been hearing nothing but awful things). In our case, we choose to "stay and pay" and are currently awaiting discharge. We are unsure what will happen at that point. Will ALS jack the monthly rate up to force us into default (have heard of them doing exactly that)? Will they leave us alone for a while? If we default, how long would it take to foreclose post chpt7 discharge? We don't know but suspect it could move fast since after discharge we would have zero liability.

I suppose if they do try to force us out, we will apply for a loan-mod and hope for the best. We highly suspect fraud in our original loan docs so we would probably pursue that angle with a lawyer as well. Now...where to find a forensic auditor for mortgage loans...hmmmm.