HOMEQ - The Dilemma

[Joel Fraser]

Looking for some advice on how to handle situation, a long story but we are late on mortgage X 3 payments, now going to attorney for pre-foreclosure status. I had monies for our loan, Homeq refused payment on 3rd payment, we still where within our grace period. Our loan is due on the 1st of each month, tried to pay on the 10th of this month and they refused payment...now past 3rd payment going to lawyer for processing pre-forclosure. I am upset, but then again I tried...I cant be mad at myself for trying to pay. Me and my wife are splitting our marriage up due to this situation and our financial status, its just too hard and difficult to be happy anymore. What I am looking for is an attempt at getting the loan modified. Our interest rate is horrible and it has not reset, but will shortly. Our interest rates on an 80-20 loan are 9.8% and 13.3% thus going up with a ARM reset in the near future. We pay 1313.00 and 302.00 monthly for a 130,000 loan. Total 1615.00 mortgage/130,000 loan. Although it seems unfair we did sign the papers and agreed; however, we only make so much....how much is good enough? I have paperwork for loan mod-financial statement, house is in wifes name only and she makes enough to sustain the house payment but barely. I see we must be 150-250.00 over the 'net' income to be considered? Will they consider a mod if we are in pre-forclosure? I'm going to bank our payments from now on and apply for a loan mod first, if that isnt successfull I will try a loan repayment plan but that will skyrocket payment even putting us in a more difficult position. I want to try and get to October.....like most of us and see what rewrite loans will be available for govt asst or FHA bailout loans? In any regard we want to keep home so my wife has a place to live......below is our hardship letter Please reply: Name: Susan Address: Lender Name: Homeq ServicingLoan :xxxxxxxxxx & xxxxxxxxxxxx To Whom It May ConcernI am writing this letter to explain my unfortunate set of circumstances that have caused me to become delinquent on my mortgage. I have done everything in my power to make ends meet but unfortunately I have fallen short and would like you to consider working with me to modify my loan. My number one goal is to keep my home and I would really appreciate the opportunity to do that. I most recently have been making my month payments at the end of the grace periods and this week I called in to make a payment and was told I could not make a payment due to being forwarded to foreclosure. I do and did have the monies available to make a payment; however, now I will incur more charges-attorney fees and other misc fees that worsen my situation. I do have the monies available to make a payment but I was denied. I am trying but its difficult when situations change. I dont see any reason why a mortgage payment would be refused to keep me from this problem-situation, I dont want to be in foreclosure?The main reason that caused me to be late is Marriage Seperation/Divorce & Employment Change Soon after being late and my income not being nearly enough, I had fallen further and further behind. Now, it’s to the point where I cannot afford to pay what is owed to HomeEq Servicing fee’s and past due amounts. It is my full intention to pay what I owe. But at this time I have exhausted all of my income and resources so I am turning to you for help. I would like a loan modification, or my shortages put on the back end of my loan and a payment reset to be affordable to my income.I believe that my situation is temporary and I believe I can financially afford my home with a rate reduction period, beginning August or September 2008 payments through a period of time. I would like to work with your loan servicing company with a loan modification program rather then possibly choose to follow the Chapter 13 reorganization options.My situation has got better because I am employeed with a job – full time Crown xxxxx and I also work at another job-Job Services and I feel that a loan modification would benefit me. I would appreciate if you can work with me to lower or delinquent amount owed, attorney fees and or payment so I can keep my home and also afford to make amends with your firm. I am not that inclined to do a repayment plan due to having my ‘payment increase’ when that is the original reason why I got into this situation to begin with. I would like to have the option of a loan modification due to having such high interest rates on both loans reset to where I could manage and afford my payments each month.I truly hope that you will consider working with me and I am anxious to get this settled so we all can move on.Sincerely and Respectfully,Susan KPhone-Will sent to all three HOMEQ Management names listed in other posts via email today.