I live in Illinois and owe 158k on a condo worth approximately half that. The condo right below mine is in short sale for 75k. The developer, now bankrupt, took all kinds of shortcuts and left us all kinds of problems for which our assessments have doubled.
And here is how it got even worse...
I first tried to simply refinance, but the condo below mine is selling for less than half of what I still owe on mine, so they tell me I will have to bring--get this--approximately half of the 158k I still owe on the loan to the table to qualify for a refinance. So, in order to save $200 a month, I must dump 70k more into this bottomless pit of a condo.
So they tell me I should try for HAMP and ask me if I have missed any payments.
Of course not, I say. I play by the rules and do everything people tell me I am supposed to do. Which is why my credit rating is around 815.
So they ask me to send in paperwork declaring how much money I have in the bank, which I do. I don't have much: some stock I bought a couple of years ago that is now worth about 60% of what it was when I paid for it, 2k in oh-shit-fun, and a Roth IRA with a little bit in it. I mean, we are talking all my money added up would be maybe 5 more months. But I am looking into the future...
They tell me to not pay my January payment, then make the reduced payment starting in February.
I say, I have the money to pay, so I will just pay regular in January.
No, they say, you can't do that, or you will not get approved.
Oooookay, I say. And don't pay. Then
I begin paying the new amount on Feb 1st. I save 200 bucks on mortgage and feel pretty good. A number of expenses have come up due to the fact that our developer took a bunch of shortcuts, left a bunch of stuff unfinished, then declared bankruptcy and skipped off with our money to form a new business with a new name. But I digress!
So I make all of my three trial payments on time.
THEN I am rejected because the piece of paper I sent them 3 months ago said I had around 5k that I could have used to pay mortgage with before I was broke.
NOT ONLY THAT! But now I have to pay them back:
1. The mortgage payment skipped in January
2. The 600 bucks I saved through 3 months
3. 700 extra dollars that no one can explain to me
4. Next months regular payment of the original amount.
AND
My credit rating is dropped at least 100 points.
So I said, "How is that a good, reasonable, ethical business practice? You denied me AFTER screwing me and my credit using information you had before the process even started!"
The guy says, "Well, when we started the program there was a big rush and we did things wrong at first. Now we get the underwriter to approve it BEFORE we put people on trial modifications."
OOOOOH! I get it, you screwed my credit up and made me worse off than before because you didn't know what you were doing.
Anyone know if there is a class action suit against them for shit like this?