Quality Loan Service out of San Diego, CA is now the trustee of our mortgage, taken over from One West Bank/IndyMac Bank. Due diligence on their part to inform us of our impending foreclosure is top notch. We get at least six packets of the same letter and forms every week that are sent via regular mail in addition to certified mail notices. I don’t want to get our mailman in trouble, but he delivered the first batch to our new home and asked for signature, and has since taken to leaving the little orange notice of attempt at delivery in our mailbox (the mail for our community goes to boxes in one general location). I really must commend Quality Loan Service for their efforts. Thank you very much, we know what’s going down and we don’t want to save that house by the varioius methods listed, i.e., Forbearance Plan, Reinstatement of the loan, Repayment Plan, Modification. The common loan modifications listed are: 1. Adding missed payments to the existing loan balance, 2. Making an adjustable rate mortgage into a fixed rate mortgage, 3. Extending the number of years you have to pay to a longer term. I personally like #3. Yes indeed, lets lengthen the prison sentence underwater even longer. Can a person drown twice?
The information received from Quality Loan Service also includes ideas if you cannot or do not want to keep you home. Our lender could work with us to avoid foreclosure to help reduce the negative effect on our credit reputation. I notice it will only help reduce negative credit, not eliminate negative credit. The options listed here are: Deed in Lieu of Foreclosure where under certain circumstances one could voluntarily transfer ownership of the property to the lender in exchange for cancellation of the debt, but in most cases you must attempt to sell your home for its fair market value for at least 90 days (and what they don’t mention but I think I’ve seen elsewhere is that you still continue to make your payments while doing this). There are also the options listed of Short Sale, or Assumption of your loan. Let’s see here, Short Sale: you keep paying until the bank agrees to let someone pay what the bank has fixed as the price, or loan assumption: that would permit some lunatic recently released from the asylum to agree to take over payments of your existing underwater loan.
Nope, none of this works for us. We’re all in.