Mortgage trouble in Northern VA - Beneficial

hello patrick,

i think you should talk to your lender immediately and see if he can work out any other alternative option.

if there is no other option left, you may approach your lender for a deed in lieu of foreclosure or a short sale. as you are already 4 months behind your mortgage payments, your lender might foreclose on your property. in either case you will lose your house but with a deed in lieu or a short sale you can at least save your credit.

you may try for a short sale and pay the mortgage with the sale proceeds. the lender might seek a deficiency judgement for the outstanding balance but in case of a deed in lieu, he cannot do so.

you will find more information on deed in lieu here http://www.mortgagefit.com/deed-lieu.html. you may have a look at it.

Hi Patrick,

Welcome to this forum.

I agree with Jenkin. You should talk with the lender sooner than later. If you do not let the lender know about your problem, your house so going to be foreclosed as you are already 4 months behind. Foreclosure affects credit badly. It will drop 200 to 300 points and will be shown for 10 years.

If there are no options available for you, you can request him for short sale or deed in lieu of foreclosure. I think short sale is a better option for you. It will affect your credit even less than deed in lieu of foreclosure. The lender will see that at least you have tried to pay them by selling the property.

Thanks,
Larry

Try going to "www.RescueThatHome.com" for some help.

[Link deactivated as per forum rules. Thanks.]

Hi Patrick,

I just read your dilemma with Beneficial. I've been in the Foreclosure Industry for several years and Beneficial should be able to give you a better deal than what they gave you. They are owned by HSBC and our company can negotiate something better. Call me at 1-877-414-2106 or go to stopmyforeclosurenetand check us out.

good luck!
Rhonda Poshka

Patrick,

Beneficial does not want your home. You need to contact them again and again until they negotiate a better hardship plan for yourself. I worked for them for over 2 years and they have probably one of the most lienent hardship programs available. i had several customers in my branch that had 0% intrest and absolute mininium payments because if they forclose they loose money. One of the reason's is they lend their own money and retentionis important I am not saying that they will not forclose but the more you try the better the results you may get.

They will also do a shortsale to recoup their losses, but you may want to look into more why you owe 328k on a property that you say is only worth 260k-270k. Was your value inflated at the time of the loan? Beneficial and HFC have been known for over inflating values in the past and other unsavory lending practices that may warrant you looking into the attorney generals office to see if everything on your loan was on the up and up.

Before I go blaming beneficial to much. Is any of this your own fault? Why have you refinanced 3 times in three years? If you have been refinancing your home to live on lead a lifestyle you can't afford then you just need to negotiate a short sale as quickly as possible.

to respond quickly to rhonda Yes beneficial/HFC is owned by HSBC but that hasabsolutly nothing to do with their willingness to help people out or do hardships. they are two completely seperate entities and do absolutly no intermingling of funds. The only thing they have in common is a share name.

Best of luck to you patrick and if you have any questions please continue to ask

Patrick,

Jason's post above as well as the others who recommend you contact the lender again are great advise.

Dealing with the lender can be time consuming so please do not get frustrated. You can also call a local HUD housing counselor and they can assist you with negotiations with the lender if you do not have the time to do so.

Hi Jason,

Can you please explain me what is “hardship plan”?

The appraisers are inflating the value of the property. Can't we take any legal actions against them for inflating the value of the property than the real market price?

Any information is appreciated.

Thanks.

Sorry I wasn't logged in before this is my reply:

The hardship plan is exactly what it sounds like. If you have come into a hardship loss of job, loss of spousal income, illness of immediate family member that you have had to take off work for and created loss of income. Beneficial last I checked (I am not totally positive) does not do full stated income deals. They only allow for partial stated like 25%- 30 % So that means at the time of the loan your debt to income ratio allowed you to qualify for the loan. Unless the account executive forged income documents.(if that happened then yes you have a major lawsuit) Otherwise at the time you signed the bank looked at your income and said yes you can repay this loan. Now assuming their was no hanky panky on the account executives part that leaves us to two seperate conclusions.

1. Something happened in your life that you are now making less income and can not afford the loan, Beneficial's Foreclosure aviodance dept will then work on a Hardship plan, which you said they offered you but only lowered the payment by 15 diollars. If you continue to show that you want to pay but the amount is still to high they may and should be willing to work with you and review your plan every six months. It is a major struggle but it is all about ghetting the right person on the phone, like anyother company or business in the world some employees care a little more then others.

or

2. You just don't know how to manage money and you would rather buy gifts for friends, go out drinkling and entertaining yourself then pay your mortgage because you don't know how to live within your means. In that case when you send in your w-2's and employement verification currently with your year to date the Forclosure aviodance department will then look at your file rerun the numbers and if you still qualify with a debt to income ratio they find acceptable then you will not get any help. It may sound harsh but the bank does not care that your nephew, niece, 25 year old son/daughter, brother fell on hard times and you are giving them money to supplement thier life or that your insurance, gas and payment on your 2008 Escalade is eating up your disposable income. That's a luxury, a 1999 neon that get's your from point A to B is a neccessity. Hardship programs are for people that they themselves or immediate family (spouse or under age child) has either lost a job or fallen ill that you have to provide care for. They will want documentation.

Now if you have made a mistake and gotten in over your head and you realize you can't afford it anymore and there is no wrong doing in any part you have to suck up your ego and simply understand that 328k is a lot of moneyand you simply can't afford it. I am sure the house/ condo is nice but remeber when you take a mortgage you are expected to pay it back and when you sign the paperwork you have to look at your etire financial picture because the bank only looks at 3/4 of it.


With all that said i am not blaming you or the bank but these things go both ways and there are two sides to every story and anyone who refinances 3 times in a three years is dealing with one of two problems. they bit off more then they could chew and are living off the equity in their home(bad idea) and out of their means. or They have a really bad mortagge person who is advising them poorly and doing shady things. This person only has their commision in mind and if they are doing illegal activity should be held accountable. if they are primarily just giving bad advice then that is teh reason you should always get a second opinion.

Sorry if I got off topic but with limited information and the current position you are in sugar coating it or false hope on either part is just useless.


The appraisal issue if you believe that the appraisal you recieved was inflated regardless of the situation then you need to take immediate action and call the attorney general and you lawyer and start a full investigation. Beneficial has already been hit with preditory lending lawsiuits, fines etc. They are very sensitive to them and engage your attorney and the attorney general will definetly get thier ear a lot quicker then if you do it yourself. I will warn though Beneficial/HFC also tell their appraisers on a whole to be very conservative and bring values in about 5% less then other appraisers that aren't paid for by them. That does not mean an account executive does not have a good relationship with a certain appraiser and can't get them to juice the value. though their review department atleast in New york is pretty tight. Values may very well have dropped in your area and that is by no means the appraisers fault. that is simply the nature of the realestate market. rember appraisals are opinions and educated, researched opinions but none the less opinions. The value of something is only what someone else is willing to pay.


I hope this was somewhat helpful, and sorry if i got off on a tangient in any way. I don't want to offend anyone or simply insult anyone but every situation is different and with out hearing the full story then it would be extremely reckless of me to comment or give one sided advice. the reason the industry is in turmiol right now is because people on everyside of took advantage.
______________

I have temporarily removed myself from the foreclosure scenario that I stated above, by agreeing to make their hardship payment for the next 6 months. I am afraid that I will probably be in the same situation 2-3 months from now. After taxes, I take in $3800 per month. My new mortgage payment is $3035. I do have about $700-$900 in new monthly expenses. I cannot explain why I refinanced my house 3 times, I guess I wanted to have the avail cash at that time. The original appraisal was for 309k. There has not been an appraisal done since, but with recent RE downturn especially in Northern Virginia - the kinda of house similar to mine is selling for $270k. Any further advice will be appreciated.

Patrick Quinn

7038180794

Hi Patrick,

Now have you think about Short Sale? More you delay; you will create more problems for yourself. You are already 4 months behind in your payments. So talk to your lender and decide whatever is affordable for you.

Thanks,
Larry

Patrck,

Larry is right, whether it be a short sale, or full sale of property, simple economic fact is you can not afford the home. you have to save your self from forclosure and fine something a touch more economical. Or find a another job and live to just to keep that roof over your head. Purchasing another home at this time will also be more difficult because of your credit rating. It is going to be a very tough decision for yourself. you either need to find more income or less payments. Your home currently is not something you can afford especially considering that payment probably does not include taxes insurance or condo dues. Even if they modified your loan to a 6.5% intrest rate your Principle and Intrets payment would be $2073 that plus taxes, insurance, and condo dues plus your other $700 a month payment and your living expenses still would make life quite un enjoyable. you could swing it but money would be very tight.

The best possible solution is to sell your condo before you loose your condo. get it on the market and get beneficial to agree to a short sale. Unfortunately you will probably have to go back to being a renter for a year or two until you can either save up for a large down payment and get your credit back in line. Unless you can find a way to add about 1500 to 2k in income a month to your situation then I don't see any other option for you. If they forclose on you you will be in a much worse situation in trying to repair your credit as then if you sell your home after you get it back to be current or sell when you a re a fgew months behind.

Good luck and I know this is not the advice you wanted but unless you have an airtight lawsuite for you being upside down( consult an attorney before you do anything else) then the truth is you still in a rosey world of conforming loans, good appraisals, and a boom realestate market cant afford a 300,000+ loan on your income. I understand realestate is expensive in northern Virginia but with your income you should be looking at 175k-200k loan amounts MAX.

If you dont see yourself being able to afford the payments in the near future then I would suggest looking at options that would release you from this obligation. The first option could be a short sale. This is where the lender accepts a payoff that is lower than actually owed. They will only consider this when the you have a buyer that is willing to pay market value for the home. This way, you wont have a foreclosure on your record. A deed in leiu of foreclosure could be another option. Please call your lender to discuss these and other options that they may have available to you.

I have my home for sale, will I have any problems with HFC at closing?

maryberg what kind of problems might you be anticipating? do you owe more than the purchase price will be? are you delinquent on your mortgage now?

if you are having no problems with hfc now, i'd have to surmise that you'll have no problems with them at the closing either.

you may want to elaborate on your question so we can give you a more affirmative answer.