Sherry and David Harrah - Spring Hill, FL

3 Comments

Our horror story begins in August of 2009. I am a R.N. and the primary breadwinner for our family of 10 children and was put off on medical leave in August. Ineligible for short-term disability for 45 days I knew that it would be difficult to make our payment of 2030.00 (1560 mortgage and the remaining in escrow for insurance and taxes).

It was the middle of Aug so I called our Bank BB&T and told them that I was currently off on leave and would not return to work until November and that my husband a disabled vet’s income could not make the payment due to the everyday houshold expenses incurred with 10 children to feed, electric, water, gas, etc.

I asked at this point before we were behind; if they could take the mortgage payment and defer it to the back end of the loan for the months of September and October in order to remain current. I was given a very adamant “NO”. I was told because it was a VA backed loan they were not allowed to do this. I argued about our situation to no avail. I was then told the only thing they could offer would be to send me a modification packet that would take up to 90 days to review.

I told the bank, “but I need you now not in 3 months” and was still refused. One week later we received from the bank that our insurance and taxes from our escrow account had been paid up for the year and we actually was over 600 dollars to the good. I once again called the bank and informed them of this. I asked if I could make just the actual mortgage payment of 1560.00 since we had excess money in escrow. Once again BB&T refused stating they had to have the payment in full and modification could be the only thing they could offer. At this point we were running out of options so we hired an attorney Peter J Bowers in Dade County and paid 2500.00 dollars in installments for him to assist us in the modification process. He explained to us the process of modification and stated we were correct in that the bank will not work with you until 3 months behind. We currently were 42 days. He stated the bank views if you are making payments then obviously you could afford them. We stopped making payments in order to get modified He also informed us not to talk to the bank and direct all calls directly to him and immediately send and notify him of any paperwork or changes that happened. During the months of Oct, Nov, and Dec, we remained in contact with our attorney and sent in everything immediately that he requested (hardship letter, financial statement, expenses, etc).

In December my debit card was stolen and our checking account drained of over 2000 dollars and of course the bank did nothing stating we were negligent I filed a complaint with the OCC. In Jan we received notification that our home was going into foreclosure. We called our attorney to find out why the modification had not been submitted to the bank. He stated that it takes time and that he has to resubmit the information to BB&T because they keep stating they have not received anything.

At this point the VA stepped in. We received a call from Andrea Kafasarski regarding our foreclosure. We told her the whole story and she stated that the VA could have helped us for free. I told her that nobody had ever told us that or we would have gone with the VA’s assistance instead, but our attorney had already been paid. She stated concern because BB&T told her no paperwork had been submitted for the modification. I gave her my attorney’s information and she stated she would follow up with us in a couple weeks.

I called our attorney regarding her phone call and the bank and once again he explained the process and that it takes time to get everything right to submit. In February the VA called back questioning why the modification had not been submitted I told her we were under the impression from our attorney that things had been submitted to the bank but that the bank had not responded yet. Ms. Kafasarski informed us that the bank is stating they still had not received anything. We decided to do a 2-way call to our attorney. Ms. Kafasarski spoke with Mr. Bowers regarding this and they had a lengthy conversation. I hung up at one point while they continued to talk.

Ms. Kafasarski called back after her conversation and stated she would continue to follow up. On Feb 28, 2010 I lost my job and was out of work for 5 weeks. We depleted all our income and savings to live. I obtained a new job and started March 28,2010 making 10,000 more than I had at my previous employer. Our modification was finally submitted April 6, 2010. BB&T responded on April 14, 2010 stating we had been denied our modification.

I spoke with our attorney on April 15^th and he stated BB&T was figuring our expenses wrong and he had argued with them at length. He stated he would continue to fight for us with the bank and also submit a plea to the judge assigned to foreclosure. At this point, against my attorney I called the loss mitigation department myself. I informed Jeannie Thomas who I was and she reviewed our packet. She stated that we disqualified for two separate modifications, the VA Hamp modification and a traditional modification. The reasons are under VA Hamp they have to go with the current APR, which is at 5%.

Our loan is at 5%. When you take into account my new gross income that is 10,000 more than I was previously making along with my husbands VA disability we are already at 31% on our mortgage payment so this disqualifies us. On the other hand, when the figures are done for a traditional modification and our net income is used we are 900.00 dollars over in expenses/ obligations. I could not believe what I was hearing! I stated so what your telling me is on the VA Hamp I make to much money but on the traditional modification I don’t make enough? She stated I know it doesn’t make any sense but we have to follow the guidelines. I argued with her about our expenses because some things were not correct, but it did not do any good. Apparently, they use what is on your credit report and not what you submit as your monthly obligations. She stated we were 16000+ in arrearages along with penalties of 630.00 and lawyer fees that was another 2000-3000. She did state that just because we were turned down this month doesn’t mean we would be next month. I told her are these government modification programs not out there to help people just like us?

I mean come on; here we are just a middle class family trying to raise our ten children who got into a hardship we have been trying to work with you all since before we got behind and you all have been unwilling to work with us even a little bit. I can’t afford to be put out on the street with 10 children 4 of which are 5 years old and under including a 7 month old.  I am just trying to save our home and do what ever it takes. She insisted she had to follow guidelines. I spoke to her about other options like decreasing the interest for a couple years, forgiving the penalties etc and just putting the arrearages back into the loan, extending the loan terms or even forgiving some of the principle like some banks have been known to do and I still was told there was nothing she could do.

So currently we are like many others just waiting. My husband and I have contacted the VA who tells us the same thing they have to follow the guidelines and unfortunately we do make to much money for VA Hamp, but she is going to relook at our expenses. She stated we can dispute what is inaccurate but we are still at the banks mercy whether they want to remove it or not because they do look at your credit report and not your expense sheet you submit. (For example, we voluntary gave up a vehicle, which they are still including).

I will fight for our home until the very end and do what it takes to save our family from being thrown out on the street from these ruthless, coldhearted banks and their investors. So for now our plight continues. I plan on calling them back on Monday April 20, 2010 at 3:30pm with the assistance of Hope a free non-for-profit organization. I will also refax our financial obligations to VA and my attorney. Thanks everyone for listening to our story.

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