This is the worst day - UPDATE on page 2

[heathers4um]

I have been so excited about buying into OKW. It has taken up every thought and dream and conversation. I dont remember a time where I was so excited and looking forward to something. In fact, I went ahead and booked my flights and reserved my owners locker and booked our 1st trip home already.

I got a call from the underwriter and because my mortgage company is up in the air on my remodification, they cant help me become a DVC member. Basically, I have done all that was asked of me in terms of paying what they asked me to but due to the remodification process, they keep all of those mortgage funds I have given them into a holding account under unapplied funds...which shows my mortgage not being paid! And until they land on a cloud and settle on a permanent monthly mortgage amount, those funds will continue to be held in that holding account.

And because the only amount DVC has to go on is the original mortgage amount I have had for 5 yrs, my debt to income ratio is higer than they like to see. Which was the whole purpose of me doing this - to reduce that. I have been paying the temporary remod amount for 6 months with no issues. I can afford this but I see their point - they only see what they are shown.

I am supposed to call them back in a couple of weeks to let them know if my mortgage company is closer to settling this.

I am so upset right now I cant see straight. What am I going to do about the flights and the reservation and the locker?

 

[LouisianaDisneyFan]

Did you take advantage of the remodification program that was part of the "stimulus" package? One of our neighbors was late on their mortgage payment one month and was offered that program by their mortgage company. They were attracted to the program by the promise of a greatly reduced interest rate initially, but they didn't read the fine print. Now they are regretting it... they are finding much the same situation as you. Their motivation to sign up for the program was to loosen their belts a little with lower payments, but the end result was a trashing of their credit rating due to the reporting issues with regard to the holding account. I feel for you! It sounds like a lot of the new programs that are supposed to help folks really just end up making things much, much worse.

Depending on which airline you chose, you might be able to get a credit toward a future trip for the tickets. Some airlines give you a year to complete travel in such circumstances. I've never booked through Owners Locker, so I'm not sure what options you have with them.

Good luck to you. I hope things work out alright.

 

[dnoyes]

I have been so excited about buying into OKW. It has taken up every thought and dream and conversation. I dont remember a time where I was so excited and looking forward to something. In fact, I went ahead and booked my flights and reserved my owners locker and booked our 1st trip home already.

I got a call from the underwriter and because my mortgage company is up in the air on my remodification, they cant help me become a DVC member. Basically, I have done all that was asked of me in terms of paying what they asked me to but due to the remodification process, they keep all of those mortgage funds I have given them into a holding account under unapplied funds...which shows my mortgage not being paid! And until they land on a cloud and settle on a permanent monthly mortgage amount, those funds will continue to be held in that holding account.

And because the only amount DVC has to go on is the original mortgage amount I have had for 5 yrs, my debt to income ratio is higer than they like to see. Which was the whole purpose of me doing this - to reduce that. I have been paying the temporary remod amount for 6 months with no issues. I can afford this but I see their point - they only see what they are shown.

I am supposed to call them back in a couple of weeks to let them know if my mortgage company is closer to settling this.

I am so upset right now I cant see straight. What am I going to do about the flights and the reservation and the locker?

So you're doing a loan modification because you can't pay the mortgage? and buying DVC?

I don't get it. Sorry about the plane tickets maybe they will let you transfer them for a small fee. Good luck.

 

[KAT4DISNEY]

I am so upset right now I cant see straight. What am I going to do about the flights and the reservation and the locker?[/FONT]

Sorry to hear about the problems but I wouldn't worry about the reservation or locker. The reservation will cancel if you do not close on the DVC and OL has a money back guarantee during the first year so you should get all funds back. As far as flights depending on the airline you should be able to cancel and use the funds towards another flight sometime within the next year. If you still wish to go to WDW you could keep the flights and book a CRO room.

Good luck in getting things straightened out on your current mortgage.

 

[heathers4um]

sorry I wasnt clear - I was able to make my mortgage payment, and was doing so for 5 years. I even have quite a bit of equity in the house but due to the high monthly payment and rate I had, I was offered the remodification to see about making things a little lighter. I wasnt not affording my mortgage and trying to buy into a vacation plan...I was going about this as a way to just restructure my finances. I had no idea it was going to turn out like this or I wouldnt have done it to begin with let alone try to do something like this after.

So you're doing a loan modification because you can't pay the mortgage? and buying DVC?

I don't get it. Sorry about the plane tickets maybe they will let you transfer them for a small fee. Good luck.

 

[kaffinito]

That really stinks that the mortgage company can't seem to straighten things out for you!

Sorry you can't buy in right now - hopefully you will be able to soon.

 

[staceymay00]

sorry I wasnt clear - I was able to make my mortgage payment, and was doing so for 5 years. I even have quite a bit of equity in the house but due to the high monthly payment and rate I had, I was offered the remodification to see about making things a little lighter. I wasnt not affording my mortgage and trying to buy into a vacation plan...I was going about this as a way to just restructure my finances. I had no idea it was going to turn out like this or I wouldnt have done it to begin with let alone try to do something like this after.

I don't know if there is any way for you to undo the mortgage remodification at this point, but couldn't you just refinance to a lower rate? Rates are so low if you can qualify for a new loan. I'm assuming you could if you have a good bit of equity in your home and decent credit.

 

[magicaldisney]

I am supposed to call them back in a couple of weeks to let them know if my mortgage company is closer to settling this.

Maybe you can still get this straightened out within the next couple of weeks.

 

[Tinks "SS"]

really don't have any words of advice but just wanted to express hope that it will all work out. I think i would be calling the mortgage company to fix this ASAP. Hate how all this is playing out for people who really need it.

 

[raenyny]

We had a similar situation...when my husband and I met his credit was not great so most of our big bills are in my name ...mortgage, cars,etc...so my debt to income is very high...we were also told by Disney that the loan for DVC would not work for this reason but if we take myself off it works under my husbands name due to his debt to income being lower...Can you try that?

 

[Coach81]

::no::

 

[keishashadow]

as long as the title is clear on your home, a traditional refi within 5 years of initial origination date should take no more than a couple of weeks, even shorter if using the same lender.Said refi should not be confused with the govt modification which is intended to keep people in their homes who either got buried by adjustable mortgages or other issues.

did you call your lender & ask what the holdup is & when you will receive a firm answer? If they cannot give you one, ask "why not" fyi, probably not the best idea to tell them you need to know because you want to buy a TS though, for several reasons. Primarily, be aware that any pulls on your credit report that occur when you apply for a mortgage (or refi) can be detrimental as to debt/income ratios, triggering higher rate

good luck

 

[LouisianaDisneyFan]

Keisha, I get the impression she is going with the government modification. FYI, when the pressure was turned up on lenders to get the money in that program disbursed, a lot of lenders started contacting their slow payers and offering the program. There were reports of cold calls by several lenders that made national news. Many lenders presented it to customers as simply being payment modification to lower interest rates and loosen strains... without spelling out the negative impact it would be on credit ratings for the homeowner to become part of a bailout program. The program is not always being used as it was designed, and homeowners are getting hurt in the process.

 

[heathers4um]

I just wanted to pop in and say thank you to all of you...you have made me feel a bit better and I havent given up on all hope yet.

It was a bit of a surprise for me yesterday, and of course coupled with the loss and sadness I felt for not being a DVC memberafter all, it was alot. But today is a new day and I am calling the mortgage company to push for a resolution. I guess I am naive and didnt think it would have effected my credit nor shown my mortgage as not being paid while going through the process. In retrospect, I should have gone for a refi but they told me with the high rate I was given, this was the way to go given the stimulus package. I guess in a way it's good that this happened otherwise I would be floating around completely clueless until something else happened.

I have decided to talk with DBF also - if he gets this under his name we will have a chance. Again, this is not happening because I cant pay my bills or I am too strapped to afford it, otherwise I would bow out gracefully and just continue to visit WDW until things change. Which brings me to my other decision...

I am going to keep our travel plans and if I have to rent points to cover it.There's no reason to cancel it all just because of this little bump.

 

[heathers4um]

YES...this is what happened. They offered it to me and I went along with it thinking it would help me and my family to restructure our finances to have a bit more room to enjoy life easier.

Keisha, I get the impression she is going with the government modification. FYI, when the pressure was turned up on lenders to get the money in that program disbursed, a lot of lenders started contacting their slow payers and offering the program. There were reports of cold calls by several lenders that made national news. Many lenders presented it to customers as simply being payment modification to lower interest rates and loosen strains... without spelling out the negative impact it would be on credit ratings for the homeowner to become part of a bailout program. The program is not always being used as it was designed, and homeowners are getting hurt in the process.

 

[Disney Spaz]

I am a teacher and only get paid 10 months out of the year. I save up each school year to cover my summer bills, including my mortgage. However this past summer I ended up having to replace the engine in my minivan 800 miles from home. I ended up being a week late on my sept mortgage waiting for my first check. My company was all over me trying to get me to go through the loan modification program but I kept refusing trying to explain that it was just a rare sitution and I didn't want the loan modificaton. I was really suprised by how aggressive they were. I think this was another program where the wrong people got calls and it screwed those who needed it along with those who didn't but got sucked in.

 

[heathers4um]

....and just to add onto the craziness of this situation...

I was just told that its in my file that they think my house isnt even being lived in.

The mortgage co's send around people to take pics of the homes undergoing these remodifications and the guy who came by to take mine went back and noted there was no one around. I said well, if they came during work and school hours then of course no one is around. They asked me to fax over my utility bill to prove it!!

I said I have an enclosed front porch with wicker furniture, gardening supplies, and live plants! I have a lab and a bulldog who bark when someone comes near the house. There are covered outdoor garbage cans lined up along side the fence into my back yard with bags of trash in them, outdoor patio furniture on my side deck...why would anyone think no one was living there???

This happened last month...and no one called to tell me a thing or I could have had this taken care of already! I am beyond angry.

 

[keishashadow]

Keisha, I get the impression she is going with the government modification. FYI, when the pressure was turned up on lenders to get the money in that program disbursed, a lot of lenders started contacting their slow payers and offering the program. There were reports of cold calls by several lenders that made national news. Many lenders presented it to customers as simply being payment modification to lower interest rates and loosen strains... without spelling out the negative impact it would be on credit ratings for the homeowner to become part of a bailout program. The program is not always being used as it was designed, and homeowners are getting hurt in the process.

1st ive heard of this practice, who is minding the store?

shocked, I called a broker i work with, who verified that IndyMac lenders in certain parts of the country did send out offers to customers who they felt would benefit.

OP it sounds to be quite a paper trail of confusion, make sure u check & recheck what u r signing. I've seen many fall into the trap of ARMs just to be able to buy 'more house', never a good idea to gamble on increased earning potential imo.

here are very 'rough' cliffnotes for those who r also in the dark:

borrower's DTI must fall within 38% (including principal, interest, taxes & insurance) to receive the capped 6.5% mortgage. If not, under the IndyMac Federal program, eligible mortgages would be modified into sustainable ones.

Modifications can adopt a combination of interest rate reductions, extended amortization, and principal forbearance; including possibility of reduction in interest rate for five years. After five years, the interest rate would increase by no more than 1% per year until it capped at the current Freddie Mac rate where it would remain for the balance of the loan term.

There are no fees or other charges for this modification. All unpaid late charges will be waived.

 

[heathers4um]

i also would like to know who is minding the store, since I am stuck in it. I have also done some research myself and it appears there are too many cases out there that mirror my circumstances.

If you were late more than a couple of times in the last couple of years, some mortgage co's (who were trying to use the funds given to them so if another bout of stimulus funds came they would be considered a recipient again) would call their client and tell them this program is available to them.

And not only that, but if you purchased your home during the time when mortgage co's were given just anyone a mortgage, they also would call based on that and offer to lower your rate assuming you were one of those people. Again, I got sucked in since they made it sound so easy and so beneficial.

I have been told its Fanny Mae who is working out my remodification.

1st ive heard of this practice, who is minding the store?

shocked, I called a broker i work with, who verified that IndyMac lenders in certain parts of the country did send out offers to customers who they felt would benefit.

OP it sounds to be quite a paper trail of confusion, make sure u check & recheck what u r signing. I've seen many fall into the trap of ARMs just to be able to buy 'more house', never a good idea to gamble on increased earning potential imo.

here are very 'rough' cliffnotes for those who r also in the dark:

borrower's DTI must fall within 38% (including principal, interest, taxes & insurance) to receive the capped 6.5% mortgage. If not, under the IndyMac Federal program, eligible mortgages would be modified into sustainable ones.

Modifications can adopt a combination of interest rate reductions, extended amortization, and principal forbearance; including possibility of reduction in interest rate for five years. After five years, the interest rate would increase by no more than 1% per year until it capped at the current Freddie Mac rate where it would remain for the balance of the loan term.

There are no fees or other charges for this modification. All unpaid late charges will be waived.

 

[Brandis]

I thought that Disney finances pretty much everyone, but that the interest would be higher.