I am so annoyed with this supposed bail out of the banking system. With all of the money that is being put into the industry by tax payers, it is meant to stop the down slide of our economy, isn't it? It is supposed to help "risky" loans who are current in their payments get lower interest rates, isn't it? It is aimed at loans backed by Fannie May and Freddie Mac, true? Well, I am all of those things. My bank said I may qualify. I was SO happy!
I applied for it. Not wanting Cheesehead's bonuses added into the mix since they can't really be counted on in this economy, I reported our true monthly income to them. We have been able to make the payments for the last almost three years, but I would like to be able to free up a little bit of our money to spend on feeding my family healthier foods as well as attacking our outstanding debts more aggressively.
What did the bank finally come back with after not applying my January payment to my account while it was under review? They said we only qualify for forbearance because our debt to income ratio is too high to be able to give me a lower rate outright. Duh. Why am I trying to get a lower house payment?
The outcome? I called the bank at least once a month while my loan was under review. The bankers advised me not to pay the February or March payments because they would be held in a separate account and also not be applied towards my loan because my loan was under review. Because my payments were not applied to my loan, I was also reported as not paying my loan in a timely manner thus causing two credit cards to cancel my accounts. This will decrease my credit score even more. I also got a letter from the bank saying they would access my late fees to my escrow account. What late fees? I was TOLD not to pay by several of their bankers who further advised me that I should take the money I would use to pay my mortgage to pay down my other debts.
On first glance forbearance seemed like a good option. It reduced my required payment by 1/2 for a six month period so I could pay down my other debts to be reconsidered for loan modification later. Great right? I thought so too until I got the agreement. The last payment was to pay back the other half of each of the skipped six month payments.
I called the bank with my concerns. They said not to worry about that because it could be refinanced into my modified loan at the end. But we weren't guaranteed a modification after we were done with the process and if we did not repay the amount at the end of the period the bank could proceed with foreclosure proceedings.
I don't know about you, but I've believed what bankers have said in the past and it never seems to work out quite as well as they assure me it will. Maybe I should try to have more faith, but I felt really unsettled that forbearance was my only option. I should be willing to let the bank take my house if they decide I don't qualify for loan modification? In an industry teaming with greed and looking out for their own bottom line I just couldn't bring myself to do as they advised.
If I believed that the banks would come through and do the right thing in the end I might attempt it. Somehow I think that doing what's right isn't something they really care about. Can God really block off their greed and force them to do the right thing? In my heart I want to trust that God can make them do the right thing but with Cheesehead not having the faith that I do and so many other financial disasters the bankers have advised us into. I'm sure you can understand my trepidation. I'd need Cheesehead to be behind my decision and I wasn't 100% ready to commit to that plan either.
Am I right to have complaint? Just what are we giving all of those taxes to?
I have been paying my payment every month, just because they think I owe too much money to others shouldn't disqualify me from a modification. It would free up money currently used to pay them so I could pay others. I'm sure that's part of the problem. I've been paying my bills so why should they cut me a break? They can make even more money off of me so why lend a hand to someone who's drowning?
Maybe I should have declared bankruptcy to wipe out those other debts. I'm being punished for taking the high road and trying not to contribute to the economic disaster that so many other people are using to get out of debt? I know many people who have just given up paying things because "everyone else is doing it" and they want to use their money for something else. That's just WRONG!!!!!
I can afford to pay my bills and I will do my best to pay them all off. I just wish I could find a reasonable person to deal with at my bank.
I am going to pray that my husband's bonus this summer is enough to pay off the car we plan on giving to MIL once it's paid off. I think that would also reduce our debt to income ratio enough to get us qualified for loan modification. Maybe I should be so specific? I'll try to put this in God's hands and he'll have to clear the way to make his plan work.
If you have something better or more insightful to pray about for our situation, please do!
Thank you for stopping by to chat with me. Please leave me a message, I'd love to hear your thoughts!
Cindy
Do NOT Copy
5 comments:
That's kinda shabby for the bank to tell you to hold up on paying your mortgage and have it to come back and bite you. Our country is in worse shape than I can remember. I do remember the 80's but I sure don't remember it being as bad as it is today. I am concerned that the bail out proposed by Obama is not going to pull US out of this mess. Hope your situation gets better.
The banking industry is in such a mess. Is there another financial advisor you trust that you can talk to?
Courage, Cinj! We're all praying for you and your financial situation! Banks---especially the big banks---often seem like such heartless, facelss institutions. But just this morning, someone from my bank voluntarily called me to offer to switch my checking account to a different type of account so I wouldn't occur minimum-balance fees, then volunteered to raise the (admittedly minute) interest rate on my money market account. Then he provided his full name and telephone number in case I had any questions later! I just about fell over. In a time when you're lucky to ever reach an actual human being as opposed to an automated voice, this was beyond shocking to me. So miracles are possible! Don't give up.
Yikes, So glad we didn't take the bait and buy a bigger house when the insanity was still going on. Every company and their dog tried to get us to borrow more money. Keep plugging away and I am sure a solution will present itself.
Oh brother--too many in charge and no one keeping good records. One hand doesn't know what the other is doing. Ask for a meeting of the minds and a review. Get these people together in person. I feel badly for you. Enough!!!!!
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