Loan Modification, Aurora Loan Services, and Fear

Dear MortgageMaster,

I am wondering if I am also at the start of a bad experience with Aurora Loan Services. Let me start by saying that at this point I have never been late with my mortgage payment of $740.36. But after being laid off and subsequently taking a buyout from the auto industry, my family’s income has significantly dropped. For this reason I asked Aurora Loan Services if I was eligible for a modification under the Obama Plan. They assured me I was and took my info over the phone, coming up with a new payment amount of $736.54. The payment has not dropped much, but my new payment would include escrow for taxes and ins that my old payment does not. They mailed me the modification papers around May 24, including the trial payment plan details, financial affidavit, etc. with a due-back date of June 16. No problem. I filled everything out, copied all my financials, sealed it up, and sent it out June 1, 2009 in the preaddressed/postage paid envelope they provided. I might mention that while on the phone with the initial representative I consented to have each of the 3 trial payments automatically come out of my checking account on the first of the month in which it is due (with the first due July 1, 2009). On June 16, I called Aurora to make sure my paperwork had made it by the deadline and was told it was not in the system yet, but they were “bogged down with lots of them, try again next week-they should be there). The next week I called Aurora, still no sign of my paperwork and I’m told to call in a week once again. June 30 I called back, concerned that my first trial payment is coming out but they have no paperwork for a modification plan. I’m told “don’t worry about it. Send the paperwork that I have, (which is not all of it) via fax.” At about this time I’m starting to get a bad feeling. I have one set important financial information floating around ALS, a trial plan payment coming out, and no proof of any modification plan in my hand because I sent both copies back as instructed. Not a good place to be at. My unease leads me to the BBB to see if Aurora has any bad listings due to the mod program-nothing much specific there. I do a search on Aurora Loan Services and come back with a nightmare of bad experiences people have had. Now I feel sick. I watch my bank account for when the trial payment comes out, which it did, for the $736.54. Then I log onto my mortgage account and the first thing I see is my July 1, 2009 payment is still due in the amount of $740.36. So I look at where my payment was posted and instead of principal/interest/escrow the money was posted under “other”. What the heck is that! And the system says I’m not paid for July! I’m not waiting for 3 months of the system saying my mortgage is behind and possibly starting foreclosure proceedings. I guess my only choice is to make the July regular payment and try to get the other funds released to me and the “mod program” stopped. Do I have a legitimate concern? Could I be blindsided by Aurora if I leave things the way they are? Or am I just overreacting to the horror stories I read online?


Thanks for any input,
Melissa K

Melissa,
Your experience unfortunately is not unique these days and it's not just Aurora. Secondly, you are not being paranoid or overreacting. The bigger loan servicers, in particular B of A/ Countrywide, can be particularly onerous to deal with. Aurora is not much different. Bottom line advice to you or any other person trying to do their own loan modification would be to keep extremely good records of what you have sent (always keep copies), who you are talking with, dates and time, extensions or direct lines if available, list of promises made and whom to call when you haven't received what you've been promised. Most importantly is follow up. Our firm has had some success by calling back sooner than later and also more frequently, in particular once we have some contact person in an organization that has been responsive. If your property is in jeopardy of foreclosure/sale, it is all the more important to follow up sooner rather than later and find out whom to contact at the company facilitating the sale. We recently negotiated a forbearance deal and only when we got the fax from the servicer saying the sale had been postponed did we actually feel like we had some success. To get there required multiple phone calls and faxes and lots of good record keeping.
With respect to your individual situation, do your self a favor and do a print screen of any withdrawals that have been made from your bank account and also do print screens of your account at Aurora. This will possibly be your only hard copy for purposes of backing up your story. If you are not getting any response, be prepared to spend a lot of time on hold. Continue to make the payments that you promised to make as this will most certainly show compliance from your end and you will point to this when you call them. Again, make a print screen of the withdrawal and also print screen to show how payment was applied.
It also helps to keep in mind whom you are dealing with on the other end of the phone. Often times that person has been on the job for only a very short period of time and won't know a whole lot. If you feel like your are simply educating that person by repeating your information again and again, don't hesitate to ask for a supervisor, or in some cases being polite telling them you've got a screaming kid and you'll have to call back. While not the most pleasant thing to do you are rolling the dice that you'll get someone else who is more experienced when you call back. Also, demeanor is really important on the phone. It might sound like a cliche, but you really do attract more flies with honey than you do with vinegar - i.e. be nice to the person - chances are really good that they have been screamed at for the last 5 phone calls and called every name in the book.
I wish you luck. A loan modification can be akin to a marathon in that it is often a very long process.
Regards,
Gregory T. Royston, Esq.
South Bay Law Group, P.C.3848 Carson Street, Suite 204Torrance, California 90503
www.sbaylaw.com
Office 310-780-8275
Cell 310-977-1062Fax 310-943-1472