| - DETROIT, BIRMINGHAM, BLOOMFIELD, | | | | talked a lot, so it was difficult at first to get her to listen. |
| ROCHESTER, ROYAL OAK, TROY, MICHIGAN | | | | She seemed intent on just talking over us and telling us |
| I just had my first experience with Michigan’s new | | | | it was too bad they couldn’t do anything for my |
| 90 day foreclosure moratorium laws and the meeting | | | | client. When I pressed her to explain how they came |
| with a lender representative the laws mandate. It was | | | | up with their numbers, she impressively rattled off a |
| pretty interesting. | | | | bunch of figures and calculations. |
| A homeowner was referred to me to assist her with | | | | Right at this point an average homeowner would |
| her meeting. Seems she’s been trying to get her | | | | probably have given up and thrown in the towel – |
| FHA loan modified for over 6 months and has been | | | | exactly what the lenders want. I can’t imagine a |
| getting the standard run-around. During this time she | | | | housing counselor being of any use at this point either. |
| hasn’t made any payments and the lender was | | | | I stood my ground though and kept asking questions. I |
| threatening foreclosure. | | | | also got “Sam” to print off HUD’s |
| I had her send me over her budget and mortgage | | | | modification guidelines off the web (even though I had |
| papers before the September 17th meeting, so I could | | | | them with me) and asked “Sarah” to locate a |
| be prepared to assist her. I also carefully reviewed | | | | copy also. |
| HUD’s new guidelines for FHA loan modifications. | | | | The first mistake they had made was in regard to my |
| To be eligible for the this meeting, my client first had to | | | | client’s income. Once I got “Sarah” to stop |
| meet with a housing counselor approved with the | | | | trying to talk over and intimidate us, I was able to show |
| Michigan State Housing Development Authority | | | | her where her mistake was. Seems they calculated |
| (MSHDA) or the United States Department of Housing | | | | and input my client’s take-home pay instead of the |
| and Urban Development (HUD). As she’d already | | | | required gross pay. This was a mistake of almost |
| done this, I reviewed the paperwork they had given | | | | 50%. “Sarah” tried to get around this by stating |
| her, along with their budget suggestions. It was a joke. | | | | the guidelines allowed them to bump up the take-home |
| Their best advice was to work more hours or get a | | | | pay by 125%. When I asked her to show me where |
| second job – easy advice to give, but not practical | | | | this was allowed, she had “Sam” pull out |
| with unemployment as high as it is. The counseling | | | | guidelines she had earlier sent him. Indeed, what was |
| session was required, but seemed to be a waste of | | | | written there supported her statement. Unfortunately |
| my client’s time. | | | | for “Sarah”, the guidelines she referenced to |
| Interestingly, Michigan’s new 90 day foreclosure | | | | support her position were not HUD’s latest |
| moratorium laws allow a homeowner to request that | | | | guidelines. For someone that talked as much as she |
| the housing counselor accompany them to their | | | | did, she didn’t have much to say when I pointed this |
| meeting with the lender’s representative. Based on | | | | out. |
| the materials and suggestions they gave my client, I do | | | | From there I dove into the mistakes they had made on |
| not recommend this! | | | | my client’s debts and expenses. “Sarah” and |
| My client’s lender had selected a law firm in | | | | I had an interesting discussion on the difference |
| Southfield to be their representative. The firm states | | | | between a “debt” and an “expense”. |
| on their website that they have over 30 years of | | | | Around this time, “Sarah” started asking us to |
| experience representing mortgage servicers and | | | | hold while she went and checked with her manager on |
| they’re a FNMA retained attorney for the state of | | | | my questions. |
| Michigan. | | | | In the end, my client was tentatively approved for a |
| I was expecting we’d meet with a seasoned | | | | loan modification that would drop her payment by |
| attorney from the firm with an ego problem. Instead, | | | | around 16% which equals just over $300/month. All |
| we met with what appeared to be a junior attorney | | | | she has to do to qualify is send in updated paystubs |
| (who I’ll call “Sam”, but that’s not his real | | | | and prove her car is paid off. Of course she was |
| name) who was very nice and easy to deal with. | | | | hoping for even a lower payment (doesn’t |
| The session began with “Sam” printing out a | | | | everyone?), but what she got is the maximum allowed |
| modification analysis the lender had already done. The | | | | under HUD’s modification guidelines. |
| bad news was that according to the analysis, my client | | | | After we settled on everything, “Sam” surprised |
| didn’t qualify for a loan modification. I’m not | | | | me by telling my client that she was smart to bring the |
| going to get into all the different variables and the math | | | | right attorney to represent her, as every other |
| here, but the bottom-line was that her debt-to-income | | | | homeowner he’d represented lenders against had |
| ratios were too high. | | | | brought an attorney that’d done nothing for their |
| At least according to their analysis. There were | | | | client, if they brought an attorney at all. |
| several flaws in their analysis though. They didn’t | | | | It was his turn to be surprised when I told him I |
| have my client’s income or debts correct, in fact | | | | wasn’t an attorney, but was a multi-certified |
| they were way off. We started to go over these | | | | mortgage lender. He then gave me perhaps the best |
| errors with “Sam”, but he said he wasn’t | | | | compliment you can get from an attorney, telling me I |
| authorized to change anything. He was nice enough | | | | should be one. |
| though, to phone his contact at the lender and get her | | | | He also asked for my card and said he’d like to |
| to agree to go on speaker phone. Let’s call her | | | | refer me to his own homeowner clients. |
| “Sarah”. “Sarah” was pretty nice, but | | | | |