Consumer complaint received 2016-10-11
Product: Mortgage — Conventional fixed mortgage
Issue: Loan modification,collection,foreclosure — 
Company: Franklin Credit Management Corporation (AZ)

For almost 3 years, since modifying our loan with our first mortgage company, we have been trying to get our servicer for the second mortgage company to consider a modification as well. However, it 's as if every submission has resulted in lost/missing documents or documents we can not secure ( for example, a payoff amount of the first mortgage because an appraisal would be required ). Our 2nd mortgage is approx. 81 months in default. I ca n't seem to locate a billing statement sent by our 2nd mortgage ; I do n't remember the last time we even received such a billing statement. We have had little to no communication ( written or verbal ) with our 2nd mortgage company for over 6 years now. When we have called to ask a question or make an inquiry of our 2nd mortgage company, the call would end because the 2nd mortgage company would hang up on us. When we attempted to call back, the phone would ring and then you get music for a few minutes before getting a dial tone. We have never been given a single point of contact within the company. When we ask to speak to the person referenced on recent correspondence as the Loss Mitigation Manager, she is NEVER available and when we ask to leave a message, we are transferred to a voice message that the message is cutoff and you just hear the beep. We have left messages, but have never received a return phone call. We have borderline begged for some sort of resolution so we could start making payments again. Servicer of 2nd mortgage company offered a settlement approx. 18 months ago of a total of {$10000.00}, however, we could not gather the funds needed before the deadline date ( despite communicating with them of our intent to exercise the settlement, we were denied because we were 4 days late ). We thought we were finally working towards a modification review only to be blindsided while standing in our driveway early Saturday morning by a local real estate investor who informed us that our 2nd mortgage company has recorded a Notice of Trustee 's Sale the day before. We hired legal counsel to assist with negotiations and received a repayment offer with terms considered unfair and unconscionable - {$21000.00} Down Payment, {$3600.00} per month for 12 months totaling over {$64000.00} in 12 months. Our AGI for XXXX was approx. {$78000.00}! We appealed and received a revised offer approx. 36 hours before the scheduled foreclosure sale The only way the sale would be stopped is if we immediately wire {$10000.00} as a down payment and payments would be {$1900.00} a month for 36 months. Again, a repayment offer with terms considered unfair and unconscionable and setting us up for failure. We again asked for an offer to match the forthcoming bankruptcy plan of 60 months and no down payment, we were denied in less than a few hours, and informed we were in default of the first offer. We had to file Chapter XXXX bankruptcy to stop the sale of the house, which has now been rescheduled from XXXX/XXXX/16 to XXXX/XXXX/16. The review process for each submission was completed by the 2nd mortgage company servicer in less than 4 days, the last was declined same day - within hours ( emailed request XXXX/XXXX/16 at approx. XXXX, and letter declining modification dated XXXX/XXXX/16 and envelope postmarked XXXX/XXXX/16 )! The servicer failed to disclose the " actual reasons '' for the loan modification denials. The denials simply stated that the decisions were based on an investor requirement. The investor requirements failed to identify the requirement that is the basis of the denial. If decisions were based on net present value, we were not provided with the inputs used in making the calculation. Our offer to settle for {$10000.00} was also rejected. The total principal of this note was {$64000.00} and approx. 13 % interest with another 20 years to go on the loan ( current monthly payments would be approx. $ XXXX/mo ). This company lacks interest in helping us.