Ticket from RAMON NAVARRO - General

I was approved for a loan modification by my mortgage company on 01/24/25 then on 01/28/25 they said they pulled back the modification because they had not pulled title. They want me to change the title to a trust deed. The language of the approval letter reads as follows: --------------------------- BEGINNING OF ACCEPTANCE LETTER-------------------------------- Dear RAMON NAVARRO JR: Congratulations! You have been approved for a FHA Recovery Modification, which includes a Partial Claim (“Recovery Modification”). This letter describes what a Recovery Modification is, how it impacts your mortgage and how to accept this offer. What is a Recovery Modification? The first step of the Recovery Modification is to create a Partial Claim, which includes some of the amounts you owe, and may also include a principal deferment, if applicable. A Partial Claim creates a new, interest-free junior lien payable to The U.S Department of Housing and Urban Development (“HUD”). The amounts included in the Partial Claim will no longer be part of the existing loan but they will be due and payable to HUD at the end of this existing first mortgage. We then will modify your existing first mortgage by adding any remaining unpaid accrued interest you missed during your hardship, plus any funds we advanced on your behalf for taxes and insurance, as well as any default related expenses, along with any escrow shortage to your Unpaid Principal Balance. We will adjust the interest rate and extend the term of your loan to achieve a more affordable payment. Here’s What Happens If You Accept This Offer: The effective date of the Recovery Modification, which is also the next payment due date, will be 04/01/2025. As of the modification effective date, the interest owed will be $14,393.34, the total escrow advances will be $2,831.80, and default related expenses paid on your behalf will be $0.00. The escrow shortage amount is $3,214.87. An amount of $110,493.60, will be placed into a new, interest-free junior lien (Partial Claim) payable to HUD and won’t be due until the end of your first mortgage. This Partial Claim lien against your property is in addition to the lien that secures the first mortgage. The remaining balance will be added to the Unpaid Principal Balance of your existing first mortgage loan and the New Principal Balance will be $543,132.13. The maturity date of your existing first mortgage loan will be 03/01/2055. Set the interest rate to a fixed rate of 7.000%. Note that if your account previously had an adjustable interest rate, the interest rate will now be converted to a fixed rate. We will waive all unpaid late charges. To Accept this Offer You will receive a package under separate cover which will include the Note and Mortgage/Deed of Trust for the Partial Claim that will create the junior lien payable to HUD and the Modification Agreement, as well as instructions on how to execute the documents and the deadline to return them to us. Make sure to read the instructions carefully to ensure that the documents are signed correctly. Note that the Mortgage/Deed of Trust and the Modification Agreement will need to be signed before a notary. Keep in mind that you must return the signed documents to us by the deadline specified in the instructions. The failure to do so may result in this offer being revoked and we may refer your mortgage to foreclosure. Mortgage Assistance Review FHA requires us to review the options available to you in a certain order. This means that if you are approved for an option higher in the order, you may not qualify for options that are lower down on the list. You were evaluated for the following mortgage assistance solution(s) but did not qualify for the reasons listed below: Recovery Standalone Partial Claim We are unable to approve you for this solution because you indicated that you are unable to continue making your current monthly payment at this time. Please note, as the servicer of your loan, we are responsible for responding to any questions related to investor requirements or the review of your request for assistance. Right to Appeal You have the right to appeal any loan modification denial listed above within 14 calendar days from the date of this notice. The appeal must be in writing, state that you are requesting an appeal of our decision and must be sent to the mailing address below. You must include in the appeal your name, property address, and mortgage loan number. Please specify the basis for your dispute and include any documentation you believe is relevant to the appeal, such as property valuation or proof of income. Mr. Cooper Customer Relations PO Box 619098 Dallas, TX 75261-9741 If you elect to appeal: We will provide you a written notice of our appeal decision within 30 calendar days of receiving your appeal. Our appeal decision is final and not subject to further appeal. If you have received another loss mitigation offer, you do not have to accept that offer until resolution of the appeal. If we determine on appeal that you are eligible for a loan modification described above, we will send you an offer for that modification. In that case, you will be given 14 calendar days from the date of the appeal decision to let us know that you intend to accept the current offer, or the new modification offer. Any unpaid interest, and other unpaid amounts, such as escrows for taxes and insurance, will continue to accrue on your mortgage during the appeal. MODIFICATION TERM COMPARISON Below is a comparison of your current loan terms versus the estimated terms if your account is modified. Current Payment And Terms Estimated Modified Payment And Terms As of Date 01/24/2025 04/01/2025 Total Monthly Payments $4,414.83 $3,896.20 Principal and Interest Payment $3,386.29 $2,878.35 Escrow Payment* $1,028.54 $1,017.85 Interest Rate 6.600% 7.000% Remaining Term 344 360 Maturity Date 10/01/2053 03/01/2055 Unpaid Principal Balance $524,404.17 $543,132.13 Partial Claim Amount** $24,977.23 $110,493.60 *Escrow payments may adjust periodically in accordance with the mortgage and applicable law, which may result in changes to your total monthly payment. Please note that the modified payment and terms are estimates only. NOTE: This program includes a Partial Claim. While the new Partial Claim Amount is included in the chart above, please keep in mind that it creates a junior lien in favor of HUD that is no longer part of the existing mortgage loan. Please also be advised that the new Partial Claim does not extinguish any prior Partial Claims you may have received related to this loan. You are still obligated to pay off all Partial Claim liens in favor of HUD upon the maturity date of this loan, or earlier if you pay off this loan, the maturity date of this loan is accelerated, or this mortgage loan is no longer insured by HUD. Please note that the above Estimated Modified Unpaid Principal Balance may be different from your current Unpaid Principal Balance (“UPB”). This is because the modified UPB may include certain arrearages, fees and costs which have been capitalized. This means they have been added to your loan’s UPB, as permitted by applicable law and investor requirements. A breakdown of the Estimated Modified Unpaid Principal Balance for your loan is provided below. Estimated Unpaid Principal Balance Breakdown Current UPB $524,404.17 Delinquent Interest $14,393.34 Escrow Advances $2,831.80 Escrow Shortage* $3,214.87 Servicer Advances** $0.00 Partial Claim $110,493.60 Estimated New UPB*** $543,132.13 *This amount reflects the funds required to ensure that the escrow account balance is sufficient to cover upcoming escrow disbursements. **This amount may include allowable attorney fees and costs, property preservation expenses, inspection fees, and/or other expenses if allowed by state law and/or investor requirements. ***This amount may include anticipated advances and/or credits between the date of the offer and the effective date of the modification, which are not itemized above. Mortgage Assistance Review FHA requires us to review the options available to you in a certain order. This means that if you are approved for an option higher in the order, you may not qualify for options that are lower down on the list. You were evaluated for the following mortgage assistance solution(s) but did not qualify for the reasons listed below: Recovery Standalone Partial Claim We are unable to approve you for this solution because you indicated that you are unable to continue making your current monthly payment at this time. Please note, as the servicer of your loan, we are responsible for responding to any questions related to investor requirements or the review of your request for assistance. Right to Appeal You have the right to appeal any loan modification denial listed above within 14 calendar days from the date of this notice. The appeal must be in writing, state that you are requesting an appeal of our decision and must be sent to the mailing address below. You must include in the appeal your name, property address, and mortgage loan number. Please specify the basis for your dispute and include any documentation you believe is relevant to the appeal, such as property valuation or proof of income. Mr. Cooper Customer Relations PO Box 619098 Dallas, TX 75261-9741 If you elect to appeal: We will provide you a written notice of our appeal decision within 30 calendar days of receiving your appeal. Our appeal decision is final and not subject to further appeal. If you have received another loss mitigation offer, you do not have to accept that offer until resolution of the appeal. If we determine on appeal that you are eligible for a loan modification described above, we will send you an offer for that modification. In that case, you will be given 14 calendar days from the date of the appeal decision to let us know that you intend to accept the current offer, or the new modification offer. Any unpaid interest, and other unpaid amounts, such as escrows for taxes and insurance, will continue to accrue on your mortgage during the appeal. Frequently Asked Questions What other amounts might I owe? There are no processing fees for this Recovery Modification. This program includes a Partial Claim. Because it creates a new junior lien in favor of HUD it is no longer part of the existing mortgage loan, but the Partial Claim will be due and payable upon the payoff or maturity of this loan, whichever is earlier. Please also be advised that the current Partial Claim does not extinguish any prior Partial Claims you may have received. You are still obligated to pay off all Partial Claim liens in favor of HUD upon the maturity date of this loan, or earlier if you pay off this loan, the maturity date of this loan is accelerated, or this mortgage loan is no longer insured by HUD. How will a Recovery Modification impact my credit? A loan modification may result in your credit score being adversely affected. Credit reporting agencies generally consider a loan modification as an increased credit risk. Please note, however, that delinquency, including a foreclosure, would have a more negative impact to your credit score. As of the effective date of the Recovery Modification, you will be considered current on your first mortgage loan. For information on how your credit report may impact your credit score, go to: https://www.consumerfinance.gov /consumer-tools/credit-reports-and-scores/ Will my interest rate and principal and interest payment be fixed after my loan is permanently modified? Yes. If your loan is permanently modified, your interest rate and monthly principal and interest payment will be fixed for the life of your mortgage. Your new monthly payment may include an escrow payment for property taxes, hazard insurance, and other escrowed expenses, unless its inclusion is prohibited by applicable law. If the cost of your homeowner’s insurance, property tax assessment, or other escrowed expenses increases, your monthly payment may increase as well. What if I need further assistance? Please contact us anytime at 866-316-2432, especially if you experience another event that may prevent you from making your mortgage payment. For a list of HUD-approved housing counseling agencies that can provide free foreclosure prevention and debt management information, and may be able to provide translation or other language assistance, contact one of the following federal government agencies: The U.S. Department of Housing and Urban Development (HUD) at (800) 569-4287 or www.hud.gov/counseling The Consumer Financial Protection Bureau (CFPB) at (855) 411-2372 or www.consumerfinance.gov/mortgagehelp Additional Information and Legal Notices We will not refer your loan to foreclosure or proceed to foreclosure sale while this offer is pending. Upon completion of the Modification, we will ensure that any pending foreclosure and/or any scheduled sale date is discontinued. If your monthly payment did not include escrows for taxes and insurance, you are now required to pay any such amounts as part of your monthly payment. Any prior escrow waiver that allowed you to pay directly for taxes and insurance is revoked as a part of the Modification. We may establish an escrow account immediately, and you will pay required escrow payments into that account, unless not allowed by applicable law. This offer is contingent on your having provided accurate and complete information. We reserve the right to revoke this offer following your acceptance if we learn of information that would make you ineligible. Once you have returned the required signed copies of the Partial Claim Note, the Partial Claim Deed of Trust/Mortgage and your Modification Agreement (in the timeframe required), we have signed the Modification Agreement, and you otherwise remain eligible for the modification, your mortgage will be permanently modified in accordance with the terms of your Modification Agreement. Once your loan is permanently modified, there will be no penalty for paying more than the amount due, and you can always pay more if you want to reduce your principal balance more quickly. However, you will not be permitted to pay any less than the required payment. This offer extends only to the named Borrower(s) referenced above. If you have obtained the property through death, divorce, or other means and you qualify as a successor in interest, you may still be eligible for this offer, but we will need additional information to confirm your identity and ownership in the property. Please contact us to discuss your next steps. Once the Partial Claim is recorded, you will no longer see any information regarding this interest-free junior lien amount in future billing statements for your first mortgage. However, until the Partial Claim is recorded, you will continue to see the amount of the Partial Claim on your billing statements. Any payoff quote obtained from us after the Partial Claim is recorded will relate only to the first mortgage/deed of trust. Any obligations under this junior lien will not be waived if you pay off the first mortgage/deed of trust. You will not be charged any fees for the Partial Claim or permanent modification. If you previously received a Partial Claim in favor of HUD related to this loan, this modification does not impact your obligation to pay off that lien upon the maturity date of this loan, or earlier if you pay off this loan, the maturity date of this loan is accelerated or this mortgage loan is no longer insured by HUD. --------------------------- END OF ACCEPTANCE LETTER--------------------------------- Do they have the right to pull out 4 days later because they had not pulled title? Is there a HUD rule that protects me as the Owner of a Single Family Residence? Thank you, Ramon Navarr0 720-620-9195 navarro2k@gmail.com