Consumer Complaints: Aurora Loan Services

Posted: July 7, 2010 in Foreclosure
Tags: ,

Aurora Loan Services

Elayne of Placerville, CA February 18, 2010

I am a single homeowner who found herself in an extremely difficult situation with her loan. I have been trying, in good faith and earnest, to work with my mortgage servicer, Aurora Loan Services, for the last 13 months on a solution to my hardship. I have attempted to obtain a loan modification directly with Aurora and I have attempted to obtain a loan modification through an attorney. After 9 months of failed attempts at a trying to obtain a loan modification, I had no alternative but to pursue a short sale and damage my credit. I am currently in the process of trying to get Aurora to approve the short sale. Specialists from Aurora’s Loss Mitigation Department have reported that the short sale offer is a good offer and is within investor guidelines. The issue now is the short sale approval date is estimated to be at least 2 weeks after the projected foreclosure date.

I have tried each and every avenue for the last 13 months, to the point of exhaustion, to not walk away from this house and foreclose. I have tried to do the right thing but I have gotten nothing but run-around and stall tactics from Aurora. I am now facing a foreclosure while a perfectly acceptable short sale offer is waiting in Aurora’s queue for approval. I do not understand how a financial institution such as Aurora could be taking Obama stimulus money with the sole purpose of assisting their drowning clients (such as me) and do nothing with it. I do not understand what more a homeowner could do to try and work with Aurora on a solution that is mutually beneficial. I find this entire process unsatisfactory, unethical, and probably fraudulent.

I am trying in earnest to stop the foreclosure process and get the short sale approved so that I can finally move on from this disaster. I have no reason to believe that Aurora has any intention of achieving this same goal, and I believe they will continue their stall tactics until the clock runs out and my house is being sold out from under me on the courthouse steps, ruining my credit and financial stability.

The only way to stop Aurora from these horrendous business practices is to have agencies such as yourself formally investigate. Aurora’s unsatisfactory, unethical, and probably fraudulent activity must be stopped and I am seeking your assistance to do so. I believe there is more than enough evidence for your agency to launch a formal investigation into Aurora’s business practices and the administration of federal stimulus funds.

Attached you will find a timeline of actions I have taken in the process of trying to work on a solution cooperatively with Aurora. I kept copious logs on the process, including all of the documentation. Any and all assistance you can provide is appreciated.

TIMELINE: 2/17/09: Homeowner submitted loan modification workout package. 2/23/09: Homeowner and Realtor listed house for sale at price which would clear loan amount. 2/25/09: Aurora sent denial letter for loan modification. 2/27/09: Homeowner submitted updated loan modification package. 3/3/09: Aurora sent request for additional information. 3/9/09: Homeowner submitted additional information requested. 4/7/09: Homeowner sought assistance on loan modification negotiation through an attorney. 4/22/09: Attorney submitted notice of representation to Aurora. 4/23/09: Aurora sent acknowledgment of attorney representation. 4/25/09: Attorney submitted updated loan modification package. 5/13/09: Attorney submitted Aurora’s CA Civil Code violations. 6/26/09: Aurora sent denial letter for loan modification. 6/30/09: Attorney submitted Aurora’s Federal Code violations and supplemental information. 8/21/09: Aurora sent letter explaining why loan modification was denied under HAMP program. 9/1/09: Homeowner unable to make mortgage payment. 10/5/09: Attorney submitted updated loan modification package. 10/13/09: Aurora sent request for additional information. 10/27/09: No progress on loan modification; homeowner no longer able to work on loan modification. Homeowner ended relationship with Attorney. 10/27/09: Realtor listed property as Short Sale. 12/5/09: Realtor secured two offers on property. 12/16/09: Realtor submitted Short Sale package with two offers to Aurora. 1/5/10: Aurora sent denial letter on Short Sale. 1/11/10: Homeowner received Notice of Default from Cal Western Reconveyance via regular mail. 1/20/10: Realtor reinstated Short Sale. 2/15/10: Realtor unable to access Aurora Update Website (as directed to do per Aurora) until this date. Projected foreclosure sale date listed as 3/17/10; Projected Short Sale workout review date listed as 4/5/10.

Kelly of Huntington, NY January 29, 2010

In June 2009 my dream of homeownership came true, I placed an offer on a property and my offer was accepted by the sellers of the house, the home was listed at 299,000 and I offered 290,000. I entered into contract on July 2, 2009 on the purchase of my first home. I have been waiting since that date for approval from Aurora Loan Services, LLC to close.

The seller’s attorney has 10,000 of my money sitting in an escrow account for this house Since July 2009. November 18, 2009 Aurora finally gave the approval for the short sale, which than had to go to the 2nd mortgage company for approval which I was under the impression was also with Aurora Loan Services, LLC. I later found out that the loan was sold off and that the 2nd mortgage was held by Homecomings Financial (GMAC). GMAC gave their approval on the short sale on January 15, 2010.

When we went back to Aurora we were than told they closed their file on December 21, 2009 and they never notified anyone and they would need to re-open the file which involved a re-inspection of the property and all the paperwork would need to be completed by them again.

I was told to extend my mortgage approval once again for another 30 days while Aurora gets their paperwork together. Once again I will have to pay a fee to extend my mortgage approval to date I’ve paid out over 4,640 in mortgage extensions waiting for this house. This is in addition to the 425 I paid for the home inspection and 475 for the property survey.

I still don’t have an actual closing date and don’t see that I will have one any time soon. GMAC’s approval is expiring today January 29, 2010 and I don’t have any indication they are extending their approval, the sellers attorney said they are asking GMAC for a letter and will forward to me when it is received.

I would just go ahead and look for another home but the home prices in the area went up enough where I can’t afford to purchase a home now. This is my one shot to homeownership and its being destroyed. I’m also going broke in the process. Something needs to be done to protect people both sellers and buys of short sale’s. Yes in the contract I do have the right to walk at anytime, I just feel I’ve been mislead in the process that this was going to happen sooner than it did.

I’m out the money on the mortgage extensions and now its 7 months later and I still don’t have a closing date and no answers. I’m out 4,640 in monies to extend my mortgage approval so I’m not in violation of my contract so I can still get the home.

Julia of Aromas, CA December 10, 2009

I applaud the NY law firm for representing the individuals who have been scammed by Aurora Loan Services (ALS). I am looking to join any class action lawsuit against ALS.

We purchased our home in California in July 2007 for 765,000.00. Aurora Loan Services purchased the loan the very next month. So we did not pick them as our lender, they picked us. We have a Negative Amortization Option ARM loan currently at 7.25%, which will balloon in the next couple of years making the mortgage even more unaffordable. The current value of our home is approximately 495,000.00 or less, so we cannot even refinance. The current loan balance is approximately 631,000.00. Our principal and interest payment is over 4,400/month without taxes and insurance. We have never been able to afford and make the P&I payment. Being that it is a negative amortization loan, the loan balance continues to grow. We are so upside down on our loan that no one will touch it, especially since it is not a government backed loan and is owned by a private investor. Governor Schwarzenegger has since outlawed negative amortization loans in California, which goes into effect in January 2010.

For almost two years I have repeatedly applied, pleaded, prayed and begged with ALS to get my loan modified. However, they repeatedly refused all loan modification submissions and requests. They also repeatedly told me that I knew what kind of loan I was getting into from the beginning and I should just let my home go. Through viewing thousands of complaints online about Aurora Loan Services, this is their common practice. Yet, they were given 789 billion from the government to help us struggling homeowners. California is on top when it comes to home foreclosures. I hand it to the Suffolk County Judge who wiped out a couple’s full 525,000.00 mortgage because of Aurora Loan Services’ predatory tactics.

I did not know all the circumstances and details upon acquiring the loan, which is a non-stated jumbo Negative Amortization Option ARM loan. I hired a modification attorney in June 2009, which has cost me another 2,300.00. However, the attorney also cannot not get anything done regarding a modification. I have been trying to get a modification for almost two years and have watched my loan balance continue to grow.

I have fallen victim to ALS’ illegal lending practices. I have hired a loan modification attorney, yet it’s been over six months and nothing has been done. It appears that the attorney has sided with ALS. The attorney and ALS repeatedly told me that they were NOT basing my monthly payments according to the principal, interest, and property taxes, as they did not have to. I have repeatedly tried to argue that point and even quoted the law to them. However, they said that they are using the negative amortization option ARM minimum payment to figure the 31% of our gross. However, according to the lawsuit, I was correct.

Furthermore, ALS started foreclosure proceedings while I had a modification request pending, which is also noted in the lawsuit. Then they told me I would have to pay all the back fees, attorney fees (nothing was done other than a foreclosure letter from the attorneys) and a balloon payment to reinstate the loan. Also, ALS failed to give a detailed explanation as to all of their denials for a modification. Then they charged me fees on top of that. I fall under almost every category in the lawsuit, yet nothing is being done. We qualify under HAMP, yet ALS refuses us to modify. The HAMP is for non-GSE’s loans, for which I have. I also was given the excuse that since it is not a government backed loan, they did not have to modify my loan. However, they did tell me that the private investor who owns my loan is participating in the HASP and HAMP programs, but I did not qualify. ALS didn’t even offer us any other type of modification. They just repeatedly told me to let the home go. I am in desperate need of help in an effort to save my home. How could we join the class action lawsuit?

Sharon of Fletcher, NC December 10, 2009

We are a contractor and was hired to do work on a house that Aurora Loan Services provides a 2nd mortgage on. The check from the insurance company had our name, the insureds name, and the bank name on it. We sent it to the bank at the end of October – the house has been completed since early October and still after 15-20 phone calls to the loan department they have not released the check or sent an inspector out to the house. It is absolutely ridiculous that they can hold money for work already completed and signed off of by the home owner for over 3 months.

Debra of Lake Charles, LA November 12, 2009

I have been trying to pay off my mortage for over 6 months. I sent them over 27,000.00 and they returned the money. It does not make any sense. I am paying them off, after the money was returned Aurora sent the Sheriff office to my home to file foreclosure papers on me and my Home. I am sick to death of these people trying to take my home. I am working with Foreclosure Stoppers in Lake Charles Louisiana Don Snider has been working with them to get the house paid off and no success. The home is in my maiden name Debra Manley. I am without a job broke and can’t afford an attorney to fight them. I just don’t know what else to do. Maybe someone out there will help me.Someone please send me a email telling me what to do about these people “PLEASE”.

Lisa of Barnesville, MN October 27, 2009

I am a small business owner and starting in May, due to the ecomomy and flooding in our area, I was unable to continue paying myself. We have two homes, one in Barnesville and one in Kansas. The home in Kansas is mortgaged with Aurora loans. We are trying to sell it and have been for close to two years. Unfortunatly, starting in June we were unable to make both payments. I started requesting a loan modification at that time. I contacted them over, and over. Telling different representatives my story, faxing my financial information and asking questions of them to fully understand my options. Finally, in September they approved a 6 month reduced payment amount. It did not come through in enough time before we needed to liquidate our 401K to continue to make the full payment on time. Now, they are reporting to the credit agency that we are making particial payments and that we are 30 days, soon to be 60 late on our loan payment in the amount we have not been paying in the agreement. They never once said our loan would be reported late, in their paperwork it only referenced that it may show up with the credit agency as a payment modification. No one within the company has been able to give me the same answer as far as how the process truely works until recently.

Emily of Miami, FL October 21, 2009

I have been trying to get my loan modified for about a year now. I started to call them and send all the documentation even before missing any payments but foreseing the problem as my husband’s income started to decrease. I tried two times and every time they denied the modification for one reason or another. When it finally happened, my loan went delinquent, I tried calling them to work something around like a temporal payment reduction but they were not able to offer me any options.

I contacted them again and they arranged a forbearance agreement for me to stop the foreclosure. I made four payments under this arrangement and sent all the documentation twice. The first time I sent the documents via Fedex with delivery confirmation and they told me that they never received the documents so I had to fax everything again.

I was told that my loan would be modified within 90 days but what happened instead is that they denied the modification and asked me to enroll into another plan which was their version with a higher payment for another 3 months but even before starting this program, they told me that my loan didn’t qualified because I have no equity, of course, my home worth less than what I actually owe.

The end of the story is that I need to make 3 regular payments and send all the documentation again, wait 3 or 6 more months to see if they approve a modification for me. My conclusion is that they just play with the people to make you disburse some type of money and at the end the story is the same, you need to make the regular payment for them to look at a possible modification. Of course, in the meantime, you are accruing a higher past due balance on your loan.

In addition to all this, every time I called, I had to deal with a different rep and explain everything again and again. Last time I called, they didn’t even have my financials in the system.

Connie of Pompano Beach, FL November 25, 2008

We have never been late paying our Mortage, not even in the courtesy days. I paid 3 days late and they charged a 73 late payment. We called to tell them but they would not accept any excuses and would not waive the late fee. Extremel rude, spoke to 3 supervisors.

Paul of Pearland, TX January 10, 2008

prior to refinance we asked a copy of payoff information./ and 2weeks after closing, this person called me and told me we still have to pay ceratain amount for the escrow.. my question is im i still responsible for that balance. its reall y very annoying for such things to happen and they know that we are in the process refinancing. and during that conversation she told me i need to pay the said amount by 8 pm that day to think we talked @ 5 pm. january 8,2008 or they gonna return the wire transfer from Bank of America.

John of Glencoe, IL August 21, 2007

I am working with Harris Bank, N.A. to refinance my first and second mortgage with Aurora so I may receive a lower interest rate. Aurora Loan service will not release the first mortgage so Harris may pay it down because “it is their policy not to be second lien on a mortgage”. They are second lien on the second mortgage which Harris is paying down as well. There is nothing restricting us in the mortgage it is “just their policy” and something “they just don’t do.” No one at Aurora would provide me with a reason or a written document that I agreed to this. Furthermore, they will not allow me to talk with their legal department. I was put on “death hold”. Basically I cannot get out of a mortgage because so I can save some money because Aurora Loans just doesn’t do that, it’s their policy.” Harris Bank has NEVER heard of this happenning and in all my years of business I haven’t either. This is nothing short of a criminal act by trying to hold me hostage to two mortgages that I am trying to get out of.

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Comments
  1. ivan hoyt says:

    Its all a big scam Aurora requests paper work then loses it, time and time again.I have a Freddie Mac loan through Aurora and its a comedy show Aurora employees are laughing at us trying to modify our loans.Oh why dont you send us more copies we requested you must have lost them because we never received them. Ha Ha Ha!!!! Oh Im sorry we cant modify right now how about a three month trial period! Ok ,Well you did a good job with that but Im afraid you still didnt qualify.I guess will just have to foreclose!Oh Wait! we can do it if you pay 25,000 in penalties and keep the same 6 and a half per cent and yes your payment will only go up 400 hundred dollars to 2600 a month! How does that sound We will send you the paper work It only took 20 months to get this swell deal for you. Unfortunately thats my true story and Aurora loan says Ha Ha Ha ! Have a nice day!

  2. Cathy Dicapua says:

    I too have been trying to modify a loan with Aurora. I entered into a 3 mo trial and was rejected becuasae I had leins on my house, I filed a bk to get rid of the leins did that resent the modification package and was rejected becuase you can only submit it once. Now I have entered into a 6 mo special forebearance the payment is 300 a month more than the payment I am trying to modify. Has anyone had success with them

  3. bill Hanneman says:

    Aurora Loan services is the WORST! To this day as I type they continue to harrass me. I was working with the county to lower my taxes aand aurora paid them then FORCED me to pay them back NOW. My payment went from $1862. a month to over $3300 a month. I asked for 60 days to find a new job but they said NO. In fact they said if I didn’t pay them in full they would start foreclosure proceedings against me.
    I turned off my alarm clock since they started calling me at 8 am. Several calls an hour all day long until about 7 pm. They have called hundedes if not thousands of time and I refuse to answer. They are not there to help me or anyone else. They are PARASITES.

    Now I have an insurance claim for about $7.000. The insurance company sends the check to ALS if the damage is over $5,000. Knowing what I do about Aurora Loan Services and the fact I am still paying back the back property taxes, I will NEVER see the repair money. SO, I told my insurance company I wanted a check for $4999.99. so the Parasites don’t keep my money and I can get the repairs done in a timely fashion.
    I HATE these criminals!!

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