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Home My WebLink About08-4575p PHELAN HALLINAN & SCHMIEG, LLP LAWRENCE T. PHELAN, ESQ., Id. No. 32227 FRANCIS S. HALLINAN, ESQ., Id. No. 62695 DANIEL G. SCHMIEG, ESQ., Id. No. 62205 MICHELE M. BRADFORD, ESQ., Id. No. 69849 JUDITH T. ROMANO, ESQ., Id. No. 58745 SHEETAL SHAH-JANI, ESQ., Id. No. 81760 JENINE R. DAVEY, ESQ., Id. No. 87077 LAUREN R. TABAS, ESQ., Id. No. 93337 VIVEK SRIVASTAVA, ESQ., Id. No. 202331 JAY B. JONES, ESQ., Id. No. 86657 PETER MULCAHY, ESQ., Id. No. 61791 ANDREW SPIVACK, ESQ., Id. No. 84439 JAIME MCGUINNESS, ESQ., Id. No. 90134 ONE PENN CENTER PLAZA, SUITE 1400 PHILADELPHIA, PA 19103 (215) 563-7000 , 183358 NATIONAL CITY MORTGAGE COMPANY 3232 NEWMARK DRIVE MIAMISBURG OH 45342 Plaintiff V. STEVEN R. DAVIS 9 HILL ROAD CARLISLE, PA 17015 Defendant ATTORNEY FOR PLAINTIFF COURT OF COMMON PLEAS CIVIL DIVISION TERM NO.Of - 11515- 01V O -T? KM CUMBERLAND COUNTY CIVIL ACTION - LAW COMPLAINT IN MORTGAGE FORECLOSURE File #: 183358 NOTICE You have been sued in Court. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this Complaint and Notice are served by entering a written appearance personally or by attorney and filing in writing with the Court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so, the case may proceed without you, and a judgment may be entered against you by the Court without further notice for any money claimed in the Complaint or for any other claim or relief requested by the plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. Lawyer Referral Service Cumberland County Bar Association 32 South Bedford Street Carlisle, PA 17013 (800)990-9108 File #: 183358 IF THIS IS THE FIRST NOTICE THAT YOU HAVE RECEIVED FROM THIS OFFICE, BE ADVISED THAT: PURSUANT TO THE FAIR DEBT COLLECTION PRACTICES ACT, 15 U.S.C. § 1692 et seq. (1977), DEFENDANT(S) MAY DISPUTE THE VALIDITY OF THE DEBT OR ANY PORTION THEREOF. IF DEFENDANT(S) DO SO IN WRITING WITHIN THIRTY (30) DAYS OF RECEIPT OF THIS PLEADING, COUNSEL FOR PLAINTIFF WILL OBTAIN AND PROVIDE DEFENDANT(S) WITH WRITTEN VERIFICATION THEREOF; OTHERWISE, THE DEBT WILL BE ASSUMED TO BE VALID. LIKEWISE, IF REQUESTED WITHIN THIRTY (30) DAYS OF RECEIPT OF THIS PLEADING, COUNSEL FOR PLAINTIFF WILL SEND DEFENDANT(S) THE NAME AND ADDRESS OF THE ORIGINAL CREDITOR, IF DIFFERENT FROM ABOVE. THE LAW DOES NOT REQUIRE US TO WAIT UNTIL THE END OF THE THIRTY (30) DAY PERIOD FOLLOWING FIRST CONTACT WITH YOU BEFORE SUING YOU TO COLLECT THIS DEBT. EVEN THOUGH File #: 183358 THE LAW PROVIDES THAT YOUR ANSWER TO THIS COMPLAINT IS TO BE FILED IN THIS ACTION WITHIN TWENTY (20) DAYS, YOU MAY OBTAIN AN EXTENSION OF THAT TIME. FURTHERMORE, NO REQUEST WILL BE MADE TO THE COURT FOR A JUDGMENT UNTIL THE EXPIRATION OF THIRTY (30) DAYS AFTER YOU HAVE RECEIVED THIS COMPLAINT. HOWEVER, IF YOU REQUEST PROOF OF THE DEBT OR THE NAME AND ADDRESS OF THE ORIGINAL CREDITOR WITHIN THE THIRTY (30) DAY PERIOD THAT BEGINS UPON YOUR RECEIPT OF THIS COMPLAINT, THE LAW REQUIRES US TO CEASE OUR EFFORTS (THROUGH LITIGATION OR OTHERWISE) TO COLLECT THE DEBT UNTIL WE MAIL THE REQUESTED INFORMATION TO YOU. YOU SHOULD CONSULT AN ATTORNEY FOR ADVICE CONCERNING YOUR RIGHTS AND OBLIGATIONS IN THIS SUIT. IF YOU HAVE FILED BANKRUPTCY AND RECEIVED A DISCHARGE, THIS IS NOT AN ATTEMPT TO COLLECT A DEBT. IT IS AN ACTION TO ENFORCE A LIEN ON REAL ESTATE. File #: 183358 Plaintiff is NATIONAL CITY MORTGAGE COMPANY 3232 NEWMARK DRIVE MIAMISBURG, OH 45342 2. The name(s) and last known address(es) of the Defendant(s) are: STEVEN R. DAVIS 9 HILL ROAD CARLISLE, PA 17015 who is/are the mortgagor(s) and/or real owner(s) of the property hereinafter described. 3. On 03/15/2006 mortgagor(s) made, executed and delivered a mortgage upon the premises hereinafter described to FIRST AMERICA MORTGAGE, A DIVISION OF NATIONAL CITY BANK OF INDIANA which mortgage is recorded in the Office of the Recorder of CUMBERLAND County, in Mortgage Book No. 1943, Page 2353. By Assignment of Mortgage recorded 07/20/2006 the mortgage was assigned to PLAINTIFF which Assignment is recorded in Assignment of Mortgage Book No. 728, Page 2373. The mortgage and assignment(s), if any, are matters of public record and are incorporated herein by reference in accordance with Pa.R.C.P. 1019(g); which Rule relieves the Plaintiff from its obligations to attach documents to pleadings if those documents are of public record. 4. The premises subject to said mortgage is described as attached. 5. The mortgage is in default because monthly payments of principal and interest upon said mortgage due 08/01/2007 and each month thereafter are due and unpaid, and by the terms of said mortgage, upon failure of mortgagor to make such payments after a date specified by written notice sent to Mortgagor, the entire principal balance and all interest due thereon are collectible forthwith. File #: 183358 6. The following amounts are due on the mortgage: Principal Balance $358,962.29 Interest $25,423.54 07/01/2007 through 07/29/2008 Attorney's Fees $1,250.00 Cumulative Late Charges $100.96 03/15/2006 to 07/29/2008 Cost of Suit and Title Search 550.00 Subtotal $386,286.79 Escrow Credit $0.00 Deficit $1,612.19 Subtotal $1,612.19 TOTAL $387,898.98 7. If the mortgage is reinstated prior to a Sheriffs Sale, the attorney's fee set forth above may be less than the amount demanded based on work actually performed. The attorney's fees requested are in conformity with the mortgage and Pennsylvania law. Plaintiff reserves its right to collect attorney's fees up to 5% of the remaining principal balance in the event the property is sold to a third party purchaser at Sheriff s Sale, or if the complexity of the action requires additional fees in excess of the amount demanded in the Action. 8. Plaintiff is not seeking a judgment of personal liability (or an in personam judgment) against the Defendant(s) in the Action; however, Plaintiff reserves its right to bring a separate Action to establish that right, if such right exists. If Defendant(s) has/have received a discharge of personal liability in a bankruptcy proceeding, this Action of Mortgage`Foreclosure is in no way an attempt to reestablish such personal liability discharged in bankruptcy, but only to foreclose the mortgage and sell the mortgaged premises pursuant to Pennsylvania Law. File M 183358 9. Notice of Intention to Foreclose as set forth in Act 6 of 1974, Notice of Homeowner's Emergency Assistance Program pursuant to Act 91 of 1983, as amended in 1998, and/or Notice of Default as required by the mortgage document, as applicable, have been sent to the Defendant(s) on the date(s) set forth thereon, and the temporary stay as provided by said notice has terminated because Defendant(s) has/have failed to meet with the Plaintiff or an authorized consumer credit counseling agency, or has/have been denied assistance by the Pennsylvania Housing Finance Agency. 10. This action does not come under Act 6 of 1974 because the original mortgage amount exceeds $50,000. WHEREFORE, PLAINTIFF demands an in rem Judgment against the Defendant(s) in the sum of $387,898.98, together with interest from 07/29/2008 at the rate of $66.38 per diem to the date of Judgment, and other costs and charges collectible under the mortgage and for the foreclosure and sale of the mortgaged property. PHELAN HALLINAN & SCHMIEG, LLP By: LAWRENCE T. PHELAN, ESffiJIRE FRANCIS S. HALLINAN, ES IRE DANIEL G. SCHMIEG, ESQUIRE vMICHELE M. BRADFORD, ESQUIRE 1 • ?. G 4 p'?t JUDITH T. ROMANO, ESQUIRE SHEETAL R. SHAH-JANI, ESQUIRE JENINE R. DAVEY, ESQUIRE LAUREN R. TABAS, ESQUIRE VIVEK SRIVASTAVA, ESQUIRE JAY B. JONES, ESQUIRE PETER MULCAHY, ESQUIRE ANDREW SPIVACK, ESQUIRE JAIME MCGUINNESS, ESQUIRE Attorneys for Plaintiff File #: 183358 r ,P. ? :. '+?s +? r •r? ? LEGAL DESCRIPTION ALL those certain two tracts of land with the improvements thereon erected, situate in the Township of West Pennsboro, County of Cumberland and State of Pennsylvania, bounded and described as follows: TRACT NO. 1: BEGINNING at a point in a township road at land now or formerly of I.E. Mell; thence by said Mell land, North 21 degrees 25 minutes West, 117 feet to a point; thence by land now or formerly of Earl Tritt, North 23 degrees West, 225 feet to a point; thence by land now or formerly of O.A. Kitzmiller, North 82 degrees 50 minutes East, 157 feet to a point; thence continuing along the said O.A. Kitzmiller land, South 16 1/2 degrees East, 195 feet to a post; thence continuing along the said O.A. Kitzmiller land, South 9 degrees 20 minutes East, 147.2 feet to a pin at edge of a road; thence by road South 87 degrees 55 minutes West, 104.5 feet to the place of BEGINNING. TRACT NO.2: BEGINNING at an iron pin on South side of Township Road 635 and Lot No. 5; thence along Lot No. 5, South 16 degrees 06 minutes East, 207.44 feet to an iron pin; thence along the above-described Tract 1, South 83 degrees 09 minutes West, 157.00 feet to a post; thence along the lands now or formerly of Earl Tritt, North 22 degrees 23 minutes 40 seconds West, 165.24 feet to a spike; thence along the Township Road 635, North 67 degrees 58 minutes 30 seconds East, 174.00 feet to the place of BEGINNING. File M 183358 CONTAINING.699 acre. PREMISES BEING: 9 HILL ROAD PARCEL NO: 46-09-0521-018 BEING Lot No. 4 in the Plan of Lots laid out by Thomas Alvin Neff, R.S. dated September 18, 1974, and recorded in Plan Book 26, Page 56. BEING the same premises which Robert Neidlinger and Heather Hurley, single persons, by Deed dated October 7, 2005 which Deed is recorded in the Office of the Recorder of Deeds in and for Cumberland County in Deed Book, Page, granted and conveyed to Raymond J. Moneta and Carrie A. Moneta, husband and wife, Grantors herein. File #: 183358 VERIFICATION I hereby state that I am the attorney for Plaintiff in this matter, that Plaintiff is outside the jurisdiction of the Court and/or the verification could not be obtained within the time allowed for the filing of the pleading, that I am authorized to make this verification pursuant to Pa.R.C.P. 1024 (c), and that the statements made in the foregoing Civil Action in Mortgage Foreclosure are based upon information supplied by Plaintiff and are true and correct to the best of my knowledge, information and belief. Furthermore, counsel intends to substitute a verification from Plaintiff upon receipt. The undersigned understands that this statement is made subject to the penalties of 18 Pa.C.S. Sec. 4904 relating to unsworn falsifications to authorities- Attorney - DATE: for Plaintiff t im 1 l c_ cz) C ,., 9 J Y ?? K PHELAN HALLINAN & SCHMIEG, LLP FRANCIS S. HALLINAN, ESQ., Id. No. 62695 ONE PENN CENTER PLAZA, SUITE 1400 PHILADELPHIA, PA 19103 (215) 563-7000 NATIONAL CITY MORTGAGE COMPANY Plaintiff VS. STEVEN R. DAVIS Defendant(s) ATTORNEY FOR PLAINTIFF COURT OF COMMON PLEAS CIVIL DIVISION NO. 08-4575 CIVIL TERM CUMBERLAND COUNTY PRAECIPE TO SUBSTITUTE VERIFICATION TO CIVIL ACTION COMPLAINT IN MORTGAGE FORECLOSURE TO THE PROTHONOTARY: Kindly substitute the attached verification for the verification originally filed with the complaint in the instant matter. Phelan Hallinan & Schmieg, LLP Attorney for Plaintiff /?By: Franci . Hallinan, Esquire Date: 8/25/08 PHS #: 183358 VERIFICATION Mpndy Mundey hereby states that he/she is Authorized Signer ofNATIONAL CITY MORTGAGE CO., A SUBSIDIARY Of NATIONAL CITY BANK., servicing agent for Plaintiff in this matter, that he/she is authorized to take this Verification, and that the statements made in the foregoing Civil Action in Mortgage Foreclosure are true and correct to the best of his/her knowledge, information and belief. The undersigned understands that this statement is made subject to the penalties of 18 Pa. C.S. Sec. 4904 relating to unworn falsification to authorities. Name: Mendy Mund y DATE: 8/1 3/08 Title: Authorized Signer Company: NATIONAL CITY MORTGAGE CO., A SUBSIDIARY Of NATIONAL CITY BANK. Loan: 0004562350 File #: 183358 $. w PHELAN HALLINAN & SCHMIEG, LLP LAWRENCE T. PHELAN, ESQ., Id. No. 32227 FRANCIS S. HALLINAN, ESQ., Id. No. 62695 ONE PENN CENTER PLAZA, SUITE 1400 PHILADELPHIA, PA 19103 (215) 563-7000 NATIONAL CITY MORTGAGE COMPANY Plaintiff Vs. STEVEN R. DAVIS Defendant(s) ATTORNEY FOR PLAINTIFF : COURT OF COMMON PLEAS : CIVIL DIVISION : NO. 08-4575 CIVIL TERM : CUMBERLAND COUNTY CERTIFICATE OF SERVICE I hereby certify that a strue and correct copy of Plaintiff's Praecipe to attach Verification of Complaint was sent via first class mail to the following on the date listed below: STEVEN R. DAVIS 9 HILL RD CARLISLE, PA 17015 Date: 8/25/08 Phelan Hallinan & Schmieg, LLP Attorney for Plaintiff By: Francis S. Hallinan, Esquire cC? czr> 2 ''a rQ r SHERIFF'S RETURN - REGULAR CASE NO: 2008-04575 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND NATIONAL CITY MORTGAGE CO VS DAVIS STEVEN R MICHAEL BARRICK , Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within COMPLAINT - MORT FORE DAVIS STEVEN R DEFENDANT at 9 HILL ROAD the , at 0019:25 HOURS, on the 12th day of August , 2008 CARLISLE, PA 17015 by handing to STEVEN R DAVIS DEFENDANT a true and attested copy of COMPLAINT - MORT FORE together with and at the same time directing His attention to the contents thereof. Sheriff's Costs: Docketing 18.00 Service 8.00 Affidavit .00 Surcharge 10.00 00 a??A? n P C,,,. v"36.00 Sworn and Subscibed to before me this day So Answers: R. Thomas Kline 08/13/2008 PHELAN HALLINAN & SCHMIEG By: Deputy 'Sheriff was served upon of A. D. Steven R Davis, pro se 9 Hill Rd Carlisle, PA 17015 Telephone: (703) 728.0904 Plaintiff COURT OF COMMON PLEAS CIVIL DIVISION National City Mortgage Company VS. CUMBERLAND COUNTY NO. 08-4575 CIVIL TERM Defendant Steven R. Davis CERTIFICATION and RESPONSE OF STEVEN R. DAVIS I am the Defendant in this case. I make this certification of my own knowledge in answer and response to Plaintiff's filing of an Action of Mortgage Foreclosure. I. Pur ose: I make this certification to file in writing defenses, objections, and counter- proposal to the claims against me. I object to the Plaintiff's requested ruling and respectfully ask the court to consider alternative remedies to the dispute based on (in whole or part) the information contained herein. 2. Act 91 Notice: Defendant met with an authorized consumer credit counseling agency and is still awaiting notice of acceptance or denial of Defendant's application for assistance from the Pennsylvania Housing Finance Agency. 3. Workout Package: Defendant submitted two workout packages to Plaintiff; but because of Defendant's current financial picture, and Plaintiff's internal rules; the package wa$ mjected without thoughtful consideration. 4. Propel for tilde: Defendant continues in good faith to maintain the property in show condition and actively on the market for sale. Page I of 3 5. Current United States Financial Landscape: The US Financial picture is dire. Consideration of alternatives to foreclosure is a social responsibility as citizens. 6. Hardship: Exhibit B is Defendant's Personal Hardship Letter to Plaintiff dated 20JunO8. Exhibit B discusses factors of Housing Market; Post Divorce Decree Litigation for Visitation of Defendant's boys; Post Divorce decree Litigation for Child Support of Defendant's step-daughters; Medical Expenses; Employment; and Fuel Costs. Exhibit B explains how the dispute between Defendant and Plaintiff came to be. 7. Alternative to Foreclosure: Exhibit A is Defendant's Hardship Assistance Request Response dated 7Aug08. Within Exhibit A is a detailed and realistic plan which results in the complete disputed amount paid over time to the Plaintiff by the Defendant. The plan calls initially for a lower monthly payment with payment amounts increasing over time and in the end exceeding current required payment amounts. The plan enables Plaintiff to show a profit rather than a loss on the property stabilizing both Plaintiffs and Defendant's financial outlooks. The bottom line of the plan is that the Plaintiff receives the total requested Judgment (on an alternative timetable). The plan in no way denies or prejudices the right of the Plaintiff to file any future Action of Mortgage Foreclosure (especially in the case of the plan's failure). 8. Request: Defendant respectfully requests the court consider the Defendant's proposed alternative and if acceptable; orders of the court making the proposal actual. Page 2 of 3 I hereby certify that the foregoing statements made by me are true. I am aware that if any of the foregoing statements are willfully false, I am subject to punishment. I have mailed a copy of this to the Plaintiff's attorneys. Dated: 449 teven R. Davis, Defendant Page 3 of 3 ????? Steven R Davis Re: NCMC Loan Number 0004562350; Hardship Assistance Request Response Steven R Davis 9 Hill Rd Carlisle, PA 17015 7Aug08 National City Mortgage Co. Attn: Homeowner's Assistance 3232 Newmark Drive Miamisburg, OH 45342 Re: NCMC Loan Number 0004562350; Response to Hardship Assistance Request Denial I received a letter from National City dated 24Ju108 which states that my hardship assistance request was denied due to the financial information that I provided showing a deficit income. I believe that my situation was not correctly reflected in the financial information that i provided. I'd like to take this opportunity to correct the financial information to show a positive income flow that increases over time and eventually pays both mortgages in full. Please reopen my file and reconsider my request for assistance on behalf of our mutual benefit. Please also keep in mind that the home is actively listed for sale and will remain so during the plan in an attempt to resolve the situation soonest and for the benefit of all parties. Here is my current financial worksheet, showing a positive income: Current Financ ial Workshe et Description Income Expenses Positive Cash Flow in-Out Net Sala $6,943.00 Child Support Incoming $600.00 Disability $638.00 National City Mortgage $500.00 2nd Mortgage $0.00 Installment Loans $770.68 Credit Cards $165.00 Food $1,300.00 Utilities $552.00 Transportation $11690.00 Child Support Outgoing $1,500.00 Chi 3 Payment $508.57 Medical Expenses $350.00 Cell, Home Phone, Cable, Internet $370.00 Fees (Taxes, Life Ins, Home Maintenance $291.00 Clothing $65.00 Totals $8,181.00 $8,082.25 $118.75 8/7/2008 Page 1 of 5 Steven R Davis Re: NCMC Loan Number 0004562350; Hardship Assistance Request Response Here is my proposed Mortgage Payment Plan which is roughly calculated to result in early payoff (prior to Apr2036) for both mortgages: Dates Additional . 1st Mortgage 2nd Mortgage Additional Income Income Payment Payment Source Current thru ? '? $0.00 Liquidate 401 K and 1Jan09 ' payoff 2 auto loans 1 Feb09 thru $500.00 $1,000.00 $0.00 Renter shared cost 1 Apr12 1May12 thru $510.00 $1 510.00 $0.00 Bankruptcy 1Jan13 , Completed 1 Feb13 thru $770.00 $2,280.00 $0.00 Auto Loan Payoff 1 Oct14 1 Nov14 thru 1 Dec18 $750.00 $2,416.00 $614.00 1 st child emancipated 1Jan1g thru Paypff $750.00 $3,080.00 $700.02 2nd child emanicipated Below is my financial worksheet on 1 Feb09, showing a positive income and mortgage payment on the 1st mortgage of $1,000.00 monthly. By 1Feb0g, my wife's sister will be employed, living in our home as a renter, and providing $500.00 monthly income to me: IFebo9 Financial Workshee t Description Income Expenses Positive Cash Flow (In-Out) Net Sala $6,943.00 Child Support Incoming $600.00 Disability $638.00 Renter Income $500.00 National, City Mortgage $1,000.00 2nd Mortgage $0.00 Installment Loans $770.68 Credit Cards $165.00 Food $1,300.00 Utilities $552.00 Transportation $1,690.00 Child Support Outgoing $1,500.00 Ch 13 Payment $508.57 Medical Expenses $350.00 Ceti, Home Phone, Cable, Internet $370.00 Fees (Taxes, Life Ins, Home Maintenance $291.00 Clothing $65.00 Totals 1$8,681.00 1$8,562.25 1 $118.75 i 8/7/2008 Page 2of5 Steven R Davis Re: NCMC Loan Number 0004562350; Hardship Assistance Request Response Below is my financial worksheet on 1May12, showing a positive income and mortgage payment on the 1't mortgage of $1,510.00 monthly. By 1Mayi2, my Chapter 13 bankruptcy payment plan will be complete, reducing my expenses by $508.57 monthly: 1Ma 2 Financ ial Workshe et Description income Expenses Positive Cash Flow In-00) Net Salary $6,943.00 Child Support Incoming $800.00 Disability $638.00 Renter Income $500.00 National C' Mortgage $1,510.00 2nd Mortgage $0.00 Installment Loans $770.68 Credit Cards $165.00 Food $1,300.00 Utilities $552.00 Transportation $1,690.00 Child Support Outgoing $1,500.00 Ch 13 Pa ent $0.00 Medical Expenses $350.00 Cell, Home Phone, Cable, Internet $370.00 Fees (Taxes, Life Ins, Home Maintenance $291.00 Clothing $65.00 Totals $8,681.00 $9,563.68 $117.32 Below is my financial worksheet on 1 Feb 13, showing a positive income and mortgage payment on the 1 14 mortgage of $2,280.00 monthly. By 1 Feb13, my largest car payment will be complete, reducing my expenses by $771.32 monthly: 1 Feb13 Financ ial Workshe et Description Income Expenses Positive Cash Flow in-Out Net Sala $6,943.00 Child Support Incoming $600.00 Disability__ $638.00 Renter Income $500.00 National City Mortgage $2,280.00 2nd Mortgage $0.00 Installment Loans $0.00 Credit Cards $165.00 Food $1,300.00 Utilities $552.00 Transportation $1,690.00 Child Support Outgoing $1,500.00 Chi 3 Payment $0.00 si7i200s Page 3 of 5 Steven R Davis Re: NCMC Loan Number 0004562350; Hardship Assistance Request Response 1 Fe1613 Financial' Workshe et Description Income Expenses Positive Cash Flow (in-Out Medical Expenses_ $350.00 Cell, Home Phone, Cable, Internet $370.00 Fees (Taxes, Life Ins, Home Maintenance $291.00 Clothing $65.00 Totals $8,681.00 $8,663.00 $118.00 Below is my financial worksheet on 1 Novi 4, showing a?asitive income and mortgage payments on the V' mortgage of $2,416.00 monthly and on the 2 mortgage of $614.00 monthly. By 1 Novi 4. my eldest son on whom I pay child support will be emancipated, reducing my expenses by $750.00 monthly: 1Novi 4 Financ ial Workshe et Description Income Expenses Positive Cash Flow In-Out Net Salary $6,943.00 Child Support Incoming $600.00 Disabif $638.00 Renter Income $500.00 National C' Mortgage $2,416.00 2nd Mortgage $614.00 Installment Loans $0.00 Credit Cards $165.00 Food $1,300.00 Utilities $552.00 Transportation $1,690.00 Child Support Outgoing $750.00 Ch13 Payment $0.00 Medical Expenses $350.00 Cell, Home Phone, Cable, Internet $370.00 Fees (Taxes, Life Ins, Home Maintenance $291.00 Clothing $65.00 Totals $8,681.00 $8,563.00 $118.00 8/7/2008 Page 4 of 5 Steven R Davis Re: NCMC Loan Number 0004562350; Hardship Assistance Request Response Below is my financial worksheet on 1Jan19, showing a g income and mortgage payments on the 1" mortgage of $3,080.00 monthly and on the 2"? mortgage of $700.02 monthly. By 1 Jan'! 9, my youngest and last son on whom I pay child support will be emancipated, reducing my expenses by $750.00 monthly: 1Jan19 Financial Worksh eet Description Income Expenses Positive Cash Flow In-Out Net Sala $6,943.00 Child Support Incoming $600.00 Disability $638.00 Renter Income $500.00 National City Mortgage $3,080.00 2nd Mortgage $700.02 Installment Loans $0.00 Credit Cards $165.00 Food $1,300.00 utilities $552.00 Transportation $1,690.00 Child Support Outgoing $0.00 Ch 13 Payment $0.00 Medical nses $350.00 Cell, Home Phone, Cable, Internet $370.00 Fees (Taxes, Life Ins, Home Maintenance $291.00 Clothing $65.00 Totals $8,681.00 $8,563.02 $117.98 Please contact me as desired at 703-728-0904. I thank you sincerely for your consideration of this proposal. Thank o Steve Davis 8/7/2008 Page 5 of 5 ?x????g Steven R Davis Re: NCMC Loan Number 0004562350; Personal Hardship Letter Steven R Davis 9 Hill Rd Carlisle, PA 17015 20JunO8 National City Mortgage Co. Attn: Homeowner's Assistance 3232 Newmark Drive Miamisburg, OH 45342 Re: NCMC Loan Number 0004562350; Personal Hardship Letter I have experienced several hardships that collectively have affected my financial ability to make my mortgage payment. This letter explains the hardships in summary form and proposes a workout package for resolution of the current financial situation. Housing Market At the time of my offer to purchase the home in January 2006; the housing market at my then residence of 11946 Hollowwind Ct, Reston, VA was booming, though some anticipated a bubble burst at some point. Zillow.com shows the property peak value In Jan06 then dropping off significantly thereafter. I did not realize I was at the peak and anticipated a quick sale common at the time. Instead, the bubble burst leaving me saddled with 4 mortgages (2 per prop"). I was able to use my previously good credit and a renter for a period of time before I had to eventually declare Chapter 13 bankruptcy in which I surrendered the property. Myome. Post-Decree Litigatio,0: Despite having both a property settlement agreement and a divorce decree with explicit definitions for visitation with my two boys; my ex-wife nonetheless refused to follow the decree. I pursued relief from the courts, which was to prove expensive and eventually fruitless. i do not see my boys much, just a small fraction of the time ordered by the judge; I have no further funds with which to fight the battle in the legal system. From 2003 through present the cost totaled some $80,000.00. b. Child ,pg Despite having both a property settlement agreement and a divorce decree with explicit definitions for child support and several court orders for support; my wife and I frequently fail to receive the $600.00 per month support for my two step-daughters. The Ch 13 bankruptcy filing in April of 2007 was based on receiving the $600.00 per month support consistently and on time. To date the girl's natural father is $8,000.00 in arrears. We have paid a few thousand dollars over the years in pursuit of support. Injury and Illness Medical Expenses: Despite having excellent health insurance through my employer, Northrop Grumman; being a family of six we have had unusual out of pocket medical expenses. Typically the average costs of medical out of pocket expenses, in a given month are upwards of $350.00. On top of this cost are out of pocket expenses for three major surgeries our family has experienced over the last year. Each of these surgeries ranged in expense from $500 to $2000 in out of pocket costs. We currently owe some $5000.00 in accumulated unpaid expenses since filing our Apr07 Ch 13 bankruptcy. EmD ent Our model for housing was one in which we would choose to have me commute some 240 miles round-trip on a daily basis in the near term before I could find other work closer to home. I was successful in August 2006 in securing a position within the company which reduced my daily round-trip commute by 40 miles. This was considered by us to be an interim step to an even shorter commute and the job opportunity came with a strong possibility of working out of the home (which did not materialize). I have been in an active job search for more than two years and generally interview every other month for one opportunity or another, however the nature of my experience in classified environments coupled with my bad credit have closed the 7/14/2008 Pagel of 3 Steven R Davis Re: NCMC Loan Number 0004562350; Personal Hardship Letter door on several opportunities which could have played a significant role in resolving the current financial crisis (lost a possible 33% increase in salary due to this). Fuel Costs: Bad credit has locked me into my current vehicle of a 1999 Toyota 4Runner; this vehicle causes my daily gas expenditure to be 11 gallons for every work day (5140 schedule). My co-workers thought I was over-estimating the cost of gas when looking at our home-work model - my estimate was just in case gas prices should ever go as high as $2.50/gal...My estimated monthly fuel cost for getting to and from work alone was $505.00 per month. At current gas prices of $4.00/gal the monthly cost of gasoline to work has increased to $968.00 per month. ResoUbn: I propose a workout plan option to keep the hone from foreclosure. As disclosed in the financial worksheet there is little leeway, but there is some. A modification to tack the delinquent amounts to the end of the loan and a forbearance period initially of two years, followed by subsequent rolling increases; if acceptable could be possible. Budaef Stobdt7y: Child support is beginning to reach us for the girls through child support agencies. This gives $600.00 a month as indicated in the financial disclosures. I have taken a time penalty in my commute to work in order to better control fuel costs. We are supplementing our grocery bills with home grown vegetables in a garden on the property. We scavenge for free fire wood from tree trimmers and bum during the winter to bring down heating costs. These measures are designed to keep our budget close to balanced for now. Proposal Breakdown: I propose to temporarily zero the 2nd mortgage payment until such time as the rest of the budget permits payment. I propose to add the delinquent amount to the end of the loan extending the term. I propose to liquidate my 401 K permanently to obtain funds with which to pay off the Van and 4Runner giving $500.00 per month back into our operating budget. 1 propose to pay this $500.00 per month to National City on the first (primary) mortgage. With the remainder of the funds I plan to purchase a (used gas efficient model) vehicle to reduce fuel costs by 30% and to purchase a wood stove to give greater efficiency over the fireplace for our heat cost reduction program. 1 propose that at the end of a two year period or perhaps sooner depending on circumstances and as debt is paid down to increase reciprocally the amount paid to the first mortgage until it is fulfilled monthly and I am back on track with delinquent amounts extending the term of the loan; at that time and as continued fund increases allow I would resume paying the 2nd mortgage after National City is satisfied with progression of the first mortgage. During the two-year reduction in mortgage payment to $500.00 per month; and for the time beyond that; I propose continuing to keep the home on the market for sale in an effort to re- coop the banks investment in the first and second mortgage. This would be our first option to sell the home and pay off the mortgages in fuel, and perhaps have enough left over to fund a move closer to my work, and pay deposit on a rental home until recovered from bad credit. We are taking in my wife's sister in the coming months in order to provide her family support and childcare in exchange for help with the mortgage. Once she is established and employed in the area (medical field) we estimate she may be able to contribute as much as $500.00 per month. Other debt payoff and corresponding increase in funds to NCINC are shown in the table on the next page, which itself is a realistic and conservative plan for ultimately the total payoff of both the first and second mortgages. 7/14/2008 Page 2 of 3 Steven R Davis Re: NCMC Loan Number 0004562350; Personal Hardship Letter Total Total per Dates Amount Additional per month month Source 1st 2nd Budget stability - fuel Present n/a n/a n/a & food cost reduction program, stabilize child support Jan09 thru 500'00 500 00 0 00 Liquidate 401 K and Jan11 . ' payoff 2 auto loans Jan 11 thru r12 500.00 1000.00 0.00 Renter shared cost ru M 510.00 1510 00 0.00 n BBa ptc Ja 13 . o m l Jan 13 thru Oct14 772.00 2282.00 0.00 Auto Loan Payoff Oct14 thru 750.00 2416 00 616 00 1 st child Dec18 . . emancipated Dec18 thru new end of 750.00 3080.00 700.00 2nd child loan emancipated Aa?g, es: This plan has the advantage of preserving the property through our sweat equity expended on home maintenance and land care. Occupation of the property reduces the risk of natural decay and vandalism of the property, preserving the bank's investment in terms of maintaining the best possible property value. Such an advantage cannot be realized if the home goes to foreclosure at a loss in profit for the investor. The plan allows for NCMC to realize partial funds in the short term and full funds in the out-years. The disadvantage of the plan is that it is not what was agreed to originally for that i am song and would like to do as much as I possibly can to make amends-this plan can do that over time. I thank you sincerely for your consideration of this proposal. Than u; S ve avis 7/14/2008 Page 3 of 3 r--7 0 w t`1 V PHELAN HALLINAN & SCHMIEG, LLP BY: MICHELE M. BRADFORD, ESQUIRE Identification No. 69849 ATTORNEY FOR PLAINTIFF One Penn Center at Suburban Station 1617 John F. Kennedy Boulevard, Suite 1400 Philadelphia, PA 19103-1814 (215) 563-7000 National City Mortgage Company Court of Common Pleas 3232 Newmark Drive Civil Division Miamisburg, OH 45342 Plaintiff Cumberland County No.: 08-4575 Civil Term VS. Steven R. Davis 9 Hill Road Carlisle, PA 17015 Defendant PRAECIPE TO THE PROTHONOTARY: Please mark the above referenced case Discontinued and Ended without prejudice. Please mark the above referenced case Settled, Discontinued and Ended. Please mark Judgments satisfied and the Action settled, discontinued and ended. PHS: 183358 6. Please Vacate the judgment entered and mark the action discontinued and ended without prejudice. X Please withdraw the complaint and mark the action discontinued and ended without prejudice. Date: ?? d$ Michele "Id. Bradford, Esq ire Attorney for Plaintiff PHS: 183358 ?---; ?,? _.. , P_r ,?,, ? ? ".;