I have an adjustable rate loan (based on libor index) it's suppose to reset next month to 9.5%. The original was 7.5% balance $223,000. A 2nd thru another lender of $35,000. Of course, just like everyone else I thought I would beable to refinance before it reset. Unfortunately, I became ill and fell behind on all my bills. I am back to working but now my credit is ruined.
Countrywide Home Loans said they wouldn't help to just before the loan resets. I was told to call the Hope allliance. which I did the lady there took the information and said with the budget I supposedly have $400 left over a month (I wish). To complicate matters, I was single w/5 kids when I got the loan, it was no doc -I was self-employed--I had $105,000 down. With the market the way it is now the equity is gone. I had been a
CW customer for 9 years with a FHA loan on my previous property and never had any problems with
CW. THAT's why I went back to them when I moved. I was told then that I would only qualify for the adjustable rate--boy do I feel stupid now!!
The lady from Hope said I have to wait for countrywide to contact me now. My questions: Is it likely that
CW will freeze the rate for me?? I'm currently 1 month behind but I'm also behind on the property taxes.
What else should I be doing? I'm feeling like I've really let my family down by messing this up so much...
I have spoken with a bankruptcy attorney. But he said in order to stay in the house I would have to get the loan modified first. I would really like to beable to refinance and consolidate my debt but with my credit score I don't think thats likely.
thanks for any suggestions