[emmy754]

Hi again... I have reworked my letter a bit and requested a specific loan modification (last paragraph). I have bolded what I changed... I was wanting your opinion if the letter should be more humble or if I'm taking the tone... Would certainly appreciate any imput. I have everything else printed and ready to go.

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I am writing this letter to explain the set of circumstances that has put me in severe danger of becoming delinquent on my loan with Countrywide. I obtained a 30-year conventional Jumbo Pay Option ARM mortgage from Countrywide in March 2005. It was not accurately disclosed to me the terms and conditions of this toxic, and frankly, predatory loan and it was not made clear to me how the negative amortization would essentially price me out of my home since the amortization schedule I received at closing (attached) shows my balance should be approximately $663,000 at this point in the loan and instead it is currently over $710,000. This difference of nearly $50,000 means I currently owe more than the house is worth.


Furthermore, the APR listed on the Truth in Lending Disclosure Statement provided by law is false, listing an annual percentage rate over the life of the loan of 4.883%. Clearly, this was incorrect if an additional $50,000 has been added to my principal in 3 ½ years. Additionally, the fees actually charged to me on the final closing statement do not match the fees shown on the final itemization of amount financed provided by Countrywide. The Truth-in-Lending Disclosure Statement disclosure provided to me is false and misleading. In researching this topic, I have learned that RESPA of 1974 requires accurate disclosure which I did not receive. Had I known the true details of this loan, I would never have taken it.

Countrywide appraised the house at $1,200,000 in the initial application. When I attempted a refinance earlier this year, I was told the house was worth approximately $1,000,000, still putting me in a strong, positive equity situation. Housing values have dropped nationwide but not 50%. I believe that Countrywide inflated my appraisal value, thereby misleading me into thinking I would never get in a negative equity situation, yet at present I owe more than the house is worth.

There are several circumstances that have resulted in financial difficulty:
1. I was unable to refinance my loan because of a significant pre-payment penalty for first year.
2. I initiated a refinance through Countrywide in December 2007. The loan officer, from the Chandler AZ branch, told me the refinance was approved and would be completed in an expedited manner. I completed every step or information request as directed. I have attached numerous emails showing me checking the status of the loan and the loan officer replying I was approved and the refinance would be done in a matter of days. After getting misleading information for more than six months, totally unexpectedly the loan officer told me in June 2008 this loan was no longer offered. Meanwhile, other offers and better interest rates came and went, but I didn’t pursue them as I was being told again and again I was approved and it would be just a couple more days to complete. In this housing downturn, six months made a huge difference in the availability of and ability to qualify for loans. This customer service failure really contributed to my financial hardship. Appraised values dropped in the economic slow down and by the time Countrywide informed me the loan was longer available, it was too late for me to get a loan elsewhere.
3. Shortly after this, I was in a car accident on July 29, 2008 that has required ongoing medical care, associated expenses, and my doctor has placed me restricted activity.

I am current on my mortgage however due to the economic hardships I am experiencing, I am in significant danger of not being able to make the payment due January 2009. I have only had one late payment which was during the refinance process detailed above. I anticipated, based on the loan officer’s assurances, that it would be completed prior to the due date. Once that didn’t happen, I made the payment the following day but it was after the due date. I have owned this home for more than 20 years and my number one goal is to keep my home, keep current with my payments and maintain my good credit rating. I would really like the opportunity to do that and I hope that you can work with me on a loan modification.

I am a carpenter and in these difficult economic times, the availability of work has been drastically reduced and I have applied for and received unemployment benefits. I have done everything I can to make ends meet, including selling my boat and taking on 3 roommates to help supplement my income. These two additional sources of income will improve my situation, and meet the demands of this loan. I have no car loans and only owe $163 on my credit card. I believe a loan modification would benefit us both.

I feel because Countrywide violated RESPA and truth-in-lending laws by failing to fully explain the true cost of this loan. When I tried to refinance out of this predatory loan, it seems as though Countrywide kept stringing me along so that I couldn’t go elsewhere and was forced to remain in this predatory loan. The actions of Countrywide left me unable to refinance into a long term affordable rate.

Because of this, I believe the negative amortization that has been added to my principal since the loan origination should be removed. A satisfactory resolution of this issue would be to set aside all negative amortization and not consider it a default of any kind. In order for me to afford to make the payments and remain in my home, I would need to have my loan modified, and converted to a 30 year fixed rate, 3% interest only for the first 5 years and fully amortized at 5% for the remaining 25 years with no negative amortization. This would allow me to get back on my feet after my accident and regain my economic footing.

I have attached the documents your “Home Retention” representative requested. Please contact me with any questions or additional information needed.

I appreciate your time and attention to this matter.

Most respectfully,