Loan Modification Forum - LoanSafe.org - View Single Post

Schnelle · 01-07-2009, 08:07 PM

I cannot be thankful enough to have found this forum. I will begin sharing the progress of my loan modification process in this thread.

I will begin by providing basic facts about my Countrywide mortgage:
Date loan acquired: August 2005
80-20 Interest Only Loan
1^st loan – 220,000 at 6% Fixed for 10 years
2^nd loan (HELOC) – 65,000 adjustable rate
Status: Current

Since our mortgage was acquired our net cash flow immediately fell to the negative; we clearly should have not been approved for a mortgage in the first place. I honestly stated our income on the application but the lender inflated our income to qualify us. We stayed current to date by slowly dipping into our HELOC and savings.

I first contacted CW regarding loan modification on April 2008 when my husband took a pay cut ($1,000 gross reduction on his monthly salary); the pay cut accelerated the depletion of our savings.

Result: Rejected due to overly negative net cash flow. I was advised to cut back on spending and find a second job.

On June 2008 my husband found a job that restored his original salary however with that income we still have a negative cash flow (-$300 a month); with our home equity available credit shut down and savings dried up we are out of resources to cover the difference. So for the second time I contacted CW on Dec 2008.

Result: Rejected due to being current and not flagged

A week ago my husband and I decided to hire a lawyer, thanks to this website we felt confident enough to use the services of Griswold & Agdeppa. So far I was pleased with their constant follow up. The mortgage investigator that helped me said that he feels confident that we will have a successful modification. Below is the proposed modification:

1) 1^st Loan - 4% fixed for 30 years
2^nd Loan – 5% fixed for 30 years

OR

2) 1^st Loan - 4% fixed for 5 years (Interest Only)
2^nd Loan – 5% fixed for 5 years (Interest Only)

Both will bring my net cash flow to a positive.

I was informed by the mortgage investigator that once the modification process begins, payments will be placed on hold; I would not have to make mortgage payments until the modification is complete. Can anyone confirm this?

I have submitted all the requested documents and all I could do now is wait and see.

01-07-2009, 08:07 PM	#1 (permalink)
Schnelle Senior Member Join Date: Dec 2008 Posts: 119 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Modification rejected so hired lawyer I cannot be thankful enough to have found this forum. I will begin sharing the progress of my loan modification process in this thread. I will begin by providing basic facts about my Countrywide mortgage: Date loan acquired: August 2005 80-20 Interest Only Loan 1^st loan – 220,000 at 6% Fixed for 10 years 2^nd loan (HELOC) – 65,000 adjustable rate Status: Current Since our mortgage was acquired our net cash flow immediately fell to the negative; we clearly should have not been approved for a mortgage in the first place. I honestly stated our income on the application but the lender inflated our income to qualify us. We stayed current to date by slowly dipping into our HELOC and savings. I first contacted CW regarding loan modification on April 2008 when my husband took a pay cut ($1,000 gross reduction on his monthly salary); the pay cut accelerated the depletion of our savings. Result: Rejected due to overly negative net cash flow. I was advised to cut back on spending and find a second job. On June 2008 my husband found a job that restored his original salary however with that income we still have a negative cash flow (-$300 a month); with our home equity available credit shut down and savings dried up we are out of resources to cover the difference. So for the second time I contacted CW on Dec 2008. Result: Rejected due to being current and not flagged A week ago my husband and I decided to hire a lawyer, thanks to this website we felt confident enough to use the services of Griswold & Agdeppa. So far I was pleased with their constant follow up. The mortgage investigator that helped me said that he feels confident that we will have a successful modification. Below is the proposed modification: 1) 1^st Loan - 4% fixed for 30 years 2^nd Loan – 5% fixed for 30 years OR 2) 1^st Loan - 4% fixed for 5 years (Interest Only) 2^nd Loan – 5% fixed for 5 years (Interest Only) Both will bring my net cash flow to a positive. I was informed by the mortgage investigator that once the modification process begins, payments will be placed on hold; I would not have to make mortgage payments until the modification is complete. Can anyone confirm this? I have submitted all the requested documents and all I could do now is wait and see.