Loan Modification Forum - LoanSafe.org - View Single Post - CW Loan Modification Error Now I Have To Start All Over Again

jager · 01-10-2009, 01:24 PM

Hello everyone! I'm new here, so please be patient with me.

We bought our home about 18 months ago in California.

We got into a 80/20 no down with 5/1 interest-only ARM at 5% on the first loan, and 15-Yrs at 6.125% Conv 2nd Balloon on the second loan.

On our first home loan, the loan type is 30 Yr Combo Jumbo Arm and we have a payment choices (e.g. interest only, 15-Yr amortized , and another amortized payment choice - total of 3 payment choices). Is this this the same as Option ARM? We also had points paid on purchase of this loan that is about $27,000 so we can get the first loan with 5 Yrs-Interest only fixed at 5% and the second loan at 6.125% fixed for 15 years. This loan will reset in June 2012. I don't even know how to calculate how much our payment would be in June 2012 which scares me to death.

Being so naive, we were assured that when it came time to adjust the rate, we could simply refinance. But I know now that this is not possible since the total balance on both loans is $722,000 and the current appraised value is $575,000. We are $147,000 down.

Our home loans are both with Countrywide and I just found out yesterday that our Investors are Citimortgage on the first loan and Bank of America (BANA) on the second loan.

We are 30 days delinquent and will be 60 days this month. Both loans are now in a "work out" loan modification progress and being reviewed as of Jan. 5. I haven't heard from a negotiator yet, but according to my online workout info: "More info. to be available on Jan. 26 and to not call before then".

I called CW yesterday because I saw on my online account a message that says "This account needs special attention and to call 800-669-6607". The person I talked to informed me he doesn't think I will be approved for a loan modification because I am right now with a 5-Year fixed rate interest only on the first loan and 15-Year fixed rate Balloon on the second. You mean to tell me that I just paid $27,000 points on purchase to get the rate fixed for some years and now I can't be qualify for a loan modification because of that? Does this sound right at all? Should I be concern and take his word for it?

Can anyone give an input as to how to handle this? Should I just wait until Jan. 26? or start with NACA now?

***, can I contact/e-mail both my investors and send them what I already sent to CW (e.g. hardship letter and pay stubs)?

My ultimate goal is to have my delinquent mortgage put in the back of the loan and get a 30 or 40-year fixed-rate loan. I don't need a principal reduction.

If a letter/email would be the way to go, who should I send it to?

I would greatly appreciate to hear from anyone who had success with CitiMortgage and Bank of America National Assoc. (BANA in short).

Thanks to everyone who has read this message to this point. I look forward to hearing your advice.

01-10-2009, 01:24 PM	#1 (permalink)
jager Senior Member Join Date: Jan 2009 Posts: 35 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	CW Loan Modification Error Now I Have To Start All Over Again - Please Help Me! Hello everyone! I'm new here, so please be patient with me. We bought our home about 18 months ago in California. We got into a 80/20 no down with 5/1 interest-only ARM at 5% on the first loan, and 15-Yrs at 6.125% Conv 2nd Balloon on the second loan. On our first home loan, the loan type is 30 Yr Combo Jumbo Arm and we have a payment choices (e.g. interest only, 15-Yr amortized , and another amortized payment choice - total of 3 payment choices). Is this this the same as Option ARM? We also had points paid on purchase of this loan that is about $27,000 so we can get the first loan with 5 Yrs-Interest only fixed at 5% and the second loan at 6.125% fixed for 15 years. This loan will reset in June 2012. I don't even know how to calculate how much our payment would be in June 2012 which scares me to death. Being so naive, we were assured that when it came time to adjust the rate, we could simply refinance. But I know now that this is not possible since the total balance on both loans is $722,000 and the current appraised value is $575,000. We are $147,000 down. Our home loans are both with Countrywide and I just found out yesterday that our Investors are Citimortgage on the first loan and Bank of America (BANA) on the second loan. We are 30 days delinquent and will be 60 days this month. Both loans are now in a "work out" loan modification progress and being reviewed as of Jan. 5. I haven't heard from a negotiator yet, but according to my online workout info: "More info. to be available on Jan. 26 and to not call before then". I called CW yesterday because I saw on my online account a message that says "This account needs special attention and to call 800-669-6607". The person I talked to informed me he doesn't think I will be approved for a loan modification because I am right now with a 5-Year fixed rate interest only on the first loan and 15-Year fixed rate Balloon on the second. You mean to tell me that I just paid $27,000 points on purchase to get the rate fixed for some years and now I can't be qualify for a loan modification because of that? Does this sound right at all? Should I be concern and take his word for it? Can anyone give an input as to how to handle this? Should I just wait until Jan. 26? or start with NACA now? ***, can I contact/e-mail both my investors and send them what I already sent to CW (e.g. hardship letter and pay stubs)? My ultimate goal is to have my delinquent mortgage put in the back of the loan and get a 30 or 40-year fixed-rate loan. I don't need a principal reduction. If a letter/email would be the way to go, who should I send it to? I would greatly appreciate to hear from anyone who had success with CitiMortgage and Bank of America National Assoc. (BANA in short). Thanks to everyone who has read this message to this point. I look forward to hearing your advice.