Loan Modification Forum - LoanSafe.org - View Single Post

jojolala · 01-12-2009, 03:35 PM

Hi All, this is my first post and I've been reading a lot. I see on other posts the "fabulous solution" that Fannie has rolled out... Prior to finding all the good advice here, I found my way down the same rat hole as the rest of you. Wrote the letter pleading my case. Refered to a negotiator (Kristie McGowen x2914, I think), who after about 5 weeks, said we did not qualify for a modification. I immediately applealed and eventually spoke with Loretta, VP of Home Retention (x 3066), who would have Kristie's manager, Jan Lee x review the file. Kristie called me back and actually got nasty by saying that although our house payment of 54% of our gross, we should be able to meet our payment and to work things out with our other creditors. Over the course of conversations with me and my husband (surprised they were listening)... she threw back at us that our objectives of contributing to our 401ks again and getting out of debt are not a valid reasons reasons for asking for a modification. I told her that the house needs a new roof, windows and probably a fence by the time the winter is over. All of this, including the inability to save for retirement and reduce our debt point to the fact that we are one paycheck away from foreclosure.

I had just found the 12/8 Early Workout press release and asked her about it. Oh, she said, the devil is in the details. And they were so excited to hear about the program until they read the fine print. The detail that she pointed out is that this is just a temporary remedy and when they review the file at the end of the forebearance period, we will likely just owe the late fees and payment shortages.

I had to read to her the text from the Fannie press release why we qualified for their streamlined loan modification program.

My point is that CW has a solution, if only temporary, and they have to be forced into extending it. I told her I would take a 4 month forebearance in the hopeful belief that there will be sweeping legislation in Q1 of 2009.

We are in a 30-yr fixed, 6.375%. Not bad you might say, but we are upside down by $50k. I have been chasing a lower rate and payment for 3 years, and after 2 re-fi's, the payment of 54% of our gross is not workable for the long run. During each of the re-fi's erroneous appraisals were issued and during underwriting they continued to pinch any little bit of equity they could to nudge the principal as high as possible.

If there is not an across the board adjustment ala Sheila Blair's proposal, I will mail the keys, take a hit in the credit rating, figuring we'll be in good company with a few million others.

I will propose to countrywide till I'm blue in the face that a reduction to 4% interest and $20k off the principal will make me go away. We have 3 vacant houses on our block and we are in th Seattle area, not a hard-hit region. Don't they get it?

I also found a spreadsheet along my surfing I found a calculator. I labeled it the FDIC reduced interest spreadsheet. Has anyone here seen it? I found it somewhere around this blog site. It seems to make sense. It weighs the costs and negative impact of foreclosure against modifying the loan. I will upload it if no one has seen it.

You seem like a lively group and I'd like to hear your comments. Thanks for the forum!

01-12-2009, 03:35 PM	#1 (permalink)
jojolala Senior Member Join Date: Jan 2009 Location: WA Posts: 53 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	CW / Fannie Mae Early Workout Hi All, this is my first post and I've been reading a lot. I see on other posts the "fabulous solution" that Fannie has rolled out... Prior to finding all the good advice here, I found my way down the same rat hole as the rest of you. Wrote the letter pleading my case. Refered to a negotiator (Kristie McGowen x2914, I think), who after about 5 weeks, said we did not qualify for a modification. I immediately applealed and eventually spoke with Loretta, VP of Home Retention (x 3066), who would have Kristie's manager, Jan Lee x review the file. Kristie called me back and actually got nasty by saying that although our house payment of 54% of our gross, we should be able to meet our payment and to work things out with our other creditors. Over the course of conversations with me and my husband (surprised they were listening)... she threw back at us that our objectives of contributing to our 401ks again and getting out of debt are not a valid reasons reasons for asking for a modification. I told her that the house needs a new roof, windows and probably a fence by the time the winter is over. All of this, including the inability to save for retirement and reduce our debt point to the fact that we are one paycheck away from foreclosure. I had just found the 12/8 Early Workout press release and asked her about it. Oh, she said, the devil is in the details. And they were so excited to hear about the program until they read the fine print. The detail that she pointed out is that this is just a temporary remedy and when they review the file at the end of the forebearance period, we will likely just owe the late fees and payment shortages. I had to read to her the text from the Fannie press release why we qualified for their streamlined loan modification program. My point is that CW has a solution, if only temporary, and they have to be forced into extending it. I told her I would take a 4 month forebearance in the hopeful belief that there will be sweeping legislation in Q1 of 2009. We are in a 30-yr fixed, 6.375%. Not bad you might say, but we are upside down by $50k. I have been chasing a lower rate and payment for 3 years, and after 2 re-fi's, the payment of 54% of our gross is not workable for the long run. During each of the re-fi's erroneous appraisals were issued and during underwriting they continued to pinch any little bit of equity they could to nudge the principal as high as possible. If there is not an across the board adjustment ala Sheila Blair's proposal, I will mail the keys, take a hit in the credit rating, figuring we'll be in good company with a few million others. I will propose to countrywide till I'm blue in the face that a reduction to 4% interest and $20k off the principal will make me go away. We have 3 vacant houses on our block and we are in th Seattle area, not a hard-hit region. Don't they get it? I also found a spreadsheet along my surfing I found a calculator. I labeled it the FDIC reduced interest spreadsheet. Has anyone here seen it? I found it somewhere around this blog site. It seems to make sense. It weighs the costs and negative impact of foreclosure against modifying the loan. I will upload it if no one has seen it. You seem like a lively group and I'd like to hear your comments. Thanks for the forum!