Loan Modification Forum - LoanSafe.org - View Single Post

rtwm33 · 01-30-2009, 11:59 AM

Told by Countrywide that because we have a conventional ARM loan (interest only payment, rate @ 6.25% for 10 years, until 2016), I only qualify for a capitalization modication that adds the arrears to the balance, keeps the interest rate the same, and therefore increases my payments (sounds like a repayment agreement). I was told, they cannot change the term or reduce the interest rate on this product.

Does anyone know if this is true? Is this something I should escalate? How can I get them to consider reducing the interest rate or increasing the term?

My husband's sales salary has been reduced almost in half and I am contacting Countrywide for some relief and they are offering me the opportunity to pay more!

My next call is to our second mortgage holder - CitiMortgage. Any thoughts on dealing with them? Based on the current value of our home, they are completely under water.

Help!!!...we are about to be several months behind.

01-30-2009, 11:59 AM	#1 (permalink)
rtwm33 Junior Member Join Date: Dec 2008 Posts: 1 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Conventional ARM Loan Told by Countrywide that because we have a conventional ARM loan (interest only payment, rate @ 6.25% for 10 years, until 2016), I only qualify for a capitalization modication that adds the arrears to the balance, keeps the interest rate the same, and therefore increases my payments (sounds like a repayment agreement). I was told, they cannot change the term or reduce the interest rate on this product. Does anyone know if this is true? Is this something I should escalate? How can I get them to consider reducing the interest rate or increasing the term? My husband's sales salary has been reduced almost in half and I am contacting Countrywide for some relief and they are offering me the opportunity to pay more! My next call is to our second mortgage holder - CitiMortgage. Any thoughts on dealing with them? Based on the current value of our home, they are completely under water. Help!!!...we are about to be several months behind.