Loan Modification Forum - LoanSafe.org - View Single Post

tandm · 02-01-2009, 02:37 PM

It's hard to know what your budget has to be because who knows what guidelines countrywide is using to determine a modified loan. Recent information seems to suggest that countrywide would look for you to be able to use anywhere from 32% to 40% of your current income for a house payment. If taking such a percentage would still leave you unable to pay your other bills, it would make sense for countrywide to not make a loan modification because you still wouldn't be able to cover the payment.

For example, let's say you earn a net income of $3000 a month. A house payment of $960 would be 32% and a house payment of $1200 would be 40%. If the bank sees that you have those funds available to make a payment somewhere within that parameter, then it might make sense to offer you a modification that fits that. They might make offer that fits that payment for only a year or two. They might make an offer that fits that payment for five years. It will depend on the counselor you receive and what guidelines they are following.

I'm hearing from the loan modification group we are working with that 12/1 program that has produced no offers yet might be coming forth with a blanket set of guidelines to possibly apply to all the homes in the program. That might include no principal reduction or a principal reduction to equal 95% of current market value. After that, there may also be a fixed rate - same for all - on the loan. If you qualify and can afford the payment, then great. If not, I guess back to the drawing board.

So many of these loan modification groups operate under a lawyer's shingle. Is there really a lawyer handling your case, calling countrywide on your behalf, etc.? No. There is usually a team of people calling all the various banks who are trained to do this type of negotiation to some degree or another. They have access to a lawyer and can ask questions of that person when necessary. Usually, this team can handle the basics on their own. They get your financials ready by discussing this with you, give advice for the hardship letter, etc.

They continue the contact with the bank on your behalf. If the bank calls you, you can say I have "Blank" representing me and they will talk to you on my behalf. Countrywide continued to call me despite this until I was able to say we were in the executive office. When I told the caller that, they noted that and the calls stopped.

02-01-2009, 02:37 PM	#4 (permalink)
tandm Senior Member Join Date: Jan 2009 Location: Orange County, CA Posts: 163 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: COUNTRYWIDE HELP 90+ DAYS LATE + insurance claim payment????? It's hard to know what your budget has to be because who knows what guidelines countrywide is using to determine a modified loan. Recent information seems to suggest that countrywide would look for you to be able to use anywhere from 32% to 40% of your current income for a house payment. If taking such a percentage would still leave you unable to pay your other bills, it would make sense for countrywide to not make a loan modification because you still wouldn't be able to cover the payment. For example, let's say you earn a net income of $3000 a month. A house payment of $960 would be 32% and a house payment of $1200 would be 40%. If the bank sees that you have those funds available to make a payment somewhere within that parameter, then it might make sense to offer you a modification that fits that. They might make offer that fits that payment for only a year or two. They might make an offer that fits that payment for five years. It will depend on the counselor you receive and what guidelines they are following. I'm hearing from the loan modification group we are working with that 12/1 program that has produced no offers yet might be coming forth with a blanket set of guidelines to possibly apply to all the homes in the program. That might include no principal reduction or a principal reduction to equal 95% of current market value. After that, there may also be a fixed rate - same for all - on the loan. If you qualify and can afford the payment, then great. If not, I guess back to the drawing board. So many of these loan modification groups operate under a lawyer's shingle. Is there really a lawyer handling your case, calling countrywide on your behalf, etc.? No. There is usually a team of people calling all the various banks who are trained to do this type of negotiation to some degree or another. They have access to a lawyer and can ask questions of that person when necessary. Usually, this team can handle the basics on their own. They get your financials ready by discussing this with you, give advice for the hardship letter, etc. They continue the contact with the bank on your behalf. If the bank calls you, you can say I have "Blank" representing me and they will talk to you on my behalf. Countrywide continued to call me despite this until I was able to say we were in the executive office. When I told the caller that, they noted that and the calls stopped.