[katie]

My loan is with Countrywide. Here is what happened. My real estate taxes were not included in my loan and I was paying them myself. I was having a difficult time paying both the taxes and the mortgage last year and got behind on the taxes. The real estate taxes have gone up. I went to the Tax Claim Bureau and made an arrangement to pay them and made the first payment. I also sent a copy of this arrangement and the paid receipt for the first payment to Countrywide to advise them of this. The next thing I know Countrywide steps in and pays all the taxes, which totalled about $12,000. Then of course they put it into the loan. They asked me to repay the $12,000 over the next 5 years and added an escrow account. My mortgage payment went from $752 to $1,500. In November 2008, I asked them to do a loan modification and put the $12,000 into the principal (I have enough equity to do this). At that time they told me that my loan was flagged for a new program that would start 12/1/08.

I was just turned down by them for a loan modification. I called them the other day and asked for the status. When I called them last month, they said I would hear by the end of January. They said I was denied and said I would receive a letter explaining why. They also said that they have other programs that I might qualify for and they need updated financial information. The next day I got the letter and it did not explain why. Has anyone had success with loan modification companies? Do I try again with Countrywide or go to a loan modification company? Which would be better a loan modification company or do I go directly to an attorney? There are so many out there. I do not want to get ripped off by giving them money and they still can't get the loan modified. Now I am about 4 months behind because it takes so long for them to review it. I have talked to several loan modification companies, and they want anywhere from $1,500 to $3,000. I cannot refinance because my credit score is low (438) and no one will refinance me unless the mortgage payments are current. One company said that the present loan would be frozen while they are working on it and no more late fees would added. Is that true? They also claimed that they would scrub (their term) my credit report and it should there were no late payments. Can they do this?

Any advice will be appreciated. Please help. I really do not want to loose my home. Thank you.
Katie