Loan Modification Forum - LoanSafe.org - View Single Post

rozuki · 03-04-2009, 04:38 AM

I need to vent!!

Bought home in Nov 2005 for 560k at 6.75 for 30 years fixed, with down payment of 35%. Did major renovations in 2006. Refinanced due to cost overruns of renovations at 635k w/ 10.5 arm (due to reset in two years) for 40 years (subprime due to being late with some cc payments). House appraised at that time for 720k. CW tacked on lots of extra fees, but was desparate to get refi to pay contractors.

It was definitely a major shock to be making such a large mtg payments each month, but figured would refinance back to a more reasonable rate with a 30 year term after cleaning up credit (had fallen from mid 700's to mid 600's with those late cc payments! Which was due to forgetfulness, not inability to pay!! Kicking myself now... ). With our salaries it was not a problem, although it did make things a bit tight.

Fast forward to 10/08, hubby wants a divorce, his business is down 65% due to the recession/depression/bank fiascos and I know that making that huge mtg payment is going to be a major problem. I need to refinance now!!!

Contacted CW in Oct 2008 about the hardship looming and found out could not refinance because we now have no equity at all!!! Asked about loan modification - told to call back after 12/1, due to new loan mod progam going into effect - but since I called they had me in the system, and I would not be receiving any other communication (letter, etc) from them.

I called every week to check on things, always got runaround.

I went through all the hoops that others here have experienced. Faxing information several times, speaking to reps in India call centers, finally getting answer on Feb 6 09 - Denied!!

Called again next day and spoke with a US rep, explained hardship again, faxed info again. This rep did get the denial withdrawn, so I was back in review with negotiator in early Feb 2009.

Last friday, Feb 27, 2009 - received a Fedex package with loan mod paperwork from CW. The new modified rate they would do was 8% for 5 years!!! With 11,168.00 interest tacked onto the principal!

Called immediately to speak with someone at CW to let them know this was not acceptable!! I asked why is the interest rate still so high and what is the interest of 11,168.00 for? Was told you don't qualify for the low interest rate because you have never been late with your payments and the 11, 168. is for escrow - even though it clearly says interest on the paperwork they sent!!! And the kicker: Only those who are at least 60 days behind receive the under 5% interest rates....

Grrr.....I know the reps are just script readers - but I just said thanks for the info, got the id # of the recording (in case I need it?) and informed them I would not be sending in my mortgage payment and I will call them in 60 days to re-apply for the loan modification, since I will then officially be 2 months behind. Rep says "Oh, you don't have to wait exactly 60 days...you can call a few days before then." What?????

Now on Monday, March 1st , I receive a phone message from CW telling me that I can expect an information package in 5 days with information on how I can get a loan modification with Fannie Mae under new program? Is this part of the new Homeowner Affordability and Stability Plan? Or are they referring to the Fedex I had just received from them with the loan mod info???? I didn't have the patience to call again and deal with the runaround.....of being transferred from dept to dept to get some information.

With all the stress of getting divorced, less income, etc and getting nowhere with this loan mod...I am tempted to just do a DIL and if I can't ....just mail them the keys!!! At this point, I don't even care about my credit rating...which just climbed back into the 700's!!

PS. Based on sales in my area, I have probably lost over 100k in value - not even counting all the renovation costs.

03-04-2009, 04:38 AM	#1 (permalink)
rozuki Senior Member Join Date: Mar 2009 Location: Long Island NY Posts: 356 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	My CW story continues....what a mess!!!! I need to vent!! Bought home in Nov 2005 for 560k at 6.75 for 30 years fixed, with down payment of 35%. Did major renovations in 2006. Refinanced due to cost overruns of renovations at 635k w/ 10.5 arm (due to reset in two years) for 40 years (subprime due to being late with some cc payments). House appraised at that time for 720k. CW tacked on lots of extra fees, but was desparate to get refi to pay contractors. It was definitely a major shock to be making such a large mtg payments each month, but figured would refinance back to a more reasonable rate with a 30 year term after cleaning up credit (had fallen from mid 700's to mid 600's with those late cc payments! Which was due to forgetfulness, not inability to pay!! Kicking myself now... ). With our salaries it was not a problem, although it did make things a bit tight. Fast forward to 10/08, hubby wants a divorce, his business is down 65% due to the recession/depression/bank fiascos and I know that making that huge mtg payment is going to be a major problem. I need to refinance now!!! Contacted CW in Oct 2008 about the hardship looming and found out could not refinance because we now have no equity at all!!! Asked about loan modification - told to call back after 12/1, due to new loan mod progam going into effect - but since I called they had me in the system, and I would not be receiving any other communication (letter, etc) from them. I called every week to check on things, always got runaround. I went through all the hoops that others here have experienced. Faxing information several times, speaking to reps in India call centers, finally getting answer on Feb 6 09 - Denied!! Called again next day and spoke with a US rep, explained hardship again, faxed info again. This rep did get the denial withdrawn, so I was back in review with negotiator in early Feb 2009. Last friday, Feb 27, 2009 - received a Fedex package with loan mod paperwork from CW. The new modified rate they would do was 8% for 5 years!!! With 11,168.00 interest tacked onto the principal! Called immediately to speak with someone at CW to let them know this was not acceptable!! I asked why is the interest rate still so high and what is the interest of 11,168.00 for? Was told you don't qualify for the low interest rate because you have never been late with your payments and the 11, 168. is for escrow - even though it clearly says interest on the paperwork they sent!!! And the kicker: Only those who are at least 60 days behind receive the under 5% interest rates.... Grrr.....I know the reps are just script readers - but I just said thanks for the info, got the id # of the recording (in case I need it?) and informed them I would not be sending in my mortgage payment and I will call them in 60 days to re-apply for the loan modification, since I will then officially be 2 months behind. Rep says "Oh, you don't have to wait exactly 60 days...you can call a few days before then." What????? Now on Monday, March 1st , I receive a phone message from CW telling me that I can expect an information package in 5 days with information on how I can get a loan modification with Fannie Mae under new program? Is this part of the new Homeowner Affordability and Stability Plan? Or are they referring to the Fedex I had just received from them with the loan mod info???? I didn't have the patience to call again and deal with the runaround.....of being transferred from dept to dept to get some information. With all the stress of getting divorced, less income, etc and getting nowhere with this loan mod...I am tempted to just do a DIL and if I can't ....just mail them the keys!!! At this point, I don't even care about my credit rating...which just climbed back into the 700's!! PS. Based on sales in my area, I have probably lost over 100k in value - not even counting all the renovation costs.