Loan Modification Forum - LoanSafe.org - View Single Post

floridasr · 03-26-2009, 11:10 PM

I just found this site and am thankful that I did. It appears to be an excellent resource for Americans struggling to keep their home amongst the large banking lending practices. I have a few questions regarding modifications from CW. I also was contacted by a third party that mostly guaranteed the below results. FHA All Day.com, a law firm.

1) Modification would result in a principal reduction of nearly $100,000; 2) interest rate reduction of at least 2 percent; and 3) late fees would be waived.
Sounds too good to be true right? I found a site that listed reviews of achieving those results (17 reviews) Their fee is $3300 upfront and total refund if not successful. However, refund statement wasn't in the contract. A friend referred me to another lawyer today; he stated that CW wasn't approving any mods at this time and he never heard of a principle reductions being approved.

My questions are:

1) Is CW entertaining modifications at this time or are they on hold?
2) Has anybody heard of the third party or any of the above being accomplished (specifically a reduction to 80% of the value amount)?
3) What would your recommendation be for my specific situation below:

Unfortunately, my house is in Florida and it is my primary residence. I contacted CW for assistance with no success. I have a fixed 6.325 for 298,000 and equity fixed 8.0 for 47,000 (both w/CW). I've been in my home for 3 years. My purchase price was 380,000 (with 20% down) and an additional 50,000 was spent for upgrades. Equity has dropped nearly 50% ($440,000 to 275,000), leaving me no option for refinance. House payment is 45% of my monthly gross income. Regretfully, I did not utilize the 25% rule. In addition, I have too much unsecured debt and can only afford minimum payments. The potential hardships would be 1) recently assisting my adult son with part living expenses and 2) my active duty military status will change for medical reasons, to an involuntary retired status within 14 months or sooner. My income will drop 60% and my medical status will prevent me from working full-time.

My monthly budget utilizes nearly 100% of my income with little flexibility for unplanned expenses or emergencies. I'm current with all payments, but not for long. I have had to deplete the little savings and a major part of my retirement accounts to remain current. I am considering sacrificing my credit and walking away since the value has dropped so much. It also appears that CW rarely assists the customer that has no late payments.

Any input that you can provide from either your expertise or experience would be appreciated.

S.R
Florida

03-26-2009, 11:10 PM	#1 (permalink)
floridasr Junior Member Join Date: Mar 2009 Posts: 2 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	CW Loan Modification I just found this site and am thankful that I did. It appears to be an excellent resource for Americans struggling to keep their home amongst the large banking lending practices. I have a few questions regarding modifications from CW. I also was contacted by a third party that mostly guaranteed the below results. FHA All Day.com, a law firm. 1) Modification would result in a principal reduction of nearly $100,000; 2) interest rate reduction of at least 2 percent; and 3) late fees would be waived. Sounds too good to be true right? I found a site that listed reviews of achieving those results (17 reviews) Their fee is $3300 upfront and total refund if not successful. However, refund statement wasn't in the contract. A friend referred me to another lawyer today; he stated that CW wasn't approving any mods at this time and he never heard of a principle reductions being approved. My questions are: 1) Is CW entertaining modifications at this time or are they on hold? 2) Has anybody heard of the third party or any of the above being accomplished (specifically a reduction to 80% of the value amount)? 3) What would your recommendation be for my specific situation below: Unfortunately, my house is in Florida and it is my primary residence. I contacted CW for assistance with no success. I have a fixed 6.325 for 298,000 and equity fixed 8.0 for 47,000 (both w/CW). I've been in my home for 3 years. My purchase price was 380,000 (with 20% down) and an additional 50,000 was spent for upgrades. Equity has dropped nearly 50% ($440,000 to 275,000), leaving me no option for refinance. House payment is 45% of my monthly gross income. Regretfully, I did not utilize the 25% rule. In addition, I have too much unsecured debt and can only afford minimum payments. The potential hardships would be 1) recently assisting my adult son with part living expenses and 2) my active duty military status will change for medical reasons, to an involuntary retired status within 14 months or sooner. My income will drop 60% and my medical status will prevent me from working full-time. My monthly budget utilizes nearly 100% of my income with little flexibility for unplanned expenses or emergencies. I'm current with all payments, but not for long. I have had to deplete the little savings and a major part of my retirement accounts to remain current. I am considering sacrificing my credit and walking away since the value has dropped so much. It also appears that CW rarely assists the customer that has no late payments. Any input that you can provide from either your expertise or experience would be appreciated. S.R Florida