Loan Modification Forum - LoanSafe.org - View Single Post

SocketJockey · 03-28-2009, 04:46 AM

Hello Y'all,

First and foremost, fantastic site - many thanks to everyone involved. I can honestly say more was learned about the loan modification process here in a couple of days than with six months on the phone with Countrywide. Given that, I shall try to explain and make light of the situation as best I can - please forgive the long post.

What I've got:
30 year conventional @ 6.00%, first only, originated end of 2007. Not a bad loan right? Except the property value is falling even faster than my salary, currently 50k in negative equity, and my DTI (mortgage only) is now approaching 50%.

The run around (a bit of back story):
Not six months after I get the loan, the proverbial economic dung hits the fan and the blissful joyride I was having for the past few years begins to careen. So I (we) go along for the ride slowly chipping at savings while the market plays roulette with our meager retirement fund (a few reserve mortgage payments at best) - but that's a whole other animal.

So I try and be proactive about the situation and begin to call Countrywide third quarter of 2008, I have already dropped out of college by then (previously part time student) to stay afloat. Like so many before me I am given the brush-off albeit politely. In Dec. 2008 I am actually told not to make a loan payment (breach of contract on my part) if I *even wish* to speak with a representative about the idea of loan modifications - this after I tell them problems are at least a few months away. More of the same for the next few months, loan mods sends me to refi, I actually got laughed at there, refi sends me to India, India sends me to the limits of sanity - no offense to the fine and industrious people of that country but communication was extremely difficult and resulted only in frustration. Every month I'm told next month great things will happen and to call back. I even called this week armed with what I have learned here, success stories and the like, yet the rep friendly as he was insists that a loan mod cannot occur without serious delinquency, claims ignorance and further insists I am misinformed. He says in the best case I could miss a few payments and mod them to the back of the loan or maybe consider a short sale.

::bangs fist on forehead:: All I want is a sustainable payment to repay what I owe, I'm not even interested in a principle reduction.

What I hope to achieve:
If I can pull a rate of 2-3% that puts my DTI back in the low to mid 30s - sustainable.

The plan:
Send a RESPA letter and hardship letter via both regular and certified mail.
Cross fingers.
Maybe seek a legal representative if that fails.

Caveats:
I don't want to use NACA, a) because there are more urgent cases that need their help, b) We have to relocate this year out of city and hope to buy much cheaper there.

Time for the ten million dollar question:
What do you guys think?
In regards to the letters, should I include supporting documentation? Where should they be mailed?

Any comments / tips / tricks / kicks in the ribs are welcomed and appreciated.

One quick note in closing:
This is the first time I have ever posted in a public forum but was compelled to do so after reading many of the heartfelt comments to those of you in dire straits. I wish you all the best of luck.

03-28-2009, 04:46 AM	#1 (permalink)
SocketJockey Junior Member Join Date: Mar 2009 Location: Southern Cali Posts: 4 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	The Olde Countrywide Run Around Hello Y'all, First and foremost, fantastic site - many thanks to everyone involved. I can honestly say more was learned about the loan modification process here in a couple of days than with six months on the phone with Countrywide. Given that, I shall try to explain and make light of the situation as best I can - please forgive the long post. What I've got: 30 year conventional @ 6.00%, first only, originated end of 2007. Not a bad loan right? Except the property value is falling even faster than my salary, currently 50k in negative equity, and my DTI (mortgage only) is now approaching 50%. The run around (a bit of back story): Not six months after I get the loan, the proverbial economic dung hits the fan and the blissful joyride I was having for the past few years begins to careen. So I (we) go along for the ride slowly chipping at savings while the market plays roulette with our meager retirement fund (a few reserve mortgage payments at best) - but that's a whole other animal. So I try and be proactive about the situation and begin to call Countrywide third quarter of 2008, I have already dropped out of college by then (previously part time student) to stay afloat. Like so many before me I am given the brush-off albeit politely. In Dec. 2008 I am actually told not to make a loan payment (breach of contract on my part) if I even wish to speak with a representative about the idea of loan modifications - this after I tell them problems are at least a few months away. More of the same for the next few months, loan mods sends me to refi, I actually got laughed at there, refi sends me to India, India sends me to the limits of sanity - no offense to the fine and industrious people of that country but communication was extremely difficult and resulted only in frustration. Every month I'm told next month great things will happen and to call back. I even called this week armed with what I have learned here, success stories and the like, yet the rep friendly as he was insists that a loan mod cannot occur without serious delinquency, claims ignorance and further insists I am misinformed. He says in the best case I could miss a few payments and mod them to the back of the loan or maybe consider a short sale. ::bangs fist on forehead:: All I want is a sustainable payment to repay what I owe, I'm not even interested in a principle reduction. What I hope to achieve: If I can pull a rate of 2-3% that puts my DTI back in the low to mid 30s - sustainable. The plan: Send a RESPA letter and hardship letter via both regular and certified mail. Cross fingers. Maybe seek a legal representative if that fails. Caveats: I don't want to use NACA, a) because there are more urgent cases that need their help, b) We have to relocate this year out of city and hope to buy much cheaper there. Time for the ten million dollar question: What do you guys think? In regards to the letters, should I include supporting documentation? Where should they be mailed? Any comments / tips / tricks / kicks in the ribs are welcomed and appreciated. One quick note in closing: This is the first time I have ever posted in a public forum but was compelled to do so after reading many of the heartfelt comments to those of you in dire straits. I wish you all the best of luck.