Loan Modification Forum - LoanSafe.org - View Single Post - Both Loans With CW- only offered mod on second- Anybody have this experience?

KaileeD · 04-16-2009, 04:33 PM

Hi, we have two loans with CW. We have just received a loan mod offer for the second only,a HELOC, with a balance of $325,000 at 4.75%. We are $17,000 past due and they want to capitalize that and add $29,335 to the loan bringing our balance to $355,00. Interest will accrue on the new balance.They have offered to lower the interest rate to 3.8 fixed for two years.

I called many departments, sent letters and have no one seemed to know much. I received a call today from CW HR Dept. and was told that the $29,000 represents the $17,000 past due, with interest calculated at the current 4.75% for the next two years added.

I told him the letter says the interest would accrue at the new balance of $355,000 and I told him it seems like we would be paying interest on top of interest for the next two years and he said, "Yes, that is the way it is..." Does this seem right? Has anyone else had a breakdown of how costs were capitalized?

This is only for the second mortgage and we are still trying to work out the first mortgage which really has a high balance. Lowering our second will help with our expenses but if we do not get a mod on the first, there will be no second - no house...We are working with A HUD counselor but haven't had too much luck because when we've called the last three times via conference, CW's system has gone down.

Thanks

04-16-2009, 04:33 PM	#2 (permalink)
KaileeD Junior Member Join Date: Apr 2009 Posts: 4 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Capitalized Interest- How are they calculated? Hi, we have two loans with CW. We have just received a loan mod offer for the second only,a HELOC, with a balance of $325,000 at 4.75%. We are $17,000 past due and they want to capitalize that and add $29,335 to the loan bringing our balance to $355,00. Interest will accrue on the new balance.They have offered to lower the interest rate to 3.8 fixed for two years. I called many departments, sent letters and have no one seemed to know much. I received a call today from CW HR Dept. and was told that the $29,000 represents the $17,000 past due, with interest calculated at the current 4.75% for the next two years added. I told him the letter says the interest would accrue at the new balance of $355,000 and I told him it seems like we would be paying interest on top of interest for the next two years and he said, "Yes, that is the way it is..." Does this seem right? Has anyone else had a breakdown of how costs were capitalized? This is only for the second mortgage and we are still trying to work out the first mortgage which really has a high balance. Lowering our second will help with our expenses but if we do not get a mod on the first, there will be no second - no house...We are working with A HUD counselor but haven't had too much luck because when we've called the last three times via conference, CW's system has gone down. Thanks