Loans, Debt & Credit - View Single Post - CW Mod on Underwater Property

bluefelix · 05-11-2009, 05:31 PM

Hello Forum.

I have been reading through some of the threads on here, and like most of you, I think I have a unique situation.
I am not facing forclosure, nor have I missed a payment. I am however looking to modify the loan(s) on my significantly underwater home.

Loan info

Home is worth approx. 195k

1st Mortgage has balance of 288k. 30 yr. fixed at about 7.5%. 10 year interest only.

2nd Mortgage has balance of 70k. This is 30yr. fixed at about 8%. This one is due in 15 years, which is weird because it has a 30 yr. fixed rate.

As you can see, I am underwater in a big way.

Our income situation has changed and we are now paying at least 50% of our income towards the mortgages. With the housing market the way it is, it is not looking like a good investment, and the payment amounts are looking to be unsustainable.

I have called CW to talk with them about a Mod serveral times, and of course, I get nowhere and they are not interested since I am current. The last time I spoke to someone I said that my only option now is to just stop paying. At that point, they transferred me to the retention department. In the process of transferring (I tried several times) I would input my account # in the phone tree and get transferred right back to where I started with regular customer service. I was told by customer service that this is because I am current. It was really frustrating.
So now, I am going to stop paying. My feeling is that it is in the interest of CW to keep me in this house, making some sort of payments on the property. I do not think they want this house.

So I am wondering what you all think will happen as I am concerned about doing this, since this is my home we are talking about here. I am aware of the credit implications, but think that is a good trade off if I can get a significant mod.
We have no employment issues and have good credit. Please give me your opinions on this situation and predicted CW action. It seems like a you all have been through a lot with CW, so you have some insight into their operations that I deem valuable.

Thanks!

05-11-2009, 05:31 PM	#1 (permalink)
bluefelix Member Join Date: May 2009 Posts: 27 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	CW Mod on Underwater Property - Strategy Hello Forum. I have been reading through some of the threads on here, and like most of you, I think I have a unique situation. I am not facing forclosure, nor have I missed a payment. I am however looking to modify the loan(s) on my significantly underwater home. Loan info Home is worth approx. 195k 1st Mortgage has balance of 288k. 30 yr. fixed at about 7.5%. 10 year interest only. 2nd Mortgage has balance of 70k. This is 30yr. fixed at about 8%. This one is due in 15 years, which is weird because it has a 30 yr. fixed rate. As you can see, I am underwater in a big way. Our income situation has changed and we are now paying at least 50% of our income towards the mortgages. With the housing market the way it is, it is not looking like a good investment, and the payment amounts are looking to be unsustainable. I have called CW to talk with them about a Mod serveral times, and of course, I get nowhere and they are not interested since I am current. The last time I spoke to someone I said that my only option now is to just stop paying. At that point, they transferred me to the retention department. In the process of transferring (I tried several times) I would input my account # in the phone tree and get transferred right back to where I started with regular customer service. I was told by customer service that this is because I am current. It was really frustrating. So now, I am going to stop paying. My feeling is that it is in the interest of CW to keep me in this house, making some sort of payments on the property. I do not think they want this house. So I am wondering what you all think will happen as I am concerned about doing this, since this is my home we are talking about here. I am aware of the credit implications, but think that is a good trade off if I can get a significant mod. We have no employment issues and have good credit. Please give me your opinions on this situation and predicted CW action. It seems like a you all have been through a lot with CW, so you have some insight into their operations that I deem valuable. Thanks!