Jumbo Pay Option loans-CW wants you out of them! - Loan Modification Forum

maui79 · 04-07-2009, 07:56 PM

I have a pay option arm and have received two different loan modifications. I owe 1 million with the loan starting at 954K and have only made the minimum payments which recently recast to $3534.00 per month which includes my escrow account and currently at 3.75%. the first loan modification they sent was for a 5 year fixed interest rate at 4.25% and then would default back into a 30 or 40 variable rate for the remainder of the original term. Also they wanted to add $13,000 in interest fees to my loan and my payment would go up to $4108 per month. I called them and said this does not help me and then they sent me out another mod and it still had the $13,000 added in and it was for a one year fixed at 3.625% and my payment would be $3575 again how does this help me. Seems like they are not even trying to offer what they said they were going to offer, just blowing smoke up you know what....all they want is to get me out of my current Pay option arm. Would like to know what is going on with anyone else in similar situations. I have been staying up to date on my payments but now think I may need to stop making payments, would like some advice here also. I have another property which is structured the same and it was a principal residence the last 2 out 5 years and I am considering short selling that house so that the IRS will not come after me for any forgiven debt, any suggestions?
Thanks!

MrsSix · 04-09-2009, 07:14 PM

Here is what we got from CW: Fixed rate for 40 years at 3.125%. Had POA like you. No neg am $ reduction which we are fine with. GL!

maui79 · 04-09-2009, 07:21 PM

Thanks for the reply, that sounds great that you received 3.124% for 40 years! How many modifications did they send you and did you do this on your own? and were you current with your payments?
Thanks!
Steve

MrsSix · 04-10-2009, 11:31 AM

We have always been current and have excellent credit. The negotiations were done over the phone. We were first offered 3% however, it had to be approved by someone else at CW and they came back with 3.125%. The payment is about what we paid before however a lot more now goes to principal and we can start paying off our home.

chriskeeler · 04-13-2009, 01:33 PM

This must a rare incident as we got denied for mod on our POA because we were current. We are in our second attempt with CW, as well as doing a forensic audit on the loan docs to see if more laws were broken. We have a POA jumbo.

04-07-2009, 07:56 PM	#1 (permalink)
maui79 Member Join Date: Apr 2009 Posts: 6	Jumbo Pay Option loans-CW wants you out of them! I have a pay option arm and have received two different loan modifications. I owe 1 million with the loan starting at 954K and have only made the minimum payments which recently recast to $3534.00 per month which includes my escrow account and currently at 3.75%. the first loan modification they sent was for a 5 year fixed interest rate at 4.25% and then would default back into a 30 or 40 variable rate for the remainder of the original term. Also they wanted to add $13,000 in interest fees to my loan and my payment would go up to $4108 per month. I called them and said this does not help me and then they sent me out another mod and it still had the $13,000 added in and it was for a one year fixed at 3.625% and my payment would be $3575 again how does this help me. Seems like they are not even trying to offer what they said they were going to offer, just blowing smoke up you know what....all they want is to get me out of my current Pay option arm. Would like to know what is going on with anyone else in similar situations. I have been staying up to date on my payments but now think I may need to stop making payments, would like some advice here also. I have another property which is structured the same and it was a principal residence the last 2 out 5 years and I am considering short selling that house so that the IRS will not come after me for any forgiven debt, any suggestions? Thanks!

04-09-2009, 07:14 PM	#2 (permalink)
MrsSix Member Join Date: Feb 2009 Posts: 18	Re: Jumbo Pay Option loans-CW wants you out of them! Here is what we got from CW: Fixed rate for 40 years at 3.125%. Had POA like you. No neg am $ reduction which we are fine with. GL!

04-09-2009, 07:21 PM	#3 (permalink)
maui79 Member Join Date: Apr 2009 Posts: 6	Re: Jumbo Pay Option loans-CW wants you out of them! Thanks for the reply, that sounds great that you received 3.124% for 40 years! How many modifications did they send you and did you do this on your own? and were you current with your payments? Thanks! Steve

04-10-2009, 11:31 AM	#4 (permalink)
MrsSix Member Join Date: Feb 2009 Posts: 18	Re: Jumbo Pay Option loans-CW wants you out of them! We have always been current and have excellent credit. The negotiations were done over the phone. We were first offered 3% however, it had to be approved by someone else at CW and they came back with 3.125%. The payment is about what we paid before however a lot more now goes to principal and we can start paying off our home.

04-13-2009, 01:33 PM	#5 (permalink)
chriskeeler Member Join Date: Mar 2009 Posts: 18	Re: Jumbo Pay Option loans-CW wants you out of them! This must a rare incident as we got denied for mod on our POA because we were current. We are in our second attempt with CW, as well as doing a forensic audit on the loan docs to see if more laws were broken. We have a POA jumbo.

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