Investment Properties and Mods

[marriedwithchildren]

I have been lurking here for quite a while, and decided to join and share my story. I have 3 properties, all of which are behind in payments; about 11 months. We are self employed and got all of the loans on stated income, stated assets. Our business was booming and we thought we were mini millionaires, like a lot of people did. We were scammed by a broker who convinced us that an option arm with negative am was the way to go for these properties, so that the cash could stay in our pocket every month as long as our properties appreciated faster then the loan went negative. Well obviously the bubble burst and here we are! We could be considered one of those families who bought a home bigger than they could afford, but we put lots of our hard earned money down on each one and don't want to just walk away because they are not worth what they originally were.

Here is what I have

Countrywide: Single Family Home/Rental: purchased for $490K, put down $100K, financed $390K on a neg am loan and now owe $420K. meanwhile it MAYBE could sell for $275K

Countrywide: 4plex/rental: worth about $650K, owe about $650K, another neg am loan

Wachovia: My current residence with 2 stuido rental units. Purchased for $790, put $90K down, neg am has got us back up to $790K owed again. Couldn't even get a bite on a short sale price of $699K

I have been in contact with the mortgage co.'s the entire time trying to get workouts. I was just notified a few days ago by Wachovia that I was approved under the MAP program. The terms are as follows: 40yr loan, interest only for first 8. of the first 8 years, the first 3 are fixed at 2.5, and will go up .5% a year starting on the 4th year and cap at 6.5% for the remainder of the term of the loan. This is fantastic to us! We are thrilled.

As for countrywide..they are so confused! We have been "active processing" status forever it seems, but today I get a FEDEX package with documents for the obama plan for my first house ($420k loan). The terms are this: Pay a "trial" payment of about $3000 for three months (about a $1000 more than my regular payment by the way) and then if I am on time for 3 months, it will become a modification, but they don't give you any specifics about how much the payment will be after the 3 months, they say it will be similar, but not guarenteed. What??? So I am supposed to send in $9000 in the next 3 months, and just HOPE that they come up with something more affordable?

I am very confused, I called CW and they said that I can apply for that if I want but it is not the modification that I have been waiting for all this time, that one is still in review...HUH?


CW is giving me grey hairs!

[AussieMumTwo]

OK - so I only started on March 20th 2009 so I am very new to this. I just found on Countrywides website in my account information the programs they have. They have one called Loan Modification. This is NOT the Making Homes Affordable Loan Modification. The guidelines are completely different and all they are going to do is tack on everything to the back end of the loan so there is no way that you can ever get ahead or get better numbers.
I am curious as to how they got HUD to put them on as a lender following the program when they don't have anything in place for the Making Homes Affordable loan modifications. Now I do know that they did appear to have a group in place for the REFI part if you have a Fannie Mae or Freddie Mac loan as they called me today. Too bad I wanted the other group.

[Moe Bedard]

AussieMumTwo,

According to the steps that the servicers will follow for the MHA modification.............they are capitalizing the past due payments for that program too.............

Capitalize (add to the loan amount) accrued interest, past due taxes and insurance, delinquency charges paid to third parties (e.g., for inspecting the property), and escrow advances by the servicer.