Both Loans With CW- only offered mod on second- Anybody have this experience?

[KaileeD]

Has anybody received a loan modification on their second loan with CW only even though they have both loans with CW?

Just received a package in the mail last month for our second mortgage where they are offering to capitalize the past due amount into the balance and lowering rate from 4.75 to 3.8 fixed for two years. Problem is they are saying they are going to add $29,000 to the loan and according to all departments I talk to at CW we are only past due $16,000. I just asked them for a detailed accounting of fees, etc. and sent that request via overnight mail to the HOPE Team in Philadelphia where the notarized papers were supposed to be sent back to. I tried calling the number on the papers but they referred me back to CW saying they only handle paper work that is sent to them. CW reps in four depts. had no idea how this capitalized amount was determined.

I would like to get the second mortgage current with a lower payment since it will lower our expenses and perhaps help with getting a modification on our first. We are working with a HUD counselor (LANHS) but haven't made much progress since the last two times we've conference called CW to update financials their system has gone down.

Any input would help.
Thanks

[KaileeD]

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