Help! Should I be late in payments if trying to get a loan mod?

[ellice_illinois]

I really hope someone can help!

I’m a single mom with 2 kids, I purchased our condo in Dec 2006 jointly with my mother, whose health was suffering, so I could help care for her. The condo was $238K and we got a fixed rate FHA/HUD 30 yr mortgage at 6%. Countrywide bought our mortgage, not sure who it originated with, we went through our credit union. Our mortgage payment is $1930 (with taxes and assoc. fee of $130). My mom ended up having surgery and recovering and needed to move closer to her job to keep her job. I was able to have my best friend and her husband move in and be room-mates with me since I have a finished basement and we split the mortgage and expenses. My diliema is that they are moving next month (June), and actually have been late for 2 months now.I called CW on 4/16, the day I made the last payment (of which I had to cash in old savings bonds, and borrow $ to make) to see if there was way to lower the payments. I went through the Refi dept. and they told me I could do a refi w/ no appraisal and it would only lower payments $100 a month, and it would cost $3,000. Then I talked to someone in the Making Home Affordable/Home Retention dept. and she said I needed to get a signed letter from my mom w/ her new address saying she’s not paying payments on the mortgage, and all the financial documentation and to call back, she said there options such as 40 year loan term to help me stay in my home. Since then it’s been a nightmare w/CW. I was told they couldn’t help me because we’ve never made a late payment and to call back on 5/1 when it shows I’m due a payment. I’m sure I don’t have to tell you all the ridiculous things the people in the CW call center in India told me, “borrow from a church”, etc., but basically they said we have NO options for you.

I make about $3400 a month gross. My expenses are about $1300 (w/out mortgage).

I called Hope for Homeowners 1-888-995-HOPE last week. I spoke with a really nice counselor, who is with Auriton Solutions. After I gave her all my info. she said the issue is my income and that w/ no room-mates to help obv. there is no way I can afford to stay there. She said a refi wouldn’t lower it enough and I won’t be considered for a modification because of my income. She suggested I STOP making the mortgage payment (this month I’m selling things on Cragislist to get the $$), list the house for sale, and that because I am in lace>Illinoislace>, I can live there for 15 months before they foreclose (is this true?). She said to save the money and they could help me find more affordable housing and then at the end of the 15 months or before do a Deed-in-leui of foreclosure. Unless she said I get another room-mate and have more income down the road, then she’d help me get a modification because if I’m current they won’t help me.

Here’s the thing - my ex-husband and I are considering reconcilation and may get remarried in a few months. What are the consequences if I don’t pay the mortgage for two months and then try to get a modification? His monthly gross is about $2400-$2800 (retail-commision so it varies).

I owe $227,000 on the loan still and there are 3 condos on my little court for sale right now.

What are my options? I don’t think I’d be able to sell the house. I want to stay here. If my ex and I get back together, would our combined monthly gross income of approx. $5400 qualify us for any modification or refinance? If I am late in the meantime (which the HOPE couneslor suggested), will it hurt my chances of any refinance plus destroy my credit (already lousy)? Never been late as of right now. I’m reading of all these new programs for homeowners and they seem like they would apply to me but I keep being told they don’t. Thank you so much for your help!!!!
Ellice

[cobra]

Goodmorning;

First welcome to the forum! There is great information here!

Just my thoughts....1. Never talk to India. Call CW at the time of day when you can actually speak to someone in the states. Never India. They just read from a script.
2. Many people on this forum have started working through NACA. Their services are free. Look them up on the net and check out their Home Save
program. When you read here that most are using NACA it is for the loan modification thru NACA.
3. I don't think you need to re-fi when you can possibily get a loan mod.

Whatever you decide the process is long and slow and you it will consume you. So...be prepared.
My vote...call NACA. Do it now before you get to far behind.
Explore all your options. Some have tried to work directly with CW. Some have had success, but most end up going thru NACA.

Keep us posted on this forum. There is great information here.


Cobra

[kateistired]

Sometimes the only way to get their attention is to stop making the payment. This is a highly personal decision that only you can make based on your finances, etc. The drawback, of course, is that the process is long and you credit is trashed. If you miss two payments then apply for a mod, you could very easily wind up six months behind by the time it is finished. Even if you were to restart payments after the two months, they will most likely put your payments in a partial account and not credit them to your mortgage. I have heard that they will also report you as past due while the payments sit. That said, if you can't make the payments, well, you just can't.

My modification took six months to complete, and it was a long, terrifying six months. Whatever you choose, I am hoping for the best for you

[zbasspro]

ellice_illinois

The very first thing you need to decide is rather you want t keep the place or not, then you can start to make decisions.

If you decide that is your course, them my OPINION is to try for a mod with NACA and I wouldn`t mention the EX for 2 reasons.

1. if you do get approved with your Ex, they`re just going to make your payment higher.

2. He`s your Ex for a reason, and if he becomes your Ex again, and you did a mod based on his income also well.....

Just my .02
Bob