Second Offer from CW

[Jluna]

Hello all,

I'm new to posting on the site, but have like many others been coming in and checking on others with pretty much the same problems. I am on my 7th month late on my mortgage at this point im just holding on to my money incase they dont work with me. To keep the story short I got denied for any help the first time i asked as our income was very low. the second time they said I could afford to pay $2600 for 6 months and get caught up and now I received a package adding my past due amount to my balance. Which will still leave my payments at $1500 on my 1st loan. my second loan is $441 but they are willing to work with me and lower my interest rate to almost half as it is at 10.7% right now. I paid $236,000 for my home in 2006 and its barely worth $150,000.
I've gotten mixed information from CW reps. first they told me that i didnt have to sign it and just reapply and then that, this would be the only offer they make and that i could not reapply. I'm very scared as i dont want to loose my home but my loan its horrible to begin with. I have an interest only loan with a fixed rate of 7.25 for the first 5yrs. then its adjustable. My question is has anyone here declined their offers and then gotten anything better?
Thanks
JL

[Irish Gal]

Hi Jluna,

Welcome! You have come to the right place as many are in the same boat here. So, don't despair. With education and the support here, you will relax, even laugh a little about the insanity of these lenders, and find the right solutions re your home. I have CW too but I'm not trying to modify as I'm so underwater (so cal). Last year I did try to modify and was offered 2 ridiculous loan mods that I rejected. I ultimately decided to go the short sale or foreclosure route as I'm $100K underwater. It doesn't make sense for me to modify and have an over-valued mortgage on such a depreciating property. You may want to read the "Foreclosure" thread too just to see what others are doing and all of your options. Prof Shays is a wealth of info who posts on that thread to help folks with "walking away" issues. But, if you want to try to get a GOOD modifiction through CW, I suggest you bypass trying to modify directly w/ CW, as its a crazymaking lender that makes no sense whatsoever much of the time (what they tell customers trying to modify). CW is one of the worst to get a good mod from. They jerk customers around for the most part. They will say or do anything to get your $$$$$$ and then not follow through w/ what they told you would happen. IMO, CW cannot be trusted. CW will drive you nuts and you will probably get nowhere with them. So, YES, you can turn down bad mod offers (those CW reps were attempting to squeeze you to take any (lousy) offer when they told you "this is it, take it or leave it" as they usually offer crappy mods to customers, esp in the beginning of the process. Many, many folks on this site go through a nonprofit org named NACA. It is free and a housing counselor will work with you to get a much better deal than you would on your own. CW does not mess w/ NACA. CW does mess w/ customers. So, give NACA a try. The NACA contact info is listed somewhere on this site or go to NACA.com and read up on the process. All I can say is keep educating yourself (here) and fight for your home through NACA if you want to keep your home. It can be done. NACA has been fighting against predatory lending and for working people to keep their homes for years and years. I just posted an article yesterday (under the Breaking Foreclosure News thread) from the Wall St. Journal about the founder of NACA (Bruce Marks). NACA can be trusted to fight for you, if you qualify to work through NACA. You have to be patient in working with them, as they are swamped w/ homeowners who need help. But, once the ball gets rolling, they do a good job. Please keep us posted. Good luck.