I am on a repayment plan with CW. This month (Feb) I fell short to pay the full amount due to unexpected car repairs (2 transmissions), increase fuel costs, city taxes, medical bills, 1st year son in college. I called them yesterday to see what I can do..well they can raise the amount each month by $300 more! I couldn't afford to do that.
So they said, I could go for a loan modification, it could take 4-8 weeks, send the hardship letter, proof of income..etc.
I asked them if I should still make monthly payments, they said yes. I will be making a payment in Feb..I was short $1000.00, in March I will pay another $2000.00. I plan on catching up when my income tax refund comes in. My repayment plan was $3488.00 a month. I never had any trouble before.
Is this a good idea to keep paying? I don't want to NOT pay a month. Will they just send me back the money? Will they credit it to my loan? Will they look at that as "well she is trying?"
If I pay everything I owe, can I cancel the Loan Modification process?
Please advice. I don't want to loose my house :-(