CW & SLS, LoanMod? Shortsale? or Foreclosed????

CWandSLSat619 · 07-20-2009, 08:16 AM

First off, I would just like to say how great this forum is! I have learned so much from here!. Okay so here's my scenario:

Location: San Diego Cali ... really good weather, you would think real estate won't go down.. - NOT !!!!
1st Mortgage: Countrywide - was sold to them after 6 months of COE
435,000 at 6.5% IO ARM will reset in 2014 - 30 yrs.
$2,361 monthly payment
2nd Mortage: Specialized Loan Servicing
108,000 at 7% Principal and Interest fixed for 30 yrs
$731 monthly payment
catch: this loan has been modified already last Aug 2008 from 11.375 down to 7%.
Current situation : House is worth $345,000 - same exact model 2 houses down was foreclosed last year and now sold and closed escrow 7/15/09

Stopped paying my mortgage from 6/1/09. Since CW won't consider my loan mod since I was current, Supposedly, I am now under workout dept. Fax my docu with them 6/23/09Follow up 7/8/09 said "still in the workout department" until they loose my records of course.. Same old story, I get the run around and BofA rep doesn't know what the CW rep is doing ,even though their systems supposedly merged..... I called the HOPE line and got a HUD counselor assigned to me from NOVADEBT. She hasn’t really done anything, but she’s nice and it’s good to have her on the line every time I try to call Countrywide, just so I have a 3^rd party witness and also so I can get them to quit giving me 1800 HUD number!
SLS has been calling me as well… I can’t really negotiate with them again if CW won’t modify my loan.

Do you guys think SLS will modify me again? Since their loan is non recourse, I don’t think they’ll get anything if my house get’s short sale or foreclose…. I just want to offer them like 10% of my loan to release the 2^nd lien, Has anybody had success with this???

Also, is anyone familiar with the SERVICEMEMBERS CIVIL RELIEF ACT I’ve read about it but don’t think we qualify, since we acquired our debt AFTER my hubby went on service…. Just thought I’d ask if anybody has benefited from SCRA..

So this journey begins…. I’ll keep everyone posted……….. Thanks! it's nice to have a place to vent sometimes...

Evan Bedard · 07-20-2009, 10:22 AM

Hi cwandslssat619 welcome and thank you for joining the forum.

Quote:

Do you guys think SLS will modify me again? Since their loan is non recourse, I don’t think they’ll get anything if my house get’s short sale or foreclose…. I just want to offer them like 10% of my loan to release the 2^nd lien, Has anybody had success with this???

I believe there is a chance that you will be able to get modified again. That would be a wise move to offer about 10% to try and settle the loan. From my personal experience I have seen some borrowers able to settle their 2nds for about 10-20% of what is owed on the loan.

Quote:

Also, is anyone familiar with the SERVICEMEMBERS CIVIL RELIEF ACT I’ve read about it but don’t think we qualify, since we acquired our debt AFTER my hubby went on service…. Just thought I’d ask if anybody has benefited from SCRA..

I'm not exactly sure but on this site it looks like you are correct, as to the law only covers debt that occured prior to military services:

Servicemembers Civil Relief Act Overview - Military Benefits - Military.com

CWandSLSat619 · 07-20-2009, 10:28 AM

Thanks Evan,

I called SLS before and asked offered them to buy down my loan, they told me to put my offer in writing, do you think that's a god idea, and This is not something they can use against me in the future? I mean I can afford to pay them $10K right now, only because I haven't paid my mortagages and property taxes impound for 2 months!.... Should I submit an offer, or wait for them to come after me?

Evan Bedard · 07-20-2009, 10:39 AM

Sorry I forgot to mention that they will usually require you to put the offer in writing before they will consider the settlement.

CWandSLSat619 · 07-20-2009, 01:02 PM

Has anyone written or seen a letter offering the 2nd to buy down the loan? Also, do you guys think it's a good idea while going on loan modification, to also ask for a short sale packet? Thank you for all your advices....

CWandSLSat619 · 07-20-2009, 02:15 PM

Update: Decided to call BofA to follow up, they are still reviwing my account , they said I have till Aug 19 before my "Notice of Intent to Foreclose" expires. I said, I haven't even received any letter she said it went out today... So what's next? Asked rep how long the modification will takes place, she said 60-120 days.

So question, once they start the forclosure process supposedly after Aug 19, that was fast! Will they still continue to do my Loan Mod? or they'll drop it once they start the forclosure? AAAARRRRGGGGHHHHHHH....... *DEEP SIGH* ....................

CWandSLSat619 · 07-20-2009, 03:51 PM

more update today: Got home and received a Notice of Default and Notice of Intent to Foreclose from SLS, should I do anything????

Evan Bedard · 07-20-2009, 03:57 PM

Hi cwandsls,

Quote:

So question, once they start the forclosure process supposedly after Aug 19, that was fast! Will they still continue to do my Loan Mod? or they'll drop it once they start the forclosure? AAAARRRRGGGGHHHHHHH....... *DEEP SIGH* ....................

From my personal experience dealing with CW a typical modification usually would take 30-60 days. So hopefully you can get yours accomplished quicker than 60-120. Also when your already in process they will continue with the mod and will usually even postpone a sale date until it is complete.

CWandSLSat619 · 07-20-2009, 06:03 PM

I really hope I get modified and offer a good term from CW, so I can start negotiating with SLS, before they accelerate the whole forclosure process... funny how I was just talking to CW and when I got home had that letter from SLS with the same deadline....

hhmmm... maybe they've been talking to each other?! hehehe....

Also, is that normal getting Notice of Default and Notice of Intent to foreclose in one letter only after being a 50 days of late of payment????

Evan Bedard · 07-20-2009, 09:42 PM

I'm not exactly sure, from my experience an NOD is usually filed after 60 days...

CWandSLSat619 · 07-21-2009, 06:57 PM

Hi, I was reading on some other post about what is considered a non recourse / recourse loan etc etc... My 1st and my 2nd are both purchase money, However When I modify my second (or at least I know that's what I requested for) and got a lower rate and a fixed rate, Is that still considered a recourse loan? Please help!!!! Does anyone have their 2 cents on this ???

CW California · 07-21-2009, 09:36 PM

Check out the Deed in LIU forum. Prof. Shay has a lot information on that subject. I've asked the same question and I think it doesn't change it but then I have heard that it depends if the sneaky ass bank snuck any clauses in that could change it...

CWandSLSat619 · 07-21-2009, 09:59 PM

Quote:

Originally Posted by CW California

Check out the Deed in LIU forum. Prof. Shay has a lot information on that subject. I've asked the same question and I think it doesn't change it but then I have heard that it depends if the sneaky ass bank snuck any clauses in that could change it...

Thank you... These things really stresses me out... Eventhough I've accepted the worst case scenario, not knowing every step is scary.. I feel like David VS. Goliath.... now if I can only find those rocks......

CWandSLSat619 · 07-23-2009, 08:33 PM

update, we found a "sorry we missed you, you have a certified mail.." from USPS.. guess where the letter came from? BofA! Wow they make sure to cover all their bases and certified their letter to prove that they have sent me the NOD.... -actually I haven't picked up the letter yet. But I'm pretty sure it's not a loan mod offer/package. And the last time I talked to them they said they sent me the NOD in the mail.... I know that we have really decided that if worst comes to worst, we'll walk away... but I really feel frustrated, and depressed.... *deep deep sigh* ..

Anyhow, I called SLS today and requested copies of all the documents I signed specially the last loan mod I did with them. I really hope that they didn't try to pull a fast one on me and made it a recourse loan. Well I never got any penny from them I actually had to pay them $250 for the processing fee..... Oh yeah what's funny is when I called them and entered all my info in the automated systems and finally got a live person.. He said "Hello.. uh.. Can I speak with Mr ... (My hubby's name)" I was like... Uh, I was actually calling you guys... and before he can say anything, I said Don't worry it's okay, I know how the call center works... you guys don't really dial out it just auto populate in your screen..." He was kind of embarrased and told me he would have to transfer me to another department........

Oh well, gotta suck it up... I'll let you guys know what the certified letter from BofA is about I'll probably let it sit in the Post office for awhile.. pretend I didn't see their note...

ItsJustMe · 07-24-2009, 12:09 AM

Did you check your CW account to see if the FedEx is a mod offer?

We also have SLS and I'm almost certain I read about some buyouts when I was googling for information in the early days of my quest for a mod. If you do try to mod, though, did you know you can apply online? And also recieve your acceptance online. Their mod processis actually pretty streamlined (except that I turned down a mod and a few days later went from not making ENOUGH for a good mod, to making TOO MUCH for any mod at all! Frustrating). Anyways. Just wanted to let you know that was an option, if you didn't already know

CWandSLSat619 · 07-24-2009, 10:22 AM

Quote:

Originally Posted by ItsJustMe

Did you check your CW account to see if the FedEx is a mod offer?

Hi ItsJustMe, Here's another thing, I know before on the old CW site, I do see the section to see if there is a work out being done. But eversince They kind of switched it to BofA, and I've been delinquent almost 2 months now, there's really no link to a "workout information" It just always show the 2 months delinquent and try to make me pay or promise to pay....

The only way that I know that I am in the "workout dept" is by gullibly believing the CW/BofA reps on what they are telling me..... Maybe there's some link I wasn't aware of can you help me find where to dinf that link? Thank you!

ItsJustMe · 07-24-2009, 10:52 AM

Maybe different accounts have different access?

I log in, click 'Home Loan' in the middle of the page (where is says my account number, click 'financial hardship' on the toolbar at left and then 'workout information' from that drop down.

HTH.

CWandSLSat619 · 07-24-2009, 11:36 AM

... and yes, I am aware that you can do the mod through SLS online. I did fill up app online but haven't submitted any docs yet. I wanted BofA to mod my loan first then I'll take care of SLS. My ideal scenario is BofA to fix my interest and forgive (will be good) my delinquent payments or add it in the balance is okay. Then use the saved up cash at least $10K to buy out SLS..... if BofA won't modify then I'd try a short sale.. if anything else fails, then Forclosure.. depends on the timeline... hence my thread's title, mod, shortsale or foreclose

CWandSLSat619 · 07-24-2009, 11:50 AM

Quote:

Originally Posted by ItsJustMe

Maybe different accounts have different access?

I log in, click 'Home Loan' in the middle of the page (where is says my account number, click 'financial hardship' on the toolbar at left and then 'workout information' from that drop down.

HTH.

Thanks for the tip, I did find it.. I guess I had to pass the page where they want me to promise to pay etc. Anyway here is what's in my workout info page. What stage do you think I am now with BofA? Thank you for all your help and advices!

CWandSLSat619 · 07-24-2009, 11:16 PM

update: Hubby finally picked up the "certified mail" from BofA. I t was a notice of intent to Accelerate? so what does this mean? Is that the Notice of Default? I guess If I don't pay until Aug 19th, then they'll try to collect the whole amount of the loan?! or else they'll foreclose me? So I guess the next letter is Notice of Foreclosure???

SillyWorld · 07-24-2009, 11:24 PM

Quote:

Originally Posted by CWandSLSat619

I guess If I don't pay until Aug 19th, then they'll try to collect the whole amount of the loan?! or else they'll foreclose me? So I guess the next letter is Notice of Foreclosure???

You got it, Intent means yes they are going to forclose, but if you are with NACA better go and update site and give sale date

CWandSLSat619 · 07-24-2009, 11:30 PM

Isn't there a law in Cali, that before they try to foreclose on me, they should've had tried to offer me a some sort of a work out?? I did send all my info with NACA, but my phone appt is not till next week.... They don't have a sale date yet, they just said that they will start foreclosure if I don't get my paymnets updated... but what about my loan mod with them???

SillyWorld · 07-24-2009, 11:40 PM

Next letter or door hanger will have the sale date, you need to call the bank, but like you said you have an appiontment with NACA already so just make sure you tell them, they will make a forclose on hold 10 days before, but most likly the bank will still proceed since they already started, in some cases they drag it to last 20 days of foreclose tioll a Mod is done, I know its crazy, I do hope I never make it that far, Its like my Citi offered me a Forbearance 3 month deal, I asked what if at the end of 3 months you check me out and I do not qualify trhen what, she said well you would then simply owe us all that was not paid...Hahahah No way I say declined offer...

And from reading on this site many many have done this and were never late from the get go, but started there 3 month thing...And low and behold they ended up in foreclosure after 6 months of deal no deal, deal, then declined deal...Its a Big Game ya just gotta keep on top, info NACA, call the bank for answers, write it all down...Pray and pray, take the weekends off cause its a Slowwwww process (SUCKs Bigtime) but hey just pray, maybe we all end up for the better, especialy us that realy need it and are not just clowning around

CWandSLSat619 · 07-25-2009, 11:29 PM

Hi SillyWorld,

Thanks for the cheer up... Yup keep on praying, When I first, bought this house, I prayed hard, 'cause we we're actually contingent with the sale of my condo 2006, and it did took 60-75 days before my condo got sold, And the builder for my current home, help pay my agents comission, (my condo didn't sell enough to cover the agents commisions...) And also, I said in my prayers, that if it's meant to be things will just happen.... and it did and we bought this home.... Now came the challenges... Hubby came back from overseas and now stationed shore duty (he's in the navy) and was cut with all the extra allownaces we've been getting, around $1000K for COLA and Sea Pay, Then I work for the Governator (State of Cali) and now has 3 day Furlough which is more or less $500 a month in pay cut!. Can we afford our loan still? Barely! No savings account and living of from Credit Cards, we are not extravagant people, But we have ;ess income and more expenses...My parents started to be my dependents as well..... Like I said We can probably managed to make our payments still but, what happens in 5 years when my interest resets? This sounds like my hardship letter! hahaha.. Sorry If I got too carried away......

Anyways received another letter from BofA.. It was actually funny, 'cause the letter sounded sympathetic.. It said something like this, We understand that sometimes things out of your control happens... etc etc.. Please call us immediately to see if you'll qualify for a loan mod... forbearance.. deed in lieu etc etc....... REALLY??? Just threw the letter in the trash! I'll wait for the next letter that actually makes sense.. Hopefully it's the loan mod, before the door hanger for the sale dat

SillyWorld · 07-26-2009, 12:00 AM

Glad to see you have some Spirit left in ya, cause you started the long road to success (we pray)... This Forum shouild be all good news and Happy people saving there homes not Banker Game plays...Umm..Duhh, So they say thou Shalt Not Covet They Neighbors Goods...Yea tell that to the Bankers