In desperate need of help with Countrywide mortgage! My Story...

[tortoros]

We purchased our home in March of 2005 with a fixed for 2 years mortgage that was fixed at 5.6% and then was set to adjust in two years to a variable rate. Our mortgage consultant told us that variable rates were always lower than the prime rate, so if anything in 2 years our mortgage would go down. We took this man's words for truth, which they obviously weren't.

In March of 2007 our mortgage adjusted through the roof, and adjusted again a few months later, all the way up to 10.5%, our payment increased a whopping 1,000 per month! We immediatly began contacting countrywide to refinance. Up until this point we had a perfect payment history with countrywide and were also making more income than when we initially purchased the home. However, after several months of submitting documents, phone calls being unreturned, switching loan consultants...they deinied our application stating that we didn't qualify for a loan. We immediatly contacted their "hope" team and filled out an application with them. Several weeks went by and no answer, finally we got a letter stating that we did not qualify for the hope program and to contact the loan department to refiance. So, we then again tried to refinance, we exherted every possibility- co-signers, taking one of us off the loan, etc... However, again after several months the outcome was the same...no loan. During this time we struggled with payments, we tried to make partial payments, however, they refused to take a payment unless it was the full amount. This made making payments even more difficult. We again, contacted the hope department in hopes that perhaps they would qualify us again....but after a month of fiddling with that they denied us agian. We immediatly applied again out of desparation and called often to check the status, which they would continually tell us that our loan was in review. Our account is months behind right now and we just recieved the letters stating that the default notice has been filed. We immediatly contacted their foclosure office to try and work something out and they kept repeating, "we can assist you no further" and that "you do not qualify for any of our programs".

We have no clue what to do now, we would like to keep our home. Any advice, would be greatly appreciated. Thank you

[Cat Damiano]

Hi tortoros,

Welcome to the forum and thank you for joining...........

For a loan modification at this time, this is a very important part of the equation...........when you put together your household income versus your household expenses including the current mortgage payment, taxes and insurance if the payment does not include these........do you have a surplus of $100-$250 left at the end of the month?

[tortoros]

Not with the current 1,000 more per month mortgage, before this increase we did have a surplus.

[Cat Damiano]

This is the reason you are getting denied for a modification........

You have to show a surplus on the current amount or they won't be able to qualify you for a modification and a forebearance won't work because that would just raise the current payment.........

In this situation you will need help, try contacting HOPE(different than CW's Hope Dept.) or NACA and see if they can help you work with your budget to get you into the range needed for a modification.........they can also help you contact CW on your behalf to try again........give them a try.......they might be able to help you.......

1-888-995-HOPE
NACA