Began talking to
CW early Feb 08 regarding parents mortgage. They have the nasty Pay Option Arm, they are fixed income mortgagors. They are current with their mortgage payment, however they aren't even making the i/o payment. With the property values drastically decreasing, payment not covering the interest payment; that 115% LTV will hit soon and will hit my parents hard.
CW, Home Retention Department, at first seemed understanding. They took my parents monthly obligations over the phone then proceeded to tell me what documentation to fax, the letter they needed and that I the file would be submitted to a "negotiator" within 30 days. Approx. 25 days later I followed up and was immediately told by the Rep in the Home Retention Dept. that they will not do Modification to Pay Option Arm Loans. I explained that this is not what the Rep told me back in April, nor the other times I had telephoned. This Rep was not nice to say the least. I then followed up last week. Again explaining the situation that my parents face. I'm attempting to be proactive. Trying to obtain a resolution before the situation gets out of hand. The Rep I spoke to last week made a statement about the interest rate. That since my parents interest rate is not over 8% that all they are offering is to freeze the current rate for a specific term. My parents are currently at 7%. Again, at 7% with this payoption arm, they are not even paying the interest payment. I beleive that their interest only payment is approx. $2K, fully amortized pymnt is aprox $2500+. Again, my parents are on a fixed income; they aren't capable of paying 7%...Has anyone has a successful loan modificaiton with
CW where their interest rate was less than 8%??? Please share any and all info or suggestions. I'm ready to put the gloves on and go as many rounds as necessary. My parents will NOT loose their home.
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