Countrywide Loan Modification in Illinois

[Pete2008]

I hope someone can help me here. I tried to use the services of Gregory Paiva, who advertises in here. I was explained that due to Illinois regulations they could not help me. I am overwhelmed and for the first time I am paralyzed by fear.

This is my situation. I bought a house 2 years ago, a month after I bought it I was offered a second mortgage. Since a business opportunity presented itself I decided to take the second mortgage.

I have a 2/yr ARM loan that expires in August, I tried to refinance but the value of my property has plumed. I am upside down. I do not know what to do. My second loan is fixed at a decent rate. but if my interest rate goes up I am afraid it will be over for me. I have never been late in any of my payments.

Now, this is the twist. This house is not longer my primary residency. I am currently renting it, I took a job assignment in another State for a year. I am not planing to sell my house and I plan to keep it for the years to come.

If you have any advise, please share it. I do not know what to say or where to start.

Best regards.

[Cat Damiano]

Hi Pete,


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

I am assuming that Countrywide is the first mortgage.......is this correct?
What is the interest rate at currently?
What is it adjusting to?
Are you paying interest only?


Have you already tried to contact Countrywide to see if the investor on your loan will allow a modification on an investment property?
Were you trying to use an outside service because Countrywide will not modify your loan?

[Pete2008]

Hi Cat,

Yes, you are correct, Coutrywide is the first mortgage. My current interest rate is at 8.6 and it will adjust to a 10.6 with a lifetime cap of 14.6. I am paying principal and interest.
I have not contacted Countrywide, I know it might sound funny but I am afraid. I do not know what to say or how to say it and this is the first time I feel powerless.
It was because of this fear that I tried to use an outside service, I knew I was not mentally ready to properly handle the situation, but I never contacted Countrywide.

However, I realized that I need to do something before it is too late, I do not know what kept holding me back and joining this site is my first step.

[Cat Damiano]

It is better to contact them and tell them that an adjustment will cause a hardship............if you need help with the hardship letter, there are examples in the Homeowner Tool Box to the left of the forum...........

Call the............

Home Retention Dept.
1-800-669-6087

to see what options you have with the investor on your loan........

[Pete2008]

Hi Cat,

I called the Home Retention Department and I spoke with a gentleman by the name of Tom Kerkar, who informed me that at this point I had to wait until March 09 to qualify for a rate reduction or fix term loan work out. He stated that my payment will not change until March 09. He also mentioned that there was a 95% chance for me to qualify for a loan workout if I waited until then. However, he mentioned that typically Countrywide only allow for a 2-3 year fix term. I am not sure what to do here, I would like to have a fix loan and maybe a lower payment now and not to worry about it anymore.

Do you think I have other options?

[Cat Damiano]

Pete,


What is happening is that you are not a risk liability to them........it is a catch 22...........the ones that are in the adjustable rates that are currently adjusting or have adjusted causing the hardship and defaulting are the ones that are being helped first................
and the responsible people that stay current on their mortage at whatever cost are getting shafted..............it isn't fair..........

Have you received a letter stating that your rate is remaining the same for this adjustment period?

[Pete2008]

No, I have not received any letters but yesterday I was looking at my loan and it said that my first adjustment will be Prime plus 4 points, since I imagine prime is low my rate will not change during the first adjustment. My rate will change every six months.

I do not want to wait to see what happens, I was told to wait last year and now I am in this situation.

[Cat Damiano]

What you could do is to wait until Sept. when you will be past the adjustment and try again..............

[Pete2008]

Cat,

I appreciate the help. I will wait until September and try again. In the mean time I will be gathering all my documents and paying some debts so I can be ready.

[Cat Damiano]

Pete.............

Sounds like a plan...........

Please keep us posted.......