Unable to Refinance--Attempting Loan Modification

[cman0201]

Good Morning All,

Like everyone here, I too have a Countrywide story to tell. I purchased my home in April of last year--around the same time that the mortgage industry began to falter. For six months prior to purchasing my home, I worked on my credit to ensure I would be able to obtain decent financing for my circumstances (i.e., I had a discharged bankruptcy that had not hit the two year mark). In January of 2007, I qualified for 100% financing, so I began searching for a home. When I found the home in March of 2007, I no longer qualified for 100%--I only qualified for 95% financing, which wasn't a big deal because I had 5% to put down on the house. My closing was scheduled for March 30, 2007, but was delayed for several reasons--the Deed had not been obtained, there was a credit card account on my credit report that Countrywide insisted I pay off even though the account did not belong to me (I was an authorized user on a $9,000 Discovercard account belonging to my mother, etc.). Needless to say, I did not close on the scheduled day and was forced to pay another month's rent on my apartment, which had gone up an additional $100 because I had nowhere else to stay. I finally closed on April 10, 2007, and even then Countrywide was attempting to make me pay off the Discovercard account--I also did not receive the keys until two days later, but that's neither here nor there.

Sorry for the long intro, but I needed to give background on the story. Approximately two to three weeks before my closing date, my credit score surpassed the 620 mark, which I was told would qualify me for 100% financing. It didn't, but I thought that I would at least be able to obtain decent financing. I did not. Countrywide offered me a 10.22% Interest Only ARM, adjusting two years after the initial start of the loan. As I was working with a broker, I was told that I shouldn't have any problems refinancing once my bankruptcy discharge was two years old--in September 2007. Well, September came and went and per my broker, I was unable to refinance, but I paid for an appraisal and other fees under the assumption that I would qualify. In addition, I never heard back from my broker, so I figured that was just money lost. In January of 2008, I called Countrywide once again attempting to refinance; I spoke with a rep who looked at my credit, score, finances, etc., and determined that there was no reason I wouldn't qualify for an FHA refinance, as everything was in order. I paid the $435 dollars for the appraisal and other fees hoping that I would be able to finally refinance my loan. A month later, I was told that I could not refinance my loan because I had not been in my home a year. I was told that I could refinance the loan at anytime, so I did not understand this stipulation. Again, I had thrown money down the drain in hopes of refinancing my loan. Well, here it is six months later; I have had two late payments, so there is no way that I will qualify for refinancing now. I am in the process of attempting a loan modification and should here something back on August 1st. I am current on my mortgage. Will this affect my being able to obtain new terms on the loan? I just want to do something before the loan resets in May of 2009 because even though I can make the current payment of $1035.63 (interest only), I am certain that I will no longer be able to afford my home when the rate resets next year. Any suggestions as to what I need to do next will be greatly appreciated.

[schwefls]

Welcome to our forum cman0201:

I wanted to stop in say hello and assure you, you are not alone. Shortly someone will be reaching out to you with some sound advice/suggestions. In the interim please know that we are here for you, you are not alone.

[cman0201]

schwefls,

Thank you so much. Though I am not behind on payments, I am very worried that I won't be able to afford my home once my payments reset. I cannot believe that I have an Interest Only ARM with a 10.22% rate. I should never have agreed to those terms but like many, I believed I would be able to refinance. I'm keeping my fingers crossed...

[GilbertB]

Hello cman0201,

Are you sure that your interest rate is going to increase at the reset date? If not read your "Note" you' ll find it in your loan docs. In some cases your rate will actually drop. Then there are some writen so they can stay the same and go up only.

You say you have two late payments....Are they over 30 days late? Because if they are not at least 30 days late they will not show up as late on your credit.

[cman0201]

GilbertB,

I have a copy of my Note and it says that the interest rate I pay may change beginning the First day of May 2009, and on that day every six months thereafter. The interest rate I am required to pay at the first Change Date will not be greater than 11.72% or less than 10.22%. Thereafter, my interest rate will never be increased or decreased on any single change date by more than One and One-half percentage points from the rate of interest I have been paying for the preceding six months. My interest rate will never be greater than 17.22% or less than 10.22%.

Yes, the two late payments were 31 and 36 days late, so they are currently showing as 30 days late on my credit report.

[GilbertB]

Okay so your rate will never drop below the start rate. What is your marign? and what index is your mortgage tied to? (probably 6 month libor)

[cman0201]

Where do I locate the margin info? And yes, the index is a 6-month libor.

[GilbertB]

It will be in the "note" or the "adustable rate rider"

[cman0201]

If I'm reading this correctly, my margin is Seven percentage points (7%) added to the Current Index.

[GilbertB]

So you add 7% to whatever the current index rate for "6 month Libor" for example today its at 3.09..... so if you adjusted today you would be at 10.09%. So if you adjusted today it would be 10.22%

[cman0201]

I obtained this information from the Countrywide customer website. Should I call to check the staus of my Loan Modification, even though it states that doing so may delay the process? I posted in a previous thread and am curious as to whether or not I should trust that Countrywide will get back with me. My Loan is a 10.22% Interest Only ARM set to reset to 11.72 % Interest Only in May 2009 and every 6 months thereafter. One additional note: according to my Note, I don't begin paying Principal and Interest until the 61st payment--is it normal to pay such a high interest rate (maximum of 17.22%) on the interest alone? Thanks for any assistance you can provide. Documents Received

Processing Date Workout Type Document Type 07/14/2008 Loan Modification RFD 07/14/2008 Loan Modification Proof of Income 07/14/2008 Loan Modification Other The above list is real-time and reflects the documents processed to date for this account. We may have received additional documents recently sent to us that have not been processed and therefore do not appear in the list. Please do not call us to check the status of a document not showing in the list as our representatives will not be able to provide any additional information than what is shown here. Thank you for your patience. Current Workout Status Loan Modification View the Details Hide the Details Workout Status Details: Your request for assistance is under review. During the review process, a thorough examination and analysis of your loan will be completed. During this time, we may or may not need additional information from you. It is common that you will not hear anything from us during the review period, but please be advised that all collections activities have been temporarily suspended during this review period. We expect more information to be available on 08/01/2008. If your status remains unchanged after the 08/01/2008, please call and speak to a customer service representative. Please do not call back before 08/01/2008 as that will delay the process. Please respond promptly to any calls or requests that you may receive from us during this period. Lack of response will cause your workout to be delayed or cancelled. Thank you. Information as of: 07/11/2008 Workout Stage: Processing Phase/Sub-Phase: Active Processing

[cman0201]

I obtained this information from the Countrywide customer website. Should I call to check the staus of my Loan Modification, even though it states that doing so may delay the process? I posted in a previous thread and am curious as to whether or not I should trust that Countrywide will get back with me. My Loan is a 10.22% Interest Only ARM set to reset to 11.72 % Interest Only in May 2009 and every 6 months thereafter. One additional note: according to my Note, I don't begin paying Principal and Interest until the 61st payment--is it normal to pay such a high interest rate (maximum of 17.22%) on the interest alone? Thanks for any assistance you can provide. Documents Received

Processing Date Workout Type Document Type 07/14/2008 Loan Modification RFD 07/14/2008 Loan Modification Proof of Income 07/14/2008 Loan Modification Other The above list is real-time and reflects the documents processed to date for this account. We may have received additional documents recently sent to us that have not been processed and therefore do not appear in the list. Please do not call us to check the status of a document not showing in the list as our representatives will not be able to provide any additional information than what is shown here. Thank you for your patience. Current Workout Status Loan Modification View the Details Hide the Details Workout Status Details: Your request for assistance is under review. During the review process, a thorough examination and analysis of your loan will be completed. During this time, we may or may not need additional information from you. It is common that you will not hear anything from us during the review period, but please be advised that all collections activities have been temporarily suspended during this review period. We expect more information to be available on 08/01/2008. If your status remains unchanged after the 08/01/2008, please call and speak to a customer service representative. Please do not call back before 08/01/2008 as that will delay the process. Please respond promptly to any calls or requests that you may receive from us during this period. Lack of response will cause your workout to be delayed or cancelled. Thank you. Information as of: 07/11/2008 Workout Stage: Processing Phase/Sub-Phase: Active Processing

[Cat Damiano]

It says don't call before 08/01................that's tomorrow......