Roadmap to Loan Modification, Countrywide 1st and 2nd

[nmorrow1]

I need to have my loan modified in order to keep my home, and I want to put a roadmap together for this process:

I purchased a brand new home in June of 2007 for $571,000. I put 10% down and my loan is A Countrywide 1st for $471,000 30 yr fixed at 6.25% Interest only for the first 10yrs, then fully amortized the next 20yrs. My second is a 30 yr fixed for $54,000 at 8.5% with a Balloon Payment in 15yrs. The values in my area have been hit very hard. In fact the builder of my home was foreclosed on after I closed escrow and my home is one of only 20 in a community of 80 with 60 unifinished lots. The current comps within 1 sq mile of me for homes of my sq footage and year built, etc. are at approximately $320,000. I pulled this info from county records not current listings so I am pretty sure that it will only appraise for this amount if not less.

When I purchaesd my home I had such a good credit score that they gave me a stated income loan, however my income was stated correctly. In November of Last year I was laid off of work, but I was able to keep my payments up with savings and other sources of credit. I was able to find a job very quickly and went back to work in January, but the job pays about $30k less per year and got bigger. I called the HOPE department in Februray but they wouldn't work with me since I was current on my payments.

I bit the bullet and rented my home out in march and moved in with family to help get back on track, but I can't continue to make the same mortgage payment and I can't sell. I called hope again last month and they still turned me down for Loan modification or help. So I skipped my payment On the 15th of this month and I am putting together a plan to attempt and have my loan modified or let the home go into foreclosure if Countrywide wont work with me.

Here is what I can afford to do with the Loan:
1. Erase the second (it is worthless anyway)


2. I can have 2 things done with the 1st:

A. Keep rate and I/O the same for remaing term but reduce principle to $400,000 ($80k more than they would get through REO sale)

B. Reduce Rate and Principle, but become fully amortized payment

My Questions are this:

1. Am I asking for too much?
2. Should I tell them that I rented my home out to try and keep current or will they be more apt to work with me if I tell them I am still living there?
3. I see so many phone numbers/email addresses throughout this site for people to contact. Where should I start?
4. I was recently going over my loan documents again and I noticed that the 1003 loan ap doesn't match the information i put in the original loan application I submitted to the loan agent. Apparently the agent embelished and stated that I had over $1,000,000 in assets/reserves in order to get a rock solid approval. Should I mention this when discussing with countrywide since it was fraudulent on the loan agents part, or should I let sleeping dogs lie since I am technically respinsible to verify all of the information on the loan application before signing loan docs?

Thanks so Much for your Help!

[Cat Damiano]

Hi nmorrow1,

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

You would need to contact Countrywide to get the process started........
I am not sure what the investors on your loan will offer you considering that very low interst only rate...........most modifications call for the escrows to be added in........so that would in turn raise the payment............
They are also not reducing principle at this time.......whether the will in the future is anyones guess.........and without reducing principle the seconds stay...........so you will have to see if they can offer you anything that will be able to help you out.......it won't hurt to try........

Countrywide Home Retention
1-800-669-6650

Please keep us posted on your progress........

[nmorrow1]

Thanks for the Reply. I am going to be emailing my hardship letter to the addresses found throughout the site and start the process with phone calls, etc.

My loan already includes impounds so that won't change. The way I see it they can eliminate the second for $54k or foreclose and sell the home for a loss of $200k. I just can't keep this payment up with such reduced income!

My main concern is should I include rents I recieve on the home when I do my income and expense sheet, or should I tell them I am still living in the home?

Thanks.

[Cat Damiano]

If you are not living in the home and renting it out it would be considered an investment property.............since the financials are based on household income, you would need to be living in the house on paper for that.........

Also a good majority of the email list that I have provided in numerous threads are not all working since BofA took over Countrywide in July............so you will have to call first to get the process started and they will direct you as to what they need and where to fax............

Let us know how it goes...........

Good Luck to you!!

[nmorrow1]

I am working on my Income and Expense Sheet, and I have a question: After filling it out with my current income and expenses including impounded mortgage payment I am a negative of about $1000 (thus leading to my need for a loan modification). Will this hurt my chances of a loan modification?

I have noticed that the typical success ratio is $150-$200 per month surplus in budget including current mortgage payment. I am confused because people with a current surplus should not theoretically need a Loan Modification. Can I get some clarity on this? I am trying to get a good plan together so I don't get the runaround when I am finally able to contact a negotiator directly.

Thanks!

[Cat Damiano]

Countrywide does require that you have a surplus...............they want you to be able to afford the house, maintenance, and living...............and not just the mortgage.............

There might be some expenses that you can work on such as gas, groceries, and miscellaneous expenses...........

[nmorrow1]

Ok, I called the Home Retention Dept, and they told me I may qualify for a Modification on the 26th and to fax in letter of hardship etc. I had everything ready and faxed it in immediately. I looked online and my statuts states "Denied" but when I call they say it is in process.

As of right now I am only 30 days behind but will hit 60 days on October 1st. Should I keep my payment at 60 days late to avoid them filing an NOD?

I am going to try calling the Executive Workout Team on Monday.

Thanks.

[nmorrow1]

OK, here is an update. I emailed the countrywide list, faxed, and called executive team many times and finally got a Response from Odette Chavez (very nice) that forwarded my loan mod request to Nadine at the office of the president. She called me today (1 Day earlier than Odette said she would) to update my financials and inform me that a drive by appraisal would be done on my home within the next 5 days. The Investor on my 1st is Bank of New York and on my second is BANA. I stopped making payments in august and am now 60 days behind.

Should I make my payment before November 1st to avoid filing of a Notice of Default if I can?

Does anyone know what those 2 Investors offer as modifications?

How Close am I to an actual Modification? I have read many stories of people getting to this point and then getting cut off!!!