No Help From Countrywide

[willoww]

I have an option arm and heloc with CW. We have not been able to make more than the minimum payment so the balance of the loan is going up ,it is a neg. AM. I am not late on my mortgages but I will be losing a huge chunk of income soon and we are living on credit cards. I called the hope department and was greeted by a very nice woman who said to write a hardship letter and fax in pay stubs for loan mod. That was 2 weeks ago. I called today and was told to wait for someone to be assigned to my case. Is it better to not pay my payments. My rate will be adjusting in Oct but I was told it would go up very little. My concern is the neg AM. Plus the value of house is going down in Mich. We have a prepayment penality as well. We can refi but would have to take out of a 401 and probably only have about 30,000 left in equity. Any thoughts?

[Moe]

Thanks for joining LoanSafe.org!

Oh yes, the infamous negative amoritzation loan that was pushed on thousands of homeowners is now coming back to haunt everyone. Robbing people's equity and stealing homes. These pick a payment, option ARM loans are the worst!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!

Many were sold by brokers and lenders because the commissions you can make on those loans was unreal. Most of these loans were not sold to benefit the borrower but to benefit the loan officer in their bank account and pay for their 745 Series BMW.

I haven'y seen Countrywide's Hope Department work with anyone who was not late yet. Ever. The closer you are to losing your home to foreclosure, the more attention they will give you.

As far as advising you to be late?? I would never do that because it will hurt your credit. But if it's to the brink of losing your sanity, then by all means do what you have to do to keep it. I would wait to see what they come back with a loan modification and if they say no, then it's time for plan B. Which you need to start palnning and plan C also.

Let us know what happens and good luck!

[willoww]

Does my kind of loan qualify as the kind of loan the president is talking about the FHA can help? The neg AM> Does this kind of loan qualify as predatory lending?

[willoww]

We cannot afford to pay the full payment on this loan, so now we owe $12,000.00 more than last year when we got this thing. The banker who put us in it, did not even tell us it was a 40 year. I found that out from my online account. He just played on our needs at the time

[Moe]

I don't believe the neg am loan would qualify. Also, you have to be late on your mortgage to qualify for the FHA Secure Loan.

1. The mortgage being refinanced must be a non-FHA ARM that has reset.
2. The mortgagor’s payment history on the non-FHA ARM must show that, prior to the reset of the mortgage, the mortgagor was current in making the monthly mortgage payments.

3. If there is sufficient equity in the home, under additional eligibility instructions provided below, FHA will insure mortgages that include missed mortgage payments.

As far as predatory lending, a neg am loan just in itself would not qualify. Even though it was one of the worse loans ever invented. What would qualify is fraud and Truth In Lending Act violations on your loan documents. A skilled attorney or mortgage law specialist could help you there.

The neg am loan is NEVER explained to borrowers by loan officers. If they really told the truth then you wouldn't be in one because you would have ran in the other direction.

[willoww]

Am I out of luck as far as FHA secure? I don't understand. I read the Fha as you could not have been late on payements. And I have an adjustible rate with an option arm. I am at the end of the rope. I do not know which way to go

[Moe]

The FHA Secure is just a hybrid of a regular FHA refinance loan. The main difference is that they will allow mortgage lates. You have to show that the lates were a direct result of your loan adjusting.

You can read the guidelines here for the FHA.

[willoww]

Moe I need your help
After waiting a month for any word from Hope Dept . I called &finally got a negotiator today. Wehave an option arm and a Heloc that we can not afford to pay the full payment so we owe more than we started. We have loss income and we help.She was rude and said we should sale or rent out our house. We are not behind yet but we"l be losing more income in Feb 08 I wrote the letter sent the pay stubs I was on the phone for 2 hours today with this rude woman.I tried to call you this afternoon. But the phone just rang. We don't want to lose our house. I have put everything in it. Help Willoww

[MRCHASE]

EMAIL ME NOW. LET ME SEE WHAT I CAN DO FOR YOU.

Let me know.

[Moe]

Willow,

Who is your lender again? I'm on the phone a lot, sorry I didn't answer. Unfortunately this is the case with many lenders. You have to be late for them to work with you and then when your late, there are no guarantees. It's frustrating, I know and that's why I run the forum and I want people to tell their stories, so we can expose what really happens when you reach out to your lender.

Don't give up and please stay strong.

[willoww]

My lender is Countrywide. I have another negotiator and I spoke to a very nice woman who said that the workout dept was not really open in August but she was the head of the dept and would make sure we were helped. She said Countrywide wanted to help people.So I am waiting ,she said my negotiator would be calling me this week. Thanks Willoww

[Moe]

Thye weren't really open in August? That's a weird comment. Tell them you have a guy named Moe that is a homeowner advocate that is documenting everything Countrywide does. I think they know about me by now and that will sacre them

Please let us know the outcome and best of luck Willoww!

[willoww]

Thanks I have been documenting every conversation I have. I was meet last time out by a very rude glorified bill collector at countrywide so this nice gal was so refreshing. I hope they can help me. Also who is this Mr Chase? He wrote and said he was a lender who could help. Is he on the up and up?

[evel1999]

I was wonding about that post too.

Has he been approved by Moe?