Please take a look at my letter...I need help with a DIL

[dontwantthehouse]

Here is my situation--complicated one at that--I haven't seen any similar situations yet. Any suggestions on how to get Countrywide Home Loans to approve my DIL? My name is the only name on the 1st mtg and HELOC but they want total household info--even if I use my husband's income we still can't afford both homes nor do we want to keep the other property. So do I provide both of our information or just mine?--don't want to put his credit or business in jeopardy--not sure if Countrywide Home Loans can go after him for asset but business still in debt (2years old). Any advice appreciated!

Here is my hardship letter:

To Whom It May Concern:

I am writing this letter to explain my unfortunate set of circumstances that have caused me to become delinquent on our mortgage. I have done everything in our power to make ends meet but unfortunately I have fallen short and would like you to consider working with me to consider a short sale for my home and ultimately, a deed-in-lieu of foreclosure if a short sale should not occur soon.

The main reasons that caused me to be late are that we cannot afford two homes as we can barely keep up with having one with the economy the way it is today and let alone being self-employed in today’s economy. Furthermore, to add to the complexity of our situation, we were blind-sighted by the property management group that was leasing this property causing us to lose our savings entirely.

We have spent all of our savings and much of our income to carry both homes since the lease was breached. We have spent thousands of dollars to repair the home after the property management group defaulted on the lease option agreement in April. Their tenants left our home needing extensive work both inside and out. The repairs and carrying of the home have cost us over $17,000 with a running tab on utilities and maintenance bills since we had to take over the expenses. These were repairs that the property management group was contractually liable for but they have since “disappeared” on us.

However, we wanted to do what was right and that was to have the repairs done: entire house, inside and out, repainted, lawn maintained again, new carpet installed in the entire house, fixtures replaced, and etc. Needless to say, we are maxed out as we used our entire savings on doing what’s right.

Please be aware that it was never our intention to retain two homes whatsoever. Please also be aware that this home was originally put on the market in October 2005 since we went into a contract to build a smaller home that would be easier to manage, both financially and physically.

With this event, it was our first time ever buying a home while still owning an existing home. We believed that we went into the second-home purchasing process as most buying homeowners traditionally do: found a house they liked and then put their previous home on the market and typically everything worked itself out. I also had professional experience with this process as I used to sell homes as a builder’s rep for 3 years and all my customers did the same thing: they found a floor plan they liked, signed a contract, found a realtor, listed their existing home, existing home sold within 6 months or by the time the new home was completed and everyone was happy. This was the process that 90% of my customers went with as they decided to make their next move. Well, little did we know that our decision to move would be during the real estate market down fall.

Again, it was not our intention to have two homes. We made the decision to buy a smaller affordable home as this was the time that both my husband and I became self-employed. Buying a smaller home would allow us to build our business which we knew would take much of our initial earnings to invest back into the business as it was started up and still be in debt. So along with the blind faith to go on our own came many expenses that the self-employed has to acquire: self-employed taxes, individual health insurance, credit debt to help invest into the business start up expenses, and etc.

So while we were waiting for our new home to be built and the starting up our business, there were few showings and no offers. We reduced our sales price a few times with still no offers. We had a terrible realtor that never even suggested about a short sale. We have never known that there was such an option or even a deed-in-lieu for us to consider. We thought foreclosure was our ultimate doom with this property; otherwise, we would have explored these above options two years ago.

Since we were not aware of the other options, we had to move into our new home in March 2006 when it was completed and made the decision to continue paying the mortgage on the Baccarat house with our savings / emergency fund.

So it has been a long haul for us just to keep current and to keep our creditworthiness sound. We ultimately decided to go with the property management group’s lease when it was presented to us in August 2006. We thought this as our only option to keep current with both mortgages since the first property had not a single offer presented during the 10 months it was on the market. We never intended to have this home rented out but after months of paying two homes, it was our last resort and our dwindling checking and savings accounts supported our decision.

So from August 2006 to this past April of 2008, we were able to carry the two homes with no impact on our good standing with you. Unfortunately the outcome of the lease was, needless to say, far from what we believe the lease option agreement was going to provide us in the end. We were told that the property management group’s subtenants had paid the option down payment to buy the home outright but unfortunately, they decided to buy another home after 20 months on the lease and in turn that was when the property management property management group defaulted on the lease with us as they could not afford to carry the cost of the home without tenants.

Their breach cost us our savings, now my good standing with Countrywide, and has negatively impacted my excellent credit history as a whole.

We are selling the home once again because as soon as the repairs were completed we put the house back on the market in the first week of June. Since listing it, we have reduced the sales price 4 times in the last 90 days of it being on the market and still no offers. The house is impeccable and move – in ready but the competition out there is fierce. We are competing with homes that should be selling in the $275k and up pricing but they are undercutting the prices so they can sell faster—understandably because that is what we are doing as well.

Our home is now priced where it will be a short sale if an offer is presented. We also recently received a letter from the county auditor stating that home values have been reassessed due to the market from the last two years and our home is now well undervalued at approximately $230k.

As I have explained, we have done our best and certainly have gone to lengths to keep current with the mortgage and HELOC with you all. We have no additional income to carry two homes without jeopardizing our basic needs and keeping our primary home.

As many homeowners, we have been living paycheck to paycheck. We count every cent and prioritize where each one must go. Therefore, we ask that you please look over our situation and request that you consider a short sale for us as soon as an offer is presented and to expedite the process. And if a short sale offer should not present itself soon, we ask the same of you for a deed-in-lieu request. It has been very hard for me to see how my creditworthiness will be impacted after many years of monitoring it and taking pride in keep it in good standing so time of the essence would be much appreciated. The quicker that I can be approved for either event in order to have the least amount of negative impact on my credit history will be greatly appreciated by me.

Please let me know what else is needed from me in order to assist you in this process and have it be resolved as soon as possible.

Best regards,

[Cat Damiano]

dontwantthehouse,

They will not be able to approve a DIL with a HELOC on the property.........if there are other junior liens against the property such as a second mortgage, HELOC (equity line), mechanic's liens, or other loans or liens junior to the first mortgage, the lender will never take back a Deed in Lieu of foreclosure. He would never do this because he would be accepting the responsibility of paying off these liens before the property's title could be sold or transferred. The only viable alternative for the lender is to go through the foreclosure process and go to the foreclosure auction to buy the property with all the junior liens extinguished. When the auction is completed, the lender will get a title free and clear of junior liens and encumbrances.

[dontwantthehouse]

Hi Cat,

I asked the rep in the loss mitigation dept about this and she said they would consider the HELOC joint with the 1st mtg.

At the time I refinanced with CW in 2004, the representative had me take a HELOC out for $25k at a variable rate. I honestly don't know why the HELOC was taken because I have never used it just paid it--never requested myself because had no plans to do anything with the home or pay anything else with it. It was what the CW LO who suggested the HELOC as part of my refi at the time. My original outstanding balance was $216k but to refi with CW I had add'l closing costs etc and that was when she suggested to take out the HELOC.

so am I SOL? once again!

[Cat Damiano]

Just send the letter and see what they say...........
I have never heard of an investor considering a HELOC jointly with the first, because they are two very different products, unless Countrywide happens to be the investor on both...........which would work out good for you...........

[dontwantthehouse]

Yes, both the 1st mtg and HELOC are with CW if that is what you mean by investor. However, one time when I called CW's loss mitigation, the rep said he would look up the investor on the loan and said that it was Fannie Mae.

Anyway, regarding my letter, do I have too much information? Is less best but I just have so much going on in our situation.

Also, if I do include my husband's info, can they go after him for anything. Ohio is an equal dowry state but I bought the house before marrying and only my name (maiden name) is on the papers and deed only.

[Cat Damiano]

That question is an attorney question.......

And the letter looks good..........
Good Luck!!

[dontwantthehouse]

ah, yes, the attorney deal---this is our other "what to do" hurdle. Sounds like that may be the route we have to take.

OR have homeowners ever tried to do it on their own first and if it doesn't work out get an attorney to step in?

And one more thing, I was told that you can request the lender to sign off on something stating to the effect that they would not go after you for a deficiency but that can be just luck of the draw if they actually grant that.

[faith]

Originally Posted by dontwantthehouse

ah, yes, the attorney deal---this is our other "what to do" hurdle. Sounds like that may be the route we have to take.

OR have homeowners ever tried to do it on their own first and if it doesn't work out get an attorney to step in?

And one more thing, I was told that you can request the lender to sign off on something stating to the effect that they would not go after you for a deficiency but that can be just luck of the draw if they actually grant that.

Hello,
Dontwantthehouse,
I have never heard of CW approving DIL, they will however, approved a Loan Modification and Short Sale but not on DIL.

I have requested CW for Loan Modification and DIL they denied my request but they approved Short Sale and they gave me a letter stating that when the escrow closed they will not pursue the deficiency judgment. The escrow closed on 07/09/08. I have 1st and 2nd with CW and the investor is Fannie Mae.

Maybe they have change their procedure now and accepting DIL instead of foreclosure, because they spend around $50,000 to foreclose a house that's per foreclosure. So good luck and wish you the best. May God give you favor from your Negotiator and Investor.

Take care.


Faith

[Cat Damiano]

Alot of homeowners try it themselves first................and also if you do either receive approval on the short sale or the dil, then have your agent negotiate the deficiency and make sure that you receive the decision in writing.

[dontwantthehouse]

Originally Posted by faith

Hello,
Dontwantthehouse,
I have never heard of Countrywide Home Loans approving DIL, they will however, approved a Loan Modification and Short Sale but not on DIL.

I have requested CW for Loan Modification and DIL they denied my request but they approved Short Sale and they gave me a letter stating that when the escrow closed they will not pursue the deficiency judgment. The escrow closed on 07/09/08. I have 1st and 2nd with CW and the investor is Fannie Mae.

Maybe they have change their procedure now and accepting DIL instead of foreclosure, because they spend around $50,000 to foreclose a house that's per foreclosure. So good luck and wish you the best. May God give you favor from your Negotiator and Investor.

Take care.


Faith

Hi Faith,

Did you request this from CW or did they actually voluntarily sent you this bit of information?

Thanks!
Jamie

[dontwantthehouse]

Okay, this is my workout information. I still plan on calling them this week to make sure they are actually working on my account or at least get a status update. by doing so before 10/14 as they requested, will this really cause delays with my workout just because I call Countrywide Home Loans before then?

Current Workout Status

Deed in Lieu	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 10/14/2008. If your status remains unchanged after the 10/14/2008, please call and speak to a customer service representative. Please do not call back before 10/14/2008 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:	09/23/2008
Workout Stage:	Processing
Phase/Sub-Phase:	Active Processing

[dontwantthehouse]

I submitted my hardship letter and finally got a call from a Negotiator named Khadi. Anyone work with her?

Anyway, she asked me about being able to pay back $10000 on the Heloc once and if Countrywide Home Loans approves a DIL for the first mortgage. I told her that I was told that both would be considered joint and that I thought a DIL would wipe everything out. She said that CW just services the Heloc and that a Bank of NY is the investor which contradicts what a previous representative told me. THey told me FAnnie Mae was the investor.

She also wants me to provide my husband's information along with mine but the house is only under my name. I am worried that they would go after my husband's business as an asset but the business is only 2 years old and still has debt but I don't want anything to affect it.

She also asked me about the cash given to me since her file shows that when I refinanced this loan back in 2004 is was for a cash out refi which I never requested and had never spent a single dime of whatever cash was supposedly taken out. I never even requested a heloc it was the CW representative at the time that suggested I take out to pay closing costs. Looking at my loan docs, I can't tell if it is a cash out refi. I know it's 5yr IO arm set to adjust in March 2009 and that the Heloc is on a variable rate amortized for 30 years.

She also told me that according to her notes that my financial info was updated in July showing that I had a surplus of $638 or something like that and I told her that I never gave any information regarding my finances so how would they even come up with that information if I never provided any financial information and she said apparently from the conversation I had with that particular rep in July enabled the rep to come up with the number. I told her that I don't recall ever talking about any monetary amount for either income or expenses for anyone to be even able to come up with a surplus or deficiency. I have only called to ask about my options in lieu of foreclosure.

So with the news about the cash refi and now wanting my husband's info, is it time to get a lawyer?

She said that she is sending out an appraiser this week.