AZ homeowner retention/FHA secured/H4H ....OH MY! - Loan Modification Forum

2blessed2stress · 09-11-2008, 02:53 PM

I've been reading these posts and have received some useful info...but wanted to ask the experts what they recommend in my specific situation.
~~I'm in a 30 adjustable rate mortgage. Balance is 418,500, rate is 8.5% and it's set to adjust 1/1/09...just over 3 months from no.
~~All payments have been paid on time (or w/in the 30 day grace period for credit reporting)...w/ one exception...
~~I paid August's payment on 8/29 via checkfree as I wanted to split the payments between two bank accounts. Due to one of the accounts delaying posting of payment until 9/1...it fell past due. At that time it alarmed countrywide who then sent me a demand letter that the 2964 mortgage payment and 1,400 in accumulated late fees be paid. It is my lack of attention to my online statement to have noticed that these late fees were being tacked on to the account, however, the bank always accept just the mortgage w/ no mention of late fees being due.
~~My family just moved and money is tight right now (especially being in the real estate biz myself)...I could stretch to pay this by borrowing some money from family but would prefer not to.
~~My question: I was going to start the loan modification process closer to the adjusting date but feel like since I'm now overdue it would be the best time. Also trying to decide if I should apply for the new FHA secured loan b/c it appears I qualify (if Countrywide decides to approve it). Our goal is to payoff our home someday and keep it in the family so being required to give the government back 50% of the profits isn't a major concern at this point. I'm thinking start w/ countrywide loan mod and then use the FHA as a backup?
~~Would appreciate thoughts, comments, questions before I make a move.

Thanks and my best to everyone.

Jaime Cuamatzi · #2 (**permalink**) IP: 207.200.116.70 09-11-2008, 08:41 PM

Hello 2blessed

Perfect plan - It's time to start your modification now!!!! Because time is of the essence. Be prepared for a long process. And if at a point you feel overwhelmed, seek professional legal service. Good luck on your journey.

2blessed2stress · 09-15-2008, 08:35 PM

Just wondering what Countrywide requires to verify income for a loan modification. My situation is a bit confusing as I have varying income being in commissioned sales and now being an actual employee for the same company. My 2006 taxes only show about 40,000 of income...2007 we filed an extension but will report around 70,000-80,000...and for this I have paystubs totalling around 30,000 however I make most of my money at the end of the year and it should be around 60k or so. My question: I easily have my expense sheet but can't really determine my income. Taking the average of last year is the most accurate but the year before was a job transition. If they use this year it's showing a much lower figure b/c we moved and I had a job transfer...it would show a huge deficit in relation to our expenses. Also, do they not consider certain "luxury" expenses like a timeshare monthly payment...it's a revolving debt of ours and is real estate related so is a true expense.
~~~Any advise/suggestions are appreciated!

Cat Damiano · #4 (**permalink**) IP: 67.177.243.104 09-15-2008, 10:27 PM

Each investor has a different criteria as to what they require on financials.............so you would need to ask Countrywide what they will need for documentation from you since your income is from different sources.......and also ask them about the timeshare too.........

wchamilton · #5 (**permalink**) IP: 66.194.51.226 09-16-2008, 04:07 AM

Quote:

Originally Posted by 2blessed2stress

Just wondering what Countrywide requires to verify income for a loan modification. My situation is a bit confusing as I have varying income being in commissioned sales and now being an actual employee for the same company. My 2006 taxes only show about 40,000 of income...2007 we filed an extension but will report around 70,000-80,000...and for this I have paystubs totalling around 30,000 however I make most of my money at the end of the year and it should be around 60k or so. My question: I easily have my expense sheet but can't really determine my income. Taking the average of last year is the most accurate but the year before was a job transition. If they use this year it's showing a much lower figure b/c we moved and I had a job transfer...it would show a huge deficit in relation to our expenses. Also, do they not consider certain "luxury" expenses like a timeshare monthly payment...it's a revolving debt of ours and is real estate related so is a true expense.
~~~Any advise/suggestions are appreciated!

Like Cat said, different investors have different requirements. In my case, Countrywide required a hardship letter (examples of which are shown under the Homeowner Tool Box to the left), paystubs for the past month for me and my wife and a copy of my most recent bank statement.

2blessed2stress · 09-17-2008, 07:45 AM

I've emailed my hardship letter to the countrywide distribution list 2 days ago. Now what? Do I call the retention department? I have my income/expense stuff ready to go.
thanks for the help!

Dan Bailey · #7 (**permalink**) IP: 65.184.172.221 09-17-2008, 07:54 AM

I would fax/mail it to every contact available, then follow up with each to get a admission that they received it.

2blessed2stress · 09-17-2008, 07:56 AM

hmmm. Where would I find the fax numbers for each email contact????
thanks

Cat Damiano · #9 (**permalink**) IP: 67.177.243.104 09-17-2008, 08:36 AM

If you have not already done so, you would need to call them to get the process going and give them your financial information and let them tell you what you need to fax them...............

Countrywide Home Retention Team
1-800-669-6650

Carrie · 09-17-2008, 09:25 AM

Dear 2blessed2stress...

I have been on a very long journey with CountryWide and it is almost over...
All I can honestly tell you is to take the advice of the great people on this forum and be consistent, patient and follow through...

I wish you much Success
Carrie, Miami, FLorida

jedwards01 · #11 (**permalink**) IP: 24.98.7.216 09-17-2008, 05:00 PM

My husband did the loan mod due to having an adjustable rate mortgage on his home. they didnt request any employment documentation. in just did a phone breakdown of bills and ect. they then sent out the packet. Now you want to get started now because it make take quite sometime to get the process going.

jedwards01 · #12 (**permalink**) IP: 24.98.7.216 09-17-2008, 05:03 PM

i am also the same as you carrie and i just finished and recieved my info. I am very blessed and happy and without loan safe i would never have known how to manage this

2blessed2stress · 09-17-2008, 05:16 PM

thanks everyone...I'll give them a call first thing tomorrow.

2blessed2stress · 10-06-2008, 07:10 PM

So confused. In the process of loan modification on our ARM. It's w/ a negotiator who I spoke to last week and it sounded optimistic. I am also in the process of applying for that FHA secured/H4H loan where the government offers your lender 90% of the appraised value and put you into a fixed rate loan. I was planning on looking at both offers and decide which was best. Just today, the AZ Attorney General announced the Countrywide home retention initiative that starts December 1st. It sounds as if they are looking at the FHA secured as an option and lowering rates/balances/etc.
My question is...now what? Should I wait until this starts December 1st...ask my negotiator who will probably have no idea since it's so new....or fork over the appraisal fee w/ the FHA lender I'm working w/ and try it myself. Just concerned I'll sign one too early and then not qualify for the one w/ Countrywide that starts on Dec. 1st?
I'd love to know your thoughts.
thanks everyone

Cat Damiano · 10-06-2008, 08:47 PM

You will have to see which one works out the best for you...........on Dec. 1st Countrywide will first see if the borrower qualifies for the Hope for Homeowners FHA program and if not then move to the other options........

Here is the eligibility for the program that is beginning Dec. 1st.

Eligibility

Borrowers eligible for loan modifications under this program must have received a qualifying subprime mortgage or a Pay Option adjustable rate mortgage prior to December 31, 2007, in addition to meeting certain other requirements set out in the program:

The borrower is 60 days or more delinquent and the current loan-to-value ratio is 75% or higher;
The borrower is current today but becomes 60 days or more delinquent at any time prior to June 30, 2012, and the loan-to-value ratio at the time of the modification is 75% or higher;
If the borrower has a subprime hybrid ARM and the borrower is current but reasonably likely to become 60 days or more delinquent as a consequence of a rate reset, and the loan-to-value ratio at the time of the modification is 75% or higher;
If the borrower has a Pay Option ARM and the borrower is current but reasonably likely to become 60 days or more delinquent as a consequence of a rate reset or payment recast based on negative amortization, and the loan-to-value ratio at the time of the modification is 75% or higher; and,
The property is a 1-4 unit owner-occupied residential property.
In addition, customers may be eligible for the early payment default benefit of this program if: (1) the customer has a Countrywide-originated first lien loan; (2) the loan was made between January 1, 2004 and December 31, 2007; (3) the customer's primary residence is the property that secures the loan; (4) the customer has made three or fewer payments over the life of the loan (the borrower's state may expand eligibility); and (5) the customer has either lost his home to foreclosure or is at least 120 days in arrears on mortgage payments.

Loan Modification Program Details
Countrywide will first offer eligible borrowers an FHA refinance under the HOPE for Homeowners Program. If not eligible for that program, Countrywide will offer these specific programs based on product type.

Subprime 2-, 3- 5-, 7- and 10-Year Hybrid ARM borrowers will receive an unsolicited extension/restoration of the introductory rate for five years and an invitation to contact Countrywide for additional relief if affordability concerns persist. Borrowers who cannot afford the introductory rate will be considered on a streamlined basis for a five-year interest rate reduction to as low as 3.5% (based on the affordability equation) and a conversion to a fixed-rate mortgage at the end of five years.

Pay Option ARM borrowers accepting a streamlined loan modification option will have the negative amortization feature eliminated from their loan. The mortgage interest rate will be reduced to as low as 2.5%, and the loan will be converted into either a fixed-rate mortgage or a ten-year interest-only loan. For single property owners who currently have no equity in their homes, Countrywide will write-down the principal balance to as low as 95% of the current value of the property to restore an equity position.

Subprime Fixed-Rate borrowers will receive a streamlined loan modification, by reducing the mortgage interest rate to as low as 2.5% and converting the loan into a fixed-rate or 10-year interest only loan with affordable step rate increases and lifetime cap.

Loan modification programs will provide payments within the limits of an Affordability Equation set out in the agreement and be targeted to equate to 34% of the borrower's household income.