Frustrated w/Countrywide in California

[CAfrustration]

Here's our story....

We purchased our home August 2005 for 485K. We put 100K down and our loan amount ended out being $356,588. We have a 30 yr Conv Jumbo PayOption ARM loan. 3 years later we currently owe $384,069 and have a 2nd for 70K.

Currently our house value (on a high estimate) is only maybe 200k due to the housing market here in CA. We are surrounded by forclosures. One of our neighbors with our same model house has their house on the market for 181K with no takers. A house slightly smaller then ours just sold at auction (5 house down from us) for 58K.

We called Countrywide to ask for a loan mod and they said all they could do is freeze our interest rate at where it is currently for 5 years time. But what scares us is that our loan will re-set in 2 years time and there is NO WAY we'd be able to pay our mortgage. As it is we are barely scraping by. We even had to do a cash advance on a CC to pay last months mortgage. But they told us that there is really nothing they could do (other then freezing the rate for 5 years) because we are current on our payments.

They did suggest that I contact an FHA lender to find out about the H4H program.

I searched online for an FHA lender and came in contact with Mike. He thinks the best thing for us would not be the H4H program but rather just refinancing into a regular FHA loan. He had me call Countrywide asking them if they would entertain a short payoff and that we can't afford our loan, and to tell them that we've been prequlaified for a FHA loan and need a reduced payoff. Countrywide said they cannot help and to deal directly with FHA.

I called Mike back and informed him of this. He told me to give him a day and that he will contact Countrywide himself. He called me back the next day and said that he asked them if in a situation as in CA where the value of the homes have dropped in some cases 200k and there is no way in a reasonable time we would regain that equity would they entertain a reduction of principal. He was told that they WOULD entertain that. Mike then told me he was told they would contact him in a couple days.

So I'm waiting for a call back. Mike said he'd contact me on Friday (tomorrow) with more details.


My question is this......anyone know if there is a chance of this happening? I was told by Countrywide in my first call that USBank actually is the investor on my loan and they are not interested in modifying.

I also tend to believe the saying....if it sounds to good to be true, it is. What Mike is trying to do sounds to good to be true. What does he get from this if successful??

[Dan Bailey]

CAfrustration, Welcome to the forum and thanks for joining. Cat or Moe will be by as soon as they can to give you some advice. Hang in there.

Things/rules are changing dailey with lenders and investors...so who knows?

Good luck!

[Cat Damiano]

Hi CAfrustration,

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

If you contacted Countrywide and asked about your investor accepting a short payoff and they informed you that US Bank is your investor and that they are not participating........they are the ones that would have this information since they were hired to service the loan by US Bank............so Mike isn't going to get any different result if your investor is not participating.............the participation is voluntary on the lender's part.

Try making another call to Countrywide to confirm the information about the investor..................
call
1-800-405-0078

[CAfrustration]

Ok, I called that number (800-405-0078) spoke with Sara who confirmed that USBank is the investor.

I asked if they were accepting short payoffs and that my husband and I were considering doing the H4H program (It's one of the options we're looking into). She said that we'd need to speak with another department. She transferred me to Customer Service dept at 800-669-6607.

Spoke with Missued (I'm sure his name is missspelled but that is how it sounded) in CS to ask if USBank is accepting short payoffs. He then transferred me to the Home Retention Dept.

Spoke with Les in Home Retention dept. He said that we may be eligable for the Homeowners Retention Program. He verified our information on file and submitted it to the Nationwide Homewonership Retention Program for review.

[Cat Damiano]

This is the new program that is beginning on Dec. 1st, and they are qualifying customers beforehand............

Here is the link to the info for you...........
Countrywide Financial - Real Estate Mortgage Lender - Home Loans - Equity Loan Mortgages

[bramail]

We've been told to wait for the Dec 1 notification before proceeding with CW mod process. Will this hurt us regarding consideration for the Homeowners Retention Program? We are eligible for program per CW but have not requested a negotiator or provided info. Should we at least begin discussions and provide financial data? Any help of advise is most appreciated. We are close to walking!

[Cat Damiano]

They might not be taking he information until Dec. 1st when the program begins..............I thing they are just able to see if a personl qualifies at this time.................

Here is the direct number to find out.......
1-800-669-6650

[bramail]

Thanks Cat. Can't say how important being able to communicate with you guys is to us.