update loan modification request

[dthom]

Refinanced out of a 2/28 arm in August of 2007 and was given Countrywide as my lender with an interest rate of 8.25 % a 1/45 higher than I had with my ARM. Mortgage is $140000 and home is now worth about $100,00. I contacted CW to inquire about the new program to start Dec 1 to see if we would qualify for a modification, since we have a sub prime rate, and a CW rep had told us last spring that we qualified for a 6.75% loan but since we had gone thru a broker to get our refi we had been given a "penalty rate" for not using CW direct. When I contacted CW this month about a modification I was directed to HOPE NOW. I called them, gave them all of my financial info and they said I did qualify for a modification, of at the very least the interest rate, said I would hear from CW in about 5 to 10 days. but to call them in the meantime. Well, we call CW, told them that the statement Bank of America had posted on the CW website about the new program mentioned people who were in fixed sub prime loans and how they could qualify for a interest rate reduction, and possibly a reduction in the amount of the loan to 90% of the current market value. Guess what CW retention people deny that there is any help for anyone in a fixed rate sub prime loan, only ARM and pay option ARMs. When I told them it was becomining increasingly difficult for us to continue to make our $1519 per month payment (tax,ins, & PMI included) they said that since I was current to just keep paying. A second person who called, said I should try to get someone else in the retention department. I kept asking about the new program to start Dec. 1, read to them right off of the statement from Bank of America about the fixed sub primes, still they deny that it is there. Does anyone know if the program that starts Dec. 1st is supposed to help those of us with sub prime fixed rates, who refinanced out of a sub prime 2/28 ? We want to keep our home, just really need some payment relief at this time. Have cut our food budget, paying late on Credit Cards, just trying to keep up.

[kateistired]

Well, our circumstances are different in that we are 5 mos. behind...BUT we do have a fixed-rate subprime loan at 7.5% with Countrywide, and they told me I definitely qualify for the new modification program. I wouldn't advise becoming delinquent on your loan, but the threat might spur some action.

I also noticed that so far, they have been very quick about getting info together for me, and I only had to fax in a month's worth of paystubs to get the ball rolling. I would keep pushing the retention department. The number I call is 1-800-669-0102.

[Moe Bedard]

Hi dthom,

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

There is a direct number to call for qualifying and submitting documents regarding the Dec. 1st. Countrywide/BofA program...............call in directly and see what they say.........

1-800-669-6607

[dthom]

I just checked my message center at CW and it shows that they received an income analysis of my loan on 10/15 and 10/24, this is about the time I spoke with HOPE and to the retention department. Does this mean that I should eventually hear from them regarding a modification of my sub prime fixed rate mortgage? Or should I continue to make contact with them? I haven't received any other contact from them. Thanks for any insight. I have never had to go thru this before.

[Moe Bedard]

It is best if you continue to call weekly for updates on your file and also note the date, time, and person that you are speaking with so that you have a record.

[cdmosaic]

I also spoke with the home retention department and got the same info, that I do not qualify for loan modification becuase I have a fixed rate interest only pay option loan. In fact, after taking my financials (I do show a surplus) I was told the only option for me is an extended repayment plan. Not even a forebarence is an option. She would not budge, sorry no help for you. So, curious how many people have gotten CW to work with them on a fixed rate loan and any names of people to talk with? Oh and November marks my thrid missed payment.

[Moe Bedard]

It isn't CW making the decisions on approving modifications unless they are the investor on your loan.....which they do not retain many in their portfolio............this would be coming from the investor on your loan and if it is a low fixed rate it might be FannieMae or FreddieMac if it is a conventional loan.

[Mr.Smith]

Cdmosaic, I will miss my third payment in November. I have 6.5% for 30 years interest only. Last time I spoke with one lady don’t even try to memorize their names. She asked me to call after December 1^st because I may qualify for some kind of program from BOA.
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Do they call you like almost everyday from collection? I had to write them a letter asking them contact me using mail. Have you checked you credit? My wife has that alert thing on her credit and she lost 75 point on her credit.

[Mr.Smith]

I don’t really care if I lose the house, they should care about it’s their money. I already told them that they should send me notice of default or we can re-negotiate loan terms. Everything and anything is negotiable that’s why I love America.

[dthom]

I am going to try calling CW again on Monday. My web page shows they have received an income analysis twice,the last being 10/24.I have a 30 yr fixed 8.25% conventional mtg, so I think Freddie Mac is the investor. Not sure which one is FHA and which one handles the conventional mtgs. When I contactedHOPE they said we qualified because at this time we were over $100 per month in the red. CW never even asked me about income etc. Just said there was not going to be a program for us. But I am not giving up. Everyon should should keep contacting them. I think they are still trying to keep as many high interest sub primes as possible, more money for them. I was even told to threaten to stop paying altogether( don't think that is a good idea)

[cdmosaic]

Mr. Smith, sounds like we have the same loan terms, mine is 30 years, interest only for the first 10 with the pay option fixed rate of 6.5%. They didn't tell me who the lender is, do you know who yours is? As I stated they would not disucss any option with me other than the extended repayment plan. She flatly said they do not modify fixed rates, but I've read here that they have so perhaps there is more to it then simply the lender.

I'll be sending my hardship letter this week, but I intend to be straight with them and explain that the fair market rental value of this property is $1600, but my pmnt is $3800 and if they can't see a way to work with me than foreclosure is the next step. We shall see.

Yes they call me every other day and just sent a another late notice that says I am in default. Allthough it doesn't indicate that this is a notice of default. Thay also emailed a customer statisfaction survey after I spoke with home retention. I guess they wanted to know how I enjoyed the experience of not being helped! Haven't checked credit but I'm sure it sucks.

[Mr.Smith]

Cdmosaic, ours 30 years fixed 6.5% for 5 years interest only. I believe our lender ’s Wholesale Lender. What state are you from? I’m from California. We did send hardship letter in June, but they ignored it. At that time we were paying up to date for 3 years. I’m not sure if they will respond on yours. All they want to do is to get as much money as possible out of people, then just foreclose it. We rather save money for down payment on a house we buy after foreclosure with 30% down. They just don’t get that our house lost more then 50% and requires additional repairs on it. I regret that I have not start this process a year ago. I told my wife we have to do something about it now or never. You can write them a letter to stop those unplesent calls. Please let me know on your respond and I will keep you updated on mine. Good luck.

[dthom]

Just got off of the phone with Melsha from CW Homeownership Retention Dept. Still insist it does not appear we are eligible for any relief, even after I read her the portion of the fact sheet on the program, that is on their website, that speaks to sub-prime fixed rate mortgages. They admit that they did receive info from HOPE and it does show we have more going out in bills than we have coming in at this time she said we still don't appear to qualify. After talking to her some more, and reading from the statement on line regarding fixed loans, she said we should watch our mailbox after Dec 1. If we qualify we will get a letter. At this point I will wait until after Dec. 1 to see what will happen I guess. Seems like they are trying to play a game here. She seemed at a loss for words when I read directly from their FAQ on the programs. I even asked her if we were going to have to make a choice at some point to stop paying in order to get relief. No answer. I did tell her that we have considered having the loan docs looked at by an attorney. All she kept saying is wait and see what happens after Dec 1 and that she would update the documents to reflect my call. So now what? Wait and see I guess. Just found out yesterday a home identical to mine on my street is being sold by lender for $30,000 ! That's $111,000 less than my loan balance.and by going to online apprasials found my home is worth at the top range $108,000! I refuse to give up, will hang in there.

[dthom]

Countrywide has told us also we don't qualify for any programs. Although we are still arguing that point with them. HOPE showed a -$100.00 each month with current payment. Said we did qualify for a modification from the 12/01 program(have fixed sub prime) At one time we were told to keep paying our mortgage and try to refi in a year. That we should have regained the $35000 in value we have lost in the past year. No one at Countrywide seems to know what the new program is, who it is supposed to help etc. Fact sheet lists, sub prime ARMs, Pay Option Arms and Sub Prime fixed rate mtgs. I even read it to them right from their website. I was just told to "watch my mail closely" after 12/01 for a letter from CW. That is how I will know if our mortgage is qualified for help. Some training huh?

[dthom]

Still trying to find out from CW if we qualify for anything. Now they tell me to call another number 800-669-0102. This would be the 3rd number I have called. At this point we are now getting behind on cc payments and the calls are starting, but we are making the mortgage payment by at least the 6th of the month. Have to pay by then as on the 7th they start charging and extra $3.00 to pay, and of course after the 15th the big late fee is tacked on. Now we are in position of losing the decent credit we have because we can't pay all of the cc on time, so even if we stuck this out for a year or two and tried to refi out of this high interest rate we won't be able to because we trashed our credit trying to keep the house. If I pay everything on time we have about a $100 deficit at end of the month, and that is if we cut food bills to bear minimum, keep heat at about 66 degrees to keep heat bill down as much as we can( already 50% higher than last year this time because they got to increase the bills). CC companies have declined to work with us. I'll call the number we got from CW, I just wanted to know if our account had been flagged for the Dec. 1 program, so I can make an informed decision as to what we are going to have to do. If CW won't help then I guess the lessor of the two evils is to let cc debt, go. Trashed credit is trashed credit no matter how you look at it.

[gray517]

dthom, I too have a subprime fixed, but I lost my job, hubby 2 pay cuts, when I called about the program I was also given the same number you were, I called it and they told me we "qualified for the 12/1 program, ken said my financials were already in there, (may have been from naca, or previous mod attempt) and we needed to fax husbands pay stubs, which we did. called back last week to the 800-669-6607 and was told to call 800-669-0102 about the program (I think it is home retention) thats what they said when they answered the call, I spoke to mandy this time and she said we were "eligible" and our account was "flagged" for the program, but that is all she could tell me, she said a negotiator would be looking at it after 12/1 to see exactly what we are qualfied for as she couldn't tell me, i read from the CW/BOA release about sub-prime fixed rates getting a streamlined rate reduction and she said she didn't know anything about that or what "streamlined" meant, I am waiting till 12/1, as everytime you call you get a different person and a different story. Hopefully there will be more actual information on 12/1.

in case you haven't read it, it says: 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, but look prior to that a I think you have to be behind, not sure though
Countrywide Financial - Real Estate Mortgage Lender - Home Loans - Equity Loan Mortgages

[Moe Bedard]

dthom,

What state are located in?

[dthom]

We are in Michigan

[Moe Bedard]

You are in one of the states that were included in the suit against CW filed by the AGs in these states.............this is regarding the program that begins on Dec. 1st.............so you should be getting either a letter by Dec. 15th or they should have your file flagged for the program..........
I know that you may have already called the specific number for the Dec. 1st program, but if they are telling you that you don't qualify, you need to tell them that your state was a part of the suit and that should qualify you.............

1-800-669-6607

Currently, these programs are available in the following states: Arizona, California, Connecticut, Delaware, Florida, Illinois, Iowa, Michigan, Nevada, North Carolina, Ohio, Texas, Pennsylvania, and Washington.

[dthom]

I spoke with Christina at CW today. She says that because we are in Michigan we should be getting a call the first week or so of December, and documentation regarding the program by 2nd week of Dec. She declined to say if we were qualified for help or if our loan was flagged. Just that because we are in Michigan we should get something.
Did say that H4H is not an approved program,(although they will accept the income analysis they sent to them regarding my account. Also, she did say that the AG of all states involved are keeping in touch with CW regarding this issue.
Guess we will wait out the next couple of weeks to see what happens.

[mzwelch07]

Originally Posted by *** Damiano

It isn't CW making the decisions on approving modifications unless they are the investor on your loan.....which they do not retain many in their portfolio............this would be coming from the investor on your loan and if it is a low fixed rate it might be FannieMae or FreddieMac if it is a conventional loan.

How do we find this out? We have a conventional loan? CW is using EVERY scare tatic out there with us...how do we know if we are going to be modified? WHO DO WE CONTACT...please don't tell me to call CW again...their computer recognizes our number and we are off on a whirlwind once again...lies, lies, lies. YOU DON'T QUALIFY, WHERE'S OUR MONEY or it is YES YOU DO QUALIFY YOU"LL BE GETTING A LETTER...call again...DON'T KNOW WHY THEY TOLD YOU THAT, YOU DO NOT QUALIFY.

[alikeith]

Unfortunately you have to call countrywide.

[sharonbervine]

hi I am new but I think I can be of some help I was in the same situation your are in I was never late morgage 350,000 house now worth 300,000. rate was scheduled to adjust 7/2008, I called every one no one will deal before a month it is scheduled to adjust but dont not pay just pay the last day it is due ie if you are due the first pay online with your bank the 14th they called me after three months of the please understand they are greedy and they want their money so aslong as you are not late they cant do any thing but they get nervous when you start paying them later then usual

[dthom]

Just found my origianl post. We are still waiting for CW to get our modification going, just talked to Retention on the 9th and Harriet told me we are still pending our modification, they are back logged, but to "hang in there", then received a call yesterday for cutomer service wanting to verify for me that I had indeed spoke to Retention Dept. and that it is taking 30 to 45 days for modifications to be processed. 45 days will be the 20th. Right after her call I found out from my husband that he had lost his job totally, he has only worked 5 days since beginning of year, and now he is out of work altogether. Have not even got unemployment yet. We will have no health insurance and due to a medical condition he has, and other r/x we will now have to come up with $800 per month approx in prescriptions. Income has been cut in half. If I could get the payment down then with my income and his unemployment, plus food stamps and maybe help with medical we could make it ok. Already gave up on paying credit cards. Just made January payment the other day, but as of now we won't be able to pay in Feb.
Should I call CW Retention tomorrow and fill them in on change in circumstance to see if it will expedite the modification process or just wait and see what happens if I don't make Feb payment?

[dthom]

Just got off the phone with NACA. The offer they are submitting to CW is awesome. Major, Major principal reduction, 3.0% interest rate. This would mean a payment reduction, including taxes and insurance of $613.00! If this goes thru we will be able to keep our home. Rep suggested we ask for a one month deferral of our current payment, to give us time to come up with it, since with husband getting laid off it will be next to impossible to come up with the payment before the 15th of the month. If CW doesn't agree, then we will do whatever it takes, even if it means using every penny we get at this point. Now we pray that CW and our investor which we understand is Freddie Mac, will agree to the restructure.