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.

[Cat Damiano]

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.

[Cat Damiano]

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.

[Cat 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.

[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.