HELP - I don't know where to start

[simon2020]

Hi All,

I am new to this board and hope some of you more experienced posters will be able to give me some good advice or at least lead me in the right direction.

OK here's my scenario:

MAIN GOAL - How to go about Modifying my rate/terms on second home out of state

1. Live in California - renting and working in this state.

2. Have a "second home" out of state. Parent lives there. No rent - (agreement I took over the property 7 years ago to help my then mother and father - now just mother lives there.)

3. Countrywide gave me a loan back on 3/2006 36 month ARM with the first "new" payment increase starting 4/1/09. Currentlly 7.12% fixed and based on current 6 month libor rate, CW said my first change will be a 1.5 cap or 8.625% on 4/1/09. That is about a $300 increase. MAX cap is 14.25%

4. Current on credit cards but at the verge of falling behind on some of them in the next 2 months.

5. Fell behind on a personal loan from a large finanical co. (X) 1/2008 and later this summer X's attorney's sued me for breach of contract. I hired an attorney and he said if I take this to trial, more than likely I would lose, but the judge could jump in 1/2009 (first hearing) to have us mediate. Amount due to X co. with attorney fees is a little over $15k.

6. Contacted a couple bankruptcy attorneys to contemplate filing for BK sometime early next year to AVOID a wage garnishment/bank account lien. **My BK attorney told me I should try to refi this mortgage first before filing for BK if that was my choice. He said I can refi inside a BK plan, but it would be harder for a bank to give a good rate.

7. I took 2nd job to help with expenses and my payment to CW has been on time. (Actually - I am on the cuff because I am always paying them just before the cut off on the next month.) So very close to running into arrears one month. But on CW's records I am ok for now.


I have been reading about all these programs to modify my loan or how BofA/CW will be contacting "Certain" homeowners to help modify their loan with ease beginning December 1, 2008.

Most of the programs I have read online like the HOPE project, etc. always seem to help people with their "primary residence" and it seems if you have a second home or investment home, you are SOL. No one wants to help unless you go through the normal refinance application.

**I tried to refi back in April, but due to the personal loan above with X falling behindmore than 120 days, CW said they could not help me. Arrrgh! The guy on the phone was very helpful but he did say if I took a second part-time job, they would factor that in but I would have to have worked there for at least 6 months. (I just finished my 8th month.)

QUESTIONS:

1. Will CW let me do a modification on my second home out of state? How easy is the paperwork? Is it painful - long winded process? **** What do they need from me to modify the loan?

2. With a lawsuit pending - will CW say I have to pay that first before they make an effort to modify my loan?

3. Should I say to CW - hey my ARM payment resets next Spring and if I don't modify my ARM, then it will put a financial strain on my pocketbook and possibly fall way behind on payments to them -- so please modify my loan?

4. Is it possible to ask for a certian period where I only pay the interest - let's say for 3-5 years just so I can catch up with my unsecured creditors - ie the lawsuit or pending BK?

4. -- and finally, ANY additional options you can help me with would be most appreciated - just short of filing bankruptcy.

[Cat Damiano]

Hi simon2020,

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

Countrywide is modifying investment properties too...........the modifications given are up to the investors on the loan so you would need to contact CW and see what modification options the investor on your loan will allow............

1-800-669-6650

[simon2020]

Hi Cat,

Thank you for your response. I had no idea CW would be willing to modify my investment property. I definitely will call them soon.

Do you know what type of basic information they will ask from me besides income?

[Cat Damiano]

you would need to have a hardship letter..............click on the link for examples..........

Examples of a Hardship Letter

they will let you know what other documentation you would need to submit.......

[simon2020]

Cat -- that link is very helpful. Thanks you.

I will draft up a letter based on my circumstances. So in a nutshell, I should have this letter ready to go before I give them a call?

[Cat Damiano]

That would be good so if they ask for it you will be ready......