I'm in a Co-op, Could I Still Qualify for a Loan Modification?

[monica]

I have been reading numerous entries in this forum for over a month. This has literally been my one string of hope I've been clinging to. Thank you for that.

Today I took a day off of work to dedicate it to finally spending the time to get this ball rolling. Each step I take today is one that I learned by reading this forum.

I’ll be brief with my story.

I closed escrow as a first time homebuyer in 2005. I knew then that I would have a short window of time to refinance at the two year mark between when the prepayment penalty phase ended and when the first adjustment took place. I did everything I needed to do to line myself up for the refi. What I didn’t count on was being laid off. I had no reason to believe I would be out of work and had not ever been in this situation my entire career life. It couldn’t have happened at a worse time, I mean I had already had the inspection completed and all of the paperwork in. Needless to say, the refinance did not happen. That was back in September 2007.

Since then I have only found short-term contract work and have been out of work for five of the past 12 months. In between I’ve been collecting unemployment which has barely supplemented my savings. My loan has now adjusted a total of three times and my savings is non-existent. My last mortgage payment was made in August 2008 and I am now 90 days behind. It kills me since my credit score had been over 800.

One thing to note that may be a little unique for me: my property is part of a Cooperative Estate. Being in California this is very out of the norm. Had I known just how unusual that was when I was home hunting, I might not have chosen to purchase this property.

My loan was originally done with a company called Amerifund Lending. It was quickly purchased by Countrywide back in 2005. I bring this up because when my loan was a few months away from being adjusted I began receiving letters and phone calls from Countrywide soliciting me to refinance into a fixed rate loan. When I spoke with them to do so, I was immediately told they did not finance Co-ops in California. This infuriates me because I did not ask to have my loan bought by Countrywide and furthermore my loan was in good standing. I realize they probably inherited my loan with a group of others they bought from my original lender but since they did in fact have me as a customer and my loan was for a Co-op, why not work with me?

This is a big concern and I hope that someone on this site might be able to shed a little light on what I might be up against in this situation.

I have just used one of your templates and put together my hardship letter which I will include below and welcome any feedback. I did not mention the Co-op issue and am not sure whether or not I should. I know eventually it will come up and I would love to read any advice/feedback on what I might expect / how I should handle it. I will be calling Countrywide today as well since I have yet to speak with anyone since I stopped paying my mortgage.

Again, thank you so much for having this forum. I look forward to reading your responses.

MY HARDSHIP LETTER
To Whom It May Concern:

I am writing this letter to explain the reason I have become delinquent on my mortgage. I have done everything in my power to make ends meet but unfortunately have fallen short and would like you to consider working with me to modify my loan. My number one goal is to keep my home and I would really appreciate the opportunity to do that.

The main reason that caused me to be late is that I was laid off from my job of seven years as of September 2007. Since then I have only been able to secure short-term contract work off and on throughout 2008. In the past 12 months, I have been unemployed a total of 5 months.

At the time of my layoff I was coincidently in the midst of applying for refinancing as my mortgage had just surpassed the first two years, the prepayment penalty phase had expired and the first loan (I have an 80/20) was set to adjust for the first time. As a direct result of the layoff, I was unable to complete the refinance. Since then my loan has adjusted two more times. The value of my property has also declined significantly since then.

My mortgage was originally written by another company in 2005 and bought by Countrywide very shortly after I closed escrow. I knew back then that I would need to refinance after the two year prepayment penalty had passed. I was assured that refinancing would be no problem as long as the loan was kept in good standing but that turned out not to be true due to the downturn of the housing industry.

I made my last payment to you in August of 2008. Since that time I could not afford to pay what is owed. As you will see when you review my loan history, before September of 2008, I had never missed or even been late with a payment for a full three years. You will also see when you review my credit rating that I also have a great credit history with all of my other creditors. I understand the importance of good credit and it has greatly pained me to be unable to meet my responsibilities with my mortgage. It is my full intention to bring my loan current and in good standing. However, at this point, I have exhausted all of my income and resources so I am turning to you for help.

Shortly over a month ago I was able to secure another job and I now feel that with your assistance by way of a loan modification, I would be able to bring the loan back in good standing and keep my home. I would appreciate it if you would work with me to lower my delinquent amount owed so I may keep my home and also afford to make amends with your firm.


I truly hope that you will consider working with me and am anxious to get this settled so we all can move on.

Sincerely and Respectfully,

[elpjohnson]

monica.....

Welcome and thanks so much for joining.....soon a moderator will be stopping by to give you some suggestions and sound advice. Just know that you are not alone in this....we are all here for you!

[Cat Damiano]

Hi Monica,

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

Try calling Countrywide and see what options the investor has on your loan for a modification.................you hardship letter is good.....and to the point.

Countrywide Home Retention
1-800-669-6650


Please keep us posted on your progress...........

[monica]

Thank you both for your quick responses. I just finished speaking with Countrywide and set the wheels in motion. Once again, since I had read up on this forum, I more or less had an idea of what to expect from them. I was able to answer all of their questions on this call. I will be faxing the hardship letter (thanks for your feedback Cat) along with paystubs and bank statements tomorrow. I will nervously await the 30 days for a decision as to whether or not I qualify to be included in their Nationwide Homeownership Retention Program that is set to begin on December 1.

One question - once I fax everything over, should I in fact wait out the 30 days or "call, call, call, fax, fax, fax" as you typically advise?

[Cat Damiano]

call for updates..........but follow the progress online on your account.......they will update it and give you a date once it has been assigned and that date you would need to adhere to before calling back....