Country Wide loan...What do we do? - Loan Modification Forum

moorebend · #1 (**permalink**) IP: 208.100.142.58 11-15-2008, 01:11 PM

We stopped making our payment three months ago & have been trying to short sale our property. We paid $850,000 for our home and it has not moved at $500,000!! I had no idea loan modifications were even possible until a couple weeks ago. We have decided to retain an attorney to fight this out but need to know if what were asking is even possible. My husband is a contractor and his business has seen an 85% decrease over the last year & a half. We could afford our mortgage until the economy took a dive. Then the real estate "bubble" in our community burst! Our home is basically worth $450,000. We want to stay in our home, but we won't if the principal amount is not reduced to reflect it's value. Why would we pay money toward a sinking ship. We have been speaking to a company that works with a law firm and they say we have a great chance of reducing our interest rate (we have an 80/20 loan scheduled to go up to 10.5%) and reducing the principal down to it's current value. $400,000 reduction???? Is this really possible? We need to know that something drastic can happen in order to justify paying $4,000 in legal fees...anyones help or advice is appreciated!

Cat Damiano · #2 (**permalink**) IP: 67.177.243.104 11-15-2008, 01:42 PM

Hi moorebend,

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

I would be very careful with that one............the investors on the first liens are not doing this.

but you can clarify with one phone call................the modifications given are up to the investor on your loan and what they are or are not willing to do...........you can save your money by calling and asking if the investor on your loan is offering principle reductions as a part of a modification.............then you will know.

At the same time you might also want to see if you are elligible for the program beginning on Dec. 1st.............

Call to find out........
1-800-669-6607

moorebend · #3 (**permalink**) IP: 208.100.142.58 11-15-2008, 01:49 PM

Thanks Cat. How do I find out who our investor is? This attorney feels confident we can get a principal reduction based on the following: our financial hardship, comps in our area (homes are going for $275-400,000 on our block), deferred maintenance from the builder who has disappeared since we purchased the home & left us with probably $50-75,000 in damages, as well as TIL violations. If Countrywide will foreclose and sell to someone for $450-475,000, why can't they modify our loan to reflect this change?

Cat Damiano · #4 (**permalink**) IP: 67.177.243.104 11-15-2008, 01:59 PM

A short sale and a foreclosure reflects on the books very differently for the investor then a modification or principle reduction........

They can feel very confident all they want, ..........but they can't guarantee that is what will happen......nobody can.........if you have already given them the money then I guess you will have to wait and see.

If not then make the call and ask if the investor on your loan is offering principle reductions as part of a modification.

moorebend · #5 (**permalink**) IP: 208.100.142.58 11-15-2008, 02:10 PM

Thank you Cat! Do I call the number you listed above to find out who the investor on our loan is?

Cat Damiano · #6 (**permalink**) IP: 67.177.243.104 11-15-2008, 02:22 PM

You would just ask the question what the options are that the investor on your loan offers for modification and does it include a principle reduction............the servicer does not give out who the investor is because the investors do not deal directly with the customers.............
sometimes a csr will tell you..........but they don't have to do that......

jdett · #7 (**permalink**) IP: 71.163.142.185 11-15-2008, 02:24 PM

Posted by Moe on the homepage of the forum

Homeowner Alert: “Typically, the scam started with a flyer sent to the homeowner and many of these mailers look as if they may come from their lender or even the government. But, they are coming from scammers.”
Many of these mortgage brokers, loan officers and real estate agents literally make me sick. Not all of them, but the vast majority does. I have to let this out because it’s really an epidemic of mammoth proportions and I am going to be the person that brings this to the public light because I have an obligation to.
What is the hottest business since subprime and over priced homes bought with unaffordable loans? Answer: Loan Modifications!!!! Everyone is doing it. Well, almost everyone.

Moorebend,
Do you get your money back if they can't help you?

moorebend · #8 (**permalink**) IP: 208.100.142.58 11-15-2008, 02:33 PM

jdett,

No money back. I don't think any law firm offers a money-back guarentee. We are in talks with a couple firms, one that is listed on loansafe.org...Jim Griswold. I know something will get modified I just am trying to find out what the success rate is for major principal reductions. We cannot stay in a house that were paying way more than it's worth...this is the most difficult part were facing. Every case is so different so it's hard to know....

jdett · #9 (**permalink**) IP: 71.163.142.185 11-15-2008, 03:31 PM

I know , I am in the same sinking boat. How do you know what there sucees rate is? Just make sure are dealing with a reputable company. Try to find one local so that you can meet them and know where to go when you think things aren't going as planned.

moorebend · 11-15-2008, 04:02 PM

I tried to find a law firm locally and they all said that they would be re-inventing the wheel. The fees would be must greater because of their lack of experience. We can barely afford the $3900 as it is so it seems like the best option to go with a company that specializes in these negotiations. Jdett, have you had any success with principal reduction?