Denial #1 for Loan Mod with CW

[seemore]

Hi all! This is a great forum and thank you everyone for posting as this is a great resource to utilize. I am in a situation that may be uncommon as i have not read that many stories similar to mine yet.

I have a 10 Year Interest only loan with a 7.5% interest rate. Last January our payment went up due to taxes for a $256,000 house that we have yet paid any principle on (for 1.5 years) and who knows what the house is worth now. I am the only working family member have 3 daughters and a 1 son on the way. I do make good money in my career about 100K but when i did my spreadsheet with expenses i was negative $225+. I tried to get a loan mod by calling the Home Retention line and went over my financials with a young lady verbally (she did not believe how much the gov took out for my taxes but its the same on every pay stub) and by the end she showed i was in the negative but did not qualify for a loan mod. I am not late in my payments but we are living paycheck to paycheck with almost no money in the bank, no principle paid and I do have fears of losing my job. I am not trying to take advantage of the system here just barely making ends meet (really not if i am in the negative) and want to be proactive to ensure i dont get behind and ruin my credit score and most of all have some room to breath in case of the worst. Can any one suggest what I should do to try to get a loan mod? Thanks for reading and please offer any and all suggestions.....

I am in MI by the way and do not qualify for the Dec 1st Plan...

Mortgage $256,000
State: MI
Months Past Due: 0
ARM/Fixed: 30 Year Fixed
Int Rate: 7.5
Overall Expenses: -$225

[schwefls]

Hi seemore welcome to our forum:

I wanted to stop in say hello and assure you, you are not alone. Someone will be reaching out to you with some sound advice/suggestions. In the interim please hang in there and know that we are here for you.

[Cat Damiano]

Hi seemore,

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

You might want to try going through either HOPE or NACA..........they work with CW and they can also help you with the financials to get them in a better place needed for a modification.............

NACA
or
1-888-995-HOPE

[dthom]

I too am in Michigan like SeeMore. HOPE said I qualified for modification, CW says I don't, but after reading them their own fact sheet on the 12/1 program was told to watch my mailbox carefully after that date. We'll see what happens.

[kateistired]

I am in MI, too. I was told that I DO qualify for the 12/1 program. I would just keep calling. You get a different person every time, and a different answer along with it. If they said that you should watch your mailbox, they should be able to tell you if you are eligible or not. They are supposed to code your loan if you qualify so that foreclosure activity will be suspended.

[seemore]

Anyone have any ideas why I would be denied a loan mod directly from CW? SHould i call back and try again? I mean i am in the negatives and the first time i tried, they said to try a short sale or get another job. I am trying to get a second job in the evenings but still ahve to do well in my full time gig to ensure i dont lose that job. I can call NACA and HOPE but i see both of these could take some time and i feel that maybe calling CW direct, i may get it done faster because there is one less line of communciation. I am appalled (SP) that i could not get a loan mod wiht being negative $225 each month.

[kateistired]

Of course I am not saying you should do anything dishonest, BUT...there is a lot of number manipulation that goes on in order to qualify for these things. Maybe you could trim your expenses (on paper only) in order to show a bit of positive cash flow. It seems ridiculous that you would lose a modification over $200, when the modification would reduce your expenses.

I did read on the BOA settlement that you needed to be at least 60 days delinquent. Is that perhaps the issue?

I have a 7.5% fixed rate, not terrible but not great. I need the mod because my husband was laid off for months and we got behind.

[seemore]

Thank you...i just dont understand why you would need to show positive, as it seem contridictive of teh overall goal. Of course not illegally or lying, there are a few places in my budget i could probably try trim from like gas and food etc to try to get to the positive but just doesnt make sense. I have not been laid off (yet) but with the economy going down, that does effect my job of course and could happen any day (praying that it never does) but in the case i am negative now with no option for a refinance because the value has gone down, a mod is my best and only option at this time. I may try to call again later today.

[dthom]

We are not behind,yet. We have been paying 5 or six days past the due date. Just enough not get any late fees. To do this we have begun paying late on credit cards, which of course is now trashing our credit, will of course make it impossible to ever refi, even if the home value ever goes back up again. We have cut way back on food. Cut weekly allowance for house, after bills from $200(that had to cover food, gas for cars to get to work, clothing etc) down to $140. Now shop at resale as much as we can,hard to slash the heat bill here in the winter, but we do keep temp down to 66 or 67 and bundle up a lot so bill hopefulyy wont reach $300 in middle of winter. Dont know where that extra will come from since HOPE said we were about $100 in red. I can trim that away, but with not as much money coming in as a year ago will be very hard to make ends meet. I even asked the last person at CW if we would have a better chance of getting relief if we just stopped paying(which I don't find to ethical) I was told that she couldn't exactly tell me what to do! So basically their employee was telling me that if I just quit paying I may qualify? That is ridiculous. Here we are trying to maintain good credit standing with everyone and they hint that I should stop paying my mortgage and take the chance they may help me, because as of now we don't qualify for help. So, if they still don't help me, I will then be in foreclosure.

[gray517]

Dthom, just as a thought, you could put those payments in the bank, till you do become 60 days past due to see if you qualify for any of the programs, as it seems you have to be past due at least that much to qualify for any type of help. if you are still unable to get help, you could then make your payments, but they will show a 60 day late on your credit though. the whole system is overwelming, if you are not behind no help, if you are behind do to job loss, then they tell you not enough income, the stories on here are mind boggling. someone needs to step up and pass some type of legislation to make this process easier for homeowners, so they don't get screwed again by the very process thats trying to help them. we are patiently (not really) waiting for 12/1 as we were told we qualified for who knows what and we submitted to naca for help in september no word on that either. crossing my fingers, saying my prayers. good luck to you

[seemore]

I have called CW to try to understand why i was not approved and find out who my investor is but have been dropped 3 times!

[spm2004]

Seemore, What makes you ineligible for the Dec 1st program? I just completed a mod w/CW, so I may be able to guide you a bit. -Sam

[seemore]

Thanks SPM,

On line wiht them now but on hold wiht the reteniton line folks. She is saying i was not able to get a mod because i am in a fixed rate of 7.5%. She says Fannie Mae is our investor and that she "thinks" there is a program available around Dec. 15th. My situation is that my mortgage started off wiht 2 incomes, and a fixed 30 year rate wiht interest only. It started off at 1800 and since January has been at $2046. We have been making the payments but my wife no longer works and we have 3 daughters wiht a new baby due January. We are barely making it and have to budget and find money just for food, no savings, and worried about Xmas gifts.....but we are on time with all of our bills. Going to Call HOPE next...NACA looks like we have to pay for a membership????

[spm2004]

Ok, I just did a load mod (package received today) on my Fannie Loan. My rate was 7.875%, mod is 5.875% year 1, 6.875% year 2, back to 7.875% year 3, 5 years I/O. Not a huge mod, but my home is also not my primary residence (my mom lives there and is not on the loan).

I was denied the first time for not being 120 days late. SO, I stopped paying, shot off a QWR to protect my credit rating while I was not paying and in the meantime, pressed them about some surface concerns on my original loan origination, some misrepresentations I thought we made and suggested fraud... The very nice lady who was handling my QWR agreed to re-submit my hardship letter herself. She did, and I got a letter from her introducing my negotiator.

In the meantime, I got a letter from Genworth Financial offering to help as well. They insure my loan for Freddie/Fannie, and were requesting additional information to review the request for the investor. Luckily, I didn't need to do all of that, as my mod was approved.

Moral of the story, be persistent in your letter writing campaign, and like everyone else on the forum has said, FAX, email everybody!! If you send me a msg I will give my negotiator's name, and maybe you can start with a person. He was very nice, and super "cool". Young guy, sounded like, not a super stuffy "debt collector" type.

[Cat Damiano]

seemore,

NACA services are free................

you go to NACA and click on the third box over "Home Save" and the steps are outlined there.

[spm2004]

BTW, the "trick" to the QWR is not to ask for everything the first time, that way if your mod is not done in 60 business days, you can send another one saying that you've reviewed what you received and believe you need add'l documents b/c the error that is the subject of your QWR is likely in those documents. It gets you another 60 business days.

Remember, the QWR doesn't stop the collection and eventual foreclosure process if it gets to that, but it protects your credit score. While they are reviewing your loan for the mod they typically stop collection activity, but you'll need to confirm that with your negotiator before your rely. Also, you should be able to see the workout status online, and it will say if they have stopped collection efforts.