Forbearance instead of modification

[jrolfedrev]

Hi,

Below is my loan breakdown for countrywide's first and second mortgage. I bought a property in 2005 in Temecula, California for $655,000.00 using full doc and was qualified for a subprime loan from Option One with 10% down 1st and second mortgage on a Option ARM for 3 years. The broker was a friend of mine from WLG and the loan was so stressful and severed my relationship to my friend which in fact he uses a "bait and switch tactic". At the middle of 2007, I got a letter from Option One that my loan will go up to $5000.00 plus a month and it's only for I/O. I contacted Countrywide for a refi and they gave me the interest rate below. I had been paying I/O since my wife had a new baby last April and along with credit card bills and utilites my funds starting to drain and I might end up not paying my mortgage. My question is can I apply for a loan modification since the value of my property went down to $487,000.00 approximate and most of the neighbors went to a short sale and value just went down?

Thanks in advance.
Jorge



1st mortgage:

Next Payment Due
09/01/2008 Total Payment Amount Principal/Interest Owed
Amortized Payment Choice $4,216.01 $4,216.01
15-Year Amortized Payment Choice $5,990.31 $5,990.31
Interest-Only Payment*** $3,588.54 $3,588.54

Please note: Amounts above may change based on payments made, received or returned before or after this statement was created.

** Outstanding late charges up to $400 may be reflected in the payment option amount.

The Amortized & 15-Year Amortized Payment Choice (Amortized Payment Choices) amounts are based on the assumption that these payments will always be received on the scheduled due date. You are not required to pay these amounts. The extra amount of Principal included with each of these alternative Amortized Payment Choices will be applied as a partial Prepayment of Principal on the date the payment is received. The interest portion of your payment will be applied as of the scheduled due date. The Amortized Payment is similar to, but not identical to the Interest and Principal Payment that you will be required to make after the Interest-Only Period ends. When that happens, your Interest and Principal payments will be applied to your loan as of the scheduled due date. The Amortized Payment Choices will reduce your principal balance and the amount of interest you will pay over the life of this loan. These Amortized Payment Choices are provided to you as an additional service, but by no means are you limited to these choices when it comes to the amount of partial prepayments of principal that you may select on your own.

IMPORTANT NOTE: Be sure you review any prepayment penalty provision you may have in your loan. Depending on the amount of any partial Prepayments and when you make them, you may owe a prepayment charge at the time you payoff your loan.

Loan Type and Term
Loan Type 30 Yr Conv Jumbo ARM
Current Interest Rate 6.625%
Contractual Remaining Term 28 Years, 10 Months
Maximum Limit 0%
Margin 2.25%


Loan Type and Term 30 Years Conv Jumbo ARM Monthly Statement
Original Principal Balance $650,000.00
Contractual Remaining Term 28 years, 10 months ARM Statement
Interest Rate 6.625%
Current Principal Balance $650,000.00

2nd mortgage:

Principal and Interest $466.67 Transaction History
Homeowners Insurance
Tax Information

Total Monthly Payment $466.67

Account Overview as of 09/03/2008
Loan Type and Term 30 Years Conventional 2nd Monthly Statement
Original Principal Balance $60,000.00
Contractual Remaining Term 28 years, 9 months
Interest Rate 8.625%
Current Principal Balance $59,441.11
Late Charge Date 10/16/2008

[Moe]

Hello and welcome to Loan Safe!

I am sure we can guide you in the right direction, but we will need a bit more info on your income profile vs. total living expenses.

If you are wondering about a principle write down? Those aren't happening much at all. They simply are not whacking off $100k at a time. This may happen with 2nds that are a different lender than the first.

[schwefls]

Hi Jorge welcome to our forum:

I wanted to stop in and say hello. Shortly someone will be reaching out to you to address your questions and provide you with some direction. In the interim please hang in there and know that you are not alone.

[jrolfedrev]

Are the lawyers from loan safe? I will be in the same boat as yours just making sure I hire the right lawyer to represent me for the loan mods. I know loan safe has good reputation and have successfully helped their customer.

[Cat Damiano]

Click on the link for more info on the loan modification services.........

Free Foreclosure Help, Stop Foreclosure, Short Sales - Loan Safe

[jrolfedrev]

First of all I would like to thank loansafe for giving us consumers guidance in keeping our home. My scenario was I had been calling countrywide for a modification but they said the computer does not say I was qualified because I was always updated on my mortgage. Here's what I have:

1st mortgage
Original: $650,000.00
Interest Rate: 6.625%
Payment (Interest only) $3500.00
30 Years Conv Jumbo ARM

2nd mortgage
Original: $59,000.00
Interest Rate: 8.625%
Payment (Interest) $466.00
30 years Conv

So they transferred me to the Home Retention Team and spoke to Shawntelle and gathered my income with some info then asked me to fax to 18006580395 my proof of income for two months, bank statement and letter of hardship since I was running low on my payment since my wife had a baby and out of work now exhausting my 401K. Shawntelle told me the forbearance can take up to 60 days then they will after three months of forbearance before they can decide for a modification. Also, since computer is not telling about the Dec 1 I might get a letter if I qualified, I'm confused. Should I proceed the forbearance?

[Cat Damiano]

You can check and see if your loan qualifies for the Dec. 1st program by calling.........
1-800-669-6607

[jrolfedrev]

I called the number and the American customer rep not Indian told me the computer has no flag for mods since I was up to date on my payments so they forwarded me to home retention team. By the way, my income/expenses was deficit since wife is not working due to new baby. Thanks Cat.