Subprime Loan?

[Billka]

I would appreciate any advice or direction on our situation:

We bought our first house in Aug 06 and got our mortgage thru countrywide;the rep said since our credit was good he could do a conventional 80/20 loan with fixed interest rates 7.375% on the 80% part and 9.50% on the 20% part which is a 15yr balloon amortized over 30 years. We were told we could refi into one loan after 2yrs and of course, when I called countywide earlier this year in Aug 08 the value of our house was way below our loan so they could not do a refi. My hours just got cut back at work and I am worried about keeping up the payments (we are current up to date - no missed payments).

My question is: would this be considered a "subprime loan"and would I be able to participate in the modification program? If so, what should my next step be?

Thanks in advance!!!

[alikeith]

I suggest you call Countrywide at 1-800-669-6650. they can tell you if your account is flagged for the new program starting today.

[Billka]

Thanks for the response. Quick question - is this type of a loan considered to be "sub-prime" or does that term only encompass ARMS, Interest only, etc.?

[alikeith]

I dont know to tell you the truth, I would just call them.

[Billka]

Hello all, thanks in advance and best of luck to everyone!


I am open to suggestions, recommendations, etc. on the following hardship letter:



To Whom It May Concern:

We are writing to request a modification of our 80/20 loan. We are greatly concerned about our ability to keep up with mortgage payments due to recent cutbacks at our jobs. My hours at work have been cut from working a 40-hour week down to a 28-hour week causing a significant decline in our income. My husband is employed in a seasonal line of work and is also experiencing a decrease in hours and income.


When we attempted to refinance our loan earlier this year and spoke with a Countywide Loan consultant, we were told that unfortunately, with the downturn in the market, we would not be able to refinance, as the value of our home is less than the loan amount. Our current interest rates are at xxx% and x.x%; we are requesting any arrangement that would either lower the rates and/or combine the two loans into a single fixed rate loan.

We are responsible people and are contacting Countrywide to be proactive before any problems arise. We believe it would be mutually beneficial for us to come to an agreement on a loan modification. We have attached our list of expenses and most recent pay stubs for your review.

We appreciate your time and consideration and look forward to discussing our options.

Sincerely,

[Moe Bedard]

It looks good........

[Schnelle]

Billka,

My situation is very similar to yours. Here is the link to my thread.

Modification rejected so hired lawyer

I wish you all the best in your quest to modify your loan.

[Billka]

I have tried to look for examples of an expense worksheet under the homeowners toolbox section and can't find it. If anyone has an example or knows where to find one, please advise...Thanx!

I was also wondering if I use Gross or Net monthly income..and I'll probably have more questions once I see an example..lol!

Thanks again!!

[Moe Bedard]

the investors have different criteria as to what they go off of for a financial sheet..............you would need to ask them whether they use gross or net and what expenses they will have you account for.........

[Billka]

So I called countrywide last week and the rep told me to send over a hardship letter, paystubs and income/expense sheet and gave me a fax number. I called today to see if they were received and the rep said there was no record of anyone telling send my info and not to re-send it because I would not qualify for any modification.

She said based on the type of loan we have there are no programs available, they are only modifing ARM's. She wouldn't review any of our financial info or circumstances - can they do that? Any advice on what should I do next?

Thanks!

[kateistired]

Call back. I guarantee you won't get the same representative OR the same answer. They do have many other modification programs, and I would just keep on pleading my case until someone responds favorably