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.