How to modify the 30 yr fixed?

[gl227]

I own a home in northern VA. I had to relocate last year due to my job. I was unable to sell the home and rented it out at a loss. Nearly 16 months later the savings is running low and I am running out of options. Here is a brief snapshot of my loans

Purchase price $725k in 2005
1st: $555k @ 5.875% fixed 30 yr with CW
2nd: $70k 6% fixed 30 yr
HEL: $70k 6.4% fixed 5 yr
Current market value of home $475-$500k

The HEL is causing the biggest problem due to the amortization but I am working with the lender on that issue.

I spoke with CW last month and they told me not to make my Dec payment and call back on Dec 1. Today I called and spoke with the home retention team. They stated that I was not eligible for any program. That they did not modify loans by changing the interest rate, term, or principle amount. They suggested that I list my home for a short sale.

I have heard of people on the forum that have had 30 yr fixed mortgages modified with lower rates and 40yr amortizations. Who do I need to speak to to be considered for that type of program?

Also, I am hearing about Hope for Homeowners, should I be pursuing that option instead? Do I do it through CW or another lender?

If I short sell the home CW is going to lose $50-75k, which according to them is more economically feasible than working towards a solution.

[Cat Damiano]

Hi gl227,

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

The modifications given are up to the investor on the loan........your rates are extremely low and being fixed so you would need to ask CW what the options from the investor on your loan are................because of different investors on these loans, the outcome on your loan could differ from another members outcome.

Hope for Homeowners would not be an option for you unless the two additional liens you have on the property would be willing to release their interest in the property and extinguish the loans completely...........as you can only have one lien on the property..........and the property would need to be your principle residence and owner occupied and have no other interest in any other real estate.


Try calling CW again and ask them what options you have on your type of loan from the investor.........
Countrywide Home Retention
1-800-669-6650

[gl227]

Thanks Cat, I will try CW again.

With regards for H4H, the HUD site states that you can't own another property. Is that the same as owner occupied. I am currently renting in NYC as well as renting out the property in question. So I only own one property.

I understand that the 2nd and 3rd lien holders would have some type of tiered equity participation in any upside of the future sale of the home. How do I make an inquiry for H4H?

[Cat Damiano]

You first would need to contact your servicing lender and any subordinate lien holders since their participation is vital for you to refinance into a HOPE for Homeowners mortgage. It is important to remember that the HOPE for Homeowners program is voluntary and your servicing lender may offer different solutions for avoiding foreclosure.

When contacting any lender on this list, please use the contact information provided. Do not give anyone money or pay any fees until you have spoken with your existing lender and know it is participating in the HOPE for Homeowners Program.

click on the link for a list of lenders........

http://portal.hud.gov/pls/portal/doc...(11-25-08).PDF



You would need to ask on the occupancy............because if you are renting it out and live in another state........it really isn't a primary residience for you.............an approved FHA lender on the list should be able to answer that question before proceeding..............

[gl227]

I called CW again and spoke to a very nice woman named Pamela. She took my financial information down and stated that my request for modification was denied but that I should fax in a letter requesting that the investor, Hudson Savings, be contacted and my request made to them.

She also stated that they have not yet received the details for H4H.

[Cat Damiano]

You would need to call back again........try this number...........
1-800-669-6650

The H4H program began back on October 1st.............they have had the info for two months now.............she might have been confused on her programs.

[gl227]

Cat,
The 3rd lien holder denied my request for mod, the CW mod at this point won't really move the needle. Since I am renting the property out I don't meet the owner occupancy rule for the FHA programs, although I did live in it for 2 years. Do I have any other options? I have cash for 6 months of payments then I'm done. Should I short sell it now or wait for some miracle?
thanks

[Cat Damiano]

I don't know that a miracle is coming.......I wish there would be one soon for everyone on this forum going through this.....

For a short sale..........
CW requires that a property be on the market with a real estate agent preferably one that is well versed in short sales for at least 60-90 days before they will consider one............it is going to be very difficult with multiple liens to get an approval for that.............. with the ball essentially in their court........you would need to ask them what options the investors on your loans offer........and let them tell you what you will be able to do at this point.