Countrywide Negative Am loan - Loan Modification Forum

emmy754 · 12-08-2008, 01:43 PM

I originated a 30yr conventional Jumbo payoption ARM loan in Idaho through CW in March 2005 for $650,000 with the four payment options - shown below - the current balance is $709,000 due to the negative amortization as I've been making the minimum payment only (which originally started out at $2600 and are now $3185). I contacted cw re: the dec 1 program and they told me to fax all the usual info (income, bank statements, etc.). I have been out of work due to seasonal slowdown, injury, and bad economic times in my state. I have rented out 2 rooms to try to keep enough coming in to keep making the payments and I am current right now. Am I going to be denied a loan mod because I am current? I can show a very small surplus ($250 or less) in income but am not sure to go through the "loan modification specialists" as they claim to know all the superior negotiating tactics. Any advice would be sincerely appreciated.

Amortized Payment	$4,678.76
15-Year Amortized Payment	$7,441.86
Minimum Payment	$3,185.66
Interest-Only Payment	$3,619.42

Moe Bedard · 12-08-2008, 02:40 PM

Hi emmy754,

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

they are working with customers that are not in default...........but they do treat it like and emergency room and the ones that are the most injured will get the help first.............so it may take a little longer to get to you.................just keep calling for updates on your file and also look online as well.........
1-800-669-6650

Please keep us posted on your progress...........

emmy754 · 12-11-2008, 04:46 PM

My hardship letter, drafted with suggestions from this site. Any comments or suggestions would be much appreciated. I am also looking at the closing documents I received at the time of origination and the amortization schedule has a principal of $50,000 less than what the actual balance is, due to an high rate adjustment. My balance is 709,000 and the property is probably only worth around that or even a little less, so anything I might say or do to qualify for a principal reduction would obviously be great. I have read somewhere (not sure where as I have read SOOO much) that there is a program where they reduce principal to 90 percent of market value). Thank you so much for this site and all the work that surely goes into it. It has been a haven in such a distressing time. Many many many thanks!

---

emmy754 · 12-11-2008, 05:09 PM

I am writing this letter to explain the set of circumstances that has put me in severe danger of becoming delinquent on my loan with Countrywide. I obtained a $650,000 30 year conventional Jumbo Pay Option ARM mortgage from Countrywide in March 2005. I did not understand the terms and conditions of this toxic loan and it was not made clear to me how the negative amortization would essentially price me out of my home since the documents I received at closing show a discrepancy of more than $50,000 in the principle that has been added to my loan in the same time frame.

There are several circumstances that have resulted in financial difficulty:
1. I was unable to refinance my loan because of significant pre-payment penalty for first 3 years.
2. After that time passed, I initiated a refinance through Countrywide in December 2007. The loan officer, xxx told me the refinance was approved and would be completed in an expedited manner. I completed every step or information request as directed. I still have (and can supply) the numerous emails showing my checking the status of the loan and the loan officer saying I was approved and the refinance would be done in a matter of days. After getting misleading information for more than six months, totally unexpectedly the loan officer told me in June 2008 this loan was no longer offered. Meanwhile, other offers and better interest rates came and went, but I didn’t pursue them as I was being told again and again I was approved and it would be just a couple more days to complete. In this housing downturn, six months made a huge difference in the availability of and ability to qualify for loans. This customer service failure really contributed to my financial hardship. Due to the economic slow down and the resulting slump in my business (construction), I did not now qualify for a new loan.
3. Shortly after this, I was in a car accident on July 29, 2008 which has required ongoing medical care, associated expenses, and I have been on restricted activity by my doctor.

emmy754 · 12-11-2008, 05:11 PM

PART 2

I am a carpenter and in these difficult economic times, the availability of work has been drastically reduced and I have applied for and received unemployment benefits. I have done everything I can to make ends meet, including selling my boat and taking on 3 roommates to help supplement my income. These two additional sources of income will improve my situation, and meet the demands of this loan. I have no car loans and only owe $163 on my credit card. I believe a loan modification would benefit us both.

I am current on my mortgage however due to the economic hardships I am experiencing, I am in significant danger of not being able to make the payment due January 2009. I have only had one late payment which was during the refinance process detailed above. I anticipated, based on the loan officer’s assurances, that it would be completed prior to the due date. Once that didn’t happen, I made the payment the following day but it was after the due date. My number one goal is to keep my home, keep current with my payments and maintain my good credit rating. I would really like the opportunity to do that and I hope that you can work with me on a loan modification. I have attached the documents your “Home Retention” representative requested. Please contact me with any questions or additional information needed.

I appreciate your time and attention to this matter.

Most respectfully,
Attachments: Income Statement; Balance Sheet; Bank Statements, Bank of America; Unemployment Benefits, Rental agreements, Roommates, RV and Boat Storage

Moe Bedard · 12-11-2008, 05:11 PM

You would need to ask CW if the investor on your loan offers a principle reduction........and if they are participating in the H4H program.... this is the program that they are referring to............

Do you have only one loan?

emmy754 · 12-11-2008, 05:40 PM

yes, only one loan and no other consumer debt. I spoke to the hope foundation today and they took my info and said they would forward to countrywide but also told me to fax in the hardship letter, expenses, proof of income, etc. to CW. They had a postive cash flow of $485 but I forgot an expense in there. I had read in other threads that people had $200-300, is $485 too much? (Don't want to have too much and they won't help me). The counselor said 71% of income was going to housing, but 76% was housing and transport (my car is paid off). I'm not sure what HOPE did if they tell me to send it all in myself.

Moe Bedard · 12-11-2008, 07:42 PM

The surplus is just a guide based on the averages of the success stories..........
Get the information requested in and make sure that you put your loan number and last four of your social on each page you send........

Please keep us posted on your progress..........

emmy754 · 12-23-2008, 12:35 PM

Hi again... I have reworked my letter a bit and requested a specific loan modification (last paragraph). I have bolded what I changed... I was wanting your opinion if the letter should be more humble or if I'm taking the tone... Would certainly appreciate any imput. I have everything else printed and ready to go.

---
I am writing this letter to explain the set of circumstances that has put me in severe danger of becoming delinquent on my loan with Countrywide. I obtained a 30-year conventional Jumbo Pay Option ARM mortgage from Countrywide in March 2005. It was not accurately disclosed to me the terms and conditions of this toxic, and frankly, predatory loan and it was not made clear to me how the negative amortization would essentially price me out of my home since the amortization schedule I received at closing (attached) shows my balance should be approximately $663,000 at this point in the loan and instead it is currently over $710,000. This difference of nearly $50,000 means I currently owe more than the house is worth.

Furthermore, the APR listed on the Truth in Lending Disclosure Statement provided by law is false, listing an annual percentage rate over the life of the loan of 4.883%. Clearly, this was incorrect if an additional $50,000 has been added to my principal in 3 ½ years. Additionally, the fees actually charged to me on the final closing statement do not match the fees shown on the final itemization of amount financed provided by Countrywide. The Truth-in-Lending Disclosure Statement disclosure provided to me is false and misleading. In researching this topic, I have learned that RESPA of 1974 requires accurate disclosure which I did not receive. Had I known the true details of this loan, I would never have taken it.

Countrywide appraised the house at $1,200,000 in the initial application. When I attempted a refinance earlier this year, I was told the house was worth approximately $1,000,000, still putting me in a strong, positive equity situation. Housing values have dropped nationwide but not 50%. I believe that Countrywide inflated my appraisal value, thereby misleading me into thinking I would never get in a negative equity situation, yet at present I owe more than the house is worth.

There are several circumstances that have resulted in financial difficulty:
1. I was unable to refinance my loan because of a significant pre-payment penalty for first year.
2. I initiated a refinance through Countrywide in December 2007. The loan officer, from the Chandler AZ branch, told me the refinance was approved and would be completed in an expedited manner. I completed every step or information request as directed. I have attached numerous emails showing me checking the status of the loan and the loan officer replying I was approved and the refinance would be done in a matter of days. After getting misleading information for more than six months, totally unexpectedly the loan officer told me in June 2008 this loan was no longer offered. Meanwhile, other offers and better interest rates came and went, but I didn’t pursue them as I was being told again and again I was approved and it would be just a couple more days to complete. In this housing downturn, six months made a huge difference in the availability of and ability to qualify for loans. This customer service failure really contributed to my financial hardship. Appraised values dropped in the economic slow down and by the time Countrywide informed me the loan was longer available, it was too late for me to get a loan elsewhere.
3. Shortly after this, I was in a car accident on July 29, 2008 that has required ongoing medical care, associated expenses, and my doctor has placed me restricted activity.

I am current on my mortgage however due to the economic hardships I am experiencing, I am in significant danger of not being able to make the payment due January 2009. I have only had one late payment which was during the refinance process detailed above. I anticipated, based on the loan officer’s assurances, that it would be completed prior to the due date. Once that didn’t happen, I made the payment the following day but it was after the due date. I have owned this home for more than 20 years and my number one goal is to keep my home, keep current with my payments and maintain my good credit rating. I would really like the opportunity to do that and I hope that you can work with me on a loan modification.

I am a carpenter and in these difficult economic times, the availability of work has been drastically reduced and I have applied for and received unemployment benefits. I have done everything I can to make ends meet, including selling my boat and taking on 3 roommates to help supplement my income. These two additional sources of income will improve my situation, and meet the demands of this loan. I have no car loans and only owe $163 on my credit card. I believe a loan modification would benefit us both.

I feel because Countrywide violated RESPA and truth-in-lending laws by failing to fully explain the true cost of this loan. When I tried to refinance out of this predatory loan, it seems as though Countrywide kept stringing me along so that I couldn’t go elsewhere and was forced to remain in this predatory loan. The actions of Countrywide left me unable to refinance into a long term affordable rate.

Because of this, I believe the negative amortization that has been added to my principal since the loan origination should be removed. A satisfactory resolution of this issue would be to set aside all negative amortization and not consider it a default of any kind. In order for me to afford to make the payments and remain in my home, I would need to have my loan modified, and converted to a 30 year fixed rate, 3% interest only for the first 5 years and fully amortized at 5% for the remaining 25 years with no negative amortization. This would allow me to get back on my feet after my accident and regain my economic footing.

I have attached the documents your “Home Retention” representative requested. Please contact me with any questions or additional information needed.

I appreciate your time and attention to this matter.

Most respectfully,

emmy754 · 12-24-2008, 02:52 PM

Hi ***,
Don't know why it put all the smilies in, obviously I am not going to send it to CW that way! Did you have any suggestions/opinions on the things I changed in the hardship letter? I'm trying to get it all faxed today. Thanks so much and hope you have a great holiday!

Moe Bedard · 12-24-2008, 07:52 PM

Hi Emmy,

The hardship letter should just be short and to the point and explain the hardship..........there are examples of what the lender will consider a hardship in the link below...........just try to see if you are able to say what you want to say in a shorter version............
Examples of a Hardship Letter

emmy754 · 12-27-2008, 10:54 PM

Hi, I have been reading a couple other threads in the Countrywide forum, and if I am understanding it right, they aren't as yet doing principle reductions. Should I just take that whole bit out of the hardship letter (reduce principle from $700K to $650K)? Should I even make a request for what kind of modification or leave it generic and let them offer me something? My most important point (and what will allow me to afford the payments) is to change to a Fixed rate from a Neg Am/Payoption ARM and interest only for 5 years. I haven't sent anything in because I am worried of saying the wrong thing and then ruining my chances for any modification. I also read where you posted the Streamlined modifcation Guidelines and that said only people who were down 120 days qualified whereas at this moment I am current on my loan. Am I just wasting my time trying for a modification unless I'm behind? (Which I am going to be in January). Thanks again for this site, there is so much info and this has been a wonderful resource. I'm sure it's a ton of work.

Moe Bedard · 12-27-2008, 11:28 PM

Removing the part about the principle reduction would have to be up to you....what we have seen from the modifications offered on the pay option arms, they have been pretty good........as far as the streamlined modification guidelines..........that is only FannieMae/FreddieMac backed conventional loans so that wouldn't apply to your loan.........the loan limit on these loans is 417k.

Did you have a chance to contact CW to check on the program that began on Dec. 1st to see if your loan qualifies for that modification?
1-800-669-6607
would be the contact for that program.......

emmy754 · 12-28-2008, 12:49 PM

Yes, I did call them just before the 1st and they said my loan was eligible and to send in all the normal stuff, hardship letter, bank statements, etc. etc.

Which I haven't done because I don't want to do the wrong thing. On the one hand, I don't want to take the wrong tone (with the part about the misleading loan docs, etc. even though I do believe it to be true) and my file goes to the bottom of the pile. On the other, I figure it's better to ask for something than not.

I didn't ask who my investor is... the loan was originated with countrywide and they have been the servicer the whole time. Is that something I should know before I send in letter?

Moe Bedard · 12-28-2008, 01:30 PM

It isn't necessary to know............I was just pointing out that your loan limit is too high to be FannieMae or FreddieMac for their streamlined modification program that you had mentioned. Since your loan is eligible for the CW modification of the option arms, you should get your items in for that as soon as you can to start the process.

Ron1234 · 12-28-2008, 06:25 PM

emmy754
I submitted my loan mod info on 10/28/08 to CW and I'm still waiting and calling every week. I have a neg am jumbo loan @ $1,550,000.00, so don't get worried their just very busy!.......Should take around 45-60 days

emmy754 · 02-16-2009, 12:28 PM

CW just updated my computer screen with this (and when I called I got an automated thing that said the same thing can't talk to a rep because they are closed for President's Day). Any ideas for what to do next? I am still current (never been late) and have made February's payment but cannot continue to make this payment indefinately...

Your Loan Modification has been canceled from workout servicing. We regret to inform you that the loan did not qualify for a Workout Assistance program. Please be advised that normal collections activities will resume on your loan. Please continue to explore alternative options to bring your account current. If there is any change in your financial situation, please call for reconsideration. Thank you.
Information as of:	02/09/2009
Workout Stage:	Canceled
Phase/Sub-Phase:	Borrower Did Not Qualify

Moe Bedard · 02-16-2009, 01:20 PM

You would need to wait until tomorrow to find out exactly why you didn't qualify and go from there.

pdsfoley · 02-16-2009, 06:53 PM

Part of the reason you didn't qualify is because you are CURRENT.........ridiculous I know!!

Ron1234 · 02-16-2009, 08:06 PM

I want to find out if there are others out there that have been denied by CW for being current on their loans. I applied for a mod twice, and was denied twice because I was current. The lady that I spoke with told me the reason why I was late was due to the fact that I was not 60 day late on my loan. I replied by telling her that my next payment will be sent out in 60 -90 day from now.

Ron1234 · 02-16-2009, 08:21 PM

So sorry your in the same mess I'm in!......my mod was denied twice and I don't know what to do. I guess I'll be 60 days late, so I can get some help. Maybe I'll take the $7,000 monthly payment and go to Hawaii....I need a vacation after this ordeal.

12-08-2008, 02:40 PM	#2 (permalink)
Moe Bedard Founder Join Date: Aug 2007 Location: Southern California Posts: 16,685	Re: Countrywide Negative Am loan Hi emmy754, Welcome to the forum and thank you for joining............ they are working with customers that are not in default...........but they do treat it like and emergency room and the ones that are the most injured will get the help first.............so it may take a little longer to get to you.................just keep calling for updates on your file and also look online as well......... 1-800-669-6650 Please keep us posted on your progress........... __________________ Moe Bedard Founder LoanSafe.org "America's #1 Home Loan Forum" LoanWorkout.org "America's # Loan Modification Blog" Get My FREE Loan Modification E-Book \| Please donate to LoanSafe.org \| Loan Modification Training For Attorneys \| Rate Your Mortgage Servicer The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. Most of the information you find here is easily available on the internet. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Please Read our Privacy Policy and Legal Disclaimer Here.

12-11-2008, 04:46 PM	#3 (permalink)
emmy754 Member Join Date: Dec 2008 Posts: 10	Re: Countrywide Negative Am loan My hardship letter, drafted with suggestions from this site. Any comments or suggestions would be much appreciated. I am also looking at the closing documents I received at the time of origination and the amortization schedule has a principal of $50,000 less than what the actual balance is, due to an high rate adjustment. My balance is 709,000 and the property is probably only worth around that or even a little less, so anything I might say or do to qualify for a principal reduction would obviously be great. I have read somewhere (not sure where as I have read SOOO much) that there is a program where they reduce principal to 90 percent of market value). Thank you so much for this site and all the work that surely goes into it. It has been a haven in such a distressing time. Many many many thanks! ---

12-11-2008, 05:09 PM	#4 (permalink)
emmy754 Member Join Date: Dec 2008 Posts: 10	Re: Countrywide Negative Am loan I am writing this letter to explain the set of circumstances that has put me in severe danger of becoming delinquent on my loan with Countrywide. I obtained a $650,000 30 year conventional Jumbo Pay Option ARM mortgage from Countrywide in March 2005. I did not understand the terms and conditions of this toxic loan and it was not made clear to me how the negative amortization would essentially price me out of my home since the documents I received at closing show a discrepancy of more than $50,000 in the principle that has been added to my loan in the same time frame. There are several circumstances that have resulted in financial difficulty: 1. I was unable to refinance my loan because of significant pre-payment penalty for first 3 years. 2. After that time passed, I initiated a refinance through Countrywide in December 2007. The loan officer, xxx told me the refinance was approved and would be completed in an expedited manner. I completed every step or information request as directed. I still have (and can supply) the numerous emails showing my checking the status of the loan and the loan officer saying I was approved and the refinance would be done in a matter of days. After getting misleading information for more than six months, totally unexpectedly the loan officer told me in June 2008 this loan was no longer offered. Meanwhile, other offers and better interest rates came and went, but I didn’t pursue them as I was being told again and again I was approved and it would be just a couple more days to complete. In this housing downturn, six months made a huge difference in the availability of and ability to qualify for loans. This customer service failure really contributed to my financial hardship. Due to the economic slow down and the resulting slump in my business (construction), I did not now qualify for a new loan. 3. Shortly after this, I was in a car accident on July 29, 2008 which has required ongoing medical care, associated expenses, and I have been on restricted activity by my doctor.

12-11-2008, 05:11 PM	#5 (permalink)
emmy754 Member Join Date: Dec 2008 Posts: 10	Re: Countrywide Negative Am loan PART 2 I am a carpenter and in these difficult economic times, the availability of work has been drastically reduced and I have applied for and received unemployment benefits. I have done everything I can to make ends meet, including selling my boat and taking on 3 roommates to help supplement my income. These two additional sources of income will improve my situation, and meet the demands of this loan. I have no car loans and only owe $163 on my credit card. I believe a loan modification would benefit us both. I am current on my mortgage however due to the economic hardships I am experiencing, I am in significant danger of not being able to make the payment due January 2009. I have only had one late payment which was during the refinance process detailed above. I anticipated, based on the loan officer’s assurances, that it would be completed prior to the due date. Once that didn’t happen, I made the payment the following day but it was after the due date. My number one goal is to keep my home, keep current with my payments and maintain my good credit rating. I would really like the opportunity to do that and I hope that you can work with me on a loan modification. I have attached the documents your “Home Retention” representative requested. Please contact me with any questions or additional information needed. I appreciate your time and attention to this matter. Most respectfully, Attachments: Income Statement; Balance Sheet; Bank Statements, Bank of America; Unemployment Benefits, Rental agreements, Roommates, RV and Boat Storage

12-11-2008, 05:11 PM	#6 (permalink)
Moe Bedard Founder Join Date: Aug 2007 Location: Southern California Posts: 16,685	Re: Countrywide Negative Am loan You would need to ask CW if the investor on your loan offers a principle reduction........and if they are participating in the H4H program.... this is the program that they are referring to............ Do you have only one loan? __________________ Moe Bedard Founder LoanSafe.org "America's #1 Home Loan Forum" LoanWorkout.org "America's # Loan Modification Blog" Get My FREE Loan Modification E-Book \| Please donate to LoanSafe.org \| Loan Modification Training For Attorneys \| Rate Your Mortgage Servicer The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. Most of the information you find here is easily available on the internet. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Please Read our Privacy Policy and Legal Disclaimer Here.

12-11-2008, 05:40 PM	#7 (permalink)
emmy754 Member Join Date: Dec 2008 Posts: 10	Re: Countrywide Negative Am loan yes, only one loan and no other consumer debt. I spoke to the hope foundation today and they took my info and said they would forward to countrywide but also told me to fax in the hardship letter, expenses, proof of income, etc. to CW. They had a postive cash flow of $485 but I forgot an expense in there. I had read in other threads that people had $200-300, is $485 too much? (Don't want to have too much and they won't help me). The counselor said 71% of income was going to housing, but 76% was housing and transport (my car is paid off). I'm not sure what HOPE did if they tell me to send it all in myself.

12-11-2008, 07:42 PM	#8 (permalink)
Moe Bedard Founder Join Date: Aug 2007 Location: Southern California Posts: 16,685	Re: Countrywide Negative Am loan The surplus is just a guide based on the averages of the success stories.......... Get the information requested in and make sure that you put your loan number and last four of your social on each page you send........ Please keep us posted on your progress.......... __________________ Moe Bedard Founder LoanSafe.org "America's #1 Home Loan Forum" LoanWorkout.org "America's # Loan Modification Blog" Get My FREE Loan Modification E-Book \| Please donate to LoanSafe.org \| Loan Modification Training For Attorneys \| Rate Your Mortgage Servicer The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. Most of the information you find here is easily available on the internet. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Please Read our Privacy Policy and Legal Disclaimer Here.

12-23-2008, 12:35 PM	#9 (permalink)
emmy754 Member Join Date: Dec 2008 Posts: 10	Re: Countrywide Negative Am loan Hi again... I have reworked my letter a bit and requested a specific loan modification (last paragraph). I have bolded what I changed... I was wanting your opinion if the letter should be more humble or if I'm taking the tone... Would certainly appreciate any imput. I have everything else printed and ready to go. --- I am writing this letter to explain the set of circumstances that has put me in severe danger of becoming delinquent on my loan with Countrywide. I obtained a 30-year conventional Jumbo Pay Option ARM mortgage from Countrywide in March 2005. It was not accurately disclosed to me the terms and conditions of this toxic, and frankly, predatory loan and it was not made clear to me how the negative amortization would essentially price me out of my home since the amortization schedule I received at closing (attached) shows my balance should be approximately $663,000 at this point in the loan and instead it is currently over $710,000. This difference of nearly $50,000 means I currently owe more than the house is worth. Furthermore, the APR listed on the Truth in Lending Disclosure Statement provided by law is false, listing an annual percentage rate over the life of the loan of 4.883%. Clearly, this was incorrect if an additional $50,000 has been added to my principal in 3 ½ years. Additionally, the fees actually charged to me on the final closing statement do not match the fees shown on the final itemization of amount financed provided by Countrywide. The Truth-in-Lending Disclosure Statement disclosure provided to me is false and misleading. In researching this topic, I have learned that RESPA of 1974 requires accurate disclosure which I did not receive. Had I known the true details of this loan, I would never have taken it. Countrywide appraised the house at $1,200,000 in the initial application. When I attempted a refinance earlier this year, I was told the house was worth approximately $1,000,000, still putting me in a strong, positive equity situation. Housing values have dropped nationwide but not 50%. I believe that Countrywide inflated my appraisal value, thereby misleading me into thinking I would never get in a negative equity situation, yet at present I owe more than the house is worth. There are several circumstances that have resulted in financial difficulty: 1. I was unable to refinance my loan because of a significant pre-payment penalty for first year. 2. I initiated a refinance through Countrywide in December 2007. The loan officer, from the Chandler AZ branch, told me the refinance was approved and would be completed in an expedited manner. I completed every step or information request as directed. I have attached numerous emails showing me checking the status of the loan and the loan officer replying I was approved and the refinance would be done in a matter of days. After getting misleading information for more than six months, totally unexpectedly the loan officer told me in June 2008 this loan was no longer offered. Meanwhile, other offers and better interest rates came and went, but I didn’t pursue them as I was being told again and again I was approved and it would be just a couple more days to complete. In this housing downturn, six months made a huge difference in the availability of and ability to qualify for loans. This customer service failure really contributed to my financial hardship. Appraised values dropped in the economic slow down and by the time Countrywide informed me the loan was longer available, it was too late for me to get a loan elsewhere. 3. Shortly after this, I was in a car accident on July 29, 2008 that has required ongoing medical care, associated expenses, and my doctor has placed me restricted activity. I am current on my mortgage however due to the economic hardships I am experiencing, I am in significant danger of not being able to make the payment due January 2009. I have only had one late payment which was during the refinance process detailed above. I anticipated, based on the loan officer’s assurances, that it would be completed prior to the due date. Once that didn’t happen, I made the payment the following day but it was after the due date. I have owned this home for more than 20 years and my number one goal is to keep my home, keep current with my payments and maintain my good credit rating. I would really like the opportunity to do that and I hope that you can work with me on a loan modification. I am a carpenter and in these difficult economic times, the availability of work has been drastically reduced and I have applied for and received unemployment benefits. I have done everything I can to make ends meet, including selling my boat and taking on 3 roommates to help supplement my income. These two additional sources of income will improve my situation, and meet the demands of this loan. I have no car loans and only owe $163 on my credit card. I believe a loan modification would benefit us both. I feel because Countrywide violated RESPA and truth-in-lending laws by failing to fully explain the true cost of this loan. When I tried to refinance out of this predatory loan, it seems as though Countrywide kept stringing me along so that I couldn’t go elsewhere and was forced to remain in this predatory loan. The actions of Countrywide left me unable to refinance into a long term affordable rate. Because of this, I believe the negative amortization that has been added to my principal since the loan origination should be removed. A satisfactory resolution of this issue would be to set aside all negative amortization and not consider it a default of any kind. In order for me to afford to make the payments and remain in my home, I would need to have my loan modified, and converted to a 30 year fixed rate, 3% interest only for the first 5 years and fully amortized at 5% for the remaining 25 years with no negative amortization. This would allow me to get back on my feet after my accident and regain my economic footing. I have attached the documents your “Home Retention” representative requested. Please contact me with any questions or additional information needed. I appreciate your time and attention to this matter. Most respectfully,

12-24-2008, 02:52 PM	#10 (permalink)
emmy754 Member Join Date: Dec 2008 Posts: 10	Re: Countrywide Negative Am loan Hi ***, Don't know why it put all the smilies in, obviously I am not going to send it to CW that way! Did you have any suggestions/opinions on the things I changed in the hardship letter? I'm trying to get it all faxed today. Thanks so much and hope you have a great holiday!

12-24-2008, 07:52 PM	#11 (permalink)
Moe Bedard Founder Join Date: Aug 2007 Location: Southern California Posts: 16,685	Re: Countrywide Negative Am loan Hi Emmy, The hardship letter should just be short and to the point and explain the hardship..........there are examples of what the lender will consider a hardship in the link below...........just try to see if you are able to say what you want to say in a shorter version............ Examples of a Hardship Letter __________________ Moe Bedard Founder LoanSafe.org "America's #1 Home Loan Forum" LoanWorkout.org "America's # Loan Modification Blog" Get My FREE Loan Modification E-Book \| Please donate to LoanSafe.org \| Loan Modification Training For Attorneys \| Rate Your Mortgage Servicer The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. Most of the information you find here is easily available on the internet. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Please Read our Privacy Policy and Legal Disclaimer Here.

12-27-2008, 10:54 PM	#12 (permalink)
emmy754 Member Join Date: Dec 2008 Posts: 10	Re: Countrywide Negative Am loan Hi, I have been reading a couple other threads in the Countrywide forum, and if I am understanding it right, they aren't as yet doing principle reductions. Should I just take that whole bit out of the hardship letter (reduce principle from $700K to $650K)? Should I even make a request for what kind of modification or leave it generic and let them offer me something? My most important point (and what will allow me to afford the payments) is to change to a Fixed rate from a Neg Am/Payoption ARM and interest only for 5 years. I haven't sent anything in because I am worried of saying the wrong thing and then ruining my chances for any modification. I also read where you posted the Streamlined modifcation Guidelines and that said only people who were down 120 days qualified whereas at this moment I am current on my loan. Am I just wasting my time trying for a modification unless I'm behind? (Which I am going to be in January). Thanks again for this site, there is so much info and this has been a wonderful resource. I'm sure it's a ton of work.

12-27-2008, 11:28 PM	#13 (permalink)
Moe Bedard Founder Join Date: Aug 2007 Location: Southern California Posts: 16,685	Re: Countrywide Negative Am loan Removing the part about the principle reduction would have to be up to you....what we have seen from the modifications offered on the pay option arms, they have been pretty good........as far as the streamlined modification guidelines..........that is only FannieMae/FreddieMac backed conventional loans so that wouldn't apply to your loan.........the loan limit on these loans is 417k. Did you have a chance to contact CW to check on the program that began on Dec. 1st to see if your loan qualifies for that modification? 1-800-669-6607 would be the contact for that program....... __________________ Moe Bedard Founder LoanSafe.org "America's #1 Home Loan Forum" LoanWorkout.org "America's # Loan Modification Blog" Get My FREE Loan Modification E-Book \| Please donate to LoanSafe.org \| Loan Modification Training For Attorneys \| Rate Your Mortgage Servicer The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. Most of the information you find here is easily available on the internet. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Please Read our Privacy Policy and Legal Disclaimer Here.

12-28-2008, 12:49 PM	#14 (permalink)
emmy754 Member Join Date: Dec 2008 Posts: 10	Re: Countrywide Negative Am loan Yes, I did call them just before the 1st and they said my loan was eligible and to send in all the normal stuff, hardship letter, bank statements, etc. etc. Which I haven't done because I don't want to do the wrong thing. On the one hand, I don't want to take the wrong tone (with the part about the misleading loan docs, etc. even though I do believe it to be true) and my file goes to the bottom of the pile. On the other, I figure it's better to ask for something than not. I didn't ask who my investor is... the loan was originated with countrywide and they have been the servicer the whole time. Is that something I should know before I send in letter?

12-28-2008, 01:30 PM	#15 (permalink)
Moe Bedard Founder Join Date: Aug 2007 Location: Southern California Posts: 16,685	Re: Countrywide Negative Am loan It isn't necessary to know............I was just pointing out that your loan limit is too high to be FannieMae or FreddieMac for their streamlined modification program that you had mentioned. Since your loan is eligible for the CW modification of the option arms, you should get your items in for that as soon as you can to start the process. __________________ Moe Bedard Founder LoanSafe.org "America's #1 Home Loan Forum" LoanWorkout.org "America's # Loan Modification Blog" Get My FREE Loan Modification E-Book \| Please donate to LoanSafe.org \| Loan Modification Training For Attorneys \| Rate Your Mortgage Servicer The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. Most of the information you find here is easily available on the internet. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Please Read our Privacy Policy and Legal Disclaimer Here.

12-28-2008, 06:25 PM	#16 (permalink)
Ron1234 Member Join Date: Nov 2008 Location: Scottsdale, Arizona Posts: 19	Re: Countrywide Negative Am loan emmy754 I submitted my loan mod info on 10/28/08 to CW and I'm still waiting and calling every week. I have a neg am jumbo loan @ $1,550,000.00, so don't get worried their just very busy!.......Should take around 45-60 days

02-16-2009, 01:20 PM	#18 (permalink)
Moe Bedard Founder Join Date: Aug 2007 Location: Southern California Posts: 16,685	Re: Countrywide Negative Am loan You would need to wait until tomorrow to find out exactly why you didn't qualify and go from there. __________________ Moe Bedard Founder LoanSafe.org "America's #1 Home Loan Forum" LoanWorkout.org "America's # Loan Modification Blog" Get My FREE Loan Modification E-Book \| Please donate to LoanSafe.org \| Loan Modification Training For Attorneys \| Rate Your Mortgage Servicer The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. Most of the information you find here is easily available on the internet. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Please Read our Privacy Policy and Legal Disclaimer Here.

02-16-2009, 06:53 PM	#19 (permalink)
pdsfoley Senior Member Join Date: Feb 2009 Posts: 403	Re: Countrywide Negative Am loan Part of the reason you didn't qualify is because you are CURRENT.........ridiculous I know!!

02-16-2009, 08:06 PM	#20 (permalink)
Ron1234 Member Join Date: Nov 2008 Location: Scottsdale, Arizona Posts: 19	Re: Countrywide Negative Am loan I want to find out if there are others out there that have been denied by CW for being current on their loans. I applied for a mod twice, and was denied twice because I was current. The lady that I spoke with told me the reason why I was late was due to the fact that I was not 60 day late on my loan. I replied by telling her that my next payment will be sent out in 60 -90 day from now.

02-16-2009, 08:21 PM	#21 (permalink)
Ron1234 Member Join Date: Nov 2008 Location: Scottsdale, Arizona Posts: 19	Re: Countrywide Negative Am loan So sorry your in the same mess I'm in!......my mod was denied twice and I don't know what to do. I guess I'll be 60 days late, so I can get some help. Maybe I'll take the $7,000 monthly payment and go to Hawaii....I need a vacation after this ordeal.

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