Hello all. Here's my story... two people live in the home. One is unemployed (me) and the other makes a little less than $400 per week. Unemployment pays me out $450 per week. I have two mortgages and am trying to mod the Countrywide one at least first. The payment is $1326 per month. It is a 5:1 ARM that resets in September of 2010. The other is a Citi loan that is 30 years and the payment is $730 per month. Payments all made ontime. If I get a job it'll probably pay the same as unemployment.
Not sure what to do. FHA Secure, Hope for Homeowners, Loan Mods... and I get conflicting information on all of it. So I rely on this website and my fellow mortgagee's out there. Questions are:
1) Which is better to get a payment decreased?
2) Why the surplus? It is counterintuitive because if they see I am only short a few hundred I would expect them to decrease the payment by that amount so they dont have any trouble later. At least for a few years. A surplus each month, based on the existing payment structure, would not compel me to work with someone.
3) How much should I be charged for a loan mod when using an agency? Im trying to find a job and already in trying to do a loan mod at the same time I cant focus on the job and hence I will be jack of all trades, master of none.
Here is all the info one could possibly need below:
1) HARDSHIP LETTER
2) MORTGAGE DETAILS
To Whom It May Concern:
I ask for your consideration in working with me to modify my home loan as I have been negatively affected by the recessionary economy. At this point my payments are current. The number one goal is to keep my home by continuing to make timely and complete payments.
I was recently laid off. I have been paid out the maximum amount for unemployment of $450 per week. My significant other contributes a net income of less than $400 per week.
I have depleted my savings and called on friends/family, however they are now no longer able to assist. Hopefully there is way to renegotiate the terms of my current mortgage to avoid delinquency, default or foreclosure. I have a 5:1 ARM that is due to reset in 2010.
At this time, the property's value is below what I have paid and therefore I am unable to refinance in a conventional fashion. I am writing as this is my last resort.
I ask that the monthly payment amount be decreased, at least for the time being, and that the reset period be extended past 2010. This would be great of Countrywide.
My current expenses budgeted include (figures are approximate):
First Mortgage $1,327.00 monthly
Second Mortgage $730.00 monthly
Water $35.00 monthly
Electricity $35.00 monthly
Gas $20.00 monthly
Trash $15.00 monthly
Phone $25.00 monthly
HOA $202.00 monthly
Automobile payment $300.00 monthly
Groceries $200.00 monthly
Fuel Costs $100.00 monthly
Credit Cards/Line of Credit $600.00 monthly
Monthly household net income consists of $450 (myself) and $385 (significant other) equalling $3,340.00.
The conclusion is that modifying the loan would benefit us both. I would be able to continue to do my part to ensure the mortgage payments are paid both complete and on time and you would be free from being saddled with depreciating real estate and the burden of the tax liability.
I would appreciate if we could work together to ensure Countrywide receives my timely and complete payments for many years to come.
2) MORTGAGE DETAILS
All loans are current.
Purchase price (approximate): $325K (prior to refinancing 2nd)
Comps (as of April 2008): $200K
First Payment Date:
LOOKING TO REFINANCE:
COUNTRYWIDE LOAN DETAILS
Your Payment Choices
Total Payment Amount**
Amortized Payment Choice = $1,645.54
15-Year Amortized Payment Choice = $2,576.62
Interest-Only Payment = $1,326.14
*Home Loan Payment = $1,326.14
Account Overview as of 12/18/2008
Loan Type and Term
30 Years Conv Jumbo ARM
Original Principal Balance
Contractual Remaining Term
26 years, 10 months
Current Principal Balance
Please advise?! Thanks!