countrywide modification on already fixed loan

[mthomas]

I recieved my countrwide loan in May 2008. The property was

origionally appraised value: $470K
My loan amount: $330K.
The current price according to CW: $270K.
Interest Rate: 6.125% fixed 30 years
Payment: $2020 a month

I requested modification becuase my income is much lower now and I was taking a medicine that cost me $300 a month (no more). Here are my numbers.

Total take home income: $5400
3300 (my job) + $1000 (wife) + 1400 rental property income

Total expenses: $6600
$2020 (residence) + 1450 (rental mortgage) + other

Both loans on residence and rental are with CW. They already denied me for rental and said that they don't do anything about rental and I would need to do a short sale.

I have not heard back from CW on the primary residence, and have not made any payments to BOTH properties since two months.

I like to keep BOTH homes. Why? Because, my rental income almost equals my mortage on it, and I have custom built where I live.

Please tell me what kind of chance I stand?

What should I bargin for?

Does my deficit seems too much and they won't listen?

For which house should I restart paying for?

Thanks in advance.

[Moe Bedard]

Hi mthomas,

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

You have a very low fixed rate loan.............if the investor is either FannieMae or FreddieMac on those loans..........

In order to modify using the Streamlined Modification program, it would have had to originate before Jan. 1, 2008......your loan is too new and you have not had a steady payment stream for 12 months, which is what they may look for.


You can try NACA and see if they may be able to help.............they can go over your budget with you and help you with the financials on the primary residence............
click on the link for more info........
https://www.naca.com/refinance/refinanceTenStep.jsp


You should concentrate on your primary residence...........but you also need to see exactly what is taking up $3200 over 57% of your income in expenses and try to work on that ...........

[mthomas]

Hi ***,

Thank you for the reply.

I have been borrowing money from credit cards in last few months to even out my monthly budget. I checked about 2 months ago, and my FICO score was 780. At the time, I asked CW for help.

Now that I think about it, I think my best bet would be to ask for 6 months of forebarance, so I can save enough money to supplement about year of payments. I also plan on finding a second job.

Anyone thinks they may agree to that?

[mthomas]

Hi ***,

Becuase I have a rental, I believe I would not qualify for NACA as long as I owe the rental.

I finally got a call from the loan mod rep and explained my situation. As I stated earlier, becuase I don't want to lose my home and told him that I am hoping for a raise in Febraury and will get everything back to normal.

He agreed to 4 months delay in payments (October to Feb).

• They will stop all collection activities and forclusoure process which would have started on Jan 20.
• Still report me late 90+ days on credit report.
• My score has gone from 790 to 674 since I started the mod process in October (I have not been making payments)
• End of Febraruy, I will have to start making payments.
• They will then decide what to do with the 4 months of payments I have not made.

I am thinking of getting money from credit cards to pay off three months, so it does not get to 90 day late.

Please help me. Should I make payments? Should I agree to their proposal? What other place can I go for help.

[mthomas]

Also, I am sorry that I was not able to described the numbers well before.

Actually, ($3500/$5500) 65% of my total income is going to mortage and this does not include taxes, insurance.

[Moe Bedard]

We can not advise you on whether or not to make payments or take it off of your credit cards..........which is really not a good way of paying, or to take the offer.......that is a personal decision that only you can make based on your situation.........if you are going to make enough money in Feb. to afford the payments............then the forbearance may give you the chance to pay some of the other debt down rather than taking more debt off the credit card to catch the payments up............since they are not going to start foreclosure..........you will have that time at least.

[mthomas]

I have been working with Acorn. Here is what CW said after 5 months.

One loan for 330k , new balance is $342k amortized over 30 years again.

1st year - 4.25%,
2nd year 5.25%,
3rd year 6.25% (same as now).

Does any one know if CW would offer a better deal if I said no.

Honestly, I can afford the payemnts at 4.25% ($1660). However, I wish $1660 would stay this for remaining years.

I want to keep the house, and don't want them to start the forclousre process if I rejected the offer. any advise.

[Moe Bedard]

Since I believe that this modification was for your principle, owner occupied residence..........you may want to contact CW to see if you qualify for the Making Home Affordable modification program instead......
1-800-669-0102


Here is the link to the info to see if you are eligible..........
Countrywide Financial - Real Estate Mortgage Lender - Home Loans - Equity Loan Mortgages

[debdog]

A representative from CW told me this morning they are going to do any of those programs right now. I wonder why?

[CW California]

Originally Posted by *** Damiano

Hi mthomas,

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

You have a very low fixed rate loan.............if the investor is either FannieMae or FreddieMac on those loans..........

In order to modify using the Streamlined Modification program, it would have had to originate before Jan. 1, 2008......your loan is too new and you have not had a steady payment stream for 12 months, which is what they may look for.


You can try NACA and see if they may be able to help.............they can go over your budget with you and help you with the financials on the primary residence............
click on the link for more info........
https://www.naca.com/refinance/refinanceTenStep.jsp


You should concentrate on your primary residence...........but you also need to see exactly what is taking up $3200 over 57% of your income in expenses and try to work on that ...........

***,
The Home Affordable Modification states that
a loan that originated before January 1, 2009 not 2008.

[Moe Bedard]

you quoted my post from December 2008..............those were the FannieMae guidelines for the Streamlined Advance program..........and since January 2009 had not come yet................the program guidelines from that time....... stated that your loan had to originate before Jan. 2008.

[CW California]

***,
oh sorry, thought you were talking about the MHAP.