Does Countrywide Really Want My Condo?

[James_in_SD]

Hi to all.
I feel like I know some of you personally.

What an education you folks are giving me. I have started down the road with CW and so far everything has been about par for the course based your descriptions.
I am not alone against the mighty banking establishment.
Here is my Countrywide story and where I am in the process.

I live just outside of San Diego. I bought in April 2005. I got into a 2 bed 1 bath Condo. $293,000 Bank of New York holds the loan.
80/20 My first loan is $215,000 ARM 3 year fixed at 6.4%
The second is $78,000 on a 15 year fixed balloon at 7.75%
Rate will go up 1.5% every 6 months to a 13.4 %
I am current on my payments but I can not do anymore.
Adjust date 4-1-08 Current home value $200,000
With my taxes and HOA dues I pay $2250.00 a month for my 35 year old 800 square ft dream home, I mean dream condo.
I have contacted CW on 1-4-08. Great news, I have been pre-qualified for a Loan Modification. Oh, I have come to learn that everyone is prequalified.
I was asked to provide 1 months pay stubs via fax and I would receive a phone call in two weeks and would be given the name of my work out negotiator.
Then I found this Forum and found out what I was really in for.

I called CW on 1-16-08 and asked what about the hardship letter? The reply was “no you do not need a hardship letter” just pay stubs.
Called CW 1-17-08 Not in system yet.
Called CW 1-18-08 Not in system yet.
Called CW 1-22-08 I must fax Hardship letter and re-fax pay stubs. I did that.
Called CW 1-23-08 She says I will be assigned a work out negotiator within 72 hrs
Called CW 1-24-08 I have been assigned a work out negotiator today, her name is Cynthia Martinez. I will be calling daily until I make contact.
Called CW 1-25-08 Got to level two today, I think? I talked with a nice lady who put me on hold a couple of times and said that she had delivered a message to Cynthia and she would call me on my cell within two business days. I asked her to confirm that she had received a fax. She said that she did get the faxed paystubs and that CW policy has changed and that they DO NOT need a hardship letter. Ok then. The only info I could pull out of her was where Cynthia is located. It’s not San Diego. If she were hear in SD I’m sure she would like to meet with me, get to know me a little bit. I could be her little assistant man. I plan on giving her more assistance then she could ever hope for.
Well I have started. I have a lot more documentation gathered and ready to go, bank statements, monthly budget and W2 info. I will report back as we go through this process.
I am so grateful for all of you that have, and are, blazing the trail. I hope we are starting to get their attention.

I don’t know what the going offers are from CW or what I should hope for. Any ideals?

[shannonek]

Hello!

I just thought I would let you know that you and I are in the same boat.
I faxed over my hardship letter to CW on 1/17/08.

At this point, I have also faxed over my ARM statement, 4 paycheck stubs,
w-2's for 05-07, and a budget...all my idea...Just thought the process could get started faster. So far I have spoken to half a dozen people, all saying that my negotiator will be calling anyday!

It might be fun have a lil competion to see which loans gets modified first...Cuz I have faith that we are both gonna see a happy ending!

Good luck and keep in touch!

Shannon

[Andrew]

The are notorious for saying they will have the negotiator contact you within two days, I was told numerous times I would receive a call back form my negotiator and never got a phone call back. And I think a lot of other people on the board never got theirs. If you go to my success thread you will see how to get a modification from countrywide. Usual time is about 2-3 months to obtain a modification.

[Mary Salzer]

No they do not want your Condo, truly they do not need your condo With that premise in mind, you have to be the proactive adult guest to this party, it is a Lender remember, they have such a track record to date for "responsible". You are the designated driver.

You must be proactive and focused, call, call, call. Send everything that you fax by certified return receipt mail and more than once, that way with luck it may end up on the correct desk. You will be told one thing by one party, another by another....and so it goes.

If they start to stall, order a QWR, examples are on the Web Site, demand a Life of Loan History, copies of all Disclosures, TIL, Lender Final HUD-1, copy of appraisal, copies of the Note, Deed of Trust, all Riders, all documents in your file. Send this redundantly as well.

Always follow a fax up with the return receipt certified mail method as well, those pesky faxes seem to fall into the great abyss never to be seen again all to often. There is success, there is hope and although it takes time and great patience (humor also required), in the long haul your focus and determination will drive this to the conclusion that you want and need.

I am truly curious in these 80/20 two loan situations why the initial focus by those seeking a loan modification is to tackle the senior loan first. To be rather blunt, the holder of the second loan is in a far more precarious position than the holder of the first and considerably more likely to make concessions relative to the modification of loan terms before a deal is struck with the holder of the first loan. Look at it this way. If the first starts foreclosure the beneficial owner of the second has limited choices. They can reinstate the first and proceed to foreclose themselves. They can give up and loose their security. I guess the issue to me comes down to the fact that if you strike a sweetheart deal with the holder of the first loan, are you loosing leverage with the holder of the second loan when it comes time to negotiate with them?

Daniel

[Moe]

Good day James from SD.

Here's what I think is the new deal, I think things have changed over there at Countrywide and they are really working with people now. Yes, they tell everyone they are pre-qualified now, but heck, you should be, your in a loan right now and most all these loans can be modified to mitigate risk to the investors and the risk is high if they do not modify.

You still have a few months till your reset and keep in mind that they will take their time, but you are doing good by starting early in the process. Please keep us up to date on your progress and thanks for joining the community.

[James_in_SD]

Hi Shannon,
Who would have thought that someone is almost in the exact same spot at the same time with the same lender? It will be interesting to see if we get the same run around and stay on the same time line. I hope we both end up in the still all too rare “Success Stories - Homeowners Who Fought Back & Won” folder. We are going to add two new stories in the distant future. We are fighting CW and we will prevail with our homes.
I will defiantly keep in touch

James

[HOTLANCER]

My wife and I are in Encinitas and also are in a situation with Countrywide. I am a REALTOR and a lender and KNEW this was going to happen (I told my friends and relatives not to spend their HELOC money on Hummers and vacations but woe is me, I made some mistakes myself). I couldn't do much about it. From my standpoint, it didnt take much to put this whole thing in motion. After 9/11, the economy needed a shot in the arm. The Fed lowered rates and banks created loan programs that SHOULD HAVE NEVER BEEN CREATED IN THE FIRST PLACE! That was all it took. Those programs gave the marginal extra 10% or 15% of buyers access to money that should have been MUCH harder to prove they should have been able to pay back. Whatever, you know what? None of my "common sense" made any difference, because I sold homes at top-dollar (and got paid) that were pushed up in value by this whole mess.

Anyway - I would tell you that the average negotiator at Countrywide has 500 (as in ten homeowners for every state in the United States) to work with. Can you imagine? I am SUPER busy if I have ten buyers or sellers to work with at a time. Do the simple math. Most of these people are marginally qualified at best to begin with and earn about $15 per hour (they sound really sincere, at least the few I have talked to). They are underpaid and underappreciated as far as I can tell, because they are at the vanguard of stopping what could be the greatest financial crisis since the Great Depression. I don't have much confidence in their being able to stop it.

[Mary Salzer]

Welcome to the forum from all. Hey why not start a threat and keep us posted on your experiences....you certainly have information about the market you are in and just what people can expect with Short Sales and "other" issues.

Your analysis of the products offered and the conditions that were created by these products are way to accurate. But I am here to tell you that the lending side of the Industry is still out there doing it. The underwriters are still be being pressed to approve the unapprovable - and so it goes. Lessons ignored for the sake of the almighty dollar.

Please - any help that you can obtain for your situation here, and any you can offer is welcome. We in the industry are all to aware of the errors and the horror it is engendering. You are right if it continues at the free fall momentum that it presently has, it can and will get much worse. We are here to try one at a time to solve just a few of these problems as a community and hopefully gain some momentum back up with successes.

Thank you for joining us.

[James_in_SD]

Hi Poppy
I am so glad to make your acquaintance. I hope my situation looks good to them. I am the guy who has not been late and I have known from the day I signed the loan docs that March of 2008 that I would be refinancing. And yes I did believe them when they constantly reassured me that I would be able to refi into a much better situation in 3 years. Well it turn out they can no more predict the market than any one else. They were just trying to get me to sign no matter what. I don’t know if I am just an idiot or it was too big of a gamble and bad timing. My only real problem is my Condo is worth 100k less now than it was then. I would love to use this as an opportunity to combine my two loans and refinance rather than a do a loan mod. Six months ago when I asked about a refi they literally laughed in my face. I will have to say that it looks like I have less to loose than most. I have many people who think I should just cut my losses and let them foreclose, live payment free until the sheriff gives me a three day notice, and then get back in the market in 4 or 5 years when my credit rebounds. That is not my first choice. My credit rating is still important to me, as is my commitment on the loan. I feel it is going to be in their hands. How badly do they want me to keep me in this loan? Well we are all going to find out soon enough.

James

[James_in_SD]

Mo,
Let me first just say thank you for your leadership and foresight.
I am starting to feel somewhat empowered. The invaluable knowledge gained by people sharing their situations, lessons learned and the success stories is why I may have a chance.
Thanks again,
James

PS: A notable quote by Mo

“The risk is high if they do not modify”

[James_in_SD]

Hotlancer,
Thank for the straight talk. That’s what makes this forum really work. I’m starting to figure out, at least at Countrywide, they are under staffed, and I’m sure over worked. Aren’t we all! I wonder if my loan modification success is based on the ambition, competence and work ethic of my Loan Modification person. I have a feeling that my loan Mod person will be highly motivated. I will do as much as one can be without hindering progress.
Thanks,

James

[evel1999]

Hang in there and stay on them and you both will get your modification.
It will take time but it is worth it to save your home if that is what you want.
CountryWide seems to have changed their tune now and like Moe said, we are seeing more modifications from CoountryWide now.

Keep us up to date.

[James_in_SD]

Thanks Evalyne!!
James