Any Success combining 2 loans?

[TankGirlz]

I will start a thread to post my entire experience in, but we just got the 5 yr mod from CW that is worse than our original payment! we have decided to keep trying for better. We have a second as well,. I just found a NACA seminar for Jan 17th near us, so we are starting there...

Thank goodness for this forum!!!

Keep looking for a better deal. It's my feeling that CW starts with the crappiest one and prob 10-20% of people take it...

I will keep a running dialog of our progress on the forum..
Good luck to you too!!

[TankGirlz]

Here is the short version of our progress so far.

We contacted HOPE Now back in sept, in anticipation of our rate adjustment scheduled in Dec.. CW's response to that was to suggest we rent out a room..lol

We became unable to pay the new amount starting in Dec and called CW and began the process with their Home Retention program. Our first offer of modification was more per month than our original payment, so we called back and they said they couldn't help, but alas a week later we received our second offer.. it's pretty good. Fixed AT 4.25% for 5 yrs and then our orig rate of 7.25% OR the THEN current rate for a 30 yr fixed from Fannie Mae... Whichever is HIGHER that rate will be fixed for the remainder of the loan. They don't really specify if CW will then hold the loan or if FM will.

I'm not quite sure what the then current rate part means??! Does anyone know?

I am very tempted to take this offer, but DH wants our two loans combined (we have a small loan that CW doesn't seem to be willing to work with)

Has anyone here had CW willing to combine an 80/20 into a new mod?


I scheduled an app to go over mod with a counselor, so we will see....

[Moe Bedard]

At the end of the five years the loan rate will most likely go back to your fixed 7.25% unless the market rate at the end of the five year term is higher...........which I doubt it will be.

A modification will not be able to combine a first and second lien........they are in two very different pools of securities...........a modification can only restructure the original loans by themselves...........in order to combine a first and second you would need to qualify for a refinance taking one new loan and paying off the two individual loans with that new loan.

[TankGirlz]

Thanx for replying...that helps to know, I am thinking we need to take this offer..thoughts?

[Moe Bedard]

We can't tell you whether or not to accept a modification.....you would need to decide if it is able to help you long term and go from there.......one of the things that is good in your case is that the rate will be fixed at the end of the 5 yrs. so you know exactly what to prepare for at that time.