Modification rejected so hired lawyer

[Schnelle]

Update:

Jan. 29, 2009 (Thursday)

Andrew sent me a copy of the attorney's letter to Countrywide on my behalf. The letter provides the lender an overview of the TILA violations found through the forensic audit of my loan.

[ocalalady]

Schnelle,
I am keeping my fingers crossed for you. I have also found violations in our docs. Do you think they will be a big help in getting a modification?

[Schnelle]

Andrew,

Kevin, the mortgage investigator from the law office had told me that during the review period credit reporting is also suspended so not making a payment will supposedly not affect your credit report.

Are you 100% sure that not making payments will ding your credit? In addition, my HELOC minimum payment is different every month how would I know what payment to make if they don't send me the bill?

[LHarveyMadman]

In some cases, the lender freezes all reporting to the credit agencies during the modification process. Bank of America did that without my asking for it. You can call your lender to ask for a similar credit reporting freeze, to be left in place until all the dust settles.

[Schnelle]

ocalalady,

In my opinion, it depends on the type of loan that you have. If your loan is considered predatory (Option ARM, Subprime loans) then the violations found is a strong leverage against Lender.

My loan is considered conventional and the violations found is very common so I don't believe it would help my case as much.

Thank you for stopping by and I wish you the best.

[Schnelle]

For those who want to follow the progress of other members that chose the path of hiring Griswold and Agdeppa here are two good threads:

1) Join Me in My Journey Using an Attorney for Loan Modification

2) Just hired J. Griswold Law to handle Loan Mod w/ CW

I have them bookmarked.

[Schnelle]

LHarveyMadman,

"In some cases, the lender freezes all reporting to the credit agencies during the modification process. Bank of America did that without my asking for it. You can call your lender to ask for a similar credit reporting freeze, to be left in place until all the dust settles."

Thank you for that piece of information! I have great appreciation for the wealth of useful knowledge you have shared in my thread.

[newjersey24]

Hey Schnelle,

And you were right, I didnt not have to make any payments with WAMU while its in process. As I confirmed it with WAMU today. I wont have to make payment till March 1st plus a $2,000 fee.

I would just recommend to call loan mititagation just to confirm, as each mortgage company might have different policies. not sure, but doenst hurt for other ppl to check to confirm!

Hope all is well with you.

[Andrew]

Schnelle not making your payment does hurt your credit. The only time it doesnt is during the 20 day period for the QWR, but if they answer before 20 days then they are not bound by the 20 day rule.

[Schnelle]

Originally Posted by Andrew

Schnelle not making your payment does hurt your credit. The only time it doesnt is during the 20 day period for the QWR, but if they answer before 20 days then they are not bound by the 20 day rule.

Andrew, thank you for clarifying the Countrywide payment issue. I used my bank's online banking service to send an interest-only payment to Countrywide for my first loan that is due Feb. 01, 2009.

[Schnelle]

Update (Feb. 04, 2009)

Andrew emailed me with the following update:

- Fannie Mae are the investors on my loan; I may be required to be on 5 month forbearance to get a modification.

- He was also told that I may qualify for the ag settlement which would not require me to be in forbearance.

[Schnelle]

The investors on my loans are the following:

1st Loan: Fannie Mae
2nd Loan: Bank of New York

Currently, I do not know what to expect...

[mom111]

What does "not flagged" mean?

Please advise. Thanks.

[Schnelle]

mom111,

"What does "not flagged" mean?"

I meant not prequalified for any modification programs.

[Schnelle]

Feb. 8, 2008 (Sunday)

I got an email from Andrew informing me that Countrywide called him back about my loans. Countrywide confirmed that my two loans are currently being reviewed and that they estimate to have an answer within 2 weeks.

Andrew added that they have been good at returning mods within their estimated time line.

I was surprised to get an email from Andrew on a Sunday!

[newjersey24]

Good to hear! Let hope Coutrywide is just as good as approving the loan mod as they are responding within their own timeframe.

Schnelle, Have you discussed with attorney about rates and terms you looking to get?

Originally Posted by Schnelle

Feb. 8, 2008 (Sunday)

I got an email from Andrew informing me that Countrywide called him back about my loans. Countrywide confirmed that my two loans are currently being reviewed and that they estimate to have an answer within 2 weeks.

Andrew added that they have been good at returning mods within their estimated time line.

I was surprised to get an email from Andrew on a Sunday!

[ocalalady]

Hi Schnelle...I have the same question as nj24....I am hoping that I'll get the chance to go over the rates/terms that we are hoping for....at least let us know what they're thinking of before they propose it to cw. One of my emails to Frederick stated these, so Im hoping they consider that.
Hope these two weeks fly and you'll have good news soon!

[Schnelle]

newjersey24 and ocalalady,

According to attorney Griswold and my mortgage investigator, Kevin they always propose principal reduction for all of their clients. Below are the additional terms proposed for me which was based on our income and expense worksheet.

1^st Loan - 4% fixed for 30 years
2^nd Loan – 5% fixed for 30 years

[ocalalady]

that's what I thought you were going for....that is what we are hoping for, something fixed for the life of loan. I was going to see if they'd lengthen term to 40 years...not sure if they are doing that.

[Schnelle]

Update

Feb. 13, 2009

I am trying to keep myself as calm as possible as I write this although I can feel my blood rushing through my head.

I just got an email from Loan Safe Solutions with an email communication from Countrywide.

For my 1st loan Countrywide said that my loan is already at 6% for 6 more years and that the investors may not be able to go lower than that permanently.

For my HELOC Countrywide said that my margin is already at 0.00% and that there is nothing more they can do for this loan.

I am speechless. We cannot continue living our life on a negative cash flow. I feel like I am running out of options.

[Schnelle]

Update:

Feb. 14, 2008

Just got back home from a nice Valentine's Day brunch with my husband it is also our 7th year anniversary.

Bless Andrew's heart for getting back to me early this morning with a comforting message allowing me to have a calmer mind on this supposedly special day.

In his email he said that he responded back to renegotiate the terms we wanted. He added that we will keep on fighting. He expect to hear back from them around Tuesday since Monday is a holiday.

I am feeling really nervous about the end result. If I cannot reduce my payment at least $300 bucks a month, I believe I will have no other option but to walk away and take a credit hit.

"A home is not a hole"

[Schnelle]

I mentioned on my previous post that for my HELOC Countrywide said that my margin is already at 0.00% and that there is nothing more they can do for this loan.

Is it not possible for an adjustable HELOC to be converted into a fixed rate? Right now my current interest rate is at 3.25% which is the lowest I have ever had it at however I have had it as high as 8% months ago.

We live on a fixed income and can't really afford fluctuating payments; I would not mind an increase of our interest rate up to 5% for as long as it is fixed for the life of the loan.

Anyone here have had their HELOC converted to fixed from adjustable?

[ocalalady]

oh no....this is terrible. Don't you live in one of the states that were involved in the settlement?

Did you see that the gov't has put a freeze on any foreclosure through March until they figure out what to do....and I watched the "House of Cards" on msnbc the other night...very interesting.

Your present situation is what I was worrying about....to have paid 3K and now be still stuck? I really do hope that you will get better news soon.

And I agree....the Heloc should be allowed to be made fixed!

We are keeping you in our thoughts, Schnelle....hang in there.

[Schnelle]

ocalalady,

Thank you for your kind words.

I have no regrets about using the services of Loan Safe Solutions, with my emotions possibly taking control of me, I may not be suitable to negotiate with Countrywide. I trust that Andrew will do his best to get me the best possible term.

What Countrywide/Investors may not have realized is that the factors that are keeping me from not defaulting are:

1.My moral obligation to work things out with them to find a common ground and share the loss.

2.Maintaining my good credit.

Once my credit is destroyed and all hope of getting into an affordable mortgage terms has been taken away, there is no turning back from walking away.

[LHarveyMadman]

Originally Posted by Schnelle

I mentioned on my previous post that for my HELOC Countrywide said that my margin is already at 0.00% and that there is nothing more they can do for this loan.

Is it not possible for an adjustable HELOC to be converted into a fixed rate? Right now my current interest rate is at 3.25% which is the lowest I have ever had it at however I have had it as high as 8% months ago.

We live on a fixed income and can't really afford fluctuating payments; I would not mind an increase of our interest rate up to 5% for as long as it is fixed for the life of the loan.

Anyone here have had their HELOC converted to fixed from adjustable?

Check the terms of your HELOC. Many HELOCs come with an option to convert some or all of your your balance to a fixed rate.

HOWEVER - and it is a big however - it does NOT mean that you will be able to lock your current interest rate. In the language of the fixed rate conversion option, there is often some cryptic statement that says that "a different margin will apply" to the conversion. This is an indirect way of saying that they won't simply fix your current variable rate at its present value.

My example: My HELOC currently has an interest rate of 4.49% (prime + 1.24%). I called to see what my rate would be if I fixed it now. I was told that it would be 10.99%!

Like it or not, this practice is perfectly acceptable and understandable from the standpoint of the lender. The prevailing rates for fixed-rate home equity loans is definitely higher than 3.25% or 4.49%, and has always been well above prime. If they simply let people convert their variable loans to fixed loans at the variable rate, then everyone would take advantage of the loophole.