Conventional ARM Loan

[rtwm33]

Told by Countrywide that because we have a conventional ARM loan (interest only payment, rate @ 6.25% for 10 years, until 2016), I only qualify for a capitalization modication that adds the arrears to the balance, keeps the interest rate the same, and therefore increases my payments (sounds like a repayment agreement). I was told, they cannot change the term or reduce the interest rate on this product.

Does anyone know if this is true? Is this something I should escalate? How can I get them to consider reducing the interest rate or increasing the term?

My husband's sales salary has been reduced almost in half and I am contacting Countrywide for some relief and they are offering me the opportunity to pay more!

My next call is to our second mortgage holder - CitiMortgage. Any thoughts on dealing with them? Based on the current value of our home, they are completely under water.

Help!!!...we are about to be several months behind.

[MP927]

Hi rtwm,
I have the exact same mortgage interest only for 10 years @ 6.5%. We had to go this loan to get out of our neg am just to stop the principal increase.
Our loan balance is $305K, and we would never qualify for that based on income so we went stated income (this was Aug. 2007). Now we have gone through all 401K money and savings so we are at the end of the road. I am applying to NACA for assistance because we are paying 56% of gross income and 64% of net income for the payment. I think NACA is our only hope to get them to extend the loan for 40 years and lower the interest rate to a more affordable level.
I don't have Citi to help you on the other issue tho'

[Moe Bedard]

HI rtwm33,


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

The modifications given are up to the investors on the loan..................
If this is the only property that you own, as MP927 mentioned, you can try going through NACA instead and see if they will be able to help you.
here is the link.........
https://www.naca.com/refinance/refinanceTenStep.jsp

[helpsavemyhome]

Hi rtwm33,

I also have a Conventional ARM, Interest Only, 7.75%. I was told by CW that I don't qualify for any type of program since I have this type of loan. I have recently gone to NACA who has just submitted a restructure proposal to CW. My NACA counselor is sure that our loan was one of the "predatory" loans.

Definitely contact NACA and be sure to have them check over your HUD-1 and 1003 paperwork from closing.

May I ask if the investor of your loan is Bank of New York?